DO YOU NEED MONEY FOR COLLEGE? Federal Student Aid at a Glance 2014–15
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WHAT is federal student aid?
Federal student aid comes from the federal government—specifically, the U.S. Department of Education. It’s money that helps a student pay for higher education expenses (i.e., college, career school, or graduate school expenses). Federal student aid covers such expenses as tuition and fees, room and board, books and supplies, and transportation. Aid also can help pay for a computer and for dependent care. There are three main categories of federal student aid: grants, work-study, and loans. Check with your school’s financial aid office to find out which programs the school participates in. Details about the federal student aid programs are on page 2 of this document.
HOW do you apply for federal student aid?
1. Complete the Free Application for Federal Student Aid (FAFSASM) at www.fafsa.gov. If you need a paper FAFSA, you can get one from • our website at www.fafsa.gov, where you can download a PDF, or • our ED Pubs distribution center at www.edpubs.gov or toll-free at 1-877-433-7827. For the 2014–15 award year, the FAFSA is available from Jan. 1, 2014, to June 30, 2015. But you need to apply as soon as you can! Schools and states often use FAFSA information to award nonfederal aid. Their deadlines are usually early in the year. You can find state deadlines at www.fafsa.gov or on the paper FAFSA. Check with the schools you’re interested in for their deadlines. 2. Review your Student Aid Report. After you apply, you’ll receive a Student Aid Report, or SAR. Your SAR contains the information reported on your FAFSA and usually includes your Expected Family Contribution (EFC). The EFC is an index number used to determine your eligibility for federal student aid. Review your SAR information and make any corrections or changes, if necessary. The school(s) you list on your FAFSA will get your SAR data electronically. 3. Contact the school(s) you might attend. Make sure the financial aid office at each school you’re interested in has all the information needed to determine your eligibility. If you’re eligible, each school’s financial aid office will send you an aid offer showing the amount and types of aid (from all sources) the school will offer you. You can compare aid offers from the schools to which you applied and see which school is the most affordable once financial aid is taken into account.
WHO gets federal student aid?
Our most basic eligibility requirements are that you must • demonstrate financial need (for most programs— to learn more, visit StudentAid.gov/how-calculated); • be a U.S. citizen or an eligible noncitizen; • have a valid Social Security number; • register (if you haven’t already) with Selective Service, if you’re a male between the ages of 18 and 25; • maintain satisfactory academic progress in college or career school; and • show you’re qualified to obtain a college or career school education by - having a high school diploma or General Educational Development (GED) certificate or - completing a high school education in a home-school setting approved under state law. Find more details about eligibility criteria at StudentAid.gov/eligibility.
HAVE QUESTIONS?
Contact or visit the following:
• StudentAid.gov • a college financial aid office • studentaid@ed.gov
• 1-800-4-FED-AID (1-800-433-3243) toll-free • 1-800-730-8913 (toll-free TTY for the hearing impaired)
Federal Student Aid Programs 2014–15
Program Federal Pell Grant Type of Aid Grant: does not have to be repaid Program Details For undergraduates with financial need who have not earned bachelor’s or professional degrees; in some cases, however, a student enrolled in a postbaccalaureate teacher certification program might receive a Federal Pell Grant. A student can receive a Federal Pell Grant for no more than 12 semesters or the equivalent (roughly six years). Federal Supplemental Grant: does not have Educational Opportunity to be repaid Grant (FSEOG) Teacher Education Assistance for College and Higher Education (TEACH) Grant Grant: does not have to be repaid unless student fails to carry out service obligation, in which case student must repay TEACH Grant as Direct Unsubsidized Loan with interest accrued (accumulated) from date grant was disbursed (paid out to student) Grant: does not have to be repaid For undergraduates with exceptional financial need; Federal Pell Grant recipients take priority; funds depend on availability at school. For undergraduate, postbaccalaureate, and graduate students who plan to become teachers; recipient must sign Agreement to Serve saying he or she will teach full-time in a high-need field for four complete years (within eight years of completing the academic program) at an elementary school, secondary school, or educational service agency serving children from low-income families.
DO YOU NEED MONEY FOR COLLEGE? Page 2 of 2
Annual Amount Up to $5,645 for the 2013–14 award year For the 2014–15 award year amount, visit StudentAid.gov/pell-grant.
$100–$4,000
Up to $4,000
Iraq and Afghanistan Service Grant
For students who are not Pell-eligible due only to having less financial need than is required to receive Pell funds; whose parent or guardian died as a result of military service in Iraq or Afghanistan after the events of 9/11; and who, at the time of the parent's or guardian's death, were less than 24 years old or were enrolled at least part-time at an institution of higher education. A student can receive an Iraq and Afghanistan Service Grant for no more than 12 semesters or the equivalent (roughly six years).
Up to $5,238.56 for the 2013–14 award year For the 2014–15 award year amount, visit StudentAid.gov/Iraq-Afghanistan.
Federal Work-Study Federal Perkins Loan Direct Subsidized Loan
Money earned while attending school; does not have to be repaid Loan: must be repaid with interest Loan: must be repaid with interest
For undergraduate and graduate students; jobs can be on campus or off campus; students are paid at least federal minimum wage; funds depend on availability at school. For undergraduate and graduate students with exceptional financial need; must be repaid to school that made the loan; 5% interest rate. For undergraduate students; U.S. Department of Education pays interest while borrower is in school and during grace and deferment periods; student must be at least half-time and have financial need; 3.86% interest rate for new loans made on or after July 1, 2013, and before July 1, 2014; visit StudentAid.gov/interest for latest information on interest rates. First-time borrowers may not receive this type of loan for more than 150% of the length of their program of study; and U.S. Department of Education may stop paying their interest if they exceed that limit.
No annual minimum or maximum amounts Undergraduate students: up to $5,500; graduate and professional students: up to $8,000 Up to $5,500 depending on grade level
Direct Unsubsidized Loan
Loan: must be repaid with interest
For undergraduate and graduate students; borrower is responsible for all interest; student must be at least half-time; financial need is not required; 3.86% (undergraduate) and 5.41% (graduate or professional) interest rates for new loans made on or after July 1, 2013, and before July 1, 2014; visit StudentAid.gov/interest for latest information on interest rates.
Up to $20,500 (less any subsidized amounts received for same period), depending on grade level and dependency status
Direct PLUS Loan
Loan: must be repaid with interest
For parents of dependent undergraduate students and for graduate or Maximum amount is cost of attendance professional students; borrower is responsible for all interest; student minus any other financial aid student must be enrolled at least half-time; financial need is not required; receives. 6.41% interest rate for new loans made on or after July 1, 2013, and before July 1, 2014. 