FSA is financial help for students enrolled in eligible programs at participating schools to cover school (a four-year or two-year public or private educational institution, a career school or trade school) expenses, including tuition and fees, room and board, books and supplies, and transportation. Most federal aid is need based. The three most common types of aid are grants, loans, and work-study.

Grants are a type of financial aid that does not have to be repaid. Generally, grants are for undergraduate students and the grant amount is based on need, cost of attendance, and enrollment status. Federal Pell Grants for the 2002-2003 school year ranged from $400 to $4,000. Federal Supplemental Educational Opportunity Grants will range from $100 to $4,000.

Loans are borrowed money that must be repaid with interest. Both undergraduate and graduate students may borrow money. Parents may also borrow to pay education expenses for dependent undergraduate students. Maximum loan amounts depend on the student's year in school.

• Federal Stafford Loans are made to students and PLUS Loans are made to parents through two loan programs:
• • William D. Ford Federal Direct Loan (Direct Loan) Program: Eligible students and parents borrow directly from the federal government at participating schools. Direct Loans include Direct Stafford Loans, Direct PLUS Loans, and Direct Consolidation Loans.
  • Federal Family Education Loan (FFEL) Program: Private lenders provide federally guaranteed funds. FFELs include FFEL Stafford Loans, FFEL PLUS Loans, and FFEL Consolidation Loans.
• Federal Perkins Loans are offered by participating schools to provide students who demonstrate the most need with low-interest loans.

Work-study lets you earn money while enrolled in school to help pay for education expenses.

Note: Not all schools participate in all FSA programs. Ask the financial aid administrator at your school about the programs that are available.