Pay for College

Think of the FAFSA — the Free Application for Federal Student Aid — as your gateway to paying for higher education and training.

Filing the FAFSA is the first step in the financial aid process. It determines your eligibility not only for federal student aid, but also for many forms of state and institutional aid, such as scholarships and grants.

The FAFSA is free and usually takes less than 30 minutes to complete. Without the FAFSA, you may leave free financial aid on the table and paying more than necessary for college or training.

Before you begin the FAFSA, you will need to create your FSA ID, which is your FAFSA username and password. Whether you are a student, parent, or borrower, you will need to create your own account to fill out the FAFSA and manage your federal student aid. You will need your Social Security number (if you have one) and your own email address. Create an FSA ID at StudentAid.gov.

Keep your FAFSA ID in a safe place so that you can use it every year when you fill out the FAFSA.

After you have your FAFSA ID, you can begin completing the FAFSA application. Begin the FAFSA at StudentAid.gov.

Never pay to complete the FAFSA. Free help is available from your school, EFC members, and other trusted organizations. Find an EFC member.

Scholarships and grants are the best kind of money for college—they are "free" money that you do not have to repay. Grants and scholarships that appear on your financial aid offer usually come from the federal government, state programs, or the college itself.

Grants are generally awarded based on a student’s financial situation (need-based aid) as determined by their FAFSA (and other financial aid applications).

Scholarships are often awarded based on merit (merit-based aid) based on the achievements or skills of the student.

Federal Grants

Pell Grant: Provided by the federal government to undergraduate students based on financial need as determined through your FASFA application. The maximum award is set by Congress, and your award can vary based on financial need, cost of attendance, and enrolment status.

Workforce Pell Grant: Expands the federal Pell Grant program for use at approved short-term, career-focused training programs ranging from 150–599 clock hours, over 8–15 weeks to completion. This program, effective July 1, 2026, has specific rules and requirements and you should check with your educational provider to inquire if you and the programs offered are eligible for this grant program.

Federal Supplemental Educational Opportunity Grant (FSEOG): A federal grant administered by a participating school (campus-based grant) and is awarded to undergraduate students with exceptional financial need with priority generally given to Pell Grant recipients. Award amounts depend in part upon the federal allocation provided to the school.

TEACH Grant: A federal grant for undergraduate and graduate students who agree to teach in high-need subject areas at low-income schools. Warning, if a recipient fails to satisfy the service obligation this grant turns into a Direct Unsubsidized Loan that must be repaid.

Federal Work-Study Program: A campus-based program that is not a grant or a scholarship but does not have to be repaid. It provides part-time employment opportunities to help eligible students earn money to pay educational expenses while enrolled in school. It is available to undergraduate, graduate, and professional students who demonstrate financial need as determined through the FAFSA. The college determines eligibility and awards based on its federal allocation and institutional policies.

State Grants/Scholarships

Many EFC members offer and/or administer scholarships and grants, and many provide links to free scholarship search sites.

You can also visit the Department of Education’s state index to find your state’s higher education website and learn more about their options.

Institutional Grants/Scholarships

Reach out to your college or university’s financial aid office to discuss any scholarship or grant programs they offer.

Private Scholarships

In addition to the scholarships and grants offered through your financial aid offer, there are thousands of organizations that provide private scholarships to students, and these are usually tailored to specific needs, interests, and programs. These can come from nonprofit organizations, associations, community groups, companies, and other types of organized groups. They each have their own applications process and their own eligibility criteria.

There are many free ways to find scholarships. Never pay to find scholarships!

Your high school guidance counselor, your college, your employer, a professional association, a cultural center, or a local organization may all be a resource for finding scholarships, especially local ones that are specific to your area.

There are also several reputable websites that provide free scholarship search tools. Here are just a few:

Bold

Big Future

Fastweb

Red Kite

Step 1 Scholarships

Unigo

If you have exhausted your options for scholarships and grants and still need money to cover the cost of tuition and living expenses, student loans may help bridge the gap.

It is important to know that education loans are borrowed money that must be repaid with interest over time. The interest rate, repayment options as well as deferment and forgiveness opportunities will vary based on the type of loan you choose. Carefully review all the conditions of the loan and understand the terms before signing.

Your best resource to navigate the different federal loan options will be your college or university’s financial aid office. They will be able to explain your options and how to apply for different loans.

Federal Student Loans

The U.S. Department of Education offers several federal loan programs depending on your needs and whether it is a student or a parent borrowing the money. Remember that you must file a FAFSA to qualify for federal loans. Maximize federal student loans first before considering private loans.

Federal Direct Stafford Loans: Are student loans provided by the U.S. Department of Education through application with the school you are attending. All terms and conditions, including the interest rate, origination fee, repayment plans, and borrowing limits are set by Congress and eligibility is determined through the FAFSA application. They do not require a credit check and are solely the responsibility of the student borrower.

There are two types of Federal Direct Stafford Loans: subsidized and unsubsidized.

Subsidized Loans: Are available to undergraduate students with demonstrated financial need. No payments are required while enrolled at least half-time, and the interest is paid by the federal government while you are enrolled at least half-time, during the six-month grace period, and during certain authorized deferment periods.

Unsubsidized Loans: Are available to undergraduate, graduate, and professional students and are not based on financial need, however the FAFSA must be completed. Interest begins to accrue immediately upon disbursement, but payments may be deferred while the student is enrolled and during a six-month grace period.

IMPORANT NOTE: You should always exhaust grants, scholarships, campus-based aid, then Federal Direct Stafford Loans before looking to borrow from the federal Parent PLUS loan or a private education loan.

Federal Parent PLUS Loans

The federal Parent PLUS loan is quite different from federal student loans.

The Parent PLUS loan is the debt of the parent of a dependent undergraduate student – not the student. It has a much higher interest rate and origination fee than the Federal student loan offers, and there are fewer repayment options and borrower benefits under the Parent PLUS program.

To qualify for the Parent PLUS loan, the U.S. Department of Education performs a limited credit review of the parent borrower to determine whether the borrower has an “adverse credit history.” It does not require a traditional assessment of creditworthiness, ability to repay, or debt-to-income ratios like most consumer loans.

If you are considering federal Parent PLUS loans, you should also consider private education loans and compare several offers against the terms and interest rate of the Parent PLUS loan.

Private Education Loans

Private education loans are usually made by for-profit companies, credit unions, or nonprofit/state-based lenders. They may be the debt of the student, parent, or both (cosigner). They usually consider a borrower’s creditworthiness, and those with strong credit profiles will have lower interest rates. Some lenders are also using other criteria such as post-graduation earnings and potential to repay to determine eligibility.

If you are looking for a private education loan, here are some things to consider:

• Shop around. Compare loan offers from multiple lenders, including at least one nonprofit or state-based lender, before choosing a loan.
• Do not base your decision on the advertised rate alone. Keep in mind that most lenders advertise attractive "as low as" interest rates, but your actual interest rate will depend on factors such as your credit profile (and, in some cases, your cosigner's credit). You can request a prequalification, which does not affect your credit score, to see the rate you will receive.
• Depending on your credit score and your income, you may need a cosigner. Even if a cosigner is not required, it is possible that having a cosigner will qualify you for a lower rate. Make sure that your cosigner understands that they are equally obligated as you are to pay back the loan.
• There may be fixed and variable interest rate options. Know what you are applying for and what rate you will receive.
• Use “best lender” lists from web and AI searches, shopping sites, and press articles with caution. A fee or commission is often paid by the lender to be listed and the rate advertised may not be the rate you will receive.
• Ask about repayment options and other benefits that may be offered.

Consider Nonprofit and State-Based Loans

If you are considering a private student loan to fill the gap between total cost of attendance and your financial aid, explore education loans offered by nonprofit or state-based higher education finance organizations. These programs prioritize affordability, transparency, and borrower protection over profit maximization.

Many nonprofit/state-based lenders provide loans exclusively to state residents, and students attend college in their state, while others offer regional and national loan programs.

Public-purpose missions guide nonprofit/state-based lenders, to help students access and affordably pay for college. They follow a strong set of Guiding Principles that affirm their commitment to working in your best interests.

Nonprofit/state-based lenders may offer you the lowest interest rate with the most benefits, such as flexible repayment plans, interest rate reductions, and cosigner release options.

Tips Before You Borrow

• Whether you are looking at the Parent PLUS loan or a private education loan, always exhaust your federal, state, and institutional aid first, then maximize your federal Direct Subsidized and Unsubsidized loans. Parent PLUS and private education loans should be your last option.
• Shop lenders and know your interest rate, fees, and repayment terms BEFORE you borrow.
• Importantly, only borrow what you need, not necessarily the maximum amount that you are eligible to borrow.
• Keep track of how much you are borrowing from both federal and private sources – not just each year, but in total. Know what you owe!

All these tips can make a big difference in how much you pay over the life of the loan, and an informed choice may save you thousands of dollars.

School Financial Aid Office

Your best resource to navigate all your financial aid questions will be your school’s financial aid office. They can help you understand your options, including institutional aid, campus-based aid programs, grants, and scholarships.

Nonprofit and State-based EFC Members

EFC members across the country are ready to help you with the college process. Get free, expert help with filing your FAFSA, college planning, understanding your financial aid offer, repaying your student loans, and more!

Find the nonprofit or state-based lender in your state.

Additional Resources

Federal Student Aid - Manage and Repay Your Federal Student Loans: Information to help you manage and repay your student loans, including calculators and other tools to manage loans.

CFPB - Your Financial Path to Graduation: Estimate how much you will owe in student loans and how much you will need to make to repay those loans.