Final answer:
The FAFSA provides students with grants, scholarships, work-study options, and loans. Understanding, completing, and annually updating the FAFSA is essential for determining financial aid eligibility. Reviewing aid offers and maintaining satisfactory academic progress are key to utilizing the aid received effectively.
Step-by-step explanation:
The main components of aid that a student can receive from the Free Application for Federal Student Aid (FAFSA) are grants, scholarships, work-study programs, and loans. It's important for students to understand how to complete the FAFSA provided by the United States Department of Education, which can be done annually to determine eligibility for financial aid during the next academic year. Additionally, students should analyze and compare student loan options, including both private and federal loans, as well as research and evaluate various work-study program opportunities that may be available to them.
After submitting the FAFSA, students will receive a Student Aid Report which details the aid offer from colleges. It is crucial to review your aid offer to understand the types and amounts of aid being offered, as well as the expected costs for the year. Following acceptance of the aid, the financial aid office will apply it towards school expenses and disburse any remaining balance to cover other college costs. Maintaining eligibility for financial aid typically requires making satisfactory academic progress.