A QUICK GUIDE TO FINANCIAL ASSISTANCE
FEDERAL GOVERNMENT GRANTS
PELL GRANTS:
A federal grant named for Senator Claiborne Pell (D Rhode Island), designed for the neediest students. Eligibility and size of the grant are determined by a government computer applying a complex formula to financial data submitted by the student. Maximum grant $2,300.
SEOG: Initials stand for Supplemental Educational Opportunity Grant. This is federal money targeted to low income students that is distributed by colleges. Size depends upon the student's need and amount allocated to school. Range from $200 to $1,000.
WORK STUDY: A federally funded program that provides payroll subsidies for students in campus jobs. Work study funds provide about one fifth of the total CBC student payroll.
FEDERAL GOVERNMENT LOAN PROGRAMS
PERKINS LOANS: Oldest federal aid loan program, named for former Rep. Carl Perkins (D Kentucky). Program gives colleges money to loan as part of package. Money is recirculated as loans are repaid. Students start paying nine months after leaving school. Maximum loan amount is $9,000 over a four year period. CBC's Perkins Loan funds generally limited to amount repaid annually by former students. Little new money is being put into this program. Application is made with the college Financial Aid Department and granted on a first qualifying application received basis as funds are available.
STAFFORD LOANS: Once known as Guaranteed Student Loans (GSL), renamed for former Sen. Robert Stafford (R Vermont). Students borrow from a financial institution and start payments six months after leaving school. Maximum loan $2,625 a year for first two years, $3,500 a year thereafter. Apply through your local bank or credit union, or the college Financial Aid Office will usually assist student with application if requested.
SLS LOANS: Supplemental Loans to Students, available to Perkins Loan recipients who still have financial need. Repayment, at least $50 a month, starts two months after loan is made but principal may be deferred while student is in school. Maximum loan is $4,000 per academic year. The college can assist with loan application or you can apply through your local financial institution. This loan is for independent students who are not claimed on parents' IRS 1040.
PLUS LOANS: Parents may borrow cost of education minus financial aid and defer principal until student leaves school. Payments of at least $50 monthly start two months after date of loan. The college can assist with application or you can apply through your local financial institution.