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The Financial Aid Stop: 10 Tips for Getting More Financial Aid

The Financial Aid Stop: 10 Tips for Getting More Financial Aid

Institutional Grants

There are other grants in addition to ours.  Colleges provide institutional grants to help make up the difference between college costs and what a family can be expected to contribute through income, savings, loans, and student earnings.
Other institutional grants, known as merit awards or merit scholarships, are awarded on the basis of academic achievement. Some merit awards are offered only to students whose families demonstrate financial need; others are awarded without regard to a family's finances.
Some grants come with special privileges or obligations. You'll want to find out about the types of grants awarded by each college you are considering.

Federal Supplemental Educational Opportunity Grants

Federal Supplemental Educational Opportunity Grants (FSEOG) are for undergraduates with exceptional financial need. Pell Grant recipients with the lowest EFCs will be the first to get FSEOGs. Just like Pell Grants, FSEOGs don't have to be paid back.


How much can I get?

You can receive between $100 and $4,000 a year, depending on when you apply, your financial need, the funding at the school you're attending, and the policies of the financial aid office at your school.

If I am eligible, how will I get the FSEOG money?

If you're eligible, your school will credit your account, pay you directly (usually by check), or combine these methods. Your school must pay you at least once per term (semester, trimester, or quarter). Schools that do not use semesters, trimesters, or quarters must disburse funds at least twice per academic year.

Federal Perkins Loans

A Federal Perkins Loan is a low-interest (5 percent) loan for both undergraduate and graduate students with exceptional financial need. Federal Perkins Loans are made through a school's financial aid office. Your school is your lender, and the loan is made with government funds. You must repay this loan to your school.
Your school will either pay you directly (usually by check) or apply your loan to your school charges. You'll receive the loan in at least two payments during the academic year.

How much can I borrow?

You can borrow up to $5,500 for each year of undergraduate study (the total you can borrow as an undergraduate is $27,500). For graduate studies, you can borrow up to $8,000 per year (the total you can borrow as a graduate is $60,000 which includes amounts borrowed as an undergraduate). The amount you receive depends on when you apply, your financial need, and the funding level at the school.


Other than interest, is there a charge for this loan?

No, there are no other charges. However, if you skip a payment, if it's late, or if you make less than a full payment, you might have to pay a late charge plus any collection costs.

When do I pay it back?

If you're attending school at least half time, you have nine months after you graduate, leave school, or drop below half-time status before you must begin repayment. This is called "grace period." If you're attending less than half time, check with your college or career school to find out how long your grace period will be. For more information on repaying and your obligations as a borrower, click on the "Repaying" section of this Web site.

Updated rules for appealing for financial aid


The US Department of Education just issued a new “Dear Colleague Letter”, which in financial aid industry jargon is usually a regulatory change or a change in how regulations and laws are supposed to be interpreted. In the April 2, 2009 Dear Colleague Letter, the Department of Education has offered additional flexibility to financial aid administrators.You can read the original letter here.
Financial aid administrators are now permitted to use a 12 month window for projected future earnings and base family income, a departure from the traditional calendar year/tax year.
Example: if you lose your job in November of 2008, for financial aid appeal purposes, instead of the financial aid office using calendar year 2008 for determining your aid eligibility, they are now permitted to use December 2008-November 2009 projected earnings as the basis of how much aid you’re eligible for.
Why this is important: given the current economy, people are out of work and remaining out of work longer than average; some families are using up their entire unemployment insurance allotment, which is half a year. Being able to use a drastically reduced income estimate will qualify more students for aid and assistance.
Financial aid administrators were also urged by the Department to steer students away from private student loans unless all other federal financial aid options were exhausted, and to do more aggressive outreach to families to let them know that they can appeal for additional aid and at the very least can help connect more families to the federal Stafford loan if they’re not already taking advantage of it.