In a study released recently by the American Council on Education (ACE), it was reported that hundreds of thousands of college students who might be eligible for federal financial aid don't get it--and for one simple reason: they don't apply.

According to the study, half of the 8 million undergraduate students enrolled in 1999-2000 at institutions participating in federal student aid programs failed to complete the Free Application for Federal Student Aid (FAFSA) form. Many of these students were financially well off and probably assumed (and correctly so) that they wouldn't get aid.

However, close to 2 million low- and middle-income students also failed to complete the FAFSA and, according to the study, 850,000 of those would have been eligible for a Pell Grant (the principal federal grant for lower-income students). Why didn't they apply? According to the study, many of these eligible students missed out on available funding because they didn't understand how the system works.

The FAFSA has been characterized as difficult to complete, but the federal government has been working to simplify the form. Still, it runs 4 pages and includes several worksheets. That's why Jacqueline King, director of ACE's Center for Policy Analysis, believes that complexity is very likely an issue.

In response, Susan Aspey, spokeswoman for the Department of Education, pointed out that the department is conducting a public relations campaign to promote awareness of federal financial aid. She also indicated that approximately 9 millions students will receive some type of federal assistance this year.

Tip:  Be sure to click on the link above to FAFSA and fill out the form, following the directions that are there. But, after you've completed the form, don't stop there. There are billions of dollars in other aid available. To find out about this funding, check out Reference Service Press's line of award-winning financial aid directories.