The federal government offers more than $150 billion dollars in financial support. This support comes in several different forms. Below I offer a brief description of each type of federal financial support.
1. Grants
Grants are typically need-based and do not require repayment. The Pell Grant is the most commonly recognized federal grant, but there are others such as the Federal Supplemental Educational Opportunity Grant (FSEOG) and the Teacher Education Assistance for College and Higher Education (TEACH) Grant.
2. Federal Student Loans
Federal student loans are available to both students and their parents. Just as with any loan, interest is always applied on the money borrowed. Federal student loans typically have the lowest interest rates available to students and the interest may even be tax deductible.
3. Work-Study Programs
The federal government provides part-time job opportunities to help students earn money for educational expenses. The rate of pay is typically minimum wage but can be higher if a specific skill is necessary. Students must meet certain qualifications standards to be eligible.