The primary purpose of this handbook, which provides information on sources of financial aid and how to apply for it from the programs administered by the U.S. Department of Education, is to help financial aid administrators advise students in seeking financial aid for postsecondary education. The handbook is divided into three sections: (1) Part I provides general information about sources of aid, eligibility requirements, and financial need analysis; (2) Part II concerns the application process in general for such Federal aid programs as Pell Grants and Federal Family Education Loans and includes information on how to apply, how the application is processed, and how to use the official Expected Family Contribution formula to document eligibility; (3) Part III provides a copy of the Free Application for Federal Aid form and individual sections of instructions for answering each question on it. Four appendices provide information on: (1) sources of additional information; (2) the names of contact persons at agencies responsible for administering the various Federal aid programs, listed alphabetically by state; (3) a glossary of terms and acronyms; and (4) Expected Family Contribution worksheets. (MSF)