free_grant_money_collegeDid you know that every year Congress allocates around $67 million for student aid? The money is to be awarded in the form of gifts, loans, grants and scholarships, all based on a student’s qualifications and/or need.

However, of the various types of student funding aid available from the United States Federal Government, the preferred choice is grants, by both both students and parents alike, mainly because grant money for college, unlike a student loan, doesn’t have to be paid back. It is based solely on need, calculated by putting your financial data through a formula, which includes your income and various expenses. This is then used to determine your award.To apply for free grant money for college, you will need to complete the Free Application for Federal Student Aid (FAFSA). The quickest way to do that is to apply online at FAFSA.ed.gov.

You can also complete the CSS Profile Application. The Profile is a must if you are an incoming freshman, since most colleges require this form in addition to the FAFSA to determine if you qualify for free grant money for college.

Your CSS Profile and your FAFSA data are then used to calculate the total amount of free grant money for college you are eligible to receive. Here’s how:

When you apply for the FAFSA free grant money for college, you will be asked to submit several documents; the data received become the basis of your EFC.

On the FAFSA form, there is a place called the CPS or the Central Processing System. A formula, called Federal Methodology, will be used by the Dept of Education, which administers FAFSA, to determine your eligibility (EFC)

Knowing your EFC is very important in applying for free grant money for college – this is a key factor is determining your need, since the EFC is what the government says the amount is you should be able to pay toward your own education based on your state of residence, household size, number in college and student and parent income and other asset information.

In addition to the EFC is the COA or Cost of Attendance. This school you are planning to attend establishes this figure- it is composed of tuition, room and board, fees and other estimated miscellaneous expenses, such as books, supplies, personal, etc.

Your financial need is calculated by subtracting the EFC from the COA to determine if you qualify for free grant money for college. The formula is the standard guideline in determining how much need-based financial aid you may receive from the government.

The equation, simplified, looks like this:

COA – EFC = Financial Need

Once the ‘need’ is determined, the school financial aid office should then use their various’need-based’ resources to try and meet your financial needs for college.

Originally posted 2009-04-19 20:03:12. Republished by Old Post Promoter.

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