Common questions about grants and student loans.
These answers cover general information about how financial aid works. Always verify specifics with your school's financial aid office, your loan servicer, or official government sources.
What is the difference between a grant and a student loan?
Grants are financial aid that generally do not need to be repaid, provided you meet the terms of the award such as enrollment and academic requirements. Student loans are borrowed funds that must be repaid with interest after you leave school or drop below half-time enrollment. Understanding this distinction is a critical first step before reviewing any financial aid package.
What is FAFSA and why does it matter?
The Free Application for Federal Student Aid (FAFSA) is the primary form used to determine eligibility for federal student aid programs including the Pell Grant and federal direct loans. Most states and many colleges also use FAFSA data to award their own grant programs, making it an important step for almost all students seeking financial assistance.
When should I submit my FAFSA?
The federal FAFSA opens each October for the following academic year. Many states and schools have earlier priority deadlines. Filing as soon as possible after October 1 gives you the best chance at the broadest range of grant and aid programs, many of which are awarded on a first-come, first-served basis.
Can adult and returning students qualify for grants and aid?
Yes. Many federal, state, and institutional grant programs are available to adult learners, career changers, and students returning to school after a gap. Eligibility is generally based on financial need, enrollment status, and program type rather than age. Some programs are specifically designed for non-traditional students.
What does cost of attendance include?
Cost of attendance (COA) is a school's estimate of the total annual cost of attending, including tuition and fees, housing, meals, books and supplies, transportation, and personal expenses. Your financial aid package is calculated relative to COA, so understanding the full figure helps you evaluate whether an aid offer truly covers your expenses.
How is financial need calculated?
Financial need is calculated as the difference between a school's cost of attendance and your Student Aid Index (SAI), which is derived from your FAFSA data including household income, assets, family size, and enrollment status. Schools use your SAI to determine how much need-based aid you may receive.
What are my options for repaying federal student loans?
Federal student loans generally offer several repayment plan options, including standard, graduated, extended, and income-driven repayment plans. Each affects your monthly payment amount and total interest differently. Your loan servicer can provide the specific plans available for your loans and help you evaluate which option fits your situation.
Can I appeal my financial aid offer?
Yes. Most schools offer a financial aid appeal or professional judgment process. If your financial circumstances have changed significantly since you filed FAFSA — such as job loss or major medical expenses — you can request a review from your school's financial aid office with supporting documentation.
Does Student Aid Source help me apply for grants or loans?
No. Student Aid Source is an informational resource only. We do not process applications, determine eligibility, originate loans, or represent any school, government agency, lender, or funding program. For official federal aid applications, visit StudentAid.gov. For school-specific aid, contact your school's financial aid office directly. For loan-specific questions, contact your loan servicer or lender.