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Financial Aid for College

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Sources of Aid Government

Federal State

Institutional Varies by schools

Private

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Government Aid

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Government Aid To qualify for this aid, you must complete

the:

Free Application for Federal Student Aid (FAFSA)

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Government Aid Types of aid

Grants Federal Student Loans Work-Study Programs Scholarships

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Grants Grants are:

“Gift aid” Financial aid that does not have to be

repaid Often need-based       

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Types of GrantsFederal Grant Program

Awarded to Annual Awards

Federal Pell Grant

• Undergraduate students• Financially needy • Have not earned a

bachelor’s or graduate degree

Up to $5500

Federal Supplemental Educational Opportunity Grant

• Undergraduate students • Exceptional financial

need • Have not earned a

bachelor’s or graduate degree

Up to $4000

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Types of GrantsFederal Grant Program

Awarded to Annual Awards

Teacher Education Assistance for College and Higher Education (TEACH) Grant

• Undergraduate students• Education Major (or

Intended)• Must agree for at least

four years:• serve as a full time

teach in a high need field in a school

• or educational service agency that serves low income students

Up to $4000

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Types of GrantsFederal Grant Program

Awarded to Annual Awards

Iraq and Afghanistan Service Grant

• Must be ineligible for Pell Grants

• A parent or guardian was a member of the US armed forces• Died as a result of

performing military service in Iraq or Afghanistan after the events of 9/11

Up to $5500

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Federal Student Loans The U.S. Department of Education has

two federal student loan programs The William D. Ford Federal Direct Loan

(Direct Loan) Program The Federal Perkins Loan

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Federal Student Loans Types of The William D. Ford Federal Direct

Loans Direct Subsidized Loans Direct Unsubsidized Loans Direct PLUS Loans

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Direct Subsidized Loan For undergraduate students who demonstrate

financial need:

Between $3,500 and $5,500(depending on year in school)

Enrolled: at least half-time Interest: 3.4%* (between July 1, 2012 and June 30, 2013)

Leader: The U.S. Department of Education (ED) Payment to ED

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Direct Subsidized Loan Interest

3.4% (for loans made between July 1, 2012 and June 30, 2013)

Student is not charged interest while in school and during deferment periods

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Direct Unsubsidized Loan For undergraduate students, financial need does

not need to be demonstrated:

Between $5,500 and $20,500(depending on year in school and dependency status)

Enrolled: at least half-time Interest: 6.8% Leader: The U.S. Department of Education (ED) Payment to ED

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Direct Unsubsidized Loan Interest

6.8% Student is charged interest while in

school and during deferment periods

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Direct PLUS Loan For parents of dependent undergraduate students

and financial need does not need to be demonstrated:

Maximum of Cost of Attendance minus any other financial aid the student receives

Students Enrolled: at least half-time Interest: 7.9% Leader: The U.S. Department of Education (ED) Payment to ED

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Direct PLUS Loan Interest

7.9% Parents are responsible during all periods

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Federal Perkins Loan Program For undergraduate students with

demonstrated financial need:

Up to $5,500

Students enrolled: at least half-time Interest: 5% Leader: college Payment to college

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Federal Perkins Loan Program Interest

5% Students are responsible during all

periods

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Federal Perkins Loan Program Please take note:

Not all schools participate in the Federal Perkins Loan Program

Funds depend on student’s financial need and availability of funds at the college

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Federal Work-Study Provides part-time jobs for

undergraduate with financial need Encourages community service work

and work related to the student’s course of study

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Work-Study Program Types of jobs

Civic education Related to your course

of study (whenever possible)

Location of Jobs On-Campus Off-Campus

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Work-Study Program Earnings

Paid hourly At least the current federal minimum wage School pays you directly

Hours Work a specific number of hours each week

based on your school schedule and the university department hours of operation

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Work-Study Program Wage can vary depending on

Type of work Skills required for position

Total work-study award depends on When you apply Your level of financial need School’s funding level

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Work-Study Program Please take note:

This program is first come, first serve!

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Government Scholarships Scholarships are “gift aid” Government scholarships are available

from the state

These scholarships offer both Merit-Based and Need-Based

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State Scholarships Types of scholarships

Academically talented students Students from minority groups Low-income students students pursuing high-need fields of study

(such as STEM fields)

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State Scholarships Amount of award varies Type of award

One-time Renewable

Eligible for the award if you meet the requirements (no need to reapply)

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State Scholarships Example:

Maryland

Sharon Christa McAuliffe Memorial Teacher Education Award

Maryland Chiefs of Police Association Need Based Senatorial Scholarship Guaranteed Access Grant Jack and Jill of America, Inc.

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Other Government Scholarships Congressional Caucus

Congressional Hispanic Caucus Institute, Inc. http://www.chci.org/

Congressperson Federal level State level

Every state differs, be sure to look into your state and local legislature for potential scholarships

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Scholarship Essays Write a detailed essay - achievements,

strengths, goals, and how you plan to reach the goals

Make sure to have at least two people review your essay (this can be a parent, teacher, counselor…)

Ask for help if you are uncertain about a topic

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Institutional Aid

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Institutional Aid Provides scholarships

Merit-Based Need-Based

This aid varies with each institutional

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Institutional Aid Example:

Harvard University

Department Scholarships General Scholarships Merit-Based Scholarships Featured Program Scholarships

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Private Aid

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Private Aid Scholarship Private Student Loans

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Scholarships Types of Scholarships

Merit-Based Need-Based

Available from Corporations Organizations Non-profits Businesses

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Scholarships Specific Scholarships

Minority groups Leadership Field of Study Community Service

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Private Student Loans Private Loans are not through the

federal government Lenders maybe a bank, credit union,

state agency, or school Loans should be a last resort as interest

payments may be high

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Private Student Loans Many require payments be made during

school May require established credit score May need a co-signer Interest rate

Variable Some greater than 18% Student pays the interest

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Private Student Loans Interest Rates vary depending on

Co-signers credit Your credit score

Make sure to look for the best rates available if you proceed with this option

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Private Student Loans Example

Sallie Mae

Smart Option Student Loan Variable Rates

1-month: 2.25%APR to 9.11%APR Or Fixed Rates

5.74%APR to 11.875%APR Payment length: 5-15 years based on loan

balance and year in school

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Helpful Links www.finaid.org www.studentaid.ed.gov studentloans.gov/myDirectLoan/index.action www.collegescholarships.org