The federal government offers several programs to help students cover tuition costs.
Federal Student Aid is a division of the U.S. Office of Education. Students are required to fill out a Free Application for Federal Student Aid (FAFSA). The information from this form determines what programs a person qualifies for, as well as the amount of aid that can be granted.
Grants
A grant is money given to a student that does not have to be paid back. The amount you are awarded is based on your financial need, costs to attend school and your student status. The Federal Student Aid program offers several grant options as of August 2010: the Federal Pell Grant, Federal Supplemental Educational Opportunity Grant (FSEOG),
The Academic Competitiveness Grant (ACG), Teacher Education Assistance for College and Higher Education (TEACH) Grant Program and the National Smart Grant.
Campus-based Aid
Many schools participate in campus-based aid programs. These are programs that are funded by the government and dispersed through the school's financial aid office. The FSEOG is a campus-based aid program. The Federal Work-Study (FWS) allows students to earn funds to help pay tuition expenses. The Federal Perkins Loan is a low-interest loan based on financial need.
Direct Strafford Loans
There are two types of Strafford Loans - subsidized and unsubsidized. To qualify for a direct subsidized loan, a student must show a financial need. There are no interest charges as long as you are a half-time student. Direct unsubsidized loans are available to anyone. Interest charges are accrued from the beginning of payout.
Plus Loans
Parents of qualifying dependent children and graduate and professional degree students may apply for federal Plus loans. These loans require an acceptable credit history and completion of a Master Promissory Note (MPN). Interest rates are higher than Strafford loans and accrue from the beginning of payout.
