Financial Aid Options — Federal

Federal Financial Aid Options

Federal Financial Aid Includes:

·   federal grants ·   federal campus-based loan ·   federal Stafford loans ·   federal PLUS loans · work study programs · state government aid

Education Department
Student Lending Guide

for further information about federal grants:

·   federal PELL grants ·   FSEOG grant

Grants are generally awarded by federal and state governments for students in extreme financial need.

• the Pell Grant is the most common federal grant. It is awarded to undergraduate students only.
  
  The amounts awarded range from $400-to-$4,000 per academic year. The Pell Grant is reserved for the neediest students.
  
  To see if you are eligible for the Pell Grant, you must first submit the Free Application for Federal Student Aid (FAFSA) form. It will use a formula to estimate the qualified amount based on the EFC and cost of attendance (see note 2 for EFC information). Any eligible amount will be noted in your financial award letter from your school:
  
  FAFSA links and information
  
  
  
• Another Federal Grant is the Federal Supplemental Education Opportunity Grant (FSEOG).
  
  This grant is available for qualified undergraduate applicants who show exceptional financial need. The amounts awarded range from $100-to-$4,000.
  
  you must first compete the Free Application for Federal Student Aid (FAFSA) form to see if you qualify. It will use a formula to estimate the qualified amount based on the EFC and cost of attendance (see note 2 for EFC information). Any eligible amount will be noted in your financial award letter from your school:
  
  FAFSA links and information

Education Department
Student Lending Guide

for further information about federal grants:

·   work study

The Federal Work-Study Program offers work-study programs for both undergraduate and graduate students

The student can work part-time on campus or in the community to earn money to help pay for education expenses.

• students are paid at the federal minimum wage (or more) on an hourly basis — the wage is dependent upon your skill set and work requirement. Graduate students may be paid hourly or by salary.
  
  
• work assignments can be on-campus and off-campus work in public-related services. The amount of work is determined by your school and cannot exceed the Federal Work-Study award.
  
  
• you must first compete the Free Application for Federal Student Aid (FAFSA) form to qualify for federal work study:
  
  FAFSA links and information

Education Department
Student Lending Guide

for further information about federal grants:

·   perkin loans ·   stafford loans ·   PLUS loans

Types of Education Loans:

• Perkins Loans:
  low-interest (5% percent) federal loans awarded to undergraduate and graduate students with exceptional financial need.
  
  You can borrow up to $4,000 for each year of undergraduate study; $6,000 for each year of graduate or professional study.
  
  The total amount you can borrow as an undergraduate is $20,000 after you complete two years of undergraduate study; $40,000 for graduate and professional.
  
  The loan does not charge origination fees. Your school becomes the lender using funds shared by the federal government. You must repay this loan to your school.
  
  
  
• FFELP (Federal Family Education Loan Program):
  the most common form of self-help aid. These are loans made to students (Stafford loans) and parents (PLUS loans) from banks, credit unions and other lenders that participate in the FFELP program.
  
  These loans are insured by the federal government that allow lenders to lend money at lower-than-normal rates. Most schools participate in FFELP.
  
  More information: Stafford Loans / PLUS Loans
  
  
  
• FDSLP (Federal Direct Student Loan Program):
  exactly like the FFELP program above, except the loans are funded through the schools by the federal government directly (not by the banks).
  
  Some schools participate in FDSLP. You need to check with your school's financial aid office to determine whether they participate in FDSLP or FFELP.
  
  More information: Stafford Loans / PLUS Loans

State Education Agencies