- Federal Pell Grant (gift aid):
This is a need-based financial aid grant. The maximum Pell Grant was $2,340 in 1995-96. About four million undergraduates received Pell Grants in 1994-95.
- Federal Stafford Loans (self-help aid):
They can be subsidized or unsubsidized. In 1994-95, about six million students received Stafford Loans. The Federal Government pays interest on subsidized loans (need-based) until after graduation. The student is responsible for interest on unsubsidized loan (non-need-based). An undergraduate can borrow as much as $23,000.
- Federal PLUS Loans (self-help aid):
PLUS Loans allow parents to borrow money for their children's college education. PLUS Loans are limited to the cost of education minus any estimated financial aid for which the student is eligible. PLUS Loans may be used to pay the EFC (Expected Family Contribution). Participating banks require a minimal credit check for eligibility.
- William D. Ford Federal Direct Loan Program (self-help aid):
In the past, Federal loans were only available through banks or other lenders under the Federal Family Education Loan (FFEL) Program. In 1994, the Federal Government introduced the William D. Ford Federal Direct Loan Program. Under this program, many colleges and universities now provide Stafford loans (both subsidized and nonsubsidized) and Federal PLUS Loans directly to students. Repayment options for the Direct Loan Program are more flexible than FFEL loans.
- Federal Supplemental Educational Opportunity Grants (FSEOG, campus-based gift aid):
Need-based aid for undergraduates. The most likely candidates for FSEOGs are Pell Grant recipients with the lowest Expected Family Contributions (EFCs). You can get between $100 and $4,000 a year and SEOGs need not be repaid.
- Federal Perkins Loans (campus-based self-help aid):
This is a low-interest, need-based loan. Application for a Pell Grant is prerequisite for Perkins eligibility. Undergraduates can borrow up to $3,000 per year for a maximum of five years. Graduates can borrow up to $5,000 per year for a maximum of six years.
- Federal Work-Study (FWS) Program (campus-based self-help aid):
Undergraduate and graduate students with financial need can earn money to help pay education expenses through the FWS Program. This program is attractive to college departments and businesses because the Federal Government pays part of the student's salary. This is a need-based program that encourages community service work and work related to the recipient's course of study.
- State Financial Assistance:
Public colleges and universities receive State support that lowers tuition for all students. For information about individual financial assistance, contact your State's higher education agency.
- College/University Assistance:
Schools offer a variety of scholarships and grants. Some are need-based and some are merit-based. The financial aid office at the specific school can provide information.
- Other Types of Assistance:
Corporations, foundations, labor unions, professional associations, religious organizations, and credit unions sometimes award financial aid. Check your library for a directory that lists scholarships.
