According to College Board, a year of tuition at a public four-year school in 1987 cost $3,190. Now, a year at that same school would cost $9,970. College prices are increasing, and going to school is more expensive than ever before. But that doesn't mean you have to resign yourself to borrowing hundreds of thousands of dollars to earn a degree. We at Student Loan Hero created this guide to a complicated financial aid system so that you know all your options and can make informed choices. I hope this encourages you to explore as many scholarship and grant opportunities as possible and navigate through the process of applying for federal and private student loans.

This guide provides a description of Federal Student Aid programs and the application process. Readers will find information on federal student aid as a source for funding postsecondary education, and know where to go for more detailed information. Funding Your Education: The Guide to Federal Student Aid speaks to high school students, college students, adults, and parents interested in finding out about financial aid from the federal government to help pay for education expenses at an eligible college, technical school, vocational school, or graduate school.

Title IV of the Higher Education Act (HEA) authorises the major federal student aid programs, including the student loan programs, which are the largest source of aid for students. In FY2000, the Federal Family Education Loan (FFEL) programs and the Federal Direct Student Loan (DL) program supported an estimated $33.1 billion in new loan volume. Several types of loans are available: Federal need-based subsidised Stafford loans (under which the government pays the interest while the borrower is in school, a grace period of deferment); unsubsidised Stafford loans; Federal PLUS loans (for parents of undergraduate students); and Federal Consolidation loans. Overall, student loan volume has been increased in recent years, from $24 billion in FY1994 to $33 billion in FY2000. The number of loans being made has increased over the same period going from 6,483,000 to 8,618,000. The average amount that individual students are borrowing in any given year has not increased as dramatically. This new book examines important issues related to this cornerstone of American higher education.