How To Understand Government Financial Aid Programs

The government has a number of financial aid programs for children, students, families, employees, seniors, veterans and for every citizen. The following examples however, are government financial aid programs designed for students. 

1. Campus-Based Programs.

These are student financial assistance programs provided by the government and tendered by the school’s financial aid office.

• Federal Supplemental Educational Opportunity Grant (FSEOG). Based on financial need, school’s available funds and the amount a student is already obtaining, the school’s financial aid office will determine the amount to be paid out. This financial assistance is intended for undergraduates and vocational students. You can apply for this program directly from the university or vocational school you are attending.
• Federal Work-Study (FWS). This program is open for all undergraduate and graduate students who need financial aid in order to pursue postsecondary education. FWS provides part-time work to students enabling them to earn and pay for college expenses. The jobs provided are usually for the school, with public agency or private nonprofit organizations. Work hours are determined by the school and the employer depending on the student load, schedule and academic standing.
• Federal Perkins Loan. This is granted to both undergraduate and graduate students made through the school’s financial aid office. A Federal Perkins Loan is a low-interest loan provided by government funds. The amount you can borrow depends on your financial need, school funds and the time of your application. Since this is a loan, you will need to repay it. Prior to availing of this financial program, ensure that you understand your obligations as a borrower. Get adequate information on how you can repay your loan.
• Pell Grant. Student’s qualification to avail of this program is determined by financial need. This type of aid however is only awarded to undergraduate students or teacher education programs. A federal Pell Grant is disbursed by your school, which will tell you how much you are entitled to avail and how you will be paid. The maximum amount a student can get is reliant on the program funding, thus it may vary per award year. For 2009-2010, the maximum Pell Grant you can obtain is $5,350, although apart from your financial needs, it may depend also on school costs and your full-time, part-time student status. Pell Grants are not loans hence they do not need to be repaid.

2. Federal Family Education Loan Program (FFELP).

This is a government loan program in partnership with public and private institutions to provide educational loans for parents and students with exceptional financial needs. The types of loans available are Stafford Loans, Federal Consolidation Loans and Plus Loans. The financial aid may incorporate scholarships, grants, work-study and the loan amount. FFELP providers also offer family and students free services like financial aid seminars, college awareness programs, debt management workshops and other programs.

3. William D. Ford Federal Direct Loan Program (FDLP).

The fund for FDLP is directly administered by the federal government. The entire loan plus interest should be repaid by the student or parents. Types of loans are the same with FFELP: Stafford Loans, Federal Consolidation Loans and Plus Loans. You can apply for Direct Loan Programs by filling out the Free Application for Federal Student Aid (FAFSA) form on the net.

Extensive information on government financial aid programs can be found on the Internet. It is recommended to study each program while the student is still in high school in order to evaluate the family’s financial condition earlier and assess which type of program is suitable for both the parent and the student.