Categorized | Business

Federal student aid programs can help pay college costs

Star Staff Reports

The federal government sponsors numerous financial aid programs that can help students and their parents pay college expenses. This brief summary from KHEAA describes the more common federal grant and loan programs. Grants generally do not have to be repaid, but loans do.

· Federal Pell Grant: Pell Grants provide up to $5,550 per year for undergraduates with financial need.

·Federal Supplemental Educational Opportunity Grant: grants that provide up to $4,000 per year for undergraduate students who have exceptional financial need.

· Federal Perkins Loan: loans for students with exceptional financial need. Undergraduates can get up to $5,500 per year, while graduate students can get up to $8,000 per year.

· Federal Stafford Loan: Stafford Loans are available to undergraduate, graduate and professional students. The amount students may borrow depends on their year in school.

· Federal PLUS Loan: Parents of dependent undergraduate students may qualify for PLUS Loans, depending on the parents’ credit ratings.

The amount available depends on how much other financial aid the student receives. Graduate students may apply for PLUS Loans if they have exhausted all of their Stafford Loan eligibility.

The Free Application for Federal Student Aid (FAFSA) is used to apply for all of these programs. Families seeking a PLUS Loan must also submit a separate application.

KHEAA is a public, non-profit agency established in 1966 to improve students’ access to college.

It provides information about financial aid and financial literacy at no cost to students and parents.

KHEAA partners with Overture Technologies to provide the KHEAA Student Loan Marketplace at www.kheaamarketplace.com to help students and parents find the private college loan that best suits their needs. KHEAA also provides the ThinkAhead Net Price Calculator to universities and colleges.

The calculator, available on a school’s website, lets students and parents determine their out-of-pocket costs for attending that school. KHEAA also helps colleges manage their student loan default rates and verify information submitted on the FAFSA.

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