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Each year, federal financial aid programs, such as grants, loans and work-study, help thousands of people achieve their goal of a college education. More than $81 billion a year in grants, loans and work-study assistance goes to students across the nation. For more information, contact the Federal Student Aid Information Center at 1.800.4FEDAID, or visit www.ed.gov/studentaid.

Federal Pell Grant
The Pell Grant is a need-based grant to help undergraduates pay for their education after high school. The award does not have to be repaid. An undergraduate is one who has not earned a bachelor's or graduate degree. The maximum annual award for the 2008-09 award year is $4,731, but awards can be less, depending on the student’s actual financial need and enrollment status.

Federal Supplemental Educational Opportunity Grants (FSEOG)
The FSEOG is an assistance program administered directly by the financial aid office at each participating school (a campus-based program).The FSEOG is gift-aid for undergraduates with exceptional financial need. Pell Grant recipients with the lowest effective family contributions will receive priority. The award amount can be between $100 and $4,000 per year.

Federal Work-Study
The Federal Work-Study Program provides jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay educational expenses. The program encourages community service employment and work related to the student’s course of study. Payment is made by the hour for undergraduates. Graduates can be paid hourly or receive a salary. All students must be paid at least the federal minimum wage.

Federal Perkins Loans
Perkins Loans are low-interest (5 percent) loans for both undergraduate and graduate students with financial need. These loans are offered through a school's financial aid office, and the school acts as the lender. Up to $4,000 may be borrowed for each year of undergraduate study, while up to $6,000 may be borrowed for each year of graduate or professional study.

Subsidized Federal Stafford Loans
Subsidized Federal Stafford Loans are low-interest, need-based loans made to students attending school at least half-time. Loans are made by a bank, credit union or other participating lender. Most loans are insured by a guarantee agency and reinsured by the federal government. Interest is paid by the federal government while the borrower is attending school, during the six-month grace period and during specified loan deferment periods. Repayment begins six months following a borrower’s graduation or a drop to less than half-time enrollment.

Unsubsidized Federal Stafford Loans
Unsubsidized Federal Stafford Loans are not based on financial need. These are low-interest loans made to students attending school at least half-time. Borrowers are responsible for all interest accrued on unsubsidized loans from the date the loan is disbursed, including the time that the borrower attends school, during the grace period and during periods of deferment. Repayment begins six months following the borrower’s graduation or a drop to less than half-time enrollment.

Federal PLUS and Grad PLUS Loans
Federal PLUS Loans are made to graduate or professional students and the biological or adoptive parents of dependent undergraduate students. PLUS loans are not based on financial need. However, applicants with unfavorable credit histories are usually not eligible for a Federal PLUS loan. The amount that can be borrowed depends on the school’s cost of attendance and any other financial aid that the student may receive, including other loans. The borrower is responsible for all accrued interest.

For PLUS loan borrowers, the first payment is due within 60 days after full disbursement unless the borrower qualifies for a deferment. Parent PLUS loan borrowers can defer their loan:

• When the parent borrower is enrolled at least half-time at an eligible school.
  

• When the student for whom the parent acquired the loan is enrolled at least half-time at an eligible school (upon borrower request).
  

• During the six-month period immediately following the date on which the borrower ceased to be enrolled at least half-time at an eligible school (upon borrower request).
  

• During the six-month period immediately following the date on which the student for whom the parent acquired the loan ceased to be enrolled at least half-time at an eligible school (upon borrower request).
  

For graduate and professional student PLUS loan borrowers, the first payment is due within 60 days after full disbursement unless the borrower qualifies for a deferment.  Graduate or professional student PLUS loan borrowers can defer their loan:

• When the graduate or professional student borrower is enrolled at least half-time at an eligible school.
  
• During the six-month period immediately following the date on which the graduate or professional student borrower ceased to be enrolled at least half-time at an eligible school (upon borrower request).

Federal Consolidation Loans
Federal Consolidation Loans allow borrowers to combine all of their federal education loans into a single, more manageable loan, allowing for one monthly payment and extending the repayment period up to 30 years depending on the loan amount. Borrowers may also be able to secure a lower fixed interest rate for the life of the loan.

>>Go to "Loans" for more information on federal student loan programs.