FEDERAL LOAN INFORMATION
Federal Student Loan Basics
You want to pursue a higher education at your favorite
university or college, but you don't have a lot of money to
work with. Well, you qualify for getting a federal loan and related financial aid!
The U.S. government's "Stafford" program offers a variety of
options, including both unsubsidized and subsidized federal
student loans. Here's the difference. A
Subsidized loan requires proof of financial need, and if
approved, all interest is paid by the government while you
are actually enrolled and meeting qualifications. An
Unsubsidized Loan does not require the financial need proof,
but the student is responsible for paying the interest on
the loan.
Another program, called "Direct PLUS" offers
unsubsidized loans to the parents of their dependent
students, and the parents pay the interest on the loans
while the student remains in school and continues to
qualify.
More Information on how this works:
Federal Pell GrantsUnlike traditional student loans,
Pell Grants do not have to be repaid - ever. Pell
Grant eligibility is based upon financial need. The
maximum amount available, however, varies based upon the latest U.S.
Congress guidelines. For example, during 2000 to 2001,
the maximum Pell Grant amount was $3,300. The amount
also depends on the costs involved to attend the chosen
school, and the student's work status: full-time vs.
part-time. Pell Grants are paid directly to the
student each period by the school.
Campus Aid Programs
Programs like the Federal Supplemental
Educational Opportunity Grant (FSEOG), Federal Work-Study (FWS),
and Federal Perkins Loan programs are available, depending
upon the college or university. These programs provide
the school with the ability to provide student's with
individual financial aid based upon each student's
particular needs. The amount available depends on the
student actual financial needs, along with consideration of
any other aid the student may already be receiving from the
school.
More Information on Qualifying
Eligibility for federal student aid is determined on the
basis of financial need and on several other factors. The
financial aid administrator at the college or career school
you plan to attend will determine your eligibility.
Basically, to receive aid from federal programs, you must:
- qualify for financial need (except for certain
loans)
- have a high school diploma or a General Education
Development (GED) certificate, or pass a test approved
by the U.S. Department of Education
- be working toward a degree or certificate
- be enrolled in an eligible program
- be a U.S. citizen or eligible non-citizen
- have a valid Social Security Number
- maintain satisfactory academic progress once in
school.
Under federal law, whoever have been convicted under
federal or state law of the sale or possession of drugs are
not eligible for federal student aid. If you have a
conviction or convictions for these offenses, you can call the
Federal Student Aid Information Center at 1-800-4-FED-AID
(1-800-433-3243) to find out how and if this law applies to
your situation.
Finally, your college or university's financial aid
department is a great resource, and your next step toward
making some decisions on your student loan situation (now
that you're prepared and ready to have those conversations).
