Preface on Self Help Aid

Self-Help Aid must be earned or repaid. Original Source:  Straight Talk on Paying For College This helpful book provides exclusive insider tips from financial aid experts and real-life stories of families paying for college, plus tuition and aid data on 328 popular colleges.

Federal Perkins Loan

What is It? Under this program, colleges draw from a pool of money and make loans directly to students. The college decides the amount and the recipients. What Can You Receive? The maximum loan amount is $4,000 per year. Interest is 5% and does not accrue while the student is in school. Eligibility Eligibility for this program is based on demonstrated financial need using the federal need-analysis formula. Conditions Repayment begins 9 months after college graduation. How Do You Apply? You must complete and submit the Free Application for Federal Student Aid (FAFSA).

Subsidized Federal Stafford Loan

What is It? The subsidized version of the Federal Stafford Loan is a loan made by a financial institution such as a bank, savings and loan, or credit union. Eligibility is determined by each college and interest does not accrue until after graduation. What Can You Receive? Dependent first-year students can borrow up to $2,625 per year; sophomores up to $3,500; and juniors and seniors up to $5,500. Eligibility Eligibility for this program is based on demonstrated financial need using the federal formula. Eligibility is certified by the financial aid office of the school. Conditions Repayment and interest accrual begin 6 months after college graduation. How Do You Apply? You must complete and submit the Free Application for Federal Student Aid (FAFSA).

Unsubsidized Federal Stafford Loan

What is It? The unsubsidized version of the Stafford Loan is basically the same except that interest accrues while the student is still in school and eligibility is not based on financial need. What Can You Receive? If you're an independent undergraduate student, or if you're still dependent but your parents were unable to get a PLUS loan, you can borrow much higher amounts under the Stafford Loans. First-year students can borrow up to $6,625 per year; sophomores up to $7,500; and juniors and seniors up to $10,500. Eligibility All college students are eligible. Conditions Payments may be deferred until after graduation. However, it should be noted that interest accrues while the student is in school. How Do You Apply? You must complete and submit the Free Application for Federal Student Aid (FAFSA).

Federal PLUS Loan

What is It? This is an unsubsidized, non-need based program for parents of undergraduate dependent students. What Can You Receive? Unlimited. Parents can borrow up to the cost of college. Interest is variable, based on the 52-week Treasury bill -- but will not exceed 9 percent or go below 3.10 percent. Eligibility All parents of undergraduate dependent college students are eligible. Credit history will be checked by your financial institution. Conditions Repayment begins 60 days after the loan is received. How Do You Apply? You must complete and submit the Free Application for Federal Student Aid (FAFSA).

Federal Work-Study Program

What is It? This is a popular, need-based program where students earn money through employment. Most jobs are on-campus and the rate of pay is generally the same as other student workers - with the exception that a portion of the pay is picked up by the government. What Can You Receive? Varies. The colleges decide the amount of the awards. Eligibility Eligibility is based on need using the federal need analysis formula. The school decides who gets FWS aid and in what amounts. Conditions FWS money is earned through employment. No repayment is necessary. However, students must faithfully meet their work obligations. How Do You Apply? You must complete and submit the Free Application for Federal Student Aid (FAFSA).