Federally Funded Aid

Federal Loans

There are several types of federal loans available to students and their parents. These loans must be paid back after the student is no longer enrolled in college, whether the student graduated or not. They include:

1. Subsidized Loans: loans made to students who demonstrate financial need to help cover the costs of higher education at a college or career school. The U.S. Department of Education pays the interest when the student is in school & is taking at least 6 credit hours/roughly 2 classes
2. Unsubsidized Loans: loans available to all students. There is no requirement to demonstrate financial need. You are responsible for paying the interest. Interest accrues while you are in school and during the payment period, which typically begins 6 months after a student graduates or drops out.
3. PLUS Loans: loans that parents of dependent students (a student’s dependent status is based on his/her FAFSA) can use to help pay education expenses. These loans require a credit check. Parents with little or poor credit may need to find an additional cosigner to be approved for this loan. They enter the repayment period after the loan is fully disbursed, which can be at the end of each school year or the semester.
4. Consolidated Loans: these loans allow you to consolidate (combine) multiple federal student loans into one loan. The result is a single monthly payment instead of multiple payments.

Grants

Grants are often need-based, while scholarships are usually merit-based. Federal grants include:

1. Federal Pell Grants: a grant for students with financial need.
2. Supplemental Educational Opportunity Grants (FSEOG): a grant for students with exceptional financial need. These grants are need based and are first come, first serve. This means that the earlier you file the FAFSA with your college, the more likely you are to receive a FSEOG. Make sure you check your school’s deadlines, as you may need to file before a certain date to qualify for the grant.
3. Teacher Education Assistance for College and Higher Education (TEACH) Grants: provides funding for students who are taking courses to become a teacher. Recipients of the TEACH grant must meet certain requirements upon graduating. The grant may be converted to an unsubsidized loan if those conditions are not met.
4. Iraq and Afghanistan Service Grants: these grants are available to students who are not eligible for the Pell Grant but have lost a parent or guardian as a result of military service performed in Iraq or Afghanistan after the events of September 11, 2001.

Work-Study

The work-study program provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses. Check with your school's financial aid office to find out if your school participates.