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Applying for Aid

The U.S. Department of Education offers many Student Financial Assistance (SFA) programs. Most federal student aid is awarded based on financial need rather than scholastic achievement. Most grants are targeted to low-income students. However, you don't have to demonstrate financial need to receive federally guaranteed loans such as PLUS, Stafford, or Direct loans.

To be eligible to receive aid, a student must meet the following requirements:

• Generally, have financial need
• Have a high school diploma, a GED, or demonstrate the ability to benefit from the program or training offered
• Be enrolled as a regular student in an eligible program
• Be enrolled at least half-time (except for campus-based programs)
• Be a U.S. citizen or eligible non-citizen
• Make satisfactory academic progress
• Sign a statement of education purpose/certification on refunds and default
• Sign an anti-drug act certification
• Sign a statement of updated information
• Sign a statement of registration status

Federal Pell Grants -

This is a federally funded program which provides grants to students based on their financial need and the total cost of attendance at their particular school. They don't have to be repaid so they are a really good option. Eligibility is based on a formula made by the Federal Government. Awards range from $200 to $3,700. (Note: The regulations say $3,700 but the appropriations lowered this amount to a maximum of $2,470). Students who already hold a bachelor's degree are not eligible for the PELL Grant. To apply you must submit the Free Application for Federal Student Aid (FAFSA).

Federal Supplemental Educational Opportunity Grants (FEOG) -

This program is for undergraduates with exceptional financial need. They give priority to students given who are PELL Grant recipients. This grant also does not have to be paid back and it is possible to qualify for up to $4000 a year. Your school will credit your FEOG to your account, pay you directly, or sometimes they will use a combination both of these. Talk to your school about how they deal with the FEOG.

Federal Work-Study (FWS) -

Provides jobs for undergraduate and graduate students who need financial aid. FWS give you a chance to earn money to help pay for educational expenses. Your pay will be at least the current minimum wage. Sometimes FWS will give you work to do that is related to the type of work you will do after graduation and will teach you some of the skills required. Your school will pay you at least once a month and sets your work schedule. Your financial aid administrator will usually work with you in arranging your work hours. They will take into account your class schedule, your health, and your academic progress.

Federal Perkins Loans -

(Formerly National Direct/Defense Student Loan) This is a low-interest (5%) loan to help you pay for your higher education. Undergraduate and graduate students alike are eligible for these loans. They are usually made available through a school's financial aid office. Your school is your lender and you must repay this loan at 5%. You may be able to receive up to $4,500 if you are enrolled in a vocational program or if you have completed less than 2 years of a program leading to a bachelor's degree. You could possibly be eligible for $9,000 if you are an undergraduate student who has already completed 2 years of study towards a bachelor's degree and have achieved third year status.

Federal Stafford Loan Program -

Student borrowers may use either of these loan programs. Each program may be subsidized or unsubsidized. If the student has demonstrated need, the loan can be subsidized (government pays the interest from the time the loan is disbursed until it is paid in full. The maximum a student can receive is related to the year in school. First year students receive up to $2,625, 2nd year is $3,500, 3rd and 4th years are $5,500 and graduate students can receive up to $18,500. The Direct Loan and the Stafford Loan programs differ in who lends the money. Under the Direct Loan Program, the federal government makes loans directly to students and parents through the school's financial aid office. Under the Stafford Loan Program, private lenders such as banks and credit unions make the loans. The interest rate on the student loans cannot exceed 8.25% with a 4% fee that is deducted proportionately from each disbursement of your loan.

Federal Parent Loans for Undergraduate Students -(PLUS)

PLUS loans are made by private lending institutions. DIRECT PLUS programs are made through the college financial aid office. The maximum amount that can be borrowed under either of these programs depends on the cost of the college and the amount of financial aid you already receive. Interest rate for the PLUS loan is calculated annually by adding 3.1% to the rate of the 52-week U.S. Treasury Note and is capped at 9% for the life of the loan. A one-time origination fee of 3% is paid out by the federal government to help offset program benefit costs.

 

Project EASI -

Project EASI (Easy Access for Students and Institutions) is a collaborative program of the government, business, and higher education. Its purpose is to rework the student financial aid delivery process.

 

I know this is all very confusing and hard to understand. Talk to your admissions counselor and high school counselor. They should be able to help you sort out all of your options and find a solution that is best for you.

US Department of Education: Office of Postsecondary Education (OPE) -
The US Department of Education (USED) offers a considerable amount of information about student financial aid online, including electronic versions of the following print publications:

• Student Guide
  This is the basic introduction to federal student assistance programs.
• Funding Your Education
  This publication is very similar to the Student Guide.
• Preparing Your Child for College This 57-page booklet includes information about both financial aid and academic preparation.
• Looking for Student Aid
  A very short introduction to financial aid, published by the US Department of Education, and offered online by the FinAid^® Page.
  Print version can be obtained by calling the Federal Student Aid Information Center or by calling 1-800-USA-LEARN.

Federal Student Aid Information Center (FSAIC) -
The Federal Student Aid Information Center operates a toll free hotline to answer questions about federal student assistance programs. The FSAIC can answer your questions about the Free Application for Federal Student Aid (FAFSA), the federal Stafford and PLUS educational loan programs, the Pell Grant program, and other topics.
Phone: 1-800-4-FED-AID (1-800-433-3243) (TDD for hearing impaired individuals: 1-800-730-8913)

Federal Student Aid Information Center
PO Box 84
Washington, DC 20044