eFinancial Portals

There are a number of government loans and grants available to help relieve some of the burden of paying for college. The key is to research each option early to determine which best meets your specific need. Some of the most common federal college funding options you can take advantage of includes the following:

• Pell Grant
• Federal Supplemental Education Opportunity Grant
• Federal Work-Study
• Perkins Loan
• Stafford Loan
• Parent Loan for Undergraduate Students (PLUS)

To begin the process of receiving federal aid and taking advantage of the options above you will first need to complete a Free Application for Federal Student Aid (FAFSA) form. The FAFSA form can be completed online, by your high school counselor, or by calling 1-800-4-FED-AID (1-800-433-3243).

The Federal Student Aid Program is administered by the U.S. Department of Education. To be eligible for federal student aid, you must:

• Be a U.S. Citizen or eligible Noncitizen
• Have a valid Social Security number
• Demonstrate a financial need (except for unsubsidized Stafford Loans)
• Be registered with Selective Service if you are male between the ages of 18 to 25 (go to the Selective Service website for more information)
• Have a high school diploma or a General Education Development (GED) Certificate or pass an exam approved by the U.S. Department of Education
• Be enrolled or accepted for enrollment as a regular student in a degree or certificate seeking program at an eligible program at a school that participates in the federal student aid programs
• Not have a drug conviction for an offense that occurred while you were receiving federal student aid (such as grants, loans, or work-study)
• Note be in default on a federal student loan or owe money on a federal student grant

(Note: There may be other requirements such as maintaining satisfactory academic progress once in school. To determine any other requirements, contact your school’s financial aid office for more information.)

Once you have determined that your are indeed eligible for federal student aid and submit your FAFSA, the federal government will consider you for the student aid programs they offer.

While you are waiting for a response from the government, keep in mind that federal student aid comes in two forms: Gift aid and Self-help aid. Your goal should be to exhaust your gift aid first as you do not have to pay it back. Self-help aid allows you to either earn or borrow money for school. If you have the option and you feel you can handle a Work-Study program, then by all means exhaust this self-help aid option before borrowing.

Below, you will find a detailed description of your most common types of federal college funding options.

The Federal Pell Grant program is a form of Gift-aid. This grant is generally available to students who do not yet have a bachelor’s degree. However, in some cases it may be awarded to students enrolled in a post-baccalaureate teacher certification program.

Pell grants come in varying amounts, from as little as $400 to as much as $4,700 or more in some cases. How much you get depends on your specific need, the cost of your school, and whether you attend school full-time or part-time.

The Federal Supplemental Education Opportunity Grant (FSEOGs) program is also a form of Gift-aid. FSEOGs go to students who have an exceptional financial need. FSEOG-award amounts can range from as little as $100 to as much as $4,000 per academic year based upon student need. Students who receive Pell Grants may also receive FSEOGs, and in fact, are at the top of the priority list for receiving FSEOGs.

FSEOGs have a few limitations that Pell Grants don't. For example, the amount of your FSEOG can be reduced if you were to receive other forms of student aid. Additionally, each school only receives a limited amount of FSEOG money, which could result in some students not receiving any if it has been all given away. What’s key to remember is that it is vitally important that you apply for financial aid as early as you possibly can. This way, you have a better chance of receiving FSEOG money if you are eligible.

The Federal Work-Study Program is an important form of self-help aid. Work-Study programs allow both undergraduate and graduate students alike to work part-time to earn money while they’re still in school. This reduces the amount of student loans needed to fund a college education. Life FSEOGs, work-study funds at each school is limited and usually administered on a first-come, first-serve basis. Here again, it is vitally important that a student applies for the aid early.

Federal Work-Study programs are typically on college campuses; however, some schools do make arrangements for private organizations, public agencies, and non-profit organizations to provide work-study jobs for their students. These jobs pay undergraduate students an hourly rate (at least the minimum wage). Graduate students can earn either an hourly wage or a monthly salary. The number of hours a student is able to work is determined by the number of work-study hours awarded to them within their financial-aid package. Students are not able to go over that amount.

The Perkins Loan program is a low-interest rate federal loan which is distributed to students on a first-come, first-serve option as well. The federal government guarantees each school a specific amount of Perkins loan money on an annual basis.

Perkins Loans are not to be confused with grants; these are loans and must be paid back. However, students can take up to 10 years to repay their Perkins Loans. If you are in school at least part-time, you have nine months after you graduate, leave school, or drop below the half-time status to begin to repay the loan (payback period is longer for active military). Perkins Loans has a fixed interest rate, usually 5 percent and payments are scheduled over a 10-year period. These loans can be discharged or cancelled in full or in part for various reason, including: graduates employed in certain teaching positions, public or nonprofit family services jobs, law enouncement, or military (for service in certain hostile areas).

The Federal Stafford Loan program is the main self-help aid program provided by the U.S Department of Education. The key feature that Strafford Loans offer is that their interest rates are lower than private lenders. As a result, over the life of the loans, students (or parents of students) pay thousands of dollars less than if they were to use private loans. Though Stafford Loans have a lower interest rate than private loans, they usually have a slightly higher rate than Perkins Loans. Stafford Loans are available to students enrolled in an eligible program at least part-time. Unlike Perkins Loans with fixed interest rates, the Stafford Loans carry variable interest rates that adjust each July 1st for the next 12 months. Still, even with variable rates they are lower than private loans.

Stafford Loans come in two options, Direct and FFEL. Direct Stafford Loans are made through the William D. Ford Direct Loan program. FFEL Stafford Loans are made by the Federal Family Education Loan (FFEL) program. While terms and conditions are relatively similar, Direct Loan money comes from the U.S. government directly. If you attend a school that does not participate in the Direct Loan program, then they would likely participate in the FFEL program. With the FFEL program the money is lent to you from a bank, credit union or other participating lender directly.

Stafford Loans can either be subsidized or nonsubsidized. For subsidized loans, you must have a financial need and the federal government will pay your interest on the loan while you are still in school. Six months after you graduate you would begin to pay your own interest on your loans. If you do not show a financial need based upon the U.S. Department of Education’s guidelines, but still need money for school, you may qualify for a nonsubsidized Stafford Loan. With this loan, you are responsible for all interest charges as the borrower. You can take from 10 to 30 years to payoff Stafford Loans, depending on the amount you owe and the type of repayment plan you select. In certain circumstances, you may receive a deferment or discharge of your loan. You would have to speak with your lender directly to determine these.

The Parent Loan for Undergraduate Students (PLUS) program is available to parents looking to pay for their children’s college education. With the PLUS program parents may borrow up to the full cost of their child’s education, minus any financial aid received by the student. These loans are also government-sponsored and have a variable interest rate that is capped at 9 percent.

PLUS borrowers must not have an adverse credit history to qualify and the student must meet specific eligibility requirements, including: be a U.S. citizen or eligible noncitizen, not be in default or not owe a refund on a federal education grant. With these loans, monthly payments begin within the first 60 days of loan disbursements. Repayments on a PLUS loan are 10 years with no early repayment penalty.