Federal grants include the Pell Grant, Academic Competitiveness Grant, Federal Supplemental Educational Opportunity Grant (FSEOG), National Science and Mathematics Access to Retain Talent Grant (National SMART Grant) and the Teacher Education Assistance for College and Higher Education (TEACH) Grant. Unlike loans, grants do not have to be repaid. With the exception of TEACH grants, only students completing a first undergraduate degree are eligible for federal grants. TEACH grant recipients may be undergraduate, graduate or post-baccalaureate students but must be enrolled in classes resulting in a elementary or secondary teaching career and must agree to teach in a "high-need" area for at least four years within eight years of graduation. Other eligibility requirements vary between grants. For example, Academic Competitiveness and National SMART grants require a grade point average of at least 3.0. Students receiving federal grants will demonstrate significant financial need.
Students receiving federal student loans must repay the loan with interest after graduation. The student's school provides loan support and administers the loan. Types of loan include the Perkins Loan, Stafford Loan, Parent PLUS Loan and PLUS Loan for Graduate and Professional Students. Loans are available for both undergraduate and graduate and professional students, as well as for independent undergraduate students and the parents of dependent students. The Perkins Loan requires the student to repay his college as the lender, charges 5 percent interest, and depends on the student's level of need, as well as whether the college offers Perkins loans and has funding available.
Work-study is a program that provides students with jobs through which they can pay for educational expenses. One organization that participates in the federal work-study program includes America Reads/America Counts (ARAC). ARAC is a program in which college students tutor children who are at risk of becoming high school dropouts. A student with a work-study award can also work on his home campus. For example, work-study jobs at the University of Washington include computer lab assistant, student assistant and database coordinator. Off-campus work-study jobs are also available to University of Washington students.
There are two education tax credits that the government makes available to students and their families. These include the Hope/American Opportunity and Lifetime Learning tax credits. The Hope credit, expanded from its original definition, is now known as the American Opportunity credit. The American Opportunity credit has a maximum amount of $2,500 and if the credit amount exceeds some families' taxes owed, the credit can include a partial tax refund. Any postsecondary student or student enrolled in at least one course contributing to job skills is eligible to apply for the Lifetime Learning credit. The credit amount is 20 percent of tuition and fees up to a maximum of $2,000, or 20 percent of $10,000.