When you compare your entire finan...

When you compare your entire financial aid packages from the communitys that have accepted you, you will find that your aid can consist of funding from four major sources--the federal management your state, your college, and any private scholarship dollars that you may have won

What come [i]or[/i] go after [i]or[/i] behinds is a detailed look at the major financial aid programs for undergrads, as well as profiles of pupils who tell how they pay for community Review these sources carefully and make certain you're not missing out forward any college cash.

1 FEDERAL GOVERNMENT

More than 65 percent of all financial aid approachs from the federal government. (See pie chart at top of page 10) When you apply with the FAFSA, you will find revealed if you qualify for these programs:

FEDERAL PELL GRANTS. Award amounts hang on program funding each year. This year, the Pell Grant maximum is $4050 Pell grants move to students demonstrating significant ne and capitals are guaranteed to students who qualify.

FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS (SEOGs) Ranging from $100 to $4000 a year, these awards are also for undergraduates with exceptional ne Unlike the Pell this program does not guarantee an award if you qualify--it hangs on the availability of stores at each school.

FEDERAL WORK-STUDY. This program provides piece of works paying at least minimum wage to undergraduates with financial need

FEDERAL PERKINS LOANS. These low-interest (5 percent) loans allow undergraduates with exceptional financial ne to borrow up to $4000 a year. The total amount borrowed through the course of college cannot exce $20000

FEDERAL STAFFORD LOANS. The Stafford is the government's major loan program. With a variable interest rate that can in no degree exceed 8.25 percent, these loans propose up to $2,625 for freshmen $3500 for sophomores, and $5500 for juniors and seniors. Fortunately, interest rates are at record lows--the rate upon the Stafford is currently les than 3% You can borrow level more if you are considered financially independent of your parents. (See the definition of independent in our FAFSA article forward page 26.)

There are pair types of Stafford loans--subsidized and unsubsidized. Subsidized loans are awarded based forward need, and you are not charged interest while you're in indoctrinate or in deferment (an official time when you can delay repayment--for example, if you're unemployed) Repayment typically begins six month after you graduate, leave drill or drop below half-time status. Unsubsidized loans are available regardless of ne However, with these loans, you're responsible for the interest from the day you receive the loan until it is repaid.

FEDERAL PLUS LOANS. This program leases parents borrow for each hanging child who is enrolled at least half-time. PLUS provides an amount no more than the outlay of tuition, room and board, etc minus the amount of aid already received. First payments forward these loans must be made 60 days after the final disbursement.

In the past, you could sole take out Stafford and PLUS loans by the and of a private lender, but now you can take without a direct loan if you're attending individual of the more than 1000 indoctrinates that participate in the Federal Direct scholar Loan Program. If you take public a loan under this plan, the U Department of Education is your lender--not a bank. Loans by the and of private lenders are still mostly prevalent.

TAX CREDITS. Depending forward your family's income, you or your parents may be able to benefit from special tax deductions during the years you're in body and beyond. The Hope tax credit provides up to $1500 your parents can claim during each of your first couple years of college. The Lifetime Learning Credit allows an annual maximum of $2000 and applies to following years of enrollment. Additionally, the government's observer loan interest deduction allows you or your parents to subtract up to $2,500 from your taxes during each of the first five years you repay your loans after corporation depending on your income.

And the command allows penalty-free withdrawals from Individual Retirement Accounts if the coin will be used to pay for body Also, the military also exhibits funding for those willing to assist (see page 46).

2 STATE GOVERNMENT

When you're done researching federal resources, expect closer to home. Contact your state's department of education and ask for literature in succession grants, tuition assistance, fee reductions, and loans. You may have to fill without additional financial aid forms, since solitary 27 states currently rely in succession the FAFSA. Many state funding programs are specifically for observers who go to college in-state. Increasingly, states are offering financial incentives to maintain top students within state borders. However, reciprocal arrangements between states frequently permit students to receive discounted tuition in other states, usually nearby. Although many programs are need-based, several are based onward academic, military, or minority status.

3 COLLEGES

associations offer a variety of funding from their hold financial resources, including grants, scholarships, learner job programs, and low-interest loans. Be unfailing to check with your college's financial aid administrator about programs you may qualify for. Although one will be need-based, college awards many times recognize academic achievement or a special talent. Many seminarys also have dollars to support specific fields of study