Financial aid is money to supplement what you and your family can afford to pay for your education. It may be used for tuition, fees, books, supplies, room, meal plans and other educational expenses. Your eligibility for financial aid depends on several factors, such as your personal and family income and the school's cost. The Free Application for Federal Student Aid (FAFSA) is the U.S. Department of Education's application for federal and state student aid programs. You must complete and submit this form yearly in order to receive any type of financial aid: grants, work-study or loans.

There are two categories of financial aid:

• Need-Based - includes grants, loans, work-study and certain scholarships.


• Non-Need-Based - includes certain loans, work-study, and scholarships.

Free money - Grants don't have to be repaid.  Some common federal grants are the Federal Pell Grant and Federal Supplemental Educational Opportunity Grant (FSEOG). The state of New Mexico offers the New Mexico Student Incentive Grant and Student Choice Grant.

New for 2006, the U.S. Department of Education has announced two new federal grant programs for recent high school graduates with demonstrated financial need.  The Academic Competitiveness and National Science & Mathematics Access to Retain Talent (SMART) grants will become available in the 2006-07 school year. 

Scholarships are available from both public and private sources. The Lottery Scholarship, for example, is available to all New Mexico residents attending school in New Mexico, with certain requirements.

New Mexico College Affordability Grant
New Mexico public college and university students who have unmet financial need and don’t quality for other state financial aid  (such as Lottery scholarships or state grants) can apply for College Affordability funds of up to $1,000 per term to help offset their school expenses. Go to http://hed.state.nm.us or see your financial aid office for more information.

Scholarships are available for students with academic, athletic, artistic or other special qualifications. Some scholarships are based on financial need, but others are not. Usually, there are different applications for each scholarship. Your high school counselor and the financial aid office at the college you will be attending are great resources for scholarship information.  

Money you earn - Work-study does not need to be repaid. Both Federal and New Mexico work-study programs are available. Work-study is part-time employment on or off campus. Depending on your award, you may work up to 20 hours per week. Plus, you may have a chance to work in an area related to your major.

Money you pay back - Some common loans are Federal Perkins Loan, Federal Stafford Loan and Federal Parent Loan for Undergraduate Students (PLUS) and PLUS Loans for Graduate Students. Click here for more information about loan programs.