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January marks the start of the season for new and returning college students to apply for financial aid. With that in mind, U.S. Secretary of Education Margaret Spellings today encouraged all students to file for a share of the more than $80 billion in federal grants, loans and work-study assistance to help pay for postsecondary education.

Spellings also met today with a group of undergraduate and graduate college students to hear their ideas for streamlining the aid process and making college more affordable.

"Billions of dollars in federal assistance are available to help pay for postsecondary education, and, contrary to popular belief, most families are eligible for some financial aid to pay for academic or technical studies," Spellings said. "I urge all students to apply as early as possible."

To publicize the availability of federal aid, the department is launching a public awareness campaign with the message, "The most costly education is the one not begun." Beginning this month, more than 16,000 English and Spanish-speaking newspapers and magazines, radio and television outlets may begin airing the public service announcements encouraging students to enroll in postsecondary education and apply for financial aid.

Financially needy students may qualify for grants, work-study opportunities or federally guaranteed loans. Virtually all students are eligible for unsubsidized loans, which offer favorable rates to borrowers, and the neediest students are eligible for subsidized loans, which pay the interest while students are in school. In addition to the foundational Pell Grant award, worth up to $4,050 for 2007-08, Pell-eligible students may also receive up to $1,500 in Academic Competitiveness Grants (ACG) if they take a challenging high school curriculum and up to $4,000 in National Science and Mathematics Access to Retain Talent (National SMART) Grants if they major in mathematics, science, or critical languages field.

Completing the Free Application for Federal Student Aid, known as FAFSA, is the first step in the financial aid process. While available in both paper and electronic forms, ninety-five percent of the 14 million annual applicants use the on-line application, because the system flags errors that can be corrected immediately.

The Department of Education's Federal Student Aid website offers a wealth of information and tools for consumers as well as financial aid professionals. Here, consumers can learn how to select a school, apply for aid, or locate and repay federal student loans. The handy reference guide and fact sheet, "Tips for Paying for College," instructs filers on how to obtain a personal "PIN" number, gather the necessary income and tax records, and other helpful suggestions to make filing a FAFSA easier. The fact sheet is available at www.ed.gov/students/college/aid/paying.html.

In the fall of 2005, Secretary Spellings created the Commission on the Future of Higher Education to develop a comprehensive strategy for postsecondary education that will meet the needs of America's diverse population and also address the economic and workforce needs of the country's future. The Commission provided its final report to the Secretary in September, and she quickly acted on the recommendations with her higher education action plan - calling for, among other items, making college more affordable, simplifying the financial aid process, and better preparing students to succeed by ensuring that high school curriculum is aligned with college level work.

Today's meeting with college students is part of the planning for the spring Summit, which Secretary Spellings is convening with representatives from the higher education and business communities, as well as student, parent and policy maker groups. The Summit will galvanize all key stakeholders to improve access, affordability, and accountability in American higher education.

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