With the rigors of the financial aid office, you don’t always have time to explain every type of aid to each student. That’s okay, because CampusLogic has created an all-inclusive guide to give new students a roadmap to available student aid, based on data provided by NASFAA.
Below, we describe each kind of aid and how to qualify for it. Feel free to hand this out or link to it from your website. Our resource is your resource.
Federal Pell Grant
Who it serves: Low income undergraduates who have not yet earned their first bachelor’s degree. It goes to those with the most demonstrated need.
Amount: The maximum award for the 2015-16 school year is $5,775 for full time students. Minimum grant is $588.
How do students qualify? Of the 9.4 million recipients in 2012-13 school year, more than 74% had family income of less than $30,000.
Federal Supplemental Educational Opportunity Grant (FSEOG)
Who it serves: Low income undergraduates with the greatest demonstrated need.
Amount: The maximum grant is $4000 and the minimum award is $100.
How do students qualify? Federal Pell Grant recipients are given first priority. Awards must be made first to students who have the lowest expected family contributions (EFC).
Federal Work-Study (FWS)
Who it serves: Financial needy undergraduate and graduate/professional students can work part-time with the federal work study. Jobs should be as related as possible to students’ academic and career goals.
Amount: The average award in 2012-13 was $1,673.
How do students qualify? Of FWS recipients, 46% had family incomes below $42,000.
Federal Perkins Loan
Who it serves: This is a LOAN, which means it must be paid back. However, it is a low-interest low (5%) for undergraduate and graduate/professional students with financial need. Repayment may be cancelled for borrowers who complete certain volunteer, military, health care or other services.
Amount: Average award in 2012-13 was $2,014.
How do students qualify? Priority is given to students with exceptional need. 34% of 2012-13 recipients came from families with an income of less than $30,000 and 74% of recipients’ families had an income of less than $20,000.
Direct Subsidized Loan
Who it serves: This loan serves financially needy undergraduate students.
Amount: Loan amount is subject to limitations. In 2013-14, the average loan amount was $3,677.
Other details: The benefit of this loan is that the government pays for the interest while the student is in school and during the grace period. Borrowers must begin paying back loans six months after they cease at least half-time enrollment.
Direct Unsubsidized Loan
Who it serves: This loan is available to undergraduate and graduate/professional students.
Amount: In 2013-14, approximately 7.9 million borrowers took out direct unsubsidized loans. Undergraduate students borrowed an average of $4,109, while graduate students borrowed an average of $17,562.
How do students qualify? This loan is provided regardless of the borrower’s need or income, as long as the total aid does not exceed the cost of attendance. Unlike the unsubsidized loan above, recipients are charged interest on the loan even while in school.
Direct PLUS Loan
Who it serves: This loan serves the parents of dependent undergraduate students or graduate/professional students.
Amount: Approximately 704,000 parent borrowers obtained an average of $14,174 each in 2013-14. Graduate/professional students took out an average of $21,849 in Grad PLUS loans.
How do students qualify? Borrowers may take out up to the full amount of the cost of education, minus any other aid. Income is not a determining factor for awarding of loans, however borrowers must pass a credit check or obtain an endorser.