Government College Financial Aid
This year, the federal government will provide more than $83 billion in college financial aid for postsecondary education, which is nearly 60 percent of all student financial aid.
Here's a look at the various forms through which that aid gets distributed:
Federal Pell Grant - The Pell Grant provides free federal assistance to the most financially needy students.
Federal Supplemental Educational Opportunity Grant (FSEOG) Grant - The FSEOG Grant is for undergraduate students with exceptional financial need. Funds depend on availability at each student's school, but range from $100 - $4,000 per year. The FSEOG grant does not need to be repaid and priority is given to Federal Pell Grant recipients.
Academic Competitiveness Grant (ACG) - The ACG is for freshmen- and sophomore-year Pell Grant recipients who maintain at least a 3.0 GPA. The ACG, which does not need to be repaid, is available only to U.S. citizens enrolled full-time in college. The grant provides up to $750 to 1st year students and $1,300 for 2nd year students.
National Science and Mathematics Access to Retain Talent Grant (National SMART Grant) - The SMART Grant is for junior- and senior-year Pell Grant recipients who are majoring in math or science and maintain at least a 3.0 GPA. Eligible degree programs include physical, life or computer sciences, engineering, technology, mathematics or a critical-need foreign language. Recipients must be U.S. citizens. Awards range up to $4,000 per year for each of the last two years of college.
Federal Perkins Loan - A Perkins loan is backed by the federal government and made directly through a student's university. Undergraduate students are eligible for no more than $4,000/year; graduate students may take out up to $6,000/year. The Perkins Loan, which is available only to the most financially needy students, has a fixed interest rate of 5% and must be paid back by the student when he or she graduates or leaves school.
Subsidized Stafford Loan - Subsidized Stafford Loans are backed by the Federal government and made through various private lending banks. Eligible students must be enrolled in college at least part-time and demonstrate financial need. Loan amounts range from $3,500 to $8,500/year, depending on grade level. Repayment on the principle of the loan is deferred while the recipient is in school and for a 6-month grace period after graduation; during the deferment period, the federal government pays the interest on the loan.
Unsubsidized Stafford Loan - Like the subsidized Stafford Loan, the unsubsidized loan is backed by the federal government and made through various lending banks. Repayment is deferred while the recipient is in school; however the borrower is responsible for interest throughout the life of the loan. Loan amounts range from $3,500 to $20,500/year, depending on grade level and dependency status. Eligible students must be enrolled in college at least part-time and demonstrate financial need. Students may be eligible to take out both the subsidized and the unsubsidized Stafford loan.
Direct PLUS Loan - The PLUS loan is an unsubsidized loan available to parents of dependent undergraduate and graduate students, who are enrolled in school at least half-time. Financial need is not a requirement and the maximum amount of the loan is the Cost of Attendance minus any other financial aid award the student receives.
Federal Work Study (FWS) - Federal Work Study program qualifies undergraduate and graduate students for jobs that are either on- or off-campus. Jobs must pay at least the federal minimum wage and are generally compatible with a student's study schedule.
Next Up: Federal Pell Grants >>>
