Grants are given to qualified students from a variety of agencies and they do not have to be repaid. Pell Grants are awarded to undergraduate students by the federal government based on financial need and the costs required for your school. A Pell Grant is subject to a maximum amount that changes annually and students may receive up to two consecutive Pell Grants per year. An Academic Competitiveness Grant (ACG) can be combined with a Pell Grant for eligible students who have completed a rigorous program of study in high school. Grants may also be provided by individual colleges and are known as institutional grants, merit awards or merit scholarships. Some institutional grants are need-based and others come with obligations.
Pell Grants
U.S. Department of Education
Federal Student Aid Information Center
800-433-3243
studentaid.ed.gov
Stafford Loans must be repaid and are distributed by the U.S. Department of Education through the Federal Family Education Loan (FFEL) and the Direct Loan programs. Colleges and universities may participate in one or both programs and the loans are either subsidized, meaning the government pays the interest while you attend school, or unsubsidized, which adds interest to the amount you borrow. Funds for the FFEL program originate from a lender, while funds for Direct Loans come directly from the federal government to your school for distribution. Eligibility for a Stafford Loan is determined by the information provided on your FAFSA and a promissory note must be signed ensuring repayment.
Stafford Loans
U.S. Department of Education
Federal Student Aid Information Center
800-433-3243
studentaid.ed.gov
Three federal programs are facilitated by individual campus financial aid offices: Federal Perkins Loans, Federal Work-Study (FWS) and the Federal Supplemental Educational Opportunity Grants (FSEOG). Schools vary in participation in these three programs and a limited amount of funds is provided for the total student population. FSEOGs are grants for students with the most financial need and amounts depend on several factors, including when the application is submitted. FWS provides hourly wages for part-time jobs for qualified students to assist them in paying for college. Work-study positions are usually located on campus and must be related to your field of study as much as possible. Federal Perkins Loans are available to those students most in need of financial assistance and are funded by the government through the school. Following graduation, students repay the loan directly to the school after a nine-month grace period.
Campus-Based Aid
U.S. Department of Education
Federal Student Aid Information Center
800-433-3243
studentaid.ed.gov