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Grants, Loans and Work/Study
Selected types of financial aid through the federal government:
- Federal Pell Grants: Gifts awarded based on need, to undergraduate students. Maximum per year changes annually; rough maximum amount is around $4000. Note: Need is determined by the results of the Free Application for Federal Student Aid {FAFSA}.
- Federal Supplemental Educational Opportunity Grants (FSEOG): Grants funded by the federal government and administered by schools. Available to students with exceptional financial need, with Pell Grants recipients receiving highest priority. Limit changes annually; rough amount is around $4000 per year. Available to undergraduates only. FSEOG is different from the Pell Grant in that there is no guarantee that every eligible student will receive it.
- Perkins Loan: School contributes. Based on need. Interest rate varies according to market (2002 - 2003, rate is 5%); subsidized … meaning all interest is deferred until nine months after you graduate or leave school. Limit changes annually; undergraduate limit is around $4,000 per year, up to around $16,000 total. Limit changes annually; graduate limit is around $5,000 per year, up to $30,000, including the amount borrowed as an undergraduate. May typically be repaid in ten (10) years.
- Stafford Loan (subsidized): Based on need. Available directly through schools or from private lenders (Family Education Loans). Interest rate capped, based on market; never higher than 8.25%. Interest deferred until six months after graduation or leaving school. Limits change annually; undergraduate limit is around $2,600 per year for first-year students, higher for upperclassmen and graduate students. Note: Limits are for total Staffords taken, including unsubsidized.
- Stafford Loan (unsubsidized): Available regardless of need. Available through schools or from private lenders. For loan limits and caps on interest, see above. May defer payments until six months after you graduate or leave school, but interest accumulates in the meantime and is added to principal.
- Parent Loans to Undergraduate Students (PLUS): Not based on need. Interest capped based on market. Available to full-time students only. Amount limited only by the total cost of schooling, minus other financial aid received. Repayment scheduled to begin 60 days after disbursement.
For the most current information, visit the Department of Education web site at:
http://www.ed.gov/prog_info/SFA/FYE/FYE02/indexfye.html
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