Financial Aid Terms

Following are some key financial aid terms.

Federal Direct Loans – Loans made by the federal government directly

to qualifying students and parents through participating colleges.

Federal Pell Grant – Financial assistance awarded by the federal government on the basis of need and designed to provide the "floor" of an aid package for postsecondary education. The grant may be used toward tuition, room and board, books, or other educational costs, and requires no repayment.

Federal Perkins Loan Program – Loans funded by the federal government

and awarded by the institution. The loans feature low interest rates and are repayable over an extended period of time.

Federal PLUS (Parent Loans for Undergraduate Students) Program –

Provides low-interest federal loans to credit-approved parents of eligible undergraduate students. Repayment begins 60 days after loan funds are disbursed. Loans are available from participating banks, lending institutions, and participating Direct Lending schools.

Federal Subsidized Stafford Loan Program – Provides low-interest

federal loans to eligible students through banks, lending institutions,

and participating Direct Loan schools. It is based on need, and the

interest is paid by the federal government for qualifying students while they are enrolled at least half-time. Repayment begins after the student leaves school.

Federal Unsubsidized Stafford Loan Program – Provides low-interest federal loans which are not based on need, and the student must pay the interest while in school. Repayment begins after the student leaves school.

Federal Work-Study – A government-supported financial aid program

coordinated through financial aid offices whereby an eligible student

(based on need) may work part time while attending class, generally in

career-related jobs.