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The Federal government offers the following programs to help pay for college:
- Pell Grant
- Supplemental Educational Opportunity Grant (SEOG)
- TEACH Grant
- College Work Study
- Perkins Loan
- Direct Stafford Loan Programs
- Direct Parent PLUS Loan
Federal Pell Grant:- Must file FAFSA (Free Application for Federal Student Aid)
- Based on Need
- Up to $5,500 (proposed for 2011-2012)
- Award based on enrollment status, FT, PT or Less than half-time
Supplemental Educational Opportunity Grant (SEOG):- Up to $4,000 a year (Depending on school)
- Must file FAFSA
- Based on need
- Limited funds
TEACH Grant:- Teacher Education Assistance for College and Higher Education (TEACH) Grant Program
- Maximum Award:
- Up to $4,000 per year.
- Eligibility Criteria:
- enrolled in an eligible program, and
- agree to teach
- in a critical subject,
- in a critical geographical area,
- for at least four years within eight years of completing the program for which the TEACH Grant was awarded.
- Failure to teach requires repayment under terms of an unsubsidized Direct Loan.
- How to apply:
- Check with the financial aid office at your institution for availability and application procedures
- May not show on award letter unless you ask
Federal College Work Study:- Must file FAFSA
- Based on need
- Limited funds
- Students work up to 20 hrs/week- earn a paycheck.
- Usually on campus
Federal Perkins Loan:- Federal Loan Program
- 5% Interest
- Subsidized – No interest accrues while in school
- Administered by the College
- Need-based loan
- Funds are limited
- Forgiveness for Teaching and Health Related Professions
Federal Direct Stafford Loan:Loan made to the student:Loan Limits are based on grade level: Freshman is $5500 combined between Subsidized and UnsubsidizedSubsidized Loan
- Must file FAFSA
- Need-Based Loan
- Interest paid by government while in school
- 6 month grace period prior to repayment
- Interest rate: 3.4% fixed
- Fees: .5%
Unsubsidized Loan- Must file FAFSA
- Not need-based
- Interest NOT paid but deferred while in school
- 6 month grace period prior to repayment
- Interest rate: 6.8% fixed
- Fees: .5%
- Forgiveness for Teachers
- Five years of teaching service at a low income school anywhere in United States
- $5,000 in forgiveness
- Math, Science and Special Education teachers - $17,500 in forgiveness
- Public Service
- 120 on time payments, remaining balance is forgiven
- To Apply
- Your school will provide instructions in the award letter.
- www.studentloans.gov
Federal Direct Parent PLUS Loan:Loan made to parent of an undergraduate student- Approval based on creditworthiness
- FAFSA normally not required (some schools may require)
- Loan limits based on ability to pay, can not exceed ‘cost of attendance’
- Payments begin 60 days after final disbursement of the loan or 6 months after the student exits school
- Interest rate: 7.9% fixed, unsubsidized
- Fees: 2.5 - 4%
- Your school will provide instructions on how to apply in the award letter