Is FAFSA money pool affected by the recession?

Paying for College
1

<p>Was just wondering.</p>

2

<p>There’s no FAFSA money pool. FAFSA is an application for need-based aid, one of two commonly used. The formulas used on the information you put on the application calculate the Expected Family Contribution. Schools use that number to create aid packages that may include loans, grants (institutional, state, or federal), scholarships, and work study.</p>

<p>The endowments that the schools have available to fund grants may be affected by a recession. Federal and State money available for need-based aid might be affected by a recession.</p>

3

<p>Pell and Stafford Loans will not be affected by the recession. ACG and Smart shouldn’t be for the upcoming year but might be for 2010-2011. State and institutional aid will almost definately be affected by a recession.</p>