Paying for college or career training can feel overwhelming, but don’t worry—YOU'RE NOT ALONE.

In fact, 72% of undergraduate students in the U.S. rely on financial aid, with an average award of $14,100 per year (NCES, 2023). Whether you’re heading to a university, trade school, or training program, there are government programs designed to help you cover the costs.

This comprehensive guide breaks down everything step-by-step. Follow along to learn how to apply for aid, what you might be eligible for, and strategies to reduce costs so you can pursue your education with confidence.

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FAFSA: Your First Step to Financial Aid

Filling out the Free Application for Federal Student Aid (FAFSA) is the gateway to most financial aid. It determines your eligibility for federal grants, loans, work-study, and many state and school programs. Every student planning to attend college or career school should submit the FAFSA each academic year. Here’s how:

1. Note the Deadlines and Apply Early

The FAFSA typically opens each year on October 1 for the upcoming academic year. The federal deadline to submit your application for the 2025–26 academic year is 11:59 p.m. Central Time (CT) on June 30, 2026. Any necessary corrections or updates must be submitted by 11:59 p.m. CT on September 12, 2026.

However, don't wait—many states and colleges have earlier priority deadlines. Aid is often awarded on a first-come, first-served basis, so aim to submit your FAFSA as soon as possible after it becomes available.

2. Create Your FSA ID

Before starting the FAFSA, create a Federal Student Aid (FSA) ID—a username and password that serves as your electronic signature and provides access to federal student aid systems. If you're a dependent student, your parent(s) will also need their own FSA IDs. Use a personal email address (not a school email) and securely store your login information.

3. Gather Required Documents

Having the right information on hand will make the FAFSA easier. Collect these documents for both the student (you) and parents (if dependent)​.

• Social Security numbers (or Alien Registration numbers if you are not U.S. citizens). It’s crucial to enter these correctly​.
• Driver’s license (if you have one)​.
• Tax returns and income records for the “prior-prior” year (two years before the school year you’re applying for). For example, use 2022 tax info for the 2024–25 FAFSA. Have IRS 1040 forms and W-2s or 1099s from that year​. (You can use the IRS Data Retrieval Tool within FAFSA to import tax info accurately.)
• Untaxed income records, if applicable – e.g. child support received, disability benefits, etc.​.
• Bank statements and investment records – this includes checking/savings balances, and investments or business/farm assets if any​. (Don’t include retirement accounts or home equity; FAFSA doesn’t ask for those.)
• List of colleges you want to receive your FAFSA (you can add up to 20 schools). It helps to have their names or Federal School Codes ready. Even if you’re undecided, list every school you might apply to – you can always update later​

4. Complete the FAFSA Online

Visit the official FAFSA website at studentaid.gov and log in with your FSA ID. Follow the prompts to complete each section of the application. Utilize the IRS Data Retrieval Tool to accurately import your tax information, which helps prevent errors and simplifies the process. Ensure all information is entered correctly and completely.

5. Sign & Submit

Once everything is filled out, the student (and parent, if required) sign with FSA IDs and submit the FAFSA. You’ll get a confirmation page – save or print it. If you provided an email, you should receive a confirmation message as well.

6. Review Your FAFSA Submission Summary

After submission, you will receive a FAFSA Submission Summary (formerly known as the Student Aid Report or SAR). This document summarizes the information you reported and provides an estimate of your federal student aid eligibility.

How to Access Your FAFSA Submission Summary

You can view your FAFSA Submission Summary online by:

• Logging into your StudentAid.gov account.
• Navigating to the Dashboard.
• Selecting your processed FAFSA submission under the "My Activity" section.
• Clicking “View FAFSA Submission Summary” to access your report.

What’s Included in the FAFSA Submission Summary

Your summary contains four key sections:

• Eligibility Overview – Displays your Student Aid Index (SAI), estimated Pell Grant eligibility, and potential federal student loans. If selected for verification, an asterisk (*) will appear next to your SAI.
• FAFSA Form Answers – Lists your submitted responses. Review this section carefully to ensure accuracy.
• School Information – Provides details about the schools you selected, including their graduation rates, average costs, and loan default rates.
• Next Steps – Outlines actions you may need to take, such as making corrections or submitting additional documentation.

What to Do If You Find an Error

If you notice incorrect or missing information, you can make corrections by:

• Selecting the “Make a Correction” button on the FAFSA Form Answers tab.
• Updating personal details, financial data, or school selections.
• Ensuring all required signatures and approvals are included.

Some corrections, such as updating tax return information due to an amended return or changes in financial circumstances, must be handled through your school’s financial aid office.

Next Steps After Reviewing

• If your information is correct, keep a copy for your records.
• If your FAFSA Submission Summary indicates action required, follow the listed steps promptly to avoid delays in receiving your aid offer.
• Expect to receive official financial aid offers from schools after they process your FAFSA information.

7. Review and Respond to Financial Aid Offers

The schools you listed on your FAFSA will send financial aid offers after you're accepted. Carefully review and compare these offers, noting the grants, scholarships, work-study opportunities, and loan options. Follow each school's instructions to accept, decline, or adjust the aid packages as necessary.

Note: To avoid pitfalls, submit the FAFSA every year you’re in school and submit it early. Don’t assume you won’t qualify – many factors (family size, multiple kids in college, etc.) influence aid​. And remember, FAFSA is free – if a site asks for payment, you’re on the wrong website. Use the .gov site.

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Pell Grants: Free Federal Money for Students

Federal Pell Grants are the cornerstone grant of federal student aid – essentially free money for college that does not have to be repaid. They are awarded to undergraduate students with financial need, and if you qualify, you’ll see a Pell Grant included in your aid offer from your college​. Here’s what you need to know about Pell Grants:

1. Understand Pell Grant Eligibility

Federal Pell Grants offer undergraduate students financial aid that doesn't require repayment. Key eligibility factors include:

• Undergraduate Status: You must not have already earned a bachelor's, graduate, or professional degree.
• Financial Need: Pell Grants are for students demonstrating significant financial need, assessed through your FAFSA application.
• Additional Eligibility: If your parent died serving active duty in the U.S. armed forces or as a public safety officer, you might qualify for additional Pell funds.

2. Complete the FAFSA

To apply for a Pell Grant, complete and submit the FAFSA form.

Detailed instructions are provided in the earlier section titled "FAFSA: Your First Step to Financial Aid."

3. Review Your FAFSA Submission Summary

After submitting the FAFSA, you will receive a FAFSA Submission Summary. This document provides a summary of your submitted FAFSA information and estimates your federal student aid eligibility.

For instructions on how to access and review your FAFSA Submission Summary, refer to the earlier section titled "FAFSA: Your First Step to Financial Aid."

4. Pell Grant Award Amounts

The maximum Federal Pell Grant for the 2025–26 award year (July 1, 2025, to June 30, 2026) is $7,395. The exact amount you receive depends on:

• Student Aid Index (SAI) calculated from your FAFSA
• Cost of Attendance (COA) set by your school
• Enrollment Status (full-time or part-time)
• Attendance Duration (full academic year or less)

5. Maintain Pell Grant Eligibility

To remain eligible for Pell Grants, maintain enrollment in an eligible undergraduate program, fill out the FAFSA each academic year, and meet your school's standards for satisfactory academic progress. Pell Grant eligibility ends when you earn your first bachelor's or professional degree, or after you've exhausted 12 full-time terms (around six years).

6. Disbursement of Pell Grant Funds

Your school will disburse Pell Grant funds by applying them to tuition, fees, and other educational costs, paying you directly, or combining both methods. Generally, you'll receive disbursements at least once per academic term (semester, trimester, or quarter). Non-traditional term schools typically make at least two disbursements per academic year.

7. Year-Round Pell Grants

Eligible students may receive additional Pell Grant funding for attending summer or additional terms within the same award year. This allows you to receive up to 150% of your scheduled Pell Grant award annually. For specific eligibility, contact your school's financial aid office.

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Explore Additional Federal and State Grants

Beyond Pell Grants, several federal and state programs offer financial assistance to students. Here's a detailed overview:

Federal Grants

1. Federal Supplemental Educational Opportunity Grant (FSEOG)

• Purpose: Provides additional grant funds to undergraduate students with exceptional financial need.​
• Eligibility: Priority is given to students who receive Federal Pell Grants and demonstrate the lowest Expected Family Contributions (EFCs).​
• Award Amount: Ranges from $100 to $4,000 per year, depending on financial need and availability of funds at the institution.​
• Application Process: Complete the Free Application for Federal Student Aid (FAFSA). Funds are limited, so early application is recommended.​

2. Teacher Education Assistance for College and Higher Education (TEACH) Grant

• Purpose: Offers grants to students who intend to teach in high-need fields at low-income schools.​
• Eligibility: Must be enrolled in a TEACH-Grant-eligible program, meet academic achievement requirements, and sign an agreement to serve as a full-time teacher in a high-need field at a low-income school for at least four years within eight years of completing the program.​
• Award Amount: Up to $4,000 per year.​
• Service Obligation: Failure to fulfill the teaching commitment converts the grant into a Direct Unsubsidized Loan with interest accrued from the date of disbursement.​
• Application Process: Complete the FAFSA, enroll in a TEACH-Grant-eligible program, and sign the TEACH Grant Agreement to Serve.​

State Grants

1. California’s Cal Grant

• Purpose: Provides financial aid to California residents attending eligible colleges in the state.​
• Eligibility: Must be a California resident, meet financial and academic requirements, and attend a qualifying institution.​
• Award Types:
  • Cal Grant A: Assists with tuition and fees at public and private colleges.​
  • Cal Grant B: Provides a living allowance and assistance with tuition and fees after the first year.​
  • Cal Grant C: Assists with tuition and training costs for occupational or technical programs.​
• Application Process: Complete the FAFSA or the California Dream Act Application and submit a verified GPA by the March 2 deadline.​

2. New York's Tuition Assistance Program (TAP)

• Purpose: Helps eligible New York State residents pay tuition at approved schools in New York State.​
• Eligibility: Must be a U.S. citizen or eligible noncitizen, a New York State resident, enrolled full-time in an approved program, and meet income requirements.​
• Award Amount: Up to $5,665 per year, depending on tuition charges and financial need.​
• Application Process: Complete the FAFSA and the TAP application.​

3. Texas’s Toward Excellence, Access & Success (TEXAS) Grant

• Purpose: Provides financial aid to students with financial need attending Texas public universities.​
• Eligibility: Must be a Texas resident, demonstrate financial need, enroll in a baccalaureate program, and meet academic requirements.​
• Award Amount: Varies based on the institution's tuition and fees, with funding subject to availability.​
• Application Process: Complete the FAFSA or the Texas Application for State Financial Aid (TASFA).​

Note: State grant programs have specific eligibility criteria and application deadlines. It's essential to consult the official state education agency websites for the most accurate and up-to-date information.

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WIOA Funding: Grants for Career Training Programs

The Workforce Innovation and Opportunity Act (WIOA) provides federal funding for career and technical training programs, assisting individuals in obtaining the skills necessary for employment. These grants are administered through local American Job Centers (AJCs) and can cover expenses such as tuition, training materials, and support services.​

1. Determine Eligibility

WIOA programs primarily serve:​

• Adults with low income or barriers to employment: Priority is given to recipients of public assistance, other low-income individuals, and those who are basic skills deficient. ​
• Dislocated workers: Individuals who have lost their jobs due to layoffs, plant closures, or other economic factors. ​
• Youth (ages 14–24): Particularly those who are out-of-school and face barriers to education and employment. ​

Veterans and eligible military spouses often receive priority for WIOA services. Eligibility criteria may vary by local area; consult your local AJC for specific requirements.​

2. Locate Your Nearest American Job Center

WIOA funding is accessed through local American Job Centers (AJCs), also known as one-stop career centers. Each state has a network of these centers. You can find your nearest center via the U.S. Department of Labor’s directory. ​

3. Meet with a Career Counselor

At the AJC, you'll meet with a career counselor who will assess your eligibility and help you develop an Individual Employment Plan. This plan identifies suitable training programs and outlines steps toward achieving your employment goals.​

4. Explore Approved Training Programs

WIOA funding supports various career and technical education programs that lead to in-demand jobs. This is ideal for certifications in healthcare such as Certified Nursing Assistants (CNAs), phlebotomists, and medical assistants. It also covers IT roles like cybersecurity and coding bootcamps, as well as trucking licenses such as CDL training. Additionally, WIOA can fund skilled trades programs, including careers as electricians, plumbers, and welders.

5. Apply for WIOA Funding

The application process generally involves:​

• Completing an application form​. Remember, you won’t use the FAFSA; you apply through your local American Job Center (AJC).
• Providing documentation to establish eligibility (e.g., proof of income, layoff notice)​
• Collaborating with your career counselor to finalize your training plan​

If approved, you'll enroll in the selected program, and WIOA funds will be disbursed directly to the training provider.​

6. Understand Funding Coverage

WIOA funding may cover:​

• Tuition and training fees​
• Books and supplies​
• Uniforms​
• Supportive services like transportation or childcare assistance during training​

Note: The extent of coverage can vary; discuss specific details with your career counselor.​

7. Timing and Availability

WIOA programs operate on a rolling basis, but funding can be limited each year. It's advisable to inquire as early as possible. Some areas might have waitlists if demand is high. Also, you must apply before starting your training, as WIOA generally does not reimburse for training already begun or completed.​

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Understand Federal Student Loans (Subsidized vs. Unsubsidized)

Federal student loans are a key resource for financing higher education when grants and scholarships are insufficient. They offer favorable terms compared to private loans, including fixed interest rates and flexible repayment options. Here's an overview:​

1. Types of Federal Student Loans

• Direct Subsidized Loans: Available to undergraduate students with demonstrated financial need. The U.S. Department of Education pays the interest on these loans while you're enrolled at least half-time, during the six-month grace period after leaving school, and during deferment periods. ​
• Direct Unsubsidized Loans: Available to undergraduate, graduate, and professional students regardless of financial need. Interest accrues from the time the loan is disbursed, and you're responsible for all interest payments. ​

2. Interest Rates for 2024–2025

For loans first disbursed between July 1, 2024, and June 30, 2025, the fixed interest rates are:​

Undergraduate Students:

• Direct Subsidized and Unsubsidized Loans: 6.53%​

Graduate or Professional Students:

• Direct Unsubsidized Loans: 8.08%​

Parents and Graduate or Professional Students:

• Direct PLUS Loans: 9.08%​

3. Annual and Aggregate Loan Limits

Federal student loans have both annual and aggregate (total) borrowing limits:​

For Undergraduate Students:

Dependent Students:

Annual Limits:

• First Year: Up to $5,500 (maximum $3,500 subsidized)
• Second Year: Up to $6,500 (maximum $4,500 subsidized)
• Third Year and Beyond: Up to $7,500 (maximum $5,500 subsidized)

Aggregate Limit: $31,000 (maximum $23,000 subsidized)

Independent Students (and Dependent Students Whose Parents Don't Qualify for PLUS Loans):

Annual Limits:

• First Year: Up to $9,500 (maximum $3,500 subsidized)
• Second Year: Up to $10,500 (maximum $4,500 subsidized)
• Third Year and Beyond: Up to $12,500 (maximum $5,500 subsidized)

Aggregate Limit: $57,500 (maximum $23,000 subsidized)

For Graduate or Professional Students:

• Annual Limit: Up to $20,500 in unsubsidized loans​
• Aggregate Limit: $138,500 (including undergraduate loans; maximum $65,500 subsidized)​

4. Repayment Options

Federal student loans offer various repayment plans to accommodate different financial situations:​

• Standard Repayment Plan: Fixed payments over 10 years.​
• Graduated Repayment Plan: Payments start lower and increase every two years, typically over 10 years.
• Extended Repayment Plan: Fixed or graduated payments over 25 years; available to borrowers with more than $30,000 in outstanding loans.
• Income-Driven Repayment Plans: Payments are based on income and family size, potentially leading to loan forgiveness after 20–25 years of qualifying payments.​

5. Application Process

To apply for federal student loans:​

1. Complete the Free Application for Federal Student Aid (FAFSA): This form determines your eligibility for federal financial aid, including loans.​

2. Review Your Financial Aid Offer: After submitting the FAFSA, your school will provide a financial aid offer detailing the types and amounts of aid available to you.​

3. Accept or Decline Loans: You can choose to accept the full loan amount, a partial amount, or decline the loan.​

4. Complete Entrance Counseling and Sign a Master Promissory Note (MPN): These are required steps before receiving loan funds.​

5. Considerations

• Borrow Responsibly: Only borrow what you need, as loans must be repaid with interest.​
• Understand Your Obligations: Be aware of your repayment terms and options to avoid default.​
• Stay Informed: Keep track of any changes in federal student loan policies that may affect your loans.

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Check for State and Local Programs

In addition to federal financial aid, many states and local communities offer programs to assist with tuition and workforce development. These initiatives can provide substantial support for students pursuing higher education or vocational training. Here are some notable examples:​

State Tuition Assistance Programs:

• Tennessee Promise: This program offers eligible Tennessee high school graduates up to two and a half years of tuition-free attendance at community or technical colleges. It operates as a last-dollar scholarship, covering tuition and mandatory fees not addressed by other financial aid sources like the Pell Grant or HOPE Scholarship. Participants also benefit from mentorship and are required to complete community service hours. The application period typically runs from August 1 to November 1 each year. ​
• New York Excelsior Scholarship: This scholarship enables students from families with an adjusted gross income of $125,000 or less to attend a SUNY or CUNY college tuition-free. Applicants must be enrolled full-time, complete at least 30 credits per year, and commit to living and working in New York State for a duration equal to the number of years they received the scholarship. The application for the 2025–26 academic year is expected to open in May 2025. ​

Local Workforce Development Programs:

Many local workforce boards and American Job Centers offer training funds and support services. These programs can cover tuition, training materials, and even provide assistance with transportation or childcare for eligible individuals. To explore these opportunities, contact your local workforce development board or visit an American Job Center. They can provide information on available programs tailored to your community's needs.​

Community and Civic Organizations:

Local community foundations, nonprofits, and civic groups often provide scholarships or grants to residents. These organizations may have specific criteria based on academic achievement, community involvement, or financial need. It's advisable to research and reach out to such organizations in your area to inquire about potential funding opportunities.​

How to Find These Opportunities:

• State Resources: Visit your state's higher education agency website, which typically lists state-administered aid programs, including grants, scholarships, and loan forgiveness options.​
• Local Resources: Check your city or county government websites for information on education assistance programs. Additionally, local career centers or American Job Centers can provide guidance on workforce-related funds and training opportunities.​
• Educational Institutions: Consult your school's financial aid office, as they often have information on state and local programs or can direct you to relevant resources.

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Find Scholarships and Additional Funding Sources

Scholarships and employer-sponsored tuition assistance programs can significantly reduce the financial burden of education. Here's how to explore these opportunities:​

1. Employer Tuition Assistance Programs

Several companies offer tuition assistance to their employees:​

• Starbucks: Through the Starbucks College Achievement Plan, eligible employees can earn a bachelor's degree online from Arizona State University with 100% tuition coverage.
• Amazon: Amazon's Career Choice program provides tuition support for employees pursuing bachelor's degrees, industry certifications, high school diplomas, GEDs, and ESL proficiency certifications.
• Walmart: The Live Better U program offers Walmart and Sam's Club associates access to education programs, including certificates and degrees, with tuition and books covered.

2. Military and Veteran Benefits

The GI Bill provides educational benefits to veterans and their families:​

• GI Bill Benefits: Eligible veterans can receive financial support for tuition, housing, and other educational expenses.

3. Scholarship Databases

Utilize reputable scholarship databases to find additional funding opportunities:​

• U.S. Department of Labor's Scholarship Search Tool: This tool allows you to search for scholarships based on various criteria.

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Maximize Your Aid with These Tips

• Apply Early: Early FAFSA filing and scholarship applications increase your chances of receiving funds.​
• Ensure Accuracy: Mistakes on aid applications can reduce or delay funding—double-check all information.​
• Appeal Decisions: If your financial circumstances change (job loss, medical expenses), you can appeal your aid offer through your school’s financial aid office.​
• Keep Costs Low: Reduce borrowing by starting at community college, choosing affordable housing, or working part-time.​
• Maintain Eligibility: Stay on top of academic requirements to renew grants, scholarships, and federal aid.​

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FAQs

What is the best way to fund education?

The most effective approach combines federal grants, state funding, scholarships, and employer tuition assistance, supplemented by federal student loans if necessary.​

Who provides the most funding for education?

The U.S. federal government provides the largest share of student financial aid through grants, loans, and work-study programs, notably through the FAFSA.​

What is the source of most funding for public education?

Most public education funding comes from state and local governments, supported by federal funds primarily for student aid and special programs.​

Conclusion

Navigating how to pay for college or career training doesn’t have to be stressful. By carefully exploring these government funding options, staying on top of deadlines, and knowing where to look, you can get the most out of every dollar available.

Ready to get started? Check out Dreambound to easily find programs that match your career goals, schedule, and budget. Don't just dream it, do it!