Low Rate Loans

Federal Pell Grants are available to low-income students who have not yet earned an undergraduate or professional degree. This type of student assistance does not have to be repaid. Your eligibility to receive a Pell Grant is determined by your financial need, your enrollment status and the cost of tuition, books, fees and room and board, if applicable. At the time of publication, the maximum Pell Grant award available was $5,550 per academic year.

The FAFSA also determines your eligibility to participate in campus-based aid programs. With this type of program, funding is distributed through your school’s financial aid office. Depending on your financial need, you may be eligible to receive a Federal Supplemental Educational Opportunity Grants (FSEOG) or participate in the federal Work-Study program. The amount of aid you may receive through these programs varies based on your need and the amount of funding available. Similar to the Pell Grant program, these types of aid do not need to be repaid.

The Department of Education offers low-interest Direct Stafford Loans to students who need help with college expenses. Stafford Loans may be subsidized or unsubsidized, depending on the extent of your financial need. Unsubsidized loans accumulate interest beginning with the first payout while subsidized loans are interest-free while you’re enrolled in school and during grace or deferment periods. At the time of publication, the maximum lifetime amount you could borrow through the Stafford Loan program was $57,500 for undergraduates and $138,500 for graduate students.

A Perkins Loan is a type of federal student loan that you borrow directly from your school. The interest rate for this type of loan is typically around 5 percent. Loan forgiveness is available for qualifying students who seek full-time employment as teachers after graduation. At the time of publication, the maximum lifetime amount you could borrow through the Perkins Loan program was $27,500 for undergraduates and $60,000 for graduate students. The total amount you may receive depends on your financial need and the availability of funding.