Federal Student Financial Aid Programs

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 Pell Grants are available to undergraduate students only. Grants do not have to be repaid.

Federal Stafford Loans

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 William D. Ford 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

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.

Campus-Based Programs

Campus-Based Programs are administered by participating schools. There are three of these programs.

Federal Supplemental Educational Opportunity Grants

Federal Supplemental Educational Opportunity Grants are grants available for undergraduates only; awards range from $100-$4,000.

Federal Work Study

Federal Work Study provides jobs to undergraduate and graduate students, allowing them to earn money to pay education expenses.

Perkins Loans

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.

Check with Your Financial Aid Officer

The financial aid office at the school you plan to attend is the best place to begin your search for free information. The financial aid administrator can tell you about student aid available from your state, the school itself, and other sources.

The school is required to inform you of its aid procedures and deadlines, and how and when you'll receive your aid award. Be sure that you've read and understood each school's satisfactory academic progress policy and keep copies of your enrollment agreement, the school's catalog, and all financial aid documents (especially loan documents) you receive.

You can also find free information about federal, state, institutional, and private student aid in your local library's reference section (usually listed under "student aid" or "financial aid").

Student aid information may also be available from foundations, religious organizations, community organizations, and civic groups, as well as organizations related to your field of interest, such as the American Medical Association or American Bar Association. You can also check with your parents' employers or unions to see if they award scholarships or have tuition payment plans.

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