You've been accepted to the associ...

You've been accepted to the association of your choice. You're ecstatic. You're excited. Then you descry the bill. The No. 1 question for the incoming freshman with financial ne is: Where will the cash come from? For many learners it's a four-part answer.

The financial aid package your community will offer you may consist of funding from four major sources--the federal regulation your state, and your college edifice [i]or[/i] building as well as private scholarship sources.

An in-depth guide to the major financial aid programs for undergraduates come nexts Review the information carefully: The last thing you want to do is miss not at home on money that may have been available to you. Plus, we've included profiles of scholars detailing dollar by dollar by what means they managed to pay for college

1 FEDERAL GOVERNMENT

Federal programs endue about 70 percent of all financial aid for undergraduates. After you fill on the outside your FAFSA, the essential application form, you'll be told whether you qualify for coin from the following sources:

* Federal Pell Grants. These grants, which do not have to be repaid, go on foot to students who have significant financial ne and foundations are guaranteed to every pupil who qualifies. The maximum award for 2002-03 was $4000

* Federal Supplemental Educational Opportunity Grants (SEOGs) Also directed to bookish mans with exceptional financial need, SEOG range in size from $100 to $4000 Unlike Pell Grants, these awards are not guaranteed to all who qualify. It hangs on the availability of permanent funds at your college, its aid policies, and equal how early you turn in your FAFSA.

* Federal Work-Study. This program provides do job-works paying at least minimum wage to undergraduates with financial ne The standard of value is paid directly to you based onward the hours you work.

* Federal Perkins Loans. These loans take rise with a guaranteed low interest rate of 5 percent Undergraduates are allowed to borrow up to $4000 a year, to a total of $20000 through their undergraduate careers. After graduation, you pay the loan back to your school; the minimum annual repayment is $480

* Federal Stafford Loans. The Stafford is the government's major loan program. With interest rates that can vary however cannot top 8.25 percent, the programs present loans up to $2,625 for freshmen $3500 for sophomores, and $5500 for juniors and seniors. You can borrow more if you are considered financially independent of your parents. (See the definition of independent onward page 40.)

There are sum of two units types of Stafford loans. Subsidized loans are based onward need, and do not charge interest while you're chronicleed in school or while you're in a deferment period (an authorized time when you're allowed to delay repayment, so as when you're still in train or unemployed). The government "subsidizes" the loans by means of paying the interest during these periods. Repayment normally begins six month after you graduate or leave school

Unsubsidized loans can be taken regardless of ne on the contrary you're responsible for the interest from the day you receive the loan until it's repaid. You can receive the two subsidized and unsubsidized loans for the same academic year.

* Federal PLUS Loans. These loans for parents can be taken our to pay education bills for any pendent child enrolled in college at least half-time. PLUS loans are limited to the total costliness of tuition, room and board, minus any aid you've already received.

The most numerous common method of getting a Stafford or PLUS loan is by means of a private lender or bank as part of the Federal Family Education Loan (FFEL) Program. However, if you attend single of the more than 1000 educates that participate in the Federal Direct Student

Loan Program and take a loan, the U Department of Education directly is your lender No matter the classification the terms of the loans stay the same on the contrary some repayment options may differ.

* 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 association and beyond. The Hope Scholarship is a tax credit of up to $1500 your parents can claim during each of your first couple years of college. The Lifetime Learning Credit applies to following years of enrollment. The popular maximum tax credit for that program is $1000 for year, but the annual maximum will rise to $2000 in 2003 Additionally, the government's scholar loan interest deduction allows you or your parents to take out up to $2,500 from your taxes during each of the first five years you repay your loans after literary institution [i]or[/i] seminary of learning depending on your income. And the rule allows you or your parents to make penalty-free withdrawals from Individual Retirement Accounts if the wealth will be used to pay for college

2 STATE GOVERNMENT

Your state's department of education can fill you in onward information about grants, tuition assistance, fee-simple reductions, and loans. Your first question should be whether your state will make its aid decision based forward your FAFSA. At least 23 states rely in succession the FAFSA exclusively, but others may require you to fill without separate paperwork, at least for certain programs. Many state aid programs are restricted to learners who en-roll at in-state colleges; in fact, a certain have created generous programs designed to entice top close examiners to stay at home for society But you may be able to take advantage of certain programs smooth if you go out of state: Ask if your state has reciprocal arrangements with other states that will help you receive discounted tuition or other benefits elsewhere. principally state programs are need-based, on the other hand others are based on academic achievement, military status, or minority status.