ERIC ED369365: The Student Guide: Financial Aid from the U.S. Department of Education, 1994-95.

61 Pages·1993·0.96 MB·English

by  ERIC

DOCUMENT RESUME
ED 369 365
HE 027 404
TITLE
The Student Guide: Financial Aid from the U.S.
Department of Education, 1994-95.
INSTITUTION
Department of Education, Washington, DC.
REPORT NO
ED/OPE93-12
PUB DATE
93
NOTE
61p.
AVAILABLE FROM
Federal Student Aid Information Center, P.O. Box 84,
Washington, DC 20044 (free).
PUB TYPE
Guides
Non-Classroom Use (055)
EDRS PRICE
MF01/PC03 Plus Postage.
DESCRIPTORS
Eligibility; *Federal Programs; Grants; Higher
Education; *Income Contingent Loans; Information
Sources; Loan Repayment; *Paying for College;
*Student Financial Aid; Student Loan Programs;
Student Responsibility; Student Rights; Work Study
Programs
ABSTRACT
This guide tells about federal student aid programs
for postsecondary education and how to apply for them. It begins by
outlining sources for finding out about student aid, such as state
higher education agencies, guidance counselors, and organizations
connected with particular fields of interest. The guide offers tips
on choosing a school carefully. It briefly outlines student
eligibility in terms of financial need and dependency status, and
reviews the application process and important deadlines. Various
grants, work-study programs, and loans are then described, including
Federal Pell Grants, Federal Supplemental Educational Opportunity
Grants, Federal Work-Study, Federal Perkins Loans, Federal Stafford
Loans, Federal PLUS loans, and Federal Direct Student Loans. Borrower
responsibilities and rights are highlighted. The guide concludes with
a deferment summary and a glossary of'important terms. (JDD)
*********************************************************
Reproductions supplied by EDRS are the best that can be made
from the original document.
***********************************************************************
U S DEPARTMENT OF EDUCATION
Office of Educational Research and improvement
EDUCAT
AL RESOURCES INFORMATION
CENTER (ERICI
b..-
is document has been reproduced as
received from the person or organization
originating it
0 Minor changes have been made to
improve reproduction quality
Points of view or opinions Stated in this
document do not necessarily represent
official OERI position or policy
411
v't
BEST
AVAIL
E
s
t
n
e
r
n
d
e
e
s
h
_
e
S
t
e
y
a
r
h
t
n
r
d

v

N
r
g
a
s
e
r
n
3
l
o
i
p
e
e
i
c
i
o
e
9
h
s
A
h
t

k
r
c
o
t
9
f
s

c
e
a
u
d
a
t
e
i
s
1
O

p
n
o
m
m

b
e

t
r

r
s
a
n
n

r
,

o
4
L

d
a
1
,
o
o
r
e
)

e
f

6
e

t
i

n
l
n r
d
o

y
m
k
y
u a

f
.
p
S
o
o
n ,
6

e
l
c

l
b
s
t

p y
o
r
u
i

e
d

U
e
d
s
a
n
d

n
e
s
p
a
c
p
J
,
o
h

e

o
a
e
h
u
e
e

p
n
n
a
e
L
l
c
c
m
i
w
w
l
t
b

l

e
i
g
d
t

t
b
o
e
d

i
t
P
s

i
r
o
o

n

i
d
c
i
y
a

d
l
i

e
r
s
d
s
r
u
r
o
o

n
n
o
a
i
e
t

d
r
f
L
u
e
r
t
o
a
a
t

m
o
f
r
o

d
s
a
r
r
n
;

r
c
c
h
g
c
2
A
b
a
c
u
w
t
v
e

i

n
s

,
n
9
w

y
r

,
m
m
s
n

4
o
o

o
k
o
e
R
:
9
i
l
a
s
i
9
e
a
e
g
h
n
r
n
c

1
t
a
b
)
*
r

s
t
e
9
E
n
r
w
r
o
a
t
d

m

a
o
e
r
e
,
r
n
r
1
t
e
b

e
1
e
r
D

g
b o
e
d
l
p
r
o

e
u
(

n
a

w
c
,
n a a
n

t

r
e
s
i
0
s
m
p
o
0
s
E
r

e
p

t

u
l
o
r
t
o
e
*
3
s
e
i
a
p
b
1
b
n

e

h
i
c
F
n d
r
;
,
r

c
i t
t

x
o
d
e
e
n
e
n
s
t
s
r
s
n
e
a n
u

t
a
r
o
s
n
t
o
u
n
a
i
t
r
a
c
o
e
o
a
d
o
r
M
n
o
U p
B
o
m
a
h O
L L
p
P
n
p
e
I
f
(
J
l
t
S
!

f
N
t
r
o
u
t
e
s
f
t
n

b
n
A
o
y
h
h
e

e

s
a
g
y
t
,
s
c
s
O
g
g
m
e
p
e
i
r
s
s
r
h
n
n
t
s
4
o

k
e
e
n
a
y
t
L
a
i
e

9
p
l
n r
a
s
a
t
y
u
a

d
l
o
s
o
9
m

o
e

n

l
l
p
d
2
r
D

i
n
o
p
m
1
n
l
o
)
a
m
e
a
2

*

o
o
d
p

)
o
d
g
r
r
R
,
n
.
t
e
n

h
e
a
0
o

6
s
e
g
u
e
s
r
,
m
o
n

c

3
s
d
s
r

O
r
b e

r
s
y
s
d
i
s
o
p
a

n
o

n
v
a
i

3
n
n
a
a

e
b
p
,
n
t

F
o
f
n
e
o

e
w
u
p
a
-
a
n
y

-
t
a
i
p
i
g
f
e
l
o
F
s

e
d
u
t

l

l
b
t
n
e
n
o
i
r
p
r
l
e
s
e
a
i
J
l
A
d
a
d
a

d
g
i
p
e
a
p
t
-
e
h
a
o
l
e
n
a
i

3
e
r
i
(
t
n
d
a

d
r
T
t
y
a s
r
e o

t
t
r
9

a

a
d
e

r
s

c
g
u
d
d
n
c
;
S
9
v
a t
d
e
e
g
a
t

n
e
l
s
d

o
w
1
,
d
n

n
r
n
u
e

u
k
f
:
i

a
r
n
L

e
a
l
e
e
y
o
i
a
e
o
,
n
m
r
t

a
a
c

1
e
t
l
h
u
t

f
g
A
t
n
a
a
t
c
n
m
a
r
e
r

n

s
b
r
b
r

y
e
r

g
o
s

d
d
e
;

e
e
s
R

d

u
(
p
l s
n
t
a
,
e
t

e
c
m
t
d
u

n
e t
t
m
e
e
s

n
a
r

l
l

s
n
E
9
J
*
n
m
l
e
b
b
e
e
l
r
o
l
e
e
e
l
e
i

e
l
,
r
d
u
i
d

D
m
o d
l
x
r
n
c
o
e
o
y
s
d
e
d

e
n

u
n
u
a
r
s
e
a
t
r
c
a
r
t
u
.
o
t
o
E
n
e
o
n
M
n
t
h
h
a
i
o
t
n n
m
t
S
r
U
S
L
n
p
e
e
c
s
t
I
t
F
i i
f
F
:
I
l
;
'
'
,
' '
^
.
I
4
t

n
5
S
e

o
N
m
s
t
e
d

y
A
o
n
8
s
n
r
t
a
o
4
e
t
o
g
e
u
n

O
p
l
h

g

g
n
a
n
s
f
i
)
e
t
s
n

s
e
i

n
d
a
L

r
d
y
d
e
d
g
h
i
e
o

h
n
l
e
,
n
t
a

n
n
t
i
t
s
p
a
a
S
e
t

i
a
p
d
t
n
o
e
p
e
p
w

u
n
r
l

,
n
p
o
p
N
r
o
a
e
g
l
"
n
e
d
e
o
o

t
a
i

e
o
,
c
a
a
a
e
s
t
r
c
s
e
m
a
I

o
d
x
h
i
o
o

o
s m
s
r
r
d
K
r
n
*
e
h
c

e
f
g
p
o
e
l

g
d
n
r
g

,

r
s
c
t
(
p
e
e
h
s
e
h
o
R
e
r
a
o
r

i

s
e
d
h
h

t
d
a
e
t
s
f
t
T
u
c
5

o
i
n
d

t
c

E
e
w
d
n
w

d
d
e

t

n
i
a
n
e
t
r
*
s
s
:
i
n
l
t
i
a
n
P
r
a
e

e

e

e
u
i
d
a a
s
s
e
r
y
r
a
u
a

k
C

t
u
n
a
m

g
t
t
a
m
f
e
t
t
a
r
n
s
L
a
a
e
e
d
r

r
r
e
F
o
v
r
e
l

m
e
e
o
d
d
d
e
u
a
e
y
s

a
i
A
s
E
c
t d
p
t

d
e

e
r
t
l
m
s
i

a
n
e
s

n
b

g
u
l
l
m
c
n
c
n
i
r
t
R
l
e b
u
w
o
a
e
m
r
s
e t
e
y
e
i
n
o
u
r
s

o
e I
x
e
d
l
d
r
c
d
y
a
o
a
E

e
t
"

i

d
o
w h
a
r
n
r
u
r
a
a
p
n
n a

n
t
o
o
s
n
a
e
c
r
M
a
v
D
n
t
r
m
e
U
a
o
i
t
p
F S
F e
S
p
c
u
g
a
r
i
f
I
c
l
S
E
'
F
e
"TABLE OF CONTENTS
Page
Finding Out About Student Aid
1
Choosing a School Carefully
4
Federal Student AidGeneral Information
8
Student Eligibility
9
Financial Need
10
Dependency Status
11
Applying
12
The Application Process
12
Records Needed
14
Student Aid Report (SAR)
14
Special Circumstances
16
Deadlines
17
Telephone Numbers
18
Grants, Work-Study, and Loans
19
Federal Pell Grants
19
"Campus-Based" Programs: Federal Supplemental
Educational Opportunity. Grants (FSEOG), Federal
Work-Study (FWS), Federal Perkins Loans
21
Federal Supplemental Educathmal Opportunity Grants
22
Federal Work-Study
23
Federal Perkins Loans
24
Federal Stafford Loans
27
Federal PLUS Loans
35
Federal Direct Loans
39
Borrower Responsibilities, Borrower Rights
41
A New Initiative
44
.
Deferment Summary: Federal Perkins Loans, Federal
Stafford Loans, and Federal PLUS/Federal SLS
45
Cancellation Summary: Federal Perkins Loans, Federal
Stafford Loans, and Federal PLUS/Federal SLS
46
Important Terms
48
4
The Student Guide is published FREE by the
U.S. Department of Education. If you paid
for a copy of this publication, please write to
the following address and let us know the
name and address of the organization that
charged you.
Federal Student Aid Information Center
P.O. Box 84
Washington, D.C. 20044
Finding Out About
'd
Student
This Guide tells you about federal student aid programs and how to
apply for them. But education or training after high school costs more
than ever, and you need to learn about as many sources of aid as you
the free information ssources
can. The best way to start is by checking
below.
If you're thinking about paying a scholarship search organization for
student aid sources, you should know that over 80 percent of all aid
awarded comes from federal and state programs. Another 19 percent
aid. You can find out
comes from institutional and other sources of
about all of these sources yourself. (See below.) If a scholarship
search organization guarantees its services, find out what you have to
do to get a refund if the guarantee isn't met.
Sources you can use to find out about student aid:
Contact the financial aid administrator at each
school you're interested in. He or she can tell you
what aid programs are available there, and how much
the total cost of education* will be. If you're in high
school, also talk to your guidance counselor. He or
she can tell you about financial aid in general and
where to look for help.
Ask the state higher education agency in
your home state for information about state
aidincluding aid from a program jointly funded by
individual states and the U.S. Department of
Education. Each state has its own name for this
and
program, as well as its own eligibility criteria, award amounts,
application procedures. (At the federal level, this program is called
the State Student Incentive Grant Program.)
* The Guide mentions several terms or concepts that you will need to be
familiar with. Wherever these terms occur in the text, they will have an
asterisk (*) next to them. This means the term will be defined in the
6
"Important Terms" section, pages 48 to 54.
1
The agency in your state responsible for public elementary and
secondary schools can give you information on the Robert C.
Byrd Honors Scholarship Program and the National Science
Scholars.Program (NSSP). Under the Byrd Program, if
you
demonstrate outstanding academic achievement and show promise of
continued excellence, you may receive $1,500
a year for up to four
years of postsecondary education. The amount of the Byrd scholarship
plus any other aid you receive can't exceed
your cost of education.*
At least 10 scholarships will be made available per state. Under the
NSSP, if you're a graduating high school senior (or you'll obtain the
equivalent of a certificate of graduation), and you've demonstrated
excellence and achievement in the physical, life,
or computer sciences;
mathematics; or engineering, you may receive funds to continue
your
studies at the postsecondary level. Scholarships of
up to $5,000 per
year of undergraduate study, or the cost of education,* whichever is
less, are awarded to two students from each congressional district.
$Either state education agency mentioned above
or on page 1 can
give you information about the Paul Douglas Teacher
.
Scholarship Program. These scholarships
are for outstanding high
school graduates who want to pursue teaching
careers after they
finish college. A Douglas scholarship can provide
up to $5,000 a year
if you graduate from high-school in the top 10 percent of
your class,
and if you meet other selection criteria
your state agency may
establish. Generally, you're required to teach two
years for each year
of scholarship assistance you receive.
NOTE8
Some states don't participate in the
Douglas Program.
For the address and telephone number of the
appropriate state agency, contact your financial aid
administrator or call the toll-free number
on page 18.
Your public library is an excellent
source of information on
state and private sources of aid. Your financial need is usually
considered, but other factors may also be taken into account.
Many companies, as well as labor unions, have
programs to
help pay the cost of postsecondary education for employees
or
members (or for their children).
7
e e "Important Terms," pages 48 to 54.
2
Check foundations, religious organizations, fraternities or
sororities, and town or city clubs. Include community
organizations and civic groups such as the American Legion, YMCA,
4-H Clubs, Kiwanis, Jaycees, Chamber of Commerce, and the Girl or
Boy Scouts.
National Honor Society and National Merit scholarships are
available if you have high grades and you qualify.
Don't overlook aid from organizations connected with your
1.
field of interest (for example, the American Medical
Association or the American Bar Association). These organizations
Occupational Outlook
are listed in the U.S. Department of Labor's
Handbook and can also be found in various directories of associations
available at your public library.
If you (or your spouse) are a veteran, veterans educational
,1
benefits may be available. Check with your local Veterans'
Affairs office.
8
3
Choosing
a School
Carefully
Education after high school costs you time, money, and effort. It's a
big investment, and you should carefully evaluate the school you're
considering. You ought to know what you'll be getting for your money.
When you enroll in school, you expect to learn certain subjects, or
maybe certain skills that will help you get a specific job. Will you? A
lot depends on you. To find out about a school, you need to
le>check the school's accreditation. Ask for the names of the
school's accrediting and licensing organizations, which can give
you information about the school. You also have the right to ask the
school for a copy of the documents describing the school's accreditation
and licensing. Accreditation means a private educational
agency or
association has evaluated a school and found it meets certain
minimum requirements that agency has set. But don't assume that if
a school is accredited that's all you need to know. You also need to
E>
find out for yourself about the school's programs. Is the
program the school offers necessary to get a job in your chosen
profession? How much are you likely to earn after you complete the
program? Check with employers to see if you need education beyond
high school to be considered for employment; maybe the employers
will provide on-the-job training instead. If you do decide to enroll,
you
have the right to ask a school about its
progTams; its faculty; and its
instructional, laboratory, and other physical facilities (including
special facilities and services available to the disabled). What is the
size of most classes? Will you have enough contact with your
instructors? If you're attending a school that offers training using
equipment, make sure the classes are not so large you never get to
use
it.
If a school advertises a certain kind of equipment, make
sure it
actually has that equipment. Is it modern and what you'll actually be
using in your field later on?
Find out how many credits you need to graduate or complete the
coursework. Ask how many students finish. A high dropout rate
could mean students weren't satisfied with the education they
were
receiving.
9
4
O.
it's also a good idea to talk to recent graduates about the school's
its social life and living
courses, its professors or instructors, even
facilities, if applicable. And remember, just because a school
participates in the U.S. Department of Education's student aid
has endorsed the quality of
programs does NOT mean the Department
the education the school offers. The Department does not approve a
school's curriculum, policies, or administrative practices, except as
they relate to how the school operates federal student aid programs.
It's up to you tr) check out the school.
refers
CP>find out about your school's default rate. This rate
particular school,
to the percentage of students who attended a
If a
took out a federal student loan, and later went into default.*
for
school you want to attend has a default rate of 30 percent or more
the Federal Perkins Loan Program or 25 percent or more for the
Federal Stafford Loan program, there may be some restrictions on
borrowing under those programs.
E>
find out about job placement rates. You'll be concerned
about getting a job in your chosen field after you leave school.
What's the school's job placement rate? Check with former graduates
and prospective employers, not just the school. What's the placement
advertises its
rate of your chosen profession in general? If the school
job placement rates, it must also publish the most recent available
other
data about employment statistics, graduation statistics, and any
information necessary to back up its claims. This information must be
available at, or before, the time you apply for admission to the school.
Does the school provide instruction on topics you'll need to know for
school
state or professional certification of graduates? If the
advertises job placement rates, it must tell you what the state
licensing requirements are for a particular job. If a school says it will
help you find a job, what does this include? Will the school contact
potential employers and set up interviews? Will you receive
counseling on how to obtain and keep a job?
*See "Important Terms," pages 48 to 54.
1 0
5