Education Financial Aid

Education Financial Aid

Education financial aid is available to students through the U.S. Department of Education. The government offers undergraduate and graduate students a variety of funding opportunities to pay for tuition, textbooks, fees, housing, and other expenses related to their education venture. Education financial aid comes in the form of grants, work-study, and education loans. The following is a brief breakdown of common education financial aid resources available to students.

Federal Pell Grant
Money that doesn’t have to be repaid is offered through the Federal Pell Grant Program. Awarded only to undergraduate students, the Pell Grant award maxes out at $4,310 annually. The award amount is based on the student’s financial need and year in school.

Federal Work-Study
The Federal Work-Study program offers recipients an award amount to be earned through working at minimum wage. The program is ideal for students who don’t want to take on education loan debt, because work study awards don’t have to be repaid.

Federal Stafford Loan
For expenses not covered by grants, scholarships, and work-study, students can utilize a Federal Stafford Loan. To qualify for a loan, the borrower has to be enrolled at least part time. Repayment of the loan begins six months after the borrower graduates or exits school.

Stafford Loans come in two forms – subsidized and unsubsidized. Subsidized loans are awarded based on financial need and do not incur interest charges while the student is in school or during the grace period. Unsubsidized loans are always subject to interest charges. They are also not based on financial need. Federal Stafford Education Loans can total more than $20,000 a year depending on the student’s dependency status and year in school.

Federal PLUS Loans
Parents can pay for their dependent child’s schooling with a Federal PLUS Loan. Graduate students can also utilize the Federal PLUS Loan. The PLUS Loan can only be used to pay for approved costs related to college. Borrowers must undergo a credit check to receive the loan.

For more information on education loans and other money for college visit our website located at www.educationloans.org