Federal Student Financial Aid Programs
Paying for Continuing Education with Government Grants and Loans
Mar 14, 2009
When considering going back to school to continue your education, the first step is to develop an action plan for earning an undergraduate or graduate degree. An important part of this plan is to determine eligibility for Federal Student Financial Aid. To determine eligibility for grants, awards, and loans a Free Application for Federal Student Aid (FAFSA) is required to be completed each year.
The FASFA should be completed prior to March 31st each year to receive maximum award consideration. After this date, applications typically receive fewer grant and award dollars. Part of the FASFA form is section called the Expected Family Contribution (EFC). This section is used to determine the amount of contribution an independent adult student is capable of paying towards his continuing education based on financial need.
Federal Grants and Awards
Grants and awards do not require repayment.
Pell Grant – a maximum of $4,731 is awarded through a Pell Grant; however, the amount awarded can change yearly and is dependent upon available funds. A Pell Grant is awarded based on financial need determined by a student’s EFC.
Federal Supplemental Educational Opportunity Grant (FSEOG) – these grants are reserved for students with lowest EFC and those that qualify for a Pell Grant. Eligible students receive between $100 and $4000 an academic year.
National Science and Mathematics Access to Retain Talent Grant (SMART Grant) – this is available to undergraduates who qualify for a Pell Grant during their junior and senior years. These students must be majoring in physical sciences, life sciences, computer sciences, mathematics, technology, engineering, or a foreign language critical to national security. A cumulative grade point average of 3.0 must be maintained and students receive $2666 per academic year.
Academic Competitiveness Grants (ACG) – these grants are issued in addition to a Pell Grant. Students can qualify for up to $250 per term of their first year of enrollment and $433 for their second year. To continue eligibility a 3.0 cumulative grade point average must be maintained.
Federal Work Study and Part-Time Employment Award – students can receive a part-time employment award to help finance their education. Career Service Departments in individual schools help students with a low EFC to procure a part-time job on campus.
Federal Stafford and Perkins Loans
Loans must be repaid and they can be consolidated into one single debt payment. The U.S. Department of Education is the lender and funds are provided by private organizations such as nonprofit agencies and commercial lenders.
The following is based on adults not reported as dependents on federal tax forms and the money can be used to pay for academic and living expenses.
Federal Stafford Loans – no payment is required while a student is enrolled and payments are deferred for 6 months after graduation. There are three types of Stafford loans:
- Subsidized loans – do not accrue interest while enrolled. Interest becomes student responsibility after deferment has expired. Students are eligible for $3,500 first year, $4,500 second year, and $5,500 third and fourth years.
- Unsubsidized loans – accrue interest while enrolled. The interest accrued is added to the principle loan amount once deferment has expired. Students are eligible for $6,000 the first two years and $7,000 the following years.
- Graduate loans – graduate students can borrow $8,500 subsidized and $12,000 unsubsidized per school year.
Federal Perkins Loan – is a low-interest loan for students with a low EFC. The loan is made with government funds and schools contribute. The loan must be repaid to your school. Undergraduates can borrow $4,000 per year and graduates can borrow $6,000 per year.
Making Connections
The benefits of continuing education are numerous because of the potential for greater income and career stability. Grants and loans are essential, and the first step to determine eligibility is to complete the FASFA form. The results are sent to your school and the school’s financial aid office will process all forms to determine eligibility for grants and loans. Do not forget additional sources of free money when going back to school to complete a continuing education program.
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