Education beyond high school in the United States is optional 
but has become a necessary investment in future employment and 
life satisfaction for many people. Most, however, cant afford to 
make this investment without some outside monetary assistance in 
meeting the cost of postsecondary education. Over the years 
public and private sources of money have been developed 
specifically to provide that help for education. As increasing, 
but limited, amounts of money have become available, a 
standardized method of determining eligibility has evolved to 
promote equitable disbursement of student financial aid. This 
process is known as the financial aid system.
	The financial aid system is based upon a partnership between the
student, parents, postsecondary educational institutions, state 
and federal government, and available private resources. For the 
student with a disability the partnership may be extended to 
include a Vocational Rehabilitation Agency and the Social 
Security Administration. Such a partnership requires cooperation 
of all, and an understanding by each of their responsibilities 
within the financial aid process.
	Obtaining financial aid can be a complex process. Laws are
frequently amended and eligibility requirements, policy, and 
disbursement of governmental funds change each year. As the 
costs of obtaining postsecondary education rise, keeping 
informed about changes in the financial aid system becomes 
imperative. This resource paper provides an overview of the 
financial aid system. It also discusses the roles and 
responsibilities of those who play a significant part in the 
process of providing aid to students with disabilities. The 
paper also addresses the financial aid application procedure, 
and suggests timelines and resources for those individuals 
seeking financial aid. The information in this paper was based 
upon the best available information at the time of publication 
in the fall of 1993 and reflects information for the 1994-1995 
school year. The HEATH staff have prepared this resource paper 
for students, parents, and all professionals who assist students 
with disabilities to secure financial assistance for 
postsecondary education.
	The discussion below covers the various types of financial aid,
the technical words and phrases used to discuss it, and the 
process involved in its disbursement. Particular attention is 
given to those expenses which are considered disability related, 
and suggestions are made about ways in which some of those 
expenses may be met. There follows a brief description of 
Vocational Rehabilitation (VR) Agencies, the services that they 
may provide, and the interaction between the state VR agency and 
the Financial Aid Office of a postsecondary institution. 
Finally, suggestions are offered about additional possibilities 
for financial assistance.
WHAT IS FINANCIAL AID?
	Financial aid is a system of financial assistance to help
individuals meet their educational expenses when their own 
resources are not sufficient. A student who believes that his 
own and family resources are not sufficient to pay for all the 
costs of attendance (tuition, room and board, books, 
transportation, campus activities, etc.) should apply for 
financial aid through the Financial Aid Office of the 
institution he or she plans to attend. Three types of aid are 
available:
	
	1.	GrantsGifts and scholarships which do not have to be repaid
	2.	LoansMoney borrowed to cover school costs, which must be
repaid (usually with interest) over a specified period of time 
(usually after the student has left school or graduated) 
	3.	WorkEmployment which enables a student to earn a portion of
school costs.
	
	The Federal Government contributes to all three types of
student financial aid. These programs are explained in a 
booklet called The Student Guide: Financial Aid From the U.S. 
Department of Education. Free copies of this booklet may be 
obtained by writing Federal Student Aid Programs, Box 84, 
Washington, DC 20044 or by calling 800-433-3243 or 800-730-8913 
(TT). The programs described in the booklet are:
	
	1.	Federal Pell Grants
	2.	Federal Supplemental Educational Opportunity Grants (SEOG)
	3.	Federal Work-Study (FW-S)
	4.	Federal Perkins Loans
	5.	Federal Family Education Loans (FFEL) including:
		a.	Federal Stafford Loans
			(subsidized and unsubsidized)
		b.	Federal PLUS Loans
	
	All of these programs are based upon financial need of the
student, and his or her family, except the unsubsidized 
Stafford and PLUS programs. Although PLUS and unsibsidized 
Stafford programs do not take into account any family 
contribution, neither can exceed the difference between the 
student's cost of attending a postsecondary institution and the 
student's other financial aid (including scholarships). For 
periods of enrollment beginning on or after July 1, 1994, the 
federal government will begin operation of a new loan program, 
called the Federal Direct Student Loan Program (FDSLP) that will 
be phased in over a five year period so that by 1998-99, Federal 
Direct Loans will comprise at least 60% of the total FFEL and 
FDSLP loan volume. For 1994-95, FDSLP will comprise at least 5% 
of the total FFEL and FDSLP loan volume. During 1994-95, only 
400 schools will participate in this new program.
	During the first several years of its existence, all terms and
conditions of loans made under the FDSLP will be identical to 
those made under the FFEL, except that borrowers under FDSLP 
will be afforded additional repayment options. In fact, from the 
students perspective, the FDSLP will be very similar to FFEL, 
except that the federal government will be providing the loan 
capital, and the school will be executing many of the tasks 
previously performed by the private lender. Even the names of 
the programs within the FDSLPFederal Direct (subsidized and 
unsubsidized) Stafford Loans and Federal Direct PLUS Loans 
mirror the FFEL programs.
	At the time this publication was being finalized in the fall of
1993, a new program of national and community service, 
authorized under the National and Community Service Trust Act of 
1993, was being formulated. Once operational, the program would 
provide individuals age 17 and over the opportunity to earn 
education awards of $4,725 in exchange for full time service of 
at least one year or part time service of at least two years in 
an approved program of community service. An individual would be 
eligible to serve up to two terms and earn up to two educational 
awards.
	Implementation of the program is subject to funds being
appropriated for this purpose. The maximum amount authorized to 
be appropriated for the program over a three year phase in 
period beginning in fiscal year 1994 (FY94) is $1.5 billion not 
to exceed $400 million in FY 94, $500 million in FY 95 and $600 
million in FY 96. For the initial year of the program, beginning 
October 1, 1993 and ending on September 30, 1994, it is expected 
that $370 million will be made available for funding of this new 
initiative. The actual funding for the initial year was less 
than the amount authorized for this purpose. Funding for the 
subsequent years beginning on October 1, 1994 and October 1, 
1995 is yet to be determined but may not exceed the authorized 
funding levels of $500 million and $600 million respectively.
	Some colleges, states, and other entities may also offer aid
that is merit-based, which means that funds are provided to 
students without regard to financial need, if certain conditions 
(such as high grades) are met. The financial aid administrator 
at the school of your choice is the best resource for locating 
merit-based or any other financial aid resources for attending 
that school.
WHAT IS FAMILY
CONTRIBUTION?
	The family contribution is the amount of money the family of a
student is expected to contribute toward college expenses. The 
family includes the student and the students parents in the case 
of a dependent student, or the student (and spouse if any) in 
the case of an independent student. The amount the family is 
expected to contribute is calculated by a standardized formula 
that takes into account the familys financial resources (income 
and assets), family size, and basic living expenses. 
	The calculation of family contribution is based on information
provided by the student's family on a standardized need 
analysis form. All students applying for Federal financial 
assistance are required to complete the Free Application for 
Federal Student Aid (FAFSA). There is no charge to the student 
or the student's family for the processing of this form or for 
determining the student's eligibility for Federal financial 
assistance.
its own program through the provisions of a state plan which has
been developed under the guidelines of the Act and which has 
been approved by RSA. For additional information request 
Vocational Rehabilitation ServicesA Postsecondary Student 
Consumers Guide from HEATH.
	
IS THERE COORDINATION BETWEEN THE
VOCATIONAL
REHABILITATION
AGENCIES AND THE FINANCIAL AID OFFICES?
	Most states have developed working agreements between state
associations of financial aid administrators and Vocational 
Rehabilitation administrators. These agreements, while not 
legally binding, allow for a coordinated effort in providing 
funds for students with disabilities in participating states. 
The agreement, or memorandum of understanding, establishes the 
process a VR agency and postsecondary educational institution 
should follow in determining the aid to be granted to the VR 
client/student. Students served by VR are required to apply for 
student financial aid under the guidelines of the Vocational 
Rehabilitation/Financial Aid Cooperative Agreements discussed 
below.
	Through standardized information exchange forms, the two offices
(VR and Financial Aid) are kept abreast of what the other is 
doing. The process is not a simple one; it takes time and 
requires a constant determined effort by both offices and the 
student. Often a students aid package is recalculated several 
times as any new information is provided by either office.
	The best advice for a student with a disability in the quest for
financial assistance is to contact as early as possible both 
the VR agency where the student is a client and the financial 
aid office of the institution that the student plans to attend 
to be sure to meet both their deadlines. The institution will 
determine the students eligibility for student financial 
assistance and develop an award package. Meanwhile, VR will also 
determine the students additional disability-related needs, and, 
if possible, award funds. Whatever is not covered by the VR 
Agency can be recalculated by the institution into the students 
expenses and, if funds allow, the students award increased. Even 
with excellent cooperation between the financial aid 
administrator and the Vocational Rehabilitation counselor, there 
still may be remaining need for additional family contribution 
or loans.
IS FINANCIAL AID
AVAILABLE FOR
GRADUATE STUDY?
	The increasing importance of graduate or professional study as
part of the educational process has caused concern over the 
availability of funds for graduate study. After a student 
completes an undergraduate degree program, he or she is no 
longer eligible for many sources of federal and state funds. 
Other programs may serve graduate students, but only after all 
undergraduates have been served. Almost all VR agencies refuse 
to fund post baccalaureate education, because there is the 
expectation of employability after completion of a technical, 
community college, or undergraduate degree program. Students who 
are pursuing a second bachelors degree also find problems in 
obtaining funding unless exceptional circumstances prevail. Most 
students, regardless of disability, find themselves financing 
their graduate study without VR assistance. They use the 
traditional routes of institutional scholarships in the field of 
study, part-time or alternate semester employment, loans, 
savings, assistantships, and family contribution as the primary 
routes to the graduate degree.
ARE THERE OTHER
POSSIBLE SOURCES FOR FINANCIAL ASSISTANCE?
Supplemental Security Income
	Supplemental Security Income (SSI) is a Federal program set up
to provide financial assistance to persons who are aged, blind, 
and disabled who have little or no income and resources. The 
amount of SSI payment is dependent upon the income and resources 
of the client. (If the student is under l8, some of the parents 
income and resources will be included.) The student should be 
aware that earnings from work-study or other work may affect SSI 
benefits. If the Social Security Administration approves a Plan 
for Achieving Self Support, the student would be able to set 
aside income and resources that are being used toward a specific 
vocational goal (tuition, savings for equipment or other needs) 
and continue to receive SSI payments. Plans can be developed by 
Vocational Rehabilitation counselors, public or private social 
agencies or groups, anyone assisting the student, or by the 
student. For more information regarding SSI and the Plan for 
Achieving Self Support contact the local Social Security 
Administration office.
Social Security Benefits
The Social Security Disability Insurance (SSDI) program allows
workers and eligible dependents to receive monthly cash 
benefits because of a period of disability. A student who has 
been employed, may file based on his or her own work record. If 
the parents of a student with a disability have filed for Social 
Security or if a parent is deceased, the student may also 
qualify for dependents benefits based on the parents work 
record. For further information on the student provisions and 
eligibility requirements of the various Social Security 
programs, contact the local Social Security Administration 
office.
Talent Search, Educational Opportunity Centers, and Special
Services for Disadvantaged Students
	Talent Search and Educational Opportunity Centers are federally
funded programs located at various sites across the country. 
Some are part of a postsecondary institution and some have been 
established as part of a private or public organization. These 
programs were set up to provide counseling and other services to 
disadvantaged students and students with disabilities. One of 
the responsibilities of the program is to help place students 
and sometimes help to negotiate financial assistance for 
students with the postsecondary institution. Many colleges also 
have federally funded programs of services for disadvantaged 
students, including students with disabilities. These programs 
provide some services, academic assistance, and may provide 
financial assistance as well. Because each program is 
individualized to a specific campus, check with the campus of 
your choice to determine if there is a Special Services Program, 
and what services are offered. 
	For more information on the location of Talent Search,
Educational Opportunity Centers, and Special Services Programs, 
contact Division of Student Service, Room 5065, 400 Maryland 
Avenue, SW, Washington, DC 20202-5249.
State Programs
	Most states now have some form of student assistance. These
programs vary by state. To find out the details of state grants 
and loans students should contact their high school counselor or 
college financial aid administrator.
Private Scholarships
	A variety of unique situations, which may have nothing to do
with disability, may make a student eligible for private 
scholarships. They may include parents place or type of work, 
military experience, ethnic background; students career goals; 
religious affiliation; extracurricular activities, etc. Such 
scholarships may be researched by purchasing or borrowing books 
about financial aid from a school or public library. Several of 
these are mentioned in the bibliography at the end of this 
paper. There are very few scholarships available for persons 
whose unique situation is disability. Since there is not a 
central list of scholarships for students with disabilities, 
HEATH staff has surveyed organizations and foundations across 
the country and developed a listing of organizations which do 
provide scholarships for persons with particular disabilities. 
Note that the amount of money from one of the disability 
scholarships may be token and ceremonial rather than substantial. 
Disability organization scholarships are generally $500 to $1000 
per year.  
	In general, the best resource for all students, including those
with disabilities, is the financial aid adminstrator at the 
colleges being considered. The financial aid administrator has 
been trained to understand and explain the complex system of 
Financial Aid. In addition, the financial aid administrator will 
be familiar with local, state, and private sources of funding, 
and able to tie these together with institutional resources to 
create the most advantageous financial aid package for the 
student. 
	However, any problems encountered in applying to a school, or in
completing the financial aid application in a thorough and 
timely manner, could adversely effect the quality of any 
financial aid package for which a student may be eligible. 
Students may apply to and shop among several colleges for the 
most advantageous combination of academic excellence and 
financial aid available. Due to the lead times involved in the 
college/financial aid process, smart shoppers will begin the 
process of looking for a school, and preparing to apply for 
financial aid up to two years in advance of high school 
graduation.
	The International Kiwanis Club recommends checking with local
Kiwanis organizations to see if they offer scholarships. To 
find the number of the local chapter, call (317) 875-8755.
	The Elks Grand Lodge in Winton, NC may be contacted for
scholarships at (919) 358-7661.
	The Rotary Club offers scholarships and may be contacted at
(202) 638-3555 for more information. Scholarships must be 
applied for two years in advance.
	The Lions Club International may be contacted at (708) 571-5466
to find the local organizations telephone number for 
scholarship information or assistance in purchasing equipment.
  Another  possible source of funds may be the National
Association of American Business Clubs at P.O. Box 5127, High 
Point, NC 27262, (919) 869-2166.
Scholarship Search Services
	Entrepreneurs in many cities have established scholarship 
search services businesses which have information about 
thousands of scholarships nationwide and which providefor a 
feelists of those appropriate for individual clients. These 
services usually charge a fee ranging from $50 to $85, and can 
be found in the yellow pages or from a long distance information 
operator in various large cities (San Francisco, New York, 
Houston and others) under names such as Scholarship Information 
Service or Scholarship Search. As with any other service for 
which there is a fee, callers should request a written list of 
exactly what they will get for their investment and what has 
been the experience of the business in identifying scholarships 
for students with disabilities. In a telephone survey of such 
places in several cities, HEATH staff found that some are 
computerized, others are operated by individual researchers. 
None of the computerized search services contacted had specific 
descriptors for handicaps; thus the computer cannot list 
scholarships specifically intended for students with general or 
specific disabilities. The computer will, however, list funds 
available to students by geographical area, interest, school 
attending, professional, civic, or religious affiliations. Most 
of these services do not have a large database of 
disability-related information, but could prove a useful 
resource for some students. They often offer assistance (for an 
additional fee) in college selection and preparation of the 
financial aid application. The National Scholarship Service and 
Fund for Negro Students offers a scholarship search for $35 to 
any student. Contact NSSFNS, 965 Martin Luther King, Jr. Drive, 
Northwest, Atlanta, GA 30314. (404) 577-3990.
Foundation Center
	The Foundation Center with headquarters in Washington, DC and
New York and cooperating collections in nearly 100 cities 
across the country can provide names of private foundations 
which donate money for particular activities or causes. The 
Foundation Center has a volume of listings called Foundation 
Grants for Individuals arranged in broad categories. It can be 
used there or purchased for $55 + $4.50 s/h. To find the address 
of the nearest cooperating collection call (800) 424-9836 toll 
free. (No information other than address can be given over the 
telephone.)
SELECTED RESOURCES
	Toll Free Number (800) 433-3243 / (800) 730-8913 (TT) may be
used by seekers of federal student financial aid information. 
Toll free calls from all 50 states and Puerto Rico can be made 
from 9 a.m. to 5:30 p.m. EST Monday through Friday. Callers will 
receive a recorded message and will be asked to remain on the 
line if they need additional information or if they have a 
specific question. Inquirers to HEATH and HEATH staff report 
that the information received from the toll free service is 
useful and staffed by knowledgeable people.
The Student Guide: Financial Aid From the U.S. Department of
Education (1994-1995) is a Department of Education booklet 
which describes the federal student aid programs.  The booklet 
is widely available in school and public libraries or can be 
ordered free by writing Federal Student Aid Programs, Box 84, 
Washington, DC 20044 or by calling (800) 433-3243.  There is 
also a cassette version which is a telephone dialogue between a 
Department of Education information specialist and a visually 
impaired student. The cassette is available free by request by 
calling (800) 433-3243. 
Applying for Financial Aid is a four page newspaper developed by
the American College Testing Service which covers the basic 
information which students and parents need to know. Sample 
calculations are provided as are sources of financial aid. 
Applying for Financial Aid is available in college financial aid 
offices or can be obtained by requesting it in writing from ACT, 
P.O. Box 168, Iowa City, IA 52243 or by calling (319) 337-1040 
(send a self-addressed stamped envelope).
Dont Miss Out: The Ambitious Students Guide to Financial Aid
(1994-95) is one of many new special focus guides produced 
regularly by Octameron Associates.  This 120 page book is full of 
useful strategies, helpful hints and good solid planning 
information as well as information on the Reauthorization of the 
Higher Education Bill, and includes a brief section about 
students with disabilities. Others in the series cover academic 
scholarships, college grants, loans, cooperative education 
opportunities, admissions, campus visits, and transition from 
high school to college. Dont Miss Out is available by prepaying 
$7 plus $2 first class postage to Octameron Associates, P.O. 
2748, Alexandria, VA 22301. (703) 836-5480.  You can also 
request a brochure describing the whole series.
How to Pay for Your Childrens College Education (1988), by Gerald
Krefetz for The College Board, incorporates the 1986 Tax Reform 
Act regulations to provide parents with practical advice. The 
154 page book covers a range of sound financial management 
strategies for saving, investing, borrowing, and establishing 
credit for parents of teenagers as well as young children. There 
is an extensive glossary to clarify financial terms, appendixes 
providing an individual tax table, a gift tax table, an income 
tax rate chedule for trusts, and information on interest rates 
and yields. Available by preparying $12.95 plus $2.95 handling 
charge to College Board, College Board Publications, Box 886, 
New York, NY 10101-0886.
Need A Lift? To Educational Opportunities, Careers, Loans,
Scholarships, Employment (annual edition) is a publication of 
the American Legion covering sources of financial aid and the 
financial aid process. Special emphasis is given to programs for 
children of deceased or disabled veterans, but is designed to be 
of service to all students. The 120 page booklet contains 
sources of scholarships, cooperative education programs, and 
sources of career information. Available from American Legion 
National Headquarters, 700 N. Pennsylvania Street, P.O. Box 
1055, Indianapolis, IN 46206, $2, attn: Need A Lift.
The College Financial Aid Emergency Kit (19931994), by Joyce Lain
Kennedy and Dr. Herm Davis, while not disability specific at 
all, is one of the clearest and most useful small booklets 
available on the subject of utilizing the regular financial aid 
system to full advantage. Basic terms are defined and needs for 
money immediately, soon, and in the future are addressed. 
Kennedy and Davis, who are especially experienced in clarifying 
all aspects of financial aid, describe ten steps to simplify the 
application process, alternative strategies for financing a 
college education, and numerous borrowing tips. Locating 
scholarships, grants, and other gifts are described as are 
several save-ahead plans for those who have a few years before 
the actual college or graduate school dollars are to be spent. A 
realistic list of suggested reading concludes this 40 page 
booklet. Available only by mail for $5.50 from Sun Features, 
Inc., Box 368, Cardiff, CA 92007.
Financial Aid for the Disabled and Their Families (199496), by
Gail Ann Schlachter and R. David Weber, promises to inform 
readers about the 800 programs that have been established just 
for the disabled or members of their family. The book is a 
useful and comprehensive resource for librarians and counselors, 
but the book promises more than it really delivers. The book is 
well organized for use since it has chapters about financial aid 
for people with specific disabilities, and there are sections of 
each chapter for both undergraduate and graduate education but 
entries are double and triple counted so as to inflate the total 
number of scholarships and other aids included.
The book is available for $37.50 plus $4.00 for shipping and
handling from Reference Service Press, 1100 Industrial Road, 
Suite 9, San Carlos, CA 94070 or call (415) 594-0743.
Finding Financial Resources for Adult Learners: Profiles for
Practice (1985) is published by the Office of Adult Learning 
Services of the College Board and serves as a resource book for 
adult learners not appropriately served by the traditional 
financial aid system. Finding Financial Resources for Adult 
Learners: Profiles for Practice is available for $8.95 from 
College Board Publications, Box 886, New York, New York 
10101-0886.
Directory of Special Programs for Minority Group Members (1990),
edited by Willis L. Johnson, lists employment opportunities, 
financial aid sources, and career information services for 
members of minority groups. Although the volume is not 
specifically for those with disabilities, HEATH staff suggests 
that some of our many callers who ask about financial aid may 
find it an important resource. This well-organized directory 
lists over 4,000 general sources of financial aid. Programs 
cited include scholarships, fellowships, and loans for college 
study; job training and retraining activities; summer employment 
and internshiip options; occupational information and career 
guidance assistance; and employment skills banks and talent bank 
services. Most programs listed are open to minority group 
members. Available by paying $30.00 to Garrett Park Press, P.O. 
Box 190A, Garrett Park, Md 20896 or by calling (301) 946-2553.
Financial Aid for Graduate & Professional Education (1993), by
Patricia McWade, is a 14 page pamphlet which provides a 
comprehensive overview of the topic. How and when to apply, 
determining financial need, types of aid available, aid for 
special groups (although not very much information about 
disability), debt management, and consolidation are some of the 
topics covered. Contact information about related resources are 
included. Available by prepaying $2.35 + $1.00 s/h to Petersons, 
P.O. Box 2123, Princeton, NJ 08543-2123. (800) EDU-DATA.
Financing Graduate School (1992), by Patricia McWade, answers the
most frequently asked questions about financial aid for 
graduate school. Topics include aid eligibility, loan jargon, 
and information on tax laws pertaining to student loans. 
Available by prepaying $14.95 + $5.75 s/h to Petersons, P.O. Box 
2123, Princeton, NJ 08543-2123. (800) EDU-DATA.
Grants for Graduate Study (1991), third edition, by Editor John
H. Wells, lists and fully describes a diverse collection of 
nearly 800 scholarships and grants usable at the graduate level 
for the study of nearly every discipline. Well indexed, the 365 
page guide provides practical tips as well as specific details 
about each award. Available in libraries or may be ordered by 
prepaying $59.95 + $7.75 s/h from Petersons, P.O. Box 2123, 
Princeton, NJ 08543-2123. (800) EDU-DATA