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Put Your Money Where Your Mouth Is

© Shauna Zamarripa

I've talked a lot about applying for and getting grants, scholarships and loans. I've also explained what they are. Today, I'm going to put my money where my mouth is and give you some specific amounts of grants, scholarships and loans, so you can get a good idea of the minimum or maximum amount you qualify for.

I am giving you examples of the most common types and amounts of aid. There is a vast majority of aid out there other than this, but I do want to give you an idea about amounts and qualifications. First, there is the Federal Pell Grant, and this is easily the one you will hear about the most. This is a good example of "gift aid" given to undergraduate students, which is aid one does not have to pay back. The eligibility for this grant is based only on financial need, no other aspects. The maximum annual amount that a student can receive is $2,430.00, but this amount is subject to change (lower or higher) dependent upon taxes, laws, etc. Secondly, there are the Federal Supplemental Educational Opportunity Grants or (FSEOG). This is a monetary type of gift aid given to undergraduate students also. The eligibility is based on financial need, and preference is given to students that are eligible for the Pell Grant also. The maximum amount for this aid is $4,000, but it can exceed this amount if the student is studying overseas.

Thirdly, there are Federal Work-Study Programs or FWS. This program allows students to work part-time to help defray college expenses, and the institution coordinates the job. Eligibility for this program is also dependent upon financial need. Earnings received are at least minimum wage, but they can be more.

Fourth, there is the Federal Perkins Loan which is a type of aid that must be paid back beginning nine months after graduation, and the repayment terms can go up to ten years. This loan has only a 5% A.P.R. wherein the school acts as the lender. Principal and interest are deferred while the student is enrolled, as long as the student is enrolled part-time minimum. Eligibility is based on financial need, and undergraduates and graduates are eligible to apply. The maximum annual amount for an undergraduate student is $3,000 and the maximum amount a graduate student can receive is $5,000.

Fifth, is the Federal Stafford Loan. This loan has an adjusted variable interest rate ending at 8.2% A.P.R. Eligibility is based on financial need, and principal and interest are deterred while the student is enrolled at least halftime. There is a subsidized and unsubsidized version of this loan. Financial need is not considered for the unsubsidized version of the loan, and the maximum amounts for full-time undergraduate students are as follows: First year, $2,625; Second year, $3,500; Each year thereafter, $5,500. Full-time independent undergraduates receive an annual maximum amount as follows: First and second year students, $4,000 and every year thereafter, $5,000. Graduate students can receive up to $8,500 for the subsidized Stafford loan plus up to $10,000 for the unsubsidized Stafford loan. The repayment terms for unsubsidized Stafford loan is deferred interest up to six months after graduation or whenever enrollment drops below half time. Repayment of the subsidized loan may be deferred up to six months after graduation and the borrower is responsible for all interest charges. The term for both the subsidized and unsubsidized loans can go up to ten years to repay.