|
Federal Financial Aid and Tax Credits
Federal Pell Grants
The Department of Education (DOE) only awards Pell Grants to undergraduate students. For the 1999-2000 year, DOE gave awards that ranged from $400-$3,300. Students do not have to repay these grants.
Federal Plus Loans
Plus loans are unsubsidized loans made to parents that must be repaid. These loans are made through the school as Direct Loans or through a private lender. (If you are independent, or your parents cannot get a Plus Loan, you are eligible to borrow additional Stafford funds, see below.) The loans have a variable interest rate that never exceeds 9 percent.
Federal Stafford Loans
Stafford Loans are subsidized and unsubsidized and must be repaid. If you qualify (based on need) for a subsidized Stafford Loan, the government will pay the interest on your loan while you are in school, during the six-month grace period, and during any deferment periods. You are responsible for paying all of the interest that accrues on an unsubsidized Stafford Loan.
The loans are available to graduate and undergraduate students. If your school participates in the Federal Direct Student Loan Program, your Stafford Loan will be made through the school. (For other schools, the Stafford Loan will be made through a private lender). First year undergraduates are eligible for loans up to $2,625. Loan amounts for undergraduate students increase to as much as $5,500 annually after two years of study. The loans have a variable Interest rate that never exceeds 8.25 percent.
School/Campus-Based Programs
Schools award various campus-based funds such as Supplemental Educational Opportunity Grants (SEOG), Work-Study Programs, and Perkins Loans. The SEOG is a grant available for undergraduates only; awards range from $100-$4,000. The Federal Work-Study Program provides jobs to undergraduate and graduate students who are then paid an hourly rate at minimum wage or above. Perkins Loans are low interest (5%) loans that must be repaid; the maximum annual loan amount is $3,000 for undergraduates and $5,000 for graduate students. | 
