Pell grants are the most common form of federal financial aid. Undergraduate students can qualify for up to $5,550 per academic year, as of 2011. The amount is determined by comparing the student's financial need to the cost of attending a particular school. Another need-based grant program is the Federal Supplemental Educational Opportunity Grants (FSEOG). This grant is administered by individual colleges and universities, and are awarded based on exceptional need and availability of funds at the institution.
Some federal grant programs consider academics along with financial need. The Academic Competitiveness Grants (ACG) provide additional aid to college freshmen and sophomores who made good grades and took advanced courses in high school. College juniors and seniors who are majoring in certain science, engineering and language majors can qualify for the National Science and Mathematics Access to Retain Talent (SMART) grants. Students who plan to begin a career in teaching may qualify for the Teacher Education Assistance for College and Higher Education (TEACH) grants.
Various student loan programs are available to students and their parents, even if they have no financial need. Federal student loans do not have to be repaid until after graduation. Students who demonstrate financial need on the FAFSA qualify for subsidised loans, which feature interest rates as low as 3.4 percent. The annual loan amounts range from $3,500 to 8,500, depending on the year in school. Students have 10 to 25 years to repay the loans.
Students who show need on the FAFSA may qualify for federal work-study programs. The students are offered jobs on or near campus while they are enrolled in school. The jobs pay at least the federal minimum wage, and the money does not have to be repaid. The programs are administered by individual schools.
Students whose parent or guardian died as a result of military service in Iraq or Afghanistan after Sept. 11, 2001, automatically qualify for the Iraq and Afghanistan Service grant if they cannot get a regular Pell grant. The student must have been under 24 or attending school at the time of the death. The amount is the same as a Pell grant.