Federal Student Loans and Grants

The US Federal Government is the single largest source of financial assistance for college students. In 2006 they provided more than $ 50 billion to more than $ 10 million students.

Federal Loans

Stafford Loans

There are 2 types of Stafford loans The 2 types are Federal Family Education Loan (FFEL) and Direct Loans Financial need is not required to qualify. Students must be supervised at least half-time to be eligible.

Direct Loan

The William D. Ford Federal Direct Student Loan Program is the formal name for Direct Loans or Direct Stafford Loans Eligible students borrow the funds directly from the US Department of Education. There are 3 types of Direct Loans administrated by the Department of Education. The 3 types are Direct Stafford Loans Direct PLUS

Loans, and Direct Consolidation Loans The federal government will pay part of the interest for students who demonstrate financial need.


Federal Family Education Loans (FFEL) are made by banks and private lending institutions. The 3 types of FFEL Loans are FFEL Stafford Loans FFEL PLUS Loans and FFEL Consolidation Loans.


PLUS Loans are Parent Loans to for Undergraduate Students. Funds are borrowed by the parents of the student. The loans can be used to pay for all or a part of a student's undergraduate expenses

Federal Perkins Loan

Federal Perkins Loans are based on financial need. The educational institution loans the money to the student. Students do not have to be managed at least half-time as with Stafford Loans The interest rate is fixed at 5%.

Federal Grants For Students

Grants differ from loans in that they do not have to be repaid by the recipient.

Federal Pell Grant

Federal Pell Grants are the most common source of federal financial aid used by US students.

TEACH Grant Program

The TEACH Grant Program provides up to $ 4,000 per year in grants to students. The stipulation for receiving the grant is that the student must agree to teach at an elementary or secondary school that serves students from low-income families.

Federal Supplementary Educational Opportunity Grant (FSEOG)

The Federal Supplemental Educational Opportunity Grant (FSEOG) program is a need-based grant program that is reserved for those students with the greatest financial need.

Academic Competitiveness Grant

The Academic Competitiveness Grant, is a supplement to the Pell Grant. The student must be enrolled as a full-time student receiving a Federal Pell Grant.

The National Science & Mathematics Access to Retain Talent Grant (National SMART Grant)

The National Science and Mathematics Access to Retain Talent Grant, commonly referred to as the National Smart Grant is for junior and senior undergraduate students majoring in math science, technology, or engineering. Minimum grade point average is 3.0. This grant is awarded in addition to the students Pell Grant.

There are other non-federal loans grants, and scholarships available for students seeking money for college as well. Many of them are offered through the schools themselves. Check with your school's financial aid office to find out about what sources of financial aid you may qualify for.

Source by Eliot Hobbs

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