What is Financial Aid?
Financial aid is money that helps pay for college. Merit-based aid is money given to students with special talents, skills, or abilities, while need-based aid is available to those students who demonstrate financial need.

What Kinds of Financial Aid are Available?
Grants and scholarships are gifts that do not have to be paid back. Grants are usually given because the student has financial need, while scholarships are usually given to recognize the student's academic achievement, athletic ability or other talent. Federal grants include the Pell Grant, the Academic Competitiveness Grant (ACG) and the National Science and Mathematics Access to Retain Talent (SMART) Grant. Loans must be repaid, usually with interest, after the student graduates or stops going to school. Employment, usually called work-study, allows the student to work and earn money to help pay for school. These jobs are usually on-campus.

Who Should Apply for Need-Based Financial Aid?
All students should apply for need-based financial aid. Many families mistakenly think they may not qualify for this type of aid based on their income and assets. However, if students choose not to apply for need-based financial aid, they may be closing the door on opportunities that could help pay for college. There are other sources of financial assistance available regardless of need, but most require that the student file the Free Application for Federal Student Aid (FAFSA) first.

How Does A Student Apply For Need-Based Financial Aid?
The FAFSA is the form used to apply for need-based financial aid. The student must complete the FAFSA to apply for New Mexico's need-based grants, as well as for federal financial aid and other aid from colleges. Check out the College Aid Calculator, a tool to help you plan and estimate your share of college costs.

The US Department of Education supplies and processes the FAFSA. The processed information is then sent to the Office of Student Financial Assistance and to all the colleges listed on the form. Many colleges may require that the student complete one or more supplemental application forms, such as the CSS Profile, to apply for institutional financial aid. Ask the colleges for information about any additional applications they may require.

There are two types of FAFSA’s. If the student is applying for financial aid for the first time (or did not apply for the past year), he must complete the regular FAFSA. The form has many questions that the student and family must answer. Students can apply by filling out a paper copy of the FAFSA and mailing it in the envelope that comes with the form. A student may also apply electronically from a home computer or from a computer at the high school or college and submit the application online at www.fafsa.ed.gov. Be sure to mail appropriate signature pages or apply for a Personal Identifcation Number (PIN) in order to “sign” the electronic application.

For additional information from the U.S. Department of Education regarding financial aid consult:

Funding Your Education, an introductory publication for students not yet enrolled in a postsecondary school, provides general information in English or Spanish about the U.S. Department of Education's federal student financial aid programs.