Know the Routes to Finance Your Studies (Part-I)

The United States is one of those countries that encourages its citizens to get Educated and create a learned society. This encouragement is not just given in the form of some schemes but majorly shared with the people in the form of grants or loans. Here is how you can take advantage of such financing options available.

A US high school student can utilize the following financial aid sources to pursue higher education in Universities, colleges, professional schools, career-oriented schools, or graduated schools.

Aid from the US federal government

The US federal government offers student aid in the form of:

• Scholarships and Grants that need not to be paid by the student


• Student loans that have to be repaid with interest


• Work-study program that offers employment to the students to avail finance for their studies

The federal government aid may cover student expenses such as tuition fees, housing facilities, stationery, transportation costs, computer facilities, etc.

To avail any financial aid from the federal government, students have to apply through the FAFSA (Free Application for Federal Student Aid) form.

Types of Federal Grants

Although there are various student offers provided by the Federal Student Aid. The four most common ones are:

Federal Pell Grants, that need not be repaid, are awarded to students –

• With financial need


• Who have not earned their first bachelor's degree


• Who are not enrolled in certain post-baccalaureate programs

Stafford Loan is a repayable loan with interest, offered to students enrolled in accredited American institutions of higher education. Following are some important points to note:

• Student need not repay the loan until the student is enrolled and even until six months of leaving the school. (Leaving may refer to graduating, dropping below half-time enrollment, or withdrawing).


• This loan is available as subsidized and unsubsidized loans


• For subsidized loans, the interest is paid by the federal government while the student is in school and until six months of the student leaving the school


• For unsubsidized loans, payment of interest becomes the student’s responsibility solely

Federal Perkins Loan (FPL) is a loan similar to that of Stafford but is lent directly by the schools through individual states.

• A student can apply for FPL only for funding their post secondary education


• The loan carries a fixed interest of 5% for a ten-year repayment period


• The interest does not accrue until the student begins to repay

Federal Work-Study Program is a system where students join a part-time work and earn up to a certain amount. In most cases, the federal government pays half of the wage and the school pays the other half.

• This program covers post-secondary education programs


• The student must be accepted into the program to qualify for this program


• Students can join work programs through their college


• FWS programs also cover undergraduate and graduate programs and provide part-time jobs to the students of the same


• The work offered mostly is either related to the subject that the student has chosen or community service

Below are some other federal grants available for the US students:

Federal Supplemental Educational Opportunity Grants (FSEOG) is awarded as “campus-based” aid. The participating schools of the program award these grants to students who are eligible for Federal Pell Grant and in higher need of finance

Teacher Education Assistance for College and Higher Education (TEACH) Grants are awarded to those who choose to study to become a teacher. The students are obliged to certain criteria like teaching in schools that have children from low-income families, for a particular period of time, in order to avoid the grant from turning into a loan

Iraq and Afghanistan Service Grants are awarded to students whose parent or guardian died in the Iraq or Afghanistan during military service.

In this article, we have discussed about various financial aids available for the US students by federal government. More of financial aid sources will be dealt with in the PART II of this article.



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