Types of Financial Aid

For a lengthier description of types of aid available, please visit www.studentaid.ed.gov

A Federal Pell Grant, unlike a loan, does not have to be repaid. Pell Grants are awarded usually only to undergraduate students who have not earned a bachelor's or a professional degree. (In some cases, however, a student enrolled in a post-baccalaureate teacher certification program might receive a Pell Grant.) Pell Grants are considered a foundation of Federal financial aid, to which aid from other Federal and nonfederal sources might be added.

The Federal Supplemental Educational Opportunity Grant (FSEOG) program is for undergraduates with exceptional financial need. Pell Grant recipients with the lowest expected family contributions (EFCs) will be considered first for a FSEOG. Just like Pell Grants, the FSEOG does not have to be repaid.

The Academic Competitiveness Grant was made available for the first time for the 2006-2007 school year for first year college students who graduated from high school after January 1, 2006, and for second year college students who graduated from high school after January 1, 2005. The Academic Competitiveness Grant award is in addition to the student's Pell Grant award.

Federal Work-Study (FWS) provides part-time jobs for students with financial need, allowing them to earn money to help pay education expenses. The program encourages community service work and work related to the recipient's course of study.

FFEL Stafford Loans can be subsidized, or unsubsidized.  Subsidized loans are those that the Federal government pays the interest on the loan while you are attending school.  Unsubsidized loans accrue interest while you are in school.  The interest rates on these loans differ and are different for each aid year that you borrow.  Funds for your loan will come from a bank, credit union, or other lender that participates in the program. Eligibility rules and loan amounts are identical under both programs, but repayment plans differ somewhat.

Parents can borrow a PLUS Loan to help pay your education expenses if you are a dependent undergraduate student enrolled at least half time in an eligible program at an eligible school. PLUS Loans are available through the Federal Family Education Loan (FFEL) Program. Your parents must have an acceptable credit history, as determined by the lender that they select when applying for the loan.

A Federal Perkins Loan is a low-interest (5 percent) loan for students with exceptional financial need. Federal Perkins Loans are made through a school's financial aid office. Your school is your lender, and the loan is made with government funds. You must repay this loan to your school.