To help you pay for college, the U.S. Department of Education offers a variety of student financial aid programs. These programs, described below, are administered by the U.S. Department of Education and provide over $33 billion a year to students attending post-secondary schools. Important Note: Not all schools participate in all federal student aid programs. Check with your high school counselor or the college's financial aid office to make sure it participates in the federal program(s) you are interested in.

Federal Pell Grants are available to undergraduate students only.  Grants do not have to be repaid.

Federal Stafford Loans are student loans that must be repaid and are available to both undergraduate and graduate students.  If the college participates in the William D. Ford Federal Direct Loan (Direct Loan) Program, the federal government provides the funds for your Stafford Loan.  If the college participates in the Federal Family Education Loan (FFEL) Program, a private lender provides the funds for your Stafford Loan, although the federal government guarantees the loan funds.  First-year undergraduates are eligible for loans up to $2,625.  Amounts increase for subsequent years of study, with higher amounts for graduate students. The interest rate is variable, but never exceeds 8.25 percent.  If your teen qualifies (based on need) for a subsidized Stafford loan, the government will pay the interest on your loan while he/she is in school, during grace periods, and during any deferment periods.  You are responsible for paying all of the interest that accrues on an unsubsidized Stafford Loan.

Federal PLUS Loans are unsubsidized loans made to parents.  If you cannot get a PLUS loan, your teen is eligible to borrow additional Stafford Loan funds.  The interest rate is variable, but never exceeds 9 percent.

Campus-Based Programs are administered by participating schools.  There are three of these programs.

Federal Supplemental Educational Opportunity Grants are grants available for undergraduates only; awards range from $100-$4,000.

Federal Work Study provides jobs to undergraduate and graduate students, allowing them to earn money to pay education expenses.

Perkins Loans are low-interest (5 percent) loans that must be repaid; the maximum annual loan amount is $4,000 for undergraduate students and $6,000 for graduate students.

Many educational institutions and programs are qualified to disburse federal student financial aid. They include:

The Department of Education assigns a Federal School Code number (previously called a Title IV School Code) to each school that is approved to participate in awarding Pell Grants and other federal financial aid.

To find out if your teen's college qualifies, you can check using the Federal School Code Search.  For a school to receive your application data, you must list the school's Federal School Code and the name of the school on your FAFSA.

The information you provide on your FAFSA also determines if you are eligible to receive federal aid.

After processing your FAFSA, the Department of Education mails your Student Aid Report (SAR) to you and sends a copy electronically to the schools you list on your FAFSA.

Schools use your SAR's Expected Family Contribution (EFC) number to determine if you will receive federal financial aid.

If you qualify, the school prepares a financial aid package to help you meet your financial need.  Financial need is the difference between your school's cost of attendance (including living expenses), as calculated by your school, and your expected family contribution.

For more information on the Federal programs, visit the United States Department of Education website or call (800) 433-3243.

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