How to Pay for College: What Financial Aid Options Are Available?
Source: John Wiley & Sons, Inc.
Topics: College Student's Guide to Finance, College Costs, College Financial Planning
In 2007, approximately $82 billion in federal aid alone was awarded to more than 10 million students. Financial aid consists of:
- Grants: Gifts from various sources that don’t have to be paid back. Sources of grants can be federal, state, or local, or grants can be offered by colleges.
- Loans: Loans do need to be paid back with interest. Sources of loans can be federal, state, or private.
- Scholarships: Scholarships from various sources do not need to be paid back, and for certain scholarships, an application may be required. Scholarships can be need-based or merit-based; sources include corporations, civic and community clubs and agencies, and federal, state, and local governments.
- Employment: Federal work-study programs provide students with part-time jobs on campus. Students also often carry part-time and summer jobs.
Grants, Loans, and Work Study
The chart below has information about grants, loans, and work-study programs.
Grants, Loans, and Work-Study Program
|
Program: Grants |
Description | Eligibility | How to Apply |
|
Federal Pell Grant |
Up to $4,731/year |
U.S. citizen or eligible noncitizen with valid Social Security #, high school diploma, financial need required; must register for selective service and have no drug convictions |
File FAFSA |
|
Academic Competitiveness Grant (ACG) |
Up to $750 1st year; up to $1,300 2nd year |
Same as Pell Grant: Must be enrolled full time; must maintain a 3.0 GPA |
File FAFSA |
|
National Science & Math Access to Retain Talent Grant (SMART) |
Up to $4,000 for 3rd and 4th years |
Same as Pell Grant for math, science, technology, engineering or critical foreign language majors |
File FAFSA |
|
Teacher Educational Assistance for College & Higher Education Grant (TEACH) |
Up to $4,000/year |
U.S. citizen or eligible noncitizen in a participating college teacher education program. Must maintain a |
File FAFSA |
|
Federal Supplemental Educational Opportunity Grants (FSEOG) |
Up to $4,000/year |
Same as Pell Grant |
File FAFSA |
|
Grants from Colleges |
Varies | Varies |
Check with Financial Aid office at the college or Web site |
|
State Grants |
Varies | Varies |
Check Web site: |
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