Sources of Financial Aid

The vast majority of students attending college receive financial aid from one of three primary sources:

Most colleges, universities and other post-secondary institutions have scholarships, grants, loans, and jobs to help students pay for their education.
The Federal Government - The Pell Grant program currently distributes more than 2.5 billion dollars to students attending college and other post-secondary schools.
State Governments - Each of the 50 states has a loan program for students and most have a scholarship or grant program.

Some common student financial aid programs are listed below. The amounts of each program may vary from year to year depending on federal funding for financial aid.

Pell Grants (Federal) - Grants range from $200 to $2300 a year depending on financial need. Grants do not have to be repaid.
Supplemental Educational Opportunity Grant Program (Seog) - Federal funds administered by colleges - Up to $4,000 a year is offered to students with exceptional financial need.
College Work-Study Program (Cws) - Federal funds administered by colleges. Students with need are offered jobs on campus or in approved off-campus programs. Pay is at least minimum wage but will be related to the type of work being done.
Perkins Loan (formerly National Direct Student Loan - NDSL) - Federal funds administered by colleges - Students with need can borrow up to $9,000 over four years at 5% interest.
Stafford Loan (formerly GSL) - Loans are insured by state and federal governments. Eligible students can borrow up to $2,625 in each of their freshman and sophomore years and $4,000 in each of their junior and senior years to a maximum of $17,250.
Plus Loan - (Federal and state insured) - Credit-worthy parents may borrow up to $4,000 a year. Interest rate is set yearly, with a maximum interest rate of 12%.
Supplemental Loans For Students (SLS) – (Federal and state insured)- Credit-worthy students may borrow up to $4,000 per year at an interest rate set annually with maximum of 12%. Students may defer repayment of principal indefinitely if they are in college full time or if they meet other specific criteria.

Back: Types of Financial Aid Next: How to Apply