A QUICK GUIDE TO FINANCIAL ASSISTANCE
FEDERAL GOVERNMENT GRANTS
PELL GRANTS:
A federal grant named for Senator Claiborne Pell (D Rhode Island), designed for the neediest students. Eligibility and size of the grant are determined by a government computer applying a complex formula to financial data submitted by the student. Maximum grant $5,550.
SEOG: Initials stand for Supplemental Educational Opportunity Grant. This is federal money targeted to low income students that is distributed by colleges. Size depends upon the student's need and amount allocated to school. Range from $900 to $1,200.
WORK STUDY: A federally funded program that provides payroll subsidies for students in campus jobs.
FEDERAL GOVERNMENT LOAN PROGRAMS
PERKINS LOANS: Oldest federal aid loan program, named for former Rep. Carl Perkins (D Kentucky). Program gives colleges money to loan as part of package. Money is recirculated as loans are repaid. Students start paying nine months after leaving school. 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.
STAFFORD LOANS: Once known as Guaranteed Student Loans (GSL), renamed for former Sen. Robert Stafford (R Vermont). Students borrow from a financial institution and start payments six months after leaving school. Stafford Loan Maximum Amounts are $3,500 for dependent Freshmen, $4,500 for dependent Sophomores, and $5,500 for dependent Juniors and Seniors. Apply through your local bank or credit union, or the college Financial Aid Office will usually assist student with application if requested.
PLUS LOANS: Parents may borrow cost of education minus financial aid and defer principal until student leaves school. Maximum Loan Amount is your child's cost of attendance minus other financial aid. For example, if your child's cost of attendance is $6,000, and he or she receives $4,000 in other financial aid, you can borrow up to $2,000 in PLUS Loans. The college can assist with application or you can apply through your local financial institution.