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The experience of going to college varies from person to person. Where you go, when you go, why you go — all of these factors are as individual as the students in a graduating class.

Yet, while the differences are many, nearly everyone asks the same question at least once:��How am I going to pay for this?

Enter financial aid. Financial aid is��money that students can use to pay for higher education, whether that’s at college, a university or a trade school. Its sources are equally diverse: Financial aid can come from the federal government, state agencies, educational institutions and private sources.

Here, we’ll explore one type of financial aid, federal financial aid, including how it works, when you have to repay it and what types are out there.��

How does federal financial aid work?

When it comes to the federal financial aid award process, students can expect a structured process.

The first of these is��filling out the����(�󴡹󳧴�^®) form, which enables the U.S. Department of Education to determine what aid a student is eligible for.

Students have to complete the FAFSA form every year to be considered for financial aid. The FAFSA form generally becomes available to students every Oct. 1, and the deadline to submit the FAFSA form is June 30 each year. It’s also worth noting that schools may have their own deadlines, so it’s a good idea to complete the FAFSA form early.

Students wishing to pursue other aid opportunities, such as a scholarship, may do so through their school of choice or through an independent organization. Students may have to provide additional information and applications to be considered.

What's federal financial aid used for?

The obvious answer is tuition but going to school costs more than what a student pays for classes. Students may want to apply any funds remaining after tuition and fees to help cover expenses such as food and housing, books and supplies, or other education-related expenses.��

Grants and student loans can usually be applied to other educational expenses after tuition and fees are covered. While financial aid can help cover expenses, it is important to��borrow responsibly����and only borrow for the expenses a student truly needs. The����offers additional information on responsible borrowing.

Schools generally apply grant funds first and then loan funds when applying federal financial aid ��toward a student’s education. Any��remaining funds may be paid to the student��to use for education-related expenses. In the event a student doesn’t need the extra funds, they can cancel all or part of their loan within 120 days of the disbursement date without incurring interest or fees. Federal student loans can also be repaid in advance without penalty.��

Types of federal financial aid

There’s more than one type of federal financial aid to consider.��

Grants

Grants are��funds that are applied to a student’s education, and typically do not have to be repaid. Most federal grants are��based on financial need and are available from the U.S. Department of Education. These are administered by the financial aid office at schools and universities.

One of the most common federal grants is the��Pell Grant, which is awarded to students who demonstrate “” and who have not earned a bachelor’s, graduate or professional degree.

Loans

As with any other loan,��student loans accrue interest and have to be repaid. Loans can be helpful for students looking to fill the gap between what college costs and what they can afford (either out of pocket or with scholarships and grants).

There are different types of federal student loans out there.��Direct Subsidized loans��are need-based loans offered to eligible undergraduate students, for example, while��Direct PLUS loans��are available to parents of dependent undergraduate students.

Direct Unsubsidized loans��are available to eligible undergraduate, graduate and professional students, but eligibility is not based on financial need.

The U.S. Department of Education serves as the lender for all these loans, and a borrower repays his or her loans to a servicer assigned by the U.S. Department of Education.

More resources

The federal government offers additional aid programs for . These include grants, loans, loan deferment and loan forgiveness, as well as other options.��

Do I have to pay back financial aid?

The answer to this all-important question depends on the type of aid a student accepts.��Most grants, for example, don’t have to be repaid��except under certain conditions. These generally pertain to situations when a student fails to complete the semester or enrollment period or to students who provided false information during the application process.

Federal loans, on the other hand, do have to be repaid. Other��notable differences with regard to federal loans��include:

• The interest rate is fixed��and usually lower than that of a private loan.
• Students��don’t need a credit check��or a cosigner for most of them.
• Forgiveness and repayment programs exist for those who qualify. Information on repaying loans can be found on the��

The other thing to bear in mind is that all of this is just what’s available through federal financial aid.��State agencies,��nonprofit organizations,��schools��and even��companies��may offer more options, from tuition assistance to scholarships.

So, while everyone at some point asks, “How am I going to pay for this?” the answer can depend on who’s doing the asking.

Financial aid at 91��Ƭ��

91��Ƭ�� is committed to making paying for school transparent and affordable. Here are a few ways it strives to accomplish that:

• Savings Explorer^®��tool: Students curious to see how much they can save on a degree at 91��Ƭ�� can answer a few questions through this online tool and identify transfer credits and other cost-saving opportunities.��
• Scholarships: Qualifying new students are awarded a scholarship or the best savings they are eligible for.
• Transfer credits: The University is a transfer-friendly institution accepting college credits from more than 5,000 accredited institutions. The TransferPath app invites prospective students who have some college experience to receive a free, unofficial evaluation of which credits may transfer.
• Employer tuition benefits: The University offers reduced tuition to employees at hundreds of organizations to make career-relevant education accessible.
• Self-paced alternative credit providers: The University works with select learning providers so students may earn additional credits toward their undergraduate degrees.
• Military credits: Members of all branches of the military can have their military experience assessed through the American Council on Education. 91��Ƭ�� honors these credit recommendations.
• Prior Learning Assessments:��Certifications, trainings, licenses and even life skills all bring something to the educational table.��Prior Learning Assessments offer students the opportunity to demonstrate eligible skills for college credit.
• Fixed tuition rate: As part of the University’s tuition guarantee, students can confidently enroll in a degree program with the knowledge that the cost won’t change over the course of their program.

Learn more about financial aid at 91��Ƭ��, or request more information to learn about the University’s career-relevant skills and degree programs.