Financial Aid

FAFSA

The primary application for the majority of financial assistance is the Free Application for Federal Student Aid (FAFSA). This form can be found online at www.fafsa.ed.gov. This is a need based aid program that used a federally mandated formula to determine your expected family contribution (EFC). The EFC is used by private and public universities in determining your eligibility for federal assistance.

Federal Pell Grant

This is a need based grant given to undergraduate to help defray the cost of education. With a few exceptions Federal Pell Grants are available only to undergraduate students. Grants usually do not have to be repaid.

Federal Supplemental Education Opportunity Grant

The FSEOG is given based on exceptional financial need and is awarded primarily to federal Pell grant recipients. These grants available for undergraduates only; awards range from $100-$4,000.

Federal Work-Study Program

The FWS provides jobs to undergraduate and graduate students, allowing them to earn money to pay education expenses. You need to complete the FAFSA to be eligible.

Federal Perkins Loan Program

Perkins Loans are low-interest (5 percent) loans that must be repaid; the maximum annual loan amount is $4,000 for undergraduate students and $6,000 for graduate students. The loan is administered by the school and is based on need. The repayment term is up to ten years with a minimum monthly payment of $40 and a fixed rate of 5%. Repayment begins nine months after the student leaves school. (Not all schools participate in this program.)

Federal Stafford Loans

These are loans that must be repaid and are available to both undergraduate and graduate students. First-year undergraduates are eligible for loans up to $2,625. Amounts increase for subsequent years of study, with higher amounts for graduate students. The interest rate is variable, but never exceeds 8.25 percent. If you qualify (based on need) for a subsidized Stafford loan, the government will pay the interest on your loan while you are in school, during grace periods, and during any deferment periods. You are responsible for paying all of the interest that accrues on an unsubsidized Stafford Loan.

Federal Plus Loans

These are unsubsidized loans made to parents. If you are independent or your parents cannot get a PLUS loan, you are eligible to borrow additional Stafford Loan funds. The interest rate is variable, but never exceeds 9 percent. Repayment of a PLUS loan begins 60 days after final disbursement and can take up to 25 years based on the total outstanding balance. PLUS loans are disbursed on or after July 1.

Other types of assistance

National Guard, Military and Reserve Units, Veteran dependents (www.va.gov), Vocational Rehabilitation Education, Bureau of Indian Affairs, National SMART Grant & Academic Competitiveness Grant (800-4-FED-AID).

For tax/credit/student loan deductions information click here.

For current information on HOPE Scholarships and Lifetime Learning Tax Credits, please visit the Internal Revenue Service web site:  IRS Tax Information for Students  and Tax Benefits for Education