The Federal government offers both subsidized and unsubsidized loans. Subsidized loans are available to low-income students. The main federal loan programs are Federal Perkins Loans, Stafford Loans and PLUS Loans.
Needy students can obtain the low-interest loan known as the Federal Perkins Loan. A standard formula is used to determine need based upon information provided from the FAFSA.
PLUS loans are for parents and graduate students.
Federal Family Education Loans did provide funds from banks and credit unions; however, with the passage of the Health Care and Education Reconciliation Act, the U.S. Department of Education, starting in July 2010, will provide and administer all federal loans under the Direct Loan program.
Grants are education benefits that do not have to be repaid. The Teacher Education Assistance for College and Higher Education (TEACH) grant provides up to $4,000 for students who agree to teach in low-income schools after graduation.
Pell Grants are awarded to needy undergraduate students and often are the foundation of financial aid packages. The maximum Pell Grant for 2010 is $5,500.
The Federal Supplemental Educational Opportunity Grant (FSEOG) provides extra funds from $100 to $4,000 for students who have extreme financial need.
The National Smart Grant offers up to $4,000 a year to third- and fourth-year Pell Grant students who are taking classes in mathematics, science and technology.
State governments also provide education grants and scholarships. These are need-based, academic or a combination of need and academic excellence. The Texas Excellence, Access and Success (TEXAS) scholarship requires both financial need academic preparation. The California Grant Program provides tuition to state universities based on a student's grade point average and academic preparation.
The website collegescholarships.org provides links to U.S. states' grants and scholarships and provides an overview of what assistance is available.