a2

REDUCING THE COST a3 FIRST THINGS FIRST:

OF EDUCATION AM I ELIGIBLE?
Lower-cost schools Basic Requirements
Work or volunteer opportunities Financial Need
Tax breaks Educational Requirements
Hope tax credit or Lifetime Legal and Other Requirements
Learning tax credit
“Match” Requirements

Lower-cost schools Financial Need and Expected Family

If you’ll be working toward a bachelor’s degree, you might Contribution (EFC)
consider starting at a two-year community college and then
I think I have some special circumstances in
transferring to a four-year school. Community colleges are
my family. Are these considered in determining
usually less expensive than four-year schools. (Some four-
my financial needs?
year schools that are partially funded by local or state taxes
can be less expensive as well.) Because attending a community
college allows you to live at home, you can save money on Basic Requirements
room and board. To receive aid from the federal student aid programs discussed
in this guide, you must meet certain criteria:
If you decide to start at a community
Financial Need
college, make sure your community Except for some loan programs, you must show you have finan-
college courses will transfer to your cial need, according to our requirements. See “Financial Need and
four-year college and that they will Expected Family Contribution* (EFC)” on page 4.

count toward your bachelor’s degree. Educational Requirements

• You must demonstrate by one of the following
Discuss any concerns you have about means that you are qualified to enroll in
transfer courses and credits with the postsecondary education:
college registrar. • Have a high school diploma or a General
Education Development (GED) Certificate.*
Work or volunteer opportunities
You can work part-time to pay part of your costs. Be sure • Pass an approved ability-to-benefit* (ATB) test.
your work and school schedules don’t conflict and that you If you don’t have a diploma or GED, you can
save enough time for studying. take an approved ATB test to determine whether
you can benefit from the education offered at
Tax breaks that school.
Certain borrowers can take a tax deduction for the interest • Meet other standards your state established and
actually paid on student loans. This benefit applies to all loans that we have approved.
used to pay for postsecondary education school expenses. The
maximum deduction is $2,500 a year. • Complete a high school education in a home
school setting approved under state law.
Hope tax credit or Lifetime Learning tax credit
• You must be enrolled or accepted for enrollment as
You or your parents might also qualify for one or both of
a regular student* working toward a degree or certificate
these tax credits. See page 15 for additional information about
in an eligible program.*
tax credits, deductions and the Internal Revenue Service.

02%0!2%8 !00,98 2%#%)6%8 2%0!9

The Guide | 



• You must meet satisfactory academic progress* • You may be eligible to receive federal student aid if
standards set by the postsecondary school you are you have been convicted under federal or state law
or will be attending. of selling or possessing illegal drugs. For information
or to find out about your status, call 1-800-4-FED-AID
You may not receive aid for correspondence (1-800-433-3243) or go to www.fafsa.ed.gov, click
or telecommunications courses unless on “Worksheets” in the left column, then select
“Drug Worksheet.”
they are part of an associate’s, bachelor’s
or graduate degree program. Even if you’re ineligible for federal student aid because
of a drug conviction, you should still complete the FAFSA
Legal and Other Requirements because most schools and states use FAFSA information
• You must be a U.S. citizen or eligible noncitizen.* to award nonfederal aid.

• You must have a valid Social Security number (SSN) • You have limited eligibility for federal student aid
(unless you’re from the Republic of the Marshall while you’re incarcerated. Generally, you’re eligible
Islands, the Federated States of Micronesia or the only for a Pell Grant and then only if you’re NOT
Republic of Palau). If you need a SSN, you can find incarcerated in a federal or state penal institution.
out more about applying for one at www.ssa.gov “Match” Requirements
or by calling 1-800-772-1213. TTY users can call When you apply for student financial aid from federal student
1-800-325-0778. aid programs, we verify some of your information with certain
• You must certify that you will use federal student federal agencies, including the Social Security Administration
aid only for educational purposes. You must also certify (for verification of Social Security numbers and U.S. citizenship
that you are not in default* on a federal student loan and status). If the information doesn’t match, the discrepancy must
do not owe money on a federal student grant (which be resolved before you can receive federal student aid. We also
could happen if you withdraw from school, for example). check your records against our database, the National Student
You certify these items when you apply for federal student Loan Data System (NSLDS),* to verify that you don’t have a
aid and sign a promissory note* to obtain these funds. defaulted federal student loan, haven’t received an overpayment
on a federal grant or a Federal Perkins Loan and haven’t borrowed
• You must comply with Selective Service registration.* more than the total limit allowed.
If you’re a male, aged 18 through 25 and you have not
registered, you can, at the same time you complete your Financial Need and Expected
FAFSA, give the Selective Service System permission to Family Contribution (EFC)
register you by means of the FAFSA. You can also register Aid for most of our programs is awarded based on financial need
online at www.sss.gov or call 1-847-688-6888. TTY (except for unsubsidized Stafford Loans and PLUS Loans).
users can call 1-847-688-2567.
DETERMINING YOUR
DRUG CONVICTION? FINANCIAL NEED
You must answer Question 31 We use an Expected Family
on the FAFSA, “Have you ever Contribution* (EFC) number to
been convicted of possessing determine your financial need:
or selling illegal drugs?” If you Cost of Attendance*
leave it blank, you automatically - Expected Family Contribution (EFC)
_______________________________
become ineligible for federal
= Financial Need
student aid.

DID
YOU KNOW …
Federal Student Aid issued $74 billion in new loans in 2004
(plus another $32 billion in consolidation loans). Ten million
students in 6,200 postsecondary institutions received these loans.

 | The Guide