Financial aid guides
FAFSA & how to pay for college
Every real way to pay — grants, work-study, federal loans, and (last) private loans — in plain English, with 2026–27 amounts and the official source for each. The order that saves the most money: free money first, then your own money, then borrow as little as possible.
The order that saves the most money
Use our tools as you go: scholarships, free & promise programs, net-price estimate, and 529 savings.
Figures below are for the 2026–27 award year. Federal interest rates reset every July 1 and grant and loan limits can change — always confirm the current numbers at the official source linked in each card. Figures reviewed August 2026. This page is a guide, not financial advice.
Start with the FAFSA
FAFSA — start here
The Free Application for Federal Student Aid is the single form that unlocks almost everything below — federal grants, work-study, and federal loans, plus most state and college aid. It is free to file. Submit it as early as you can each year (the form opens in the fall for the following school year); many states and schools award aid first-come, first-served.
- Cost to file
- Free — always at the official site
- Covers
- Federal + most state & college aid
How to file the FAFSA, step by step
- 1
Create your StudentAid.gov account (FSA ID)
The student and each contributor each need their own account. Set them up early — identity verification can take a day or more, and you can’t finish the form without it.
- 2
Know who your contributors are
A contributor is anyone required to provide information: you, your spouse, a biological or adoptive parent, or a parent’s spouse. Being a contributor does not obligate anyone to pay for college.
- 3
Gather what you need
Social Security numbers (or account usernames) and records of income and assets. Once you consent, the form pulls your federal tax data straight from the IRS — you won’t retype it.
- 4
Start the form and answer the questions
Begin at the official site. Your answers set your dependency status and which contributors are required, plus your school and enrollment plans.
- 5
Give IRS-data consent — this is required
The student and every contributor must consent to the IRS data exchange, even if they didn’t file a tax return. Without consent from everyone, you are not eligible for federal aid.
- 6
Invite your contributors to finish their part
Each contributor logs in with their own account, consents, and completes their section. The FAFSA is not submitted until everyone has finished and signed.
- 7
List your schools (up to 20)
Every school you list receives your information and uses it to build a financial-aid offer. Add any school you’re seriously considering.
- 8
Sign, submit, and review your Submission Summary
After all signatures, you’ll get a confirmation and a FAFSA Submission Summary. Check your Student Aid Index (SAI) — it replaced the old EFC and can be as low as −1,500 — and correct any errors.
- 9
Compare aid offers — then refile every year
Schools send award letters; weigh them with our net-price tool. Financial aid isn’t automatic year to year, so submit a new FAFSA for each award year you’re enrolled.
Grants & work-study (free or earned)
Federal Pell Grant
Need-based grant for undergraduates that you do not repay — the foundation of most aid packages. Your amount depends on your Student Aid Index, cost of attendance, and enrollment.
- Maximum (2026–27)
- $7,395
- Repay?
- No — it’s a grant
FSEOG
The Federal Supplemental Educational Opportunity Grant is extra need-based grant money for students with exceptional need. It is administered by the school, so funds are limited and go to the neediest students first — file the FAFSA early.
- Typical range
- $100 – $4,000 / year
- Administered by
- Your college (limited funds)
TEACH Grant
Up to $4,000 a year if you agree to teach a high-need subject in a low-income school for four years. Miss the service commitment and it converts to a Direct Unsubsidized Loan you must repay with interest — read the terms carefully.
- Amount
- Up to $4,000 / year
- Catch
- Service obligation — or it becomes a loan
Federal Work-Study
Part-time jobs — often on campus and related to your studies — that let you earn money for expenses. You must indicate interest on the FAFSA; awards are limited and school-administered. Earnings are paid to you as you work rather than applied to tuition automatically.
- Administered by
- Your college (limited funds)
Federal loans (borrow these first)
Direct Subsidized Loan
Need-based loan for undergraduates. The government pays the interest while you’re in school at least half-time (and during grace/deferment) — the least expensive federal loan. Borrow this before unsubsidized.
- Interest rate (2026–27)
- 6.52% fixed
- Loan fee
- ~1.057%
- Max per year (subsidized portion)
- $3,500 / $4,500 / $5,500 by year
Direct Unsubsidized Loan
Available to undergraduate and graduate students regardless of financial need. Interest accrues from disbursement (including while you’re in school), so it costs more than subsidized. Annual limits stack with any subsidized amount you borrow.
- Rate (2026–27)
- 6.52% undergrad · 8.07% graduate
- Loan fee
- ~1.057%
- Annual limit — dependent undergrad
- $5,500 → $6,500 → $7,500 (1st/2nd/3rd+ yr)
- Annual limit — independent undergrad
- $9,500 → $10,500 → $12,500
- Aggregate undergrad
- $31,000 dependent · $57,500 independent (≤ $23,000 subsidized)
Parent PLUS Loan
A federal loan a parent of a dependent undergraduate can take out to cover costs remaining after other aid. It requires a credit check and is the parent’s legal responsibility. New borrowing caps took effect July 1, 2026 — plan around them.
- Interest rate (2026–27)
- 9.07% fixed
- Loan fee
- ~4.228%
- New cap (from Jul 1, 2026)
- $20,000 / year · $65,000 total per student
Graduate & Professional Loans
Graduate and professional students borrow through Direct Unsubsidized Loans. As of July 1, 2026, Grad PLUS Loans are eliminated for new borrowers, and new annual and lifetime caps apply — so factor private or institutional options into a graduate budget earlier.
- Rate (2026–27)
- 8.07% fixed
- New cap — graduate
- $20,500 / year · $100,000 lifetime
- New cap — professional
- $50,000 / year · $200,000 lifetime
- Grad PLUS
- Eliminated for new borrowers Jul 1, 2026
State aid & private loans
State grants & aid
Most states offer their own grants, scholarships, and tuition programs — many funded by the same FAFSA (some states have an added form and an early deadline). Amounts and eligibility vary widely by state and by school.
- How to get it
- File the FAFSA — then check your state agency
Private / alternative loans
Loans from banks, credit unions, and other lenders — not part of the federal system. They are credit-based (often needing a co-signer) and usually lack the protections, income-driven repayment, and forgiveness options of federal loans. Treat these as a last resort, only after exhausting grants, scholarships, work-study, and federal loans, and compare terms carefully.
- Best used
- Last, to fill a gap after federal aid
What changed for 2026–27
- Grad PLUS Loans ended for new borrowers on July 1, 2026 (with limited continuing-enrollment exceptions).
- Parent PLUS is now capped at $20,000/year and $65,000 total per dependent student.
- New graduate caps: $20,500/yr & $100,000 lifetime (grad), $50,000/yr & $200,000 lifetime (professional).
- A new $257,500 lifetime cap across a student’s own federal loans (Parent PLUS has its own $65,000 cap).
- A new repayment plan (RAP) with forgiveness after 30 years, and a temporary auto-pay interest reduction of 1% (up from 0.25%, Jul 2026–Jun 2028).
FAFSA & financial aid FAQ
Is the FAFSA really free?
Yes. It is the Free Application for Federal Student Aid — always file it at the official government site and never pay a fee to submit it.
When should I file the FAFSA?
The form opens in the fall for the following school year. Many states and colleges award aid first-come, first-served and have early deadlines, so file as soon as it opens rather than waiting.
Who counts as a "contributor"?
A contributor is anyone required to provide information and sign: you, your spouse, a biological or adoptive parent, or a parent’s spouse. Being listed as a contributor does not mean that person is required to pay for college.
Do I have to consent to the IRS data exchange?
Yes. The student and every contributor must provide consent and approval, even if they did not file a tax return. Without consent from everyone, you cannot receive federal student aid.
What is the Student Aid Index (SAI)?
The SAI is an index number (from −1,500 to 999,999) calculated from your FAFSA. It replaced the old Expected Family Contribution, and schools use it to determine how much aid you may receive — a lower number generally means more need-based aid.
Do my parents’ finances count?
For a dependent student, yes. Whether you are dependent is decided by the FAFSA’s questions — not by who claims you on their tax return.
What if a parent won’t share their information?
Talk to the college’s financial aid office. In limited cases you can submit with a provisional status and qualify for unsubsidized loans, or document special circumstances for a dependency override.
Grants vs. loans — what’s the difference?
Grants (like Pell and FSEOG) are money you don’t repay; loans must be repaid with interest. Always use grants, scholarships, and work-study before borrowing, and borrow federal loans before private ones.
Does filing the FAFSA affect my admission chances?
At most schools, no — the FAFSA is separate from the admission decision. Filing it is how you find out what aid you qualify for.
Put it together for your schools
See what each college actually costs your family, then build a plan.