With the objective of supporting student education, the US federal government offers several different types of grants, scholarships and student loans that are administered by different agencies including schools, federal government-approved lenders and the US Department of Education.

There are three different student aid programs administered directly by the financial aid office at each participating school. These include the Federal Supplemental Educational Opportunity Grant (FSEOG), Federal Work-Study (FWS) and the Federal Perkins Loans Programs.

Federal Supplemental Educational Opportunity Grant (FSEOG): This program is especially for undergraduate students. These grants operate in a way similar to Pell Grant; in the sense that they need not be paid back.

(more…)

Financial aid is money to pay for college from sources other than your savings or your family’s contribution. It can come in many forms and is available to students who demonstrate financial need or to those who just want to pay for college on their own.

For most college students, they would not be able to go to college without financial aid. And for many parents, financial aid is the lifesaver that helps give their kids a proper education.

Read the list of financial aid statistics to see why college financial aid is so important:

(more…)

The bad news about attending college is that it costs more than ever to attend. The College Board estimates the average four-year public college costs almost $5,000 per year to attend and a two-year public college is almost $2000. And that’s not counting the skyrocketing cost of textbooks or other class fees.

The good news is there is more than $105 billion dollars available in student financial aid. Some of this money is available for free…in the form of college grants.

While there are many options to consider financing your college education, this article will discuss specifically grants for college.

The most common form of Federal grant money is the Pell Grant. The amount awarded is based on your financial need and it is for undergraduate study only. Pell Grants can be awarded to part-time students. The maximum amount of a Pell Grant is $3000 per year and it can be combined with other grants or financial aid. (more…)

Q. What is a 529 Plan? A. A Section 529 college savings plan is a tax-advantaged state-administered investment program that is authorized under Internal Revenue Code Section 529. These plans allow investors to save money in an account in which the earnings will grow free from federal income tax and, when used to pay for “qualified higher education expenses”, may be withdrawn federal income tax-free.

In many states, a participant can receive special state incentives, including state tax treatment that mirrors the federal tax treatment, tax deductions and/or other state tax benefits, based on participation in their state’s program(s).

Q. What’s the difference between a 529 prepaid tuition program and a 529 savings program?
A. Prepaid Tuition: Essentially, parents, grandparents, and other interested parties may purchase future tuition at a today’s lower rate. The program will then pay the future college tuition of the beneficiary at any of the state’s eligible colleges or universities (or comparable payment to private or out-of-state institutions). Amounts of tuition (years or units) may be purchased through a one-time lump sum purchase or monthly installment payments. The program pools the money and makes investments to enable the earnings meet or exceed college tuition increases in that state. (more…)

Katherine Rigby thought college would be affordable when she enrolled at Cuyamaca College four years ago. The 22-year-old was not counting on the rising cost of books and other expenses. That’s why Rigby, like millions of college students around the country, welcomed federal financial aid increases signed into law by President Bush last week.

“It’s much needed,” said Rigby, a full-time student who relies on a Pell Grant to help her pay for school.

Under the new legislation, the maximum Pell Grant, which is given to the poorest college students, will increase from $4,310 to $4,800 in the 2008-09 school year and will grow to $5,400 by 2012.

The legislation, called the College Cost Reduction and Access Act, is especially important for

Pell Grants by the Numbers (more…)