SACHS Guidance Office

What Types of Aid are Available? 

Grants:  Grants, unlike loans, do not have to be repaid.  Typically, grants are based on the student's individual/family financial situation.

Loans:  Loans consist of money that is borrowed and must be repaid with interest.

Federal Stafford Loans:  All students who file the FAFSA are eligible for at least one of the Federal Stafford Loans.

Subsidized:  A subsidized loan is awarded to both undergraduate and graduate students on the basis of financial need, as determined by your FAFSA.  You will not be charged any interest before you begin repayment or during authorized periods of deferment.  The federal government "subsidizes" the interest during these periods.

Unsubsidized:  An unsubsidized loan is not awarded on the basis of need, but you must file your FAFSA to receive this loan.  The dollar amount you will qualify for is based on your year in school, NOT your income.  You will be charged interest from the time the loan is disbursed until it is paid in full.  If you allow the interest to accumulate, it will capitalize - that is, the interest will be added to the principal amount of your loan and additional interest will be based upon the higher amount.  This loan is also available to both undergraduate and graduate students.

Federal Perkins:  A Federal Perkins Loan is a low-interest (5 percent) loan for both undergraduate and graduate students with exceptional financial need, as determined by your FAFSA.  The school you attend is your lender.  The loan is made from government funds with a share contributed by the school.  You must repay this loan to your school.

Alternative Loans:  These loans are not distributed by the government and must be applied for separately.  Consult your award letter for eligibility and application instructions.

Partnership:  Partnership loans are available to students and parents.  The FAFSA is not required for this loan; however this loan typically has a slightly higher interest rate than Federal Loan programs.

Federal PLUS:  PLUS Loan is a federal program that enables parents with good credit histories to borrow monies in order to pay the education expenses of each child who is a dependent undergraduate student enrolled at least half time.  Note:  Repayment of parent loans start as soon as the loan funds are received.

Work-Study:  The Work-Study Program lets students work and earn money to help pay for school.  Eligibility is determined based on your FAFSA information.  This Federal program provides employers with a certain percentage of the students' earnings.  Students must find their own Work-Study job.  Typically, many campus jobs are Work-Study funded.

Scholarships:  Scholarships, like grants, do not have to be repaid; eligibility can be based on several different types of criteria (e.g. financial need, academic record, leadership qualities, geographical location, etc...).  Many community organizations, foundations, corporations, clubs, and civic and cultural groups provide financial aid to students.  Some awards are based on other requirements, such as academic or athletic achievement, religious affiliation, ethnic or racial heritage, community service, career plans or field of study, or special hobbies and interests.

If you are looking for private sources of financial aid, you should:

• Inquire at community organizations such as the Chamber of Commerce,
• Check with churches, businesses, industries, and veterans posts,
• Keep in touch with your high school counselor,
• Watch for announcements in your local news media,
• Search online (but be wary of fee-based financial aid search companies), and
• Check with your/your family's employer, professional association(s), or labor union(s).  They offer sponsor grants, scholarships, or loans.  Some employers will pay part of the price of continuing education for their employees who enroll in job related courses.