Sources of Financial Aid – Need-Based Student Financial Aid Packages
Your family’s ability to pay for educational costs is evaluated to determine the student financial aid award
Pell and other types of grants, money that does not need to be repaid. Similar to scholarships, but awarded on the basis of economic Need rather than academic accomplishments or promise.Subsidized student loans, on which there is no interest while the student remains enrolled at least half time in an eligible institution.
Cooperative education, which provides campus employment opportunities to students with Need.
The federal government and many state governments provide need-based student aid including grants, work-study, and loans; a few states provide merit-based aid. Major federal grants include the Pell Grants, Federal Supplemental Educational Opportunity Grants, Federal Work-Study Program, federal Stafford Loans (in subsidized and unsubsidized forms), state student incentive grants and Federal PLUS Loans. Federal Perkins Loans are made by participating schools per annual appropriations from the U.S. Department of Education. Federal Stafford Loans and Federal PLUS Loans are made by the U.S. Department of Education. As of April 2010, Congress voted to eliminate the Federal Family Education Loan Program (FFELP) which had allowed private lenders to make student loans guaranteed by the federal government.
State governments also typically provide some types of need- and non-need-based aid, consisting of grants, work-study programs, tuition waivers, and scholarships. Individual colleges and universities may provide grants and need- and merit-based scholarships. Students requiring financial aid beyond what is offered by their institutions may consider a private (alternative) education loan, available from most large lending institutions. Typically, education loans obtained through the federal government have lower interest rates than private education loans. Institutions may also offer their own student financial assistance, in the form of need- or merit-based aid, as well as endowed scholarships (with varying need and/or merit-based criteria). Some institutions may only require the FAFSA; some may also require a need-based analysis document, such as the CSS/Profile, to apply for such funds to apply a more stringent need analysis for the rationalization of institutional funds.
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