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Your financial aid package
is likely to include funds from the federal student
aid programs. These programs, described below, are administered
by the U.S. Department of Education and provide over
$33 billion a year to students attending post-secondary
schools. Important Note: Not all schools participate
in all federal student aid programs. Check with your
high school guidance counselor or your school's financial
aid office to make sure your school participates in
the federal program(s) you are interested in.
Federal Pell Grants
Federal Stafford Loans
Federal PLUS Loans
Campus-Based Programs
Federal Supplemental Educational
Opportunity Grants
Federal Work Study
Perkins Loans
Federal Pell Grants are
available to undergraduate students only. Grants do
not have to be repaid.
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Federal Stafford Loans
are student loans that must be repaid and are available
to both undergraduate and graduate students. If your
school participates in the Federal Direct Loan (Direct
Loan) Program, the federal government provides the funds
for your Stafford Loan. If your school participates
in the Federal Family Education Loan (FFEL) Program,
a Private lender provides the funds for your Stafford
Loan, although the federal government guarantees the
loan funds. First-year undergraduates are eligible for
loans up to $2,625. Amounts increase for subsequent
years of study, with higher amounts for graduate students.
The interest rate is variable, but never exceeds 8.25
percent. If you qualify (based on need) for a subsidized
Stafford loan, the government will pay the interest
on your loan while you are in school, during grace periods,
and during any deferment periods. You are responsible
for paying all of the interest that accrues on an unsubsidized
Stafford Loan.
Federal PLUS Loans are unsubsidized
loans made to parents. If you are independent or your
parents cannot get a PLUS loan, you are eligible to
borrow additional Stafford Loan funds. The interest
rate is variable, but never exceeds 9 percent.
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Campus-Based Programs are
administered by participating schools. There are three
of these programs.
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Federal Supplemental
Educational Opportunity Grants are grants available
for undergraduates only; awards range from $100-$4,000.
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Federal Work Study provides
jobs to undergraduate and graduate students, allowing
them to earn money to pay education expenses.
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Perkins Loans are low-interest
(5 percent) loans that must be repaid; the maximum annual
loan amount is $4,000 for undergraduate students and
$6,000 for graduate students.
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SOURCE: US Department of Education (http://www.fafsa.ed.gov) |
