AwardYear: 1994-1995 Edition: PostSecondary Part: 1 - - General Information about Postsecondary Opportunities SectionNumber: SectionTitle: Sources of Aid PageNumbers: 1-8 Recent studies have shown that many high school students are not aware that they may be eligible for financial aid to attend a college or a trade school. Unfortunately, many of the neediest students assume that they cannot afford to go to college to continue their education. To help students find out more about the student aid programs administered by the U.S. Department of Education (ED or the Department), be sure to give them a copy of the Student Guide, as well as any information offered by your state's higher education agency. The Department updates the Student Guide once a year and sends order forms to every high school in the United States in the fall. The 1994-95 Student Guide will be available in January 1994. The Student Guide may be ordered by writing to the following address: Federal Student Aid Information Center Box 84 Washington, D. C. 20044 The focus of this Handbook is the Student Financial Assistance (SFA) programs administered by the U.S. Department of Education. These programs are authorized by the Higher Education Act of 1965 (referred to as "the law") as amended. For 1994-95, the SFA programs will deliver more than $27 BILLION in aid to 6 MILLION students. This amount represents a substantial commitment by the Department to provide financial assistance for students at the postsecondary level. However, there are other important sources of aid that may be available to your students. To encourage them to find out more about other sources of aid, tell your students to check the reference section of the school or public library. You may want to suggest titles of books that you feel are particularly helpful. The Major Federal Student Aid Programs Administered by ED The Department administers the following major financial aid programs to help students meet the costs of postsecondary education: FEDERAL PELL GRANTS CAMPUS-BASED PROGRAMS - Federal Supplemental Educational Opportunity Grants (FSEOG) - Federal Work-Study (FWS) - Federal Perkins Loans FEDERAL FAMILY EDUCATION LOANS - Federal Stafford Loans - Federal PLUS Loans FEDERAL DIRECT STUDENT LOAN PROGRAM - Federal Direct Stafford Loans - Federal Direct PLUS Loans It is customary to group these programs by type of aid: GRANTS (Federal Pell and Federal SEOG) that do not have to be repaid, LOANS (Federal Perkins, Federal Stafford, and Federal PLUS) that enable students-and parents, in the case of PLUS Loans- to borrow money to help meet educational costs, and WORK-STUDY (FWS) that provides part-time jobs. But it is also useful to think about the programs in terms of how aid is awarded and delivered to the student. FEDERAL PELL GRANTS are awarded through strict rules set by the Department: if a student is eligible based on these rules, the school will always be able to pay the student his or her Federal Pell Grant, and will be reimbursed by the Department. In contrast, the Department allocates funds to the postsecondary schools under the CAMPUS- BASED programs. The school then awards these funds to students using federal guidelines. Campus-based funds are limited, so many schools award them early. Therefore, the earlier an eligible student applies, the more likely he or she is to receive campus-based aid. Funds for the two FEDERAL FAMILY EDUCATION LOAN programs are provided by banks and other lenders. The loans are reinsured by the federal government in the event the borrower dies or becomes disabled. Federal Stafford Loans consist of subsidized and unsubsidized loans. Subsidized Stafford Loans are made to all students who qualify based on financial need and other factors. Unsubsidized Stafford Loans are not based on need, and the student, rather than the federal government, is responsible for paying all the interest on the loan. Federal PLUS loans are available to parents of dependent students. For 1994-95, the Department introduces the FEDERAL DIRECT STUDENT LOAN PROGRAM (FDSLP). Direct lending is a new way of delivering educational loans to eligible borrowers. This program enables an eligible student to borrow from, and repay a loan to, the Department instead of a bank or guaranty agency. Thus, the student will only work with a single entity, the Department. In addition, the FDSLP offers a range of flexible repayment options to meet borrowers' varied financial circumstances. Please note that for 1994-95, FDSLP participation is limited to 5 percent of new loan volume. See the Student Guide for more information on ED's major federal student aid programs. Other ED Programs The STATE STUDENT INCENTIVE GRANT (SSIG) PROGRAM assists states in providing grants to eligible students who attend postsecondary schools and have substantial financial need as determined by the state. Each state has its own name for this program and may use a percentage of its SSIG funding to provide work-study assistance through community service-learning job programs. Because of the variations in state programs, student and school inquiries about SSIG and other state grant, scholarship, and work-study assistance should be directed to the state agencies listed in APPENDIX B. The Department provides other types of student aid specifically for disabled persons; however, this aid is administered by state vocational rehabilitation agencies, and students must meet state eligibility criteria. This aid must be coordinated with student aid from other sources to prevent duplication of benefits. The disabled student may receive the maximum assistance by going as early as possible to both the vocational rehabilitation agency where the student is a client and to the financial aid office at the school he or she plans to attend. The U.S. Department of Education also provides funding to state agencies for several student aid programs that select recipients based on ACADEMIC MERIT. The PAUL DOUGLAS TEACHER SCHOLARSHIP PROGRAM (FORMERLY CALLED THE CARL D. PERKINS SCHOLARSHIP PROGRAM) is a federally-funded program that provides college scholarships to outstanding high school graduates enabling them to pursue teaching careers at the preschool, elementary school, or secondary school level. Students who graduate in the top ten percent of their high school class may apply for the scholarships, which provide up to $5,000 per year for four years of postsecondary education. Specific information on the Paul Douglas Teacher Scholarship Program in a state, including scholarship application forms and instructions, is available from the student's state grant agency. (See APPENDIX B for a list of state agencies.) [[A graph entitled "Sources of Aid for 92-93" on page 4 is currently unavailable for viewing. Please reference your paper document for additional information.]] The NATIONAL SCIENCE SCHOLARS PROGRAM (NSSP) is a federally-funded program that awards scholarships to students for undergraduate study of the physical, life, and computer sciences; mathematics; or engineering at postsecondary institutions. Scholars are nominated by state nominating committees and selected by the President in consultation with the Director of the National Science Foundation and the Secretary of Education. Scholarships of up to $5,000 are awarded to outstanding graduating high school students and GED recipients for the first year of undergraduate study. A scholar who maintains eligibility may receive three or four additional awards in subsequent years, depending upon the length of the undergraduate program, in order to complete his or her undergraduate course of study. Information on the NSSP, including the scholarship application process, is available from the Chief State School Officer in the state in which the student resides, or from each participating state's Department of Education. Under the ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM the Secretary of Education makes available, through grants to the states, scholarships to exceptionally able students for study at postsecondary schools in order to recognize and promote student excellence and achievement. Student recipients under this program are known as "Byrd Scholars." To apply for a Byrd Scholarship, a student follows the application procedures established by the State Educational Agency (SEA) in the state in which the student resides. The SEA establishes procedures for selecting the scholars after consulting with school administrators, school boards, teachers, counselors, and parents. Students who receive scholarship assistance under the Byrd Program are awarded a scholarship each year in the amount of $1,500 (not to exceed the scholar's cost of attendance) for each of his or her first four years of study at any institution of higher education. Other Federal Programs The U.S. DEPARTMENT OF VETERANS AFFAIRS administers a number of education and training programs for veterans, service persons, and eligible dependents. The MONTGOMERY GI BILL (ACTIVE DUTY) is a program of education benefits for students who enter active duty for the first time after June 30, 1985. The student must, with certain exceptions, serve continuously on active duty for three years of a three-year enlistment or, for a lesser benefit, two years of an initial active duty obligation of less than three years. A student also may qualify for benefits by initially serving two continuous years on active duty, followed by four years of Selected Reserve service. The MONTGOMERY GI BILL (SELECTED RESERVE) is a program of education benefits for reservists of the armed forces as well as the Army National Guard and the Air National Guard. To be eligible for this program, a reservist must have a six-year obligation to serve in the Selected Reserve, complete Initial Active Duty for Training, have a high school diploma or its equivalent, and remain in good standing in a drilling Selected Reserve unit. If a student has a parent who is a military veteran, the student may qualify for help from the U.S. Department of Veterans Affairs. EDUCATIONAL ASSISTANCE BENEFITS are available to spouses and children of: ....- Veterans who died, or are permanently and totally disabled, as the result of a disability arising from active service in the Armed Forces; - Veterans who died from any cause while rated permanently and totally disabled from service-connected disability; - Service persons presently missing in action or captured in line of duty by a hostile force; or - Service persons presently detained or interned in line of duty by a foreign government or power. Benefits may be awarded for pursuit of associate, bachelor, or graduate degrees at colleges and universities. Courses leading to a certificate or diploma from business, technical, or vocational schools may also be taken. For further information on veterans benefits, students should contact the nearest U.S. Department of Veterans Affairs regional office. The Department of Veterans Affairs administers the VA HEALTH PROFESSIONALS EDUCATIONAL ASSISTANCE PROGRAMS. one of these programs is the SCHOLARSHIP AWARDS PROGRAM, which provides awards on a competitive basis for undergraduate and graduate students in health care shortage categories (nursing, physical therapy, occupational therapy, and nurse anesthesia). The other program is the RESERVE MEMBER STIPEND AWARDS. This program provides aid for students who are (1) in the last year of an associate degree program in nursing or (2) in either the third or fourth year of a master program in nursing, physical therapy, or occupational therapy. The reservist must also be a member of the Selected Ready Reserves, eligible for the Reserve GI Bill, and have a score above the 50th percentile on the Armed Forces Qualification Test. In return for awards from these programs, a participant is required to provide professional service for a designated period of time at a VA medical center. ARMY RESERVE OFFICERS' TRAINING CORPS (ROTC) is a program that provides college-trained officers for the U.S. Army, the Army National Guard, and the U.S. Army Reserve. The program is offered at hundreds of colleges and universities across the nation. Four-year scholarships are awarded on a competitive basis to students who will be entering college as freshmen. The scholarships may be worth up to $60,000, paying for most college tuition, on- campus educational fees, as well as a flat rate for textbooks, supplies, and equipment. Each scholarship also includes a grant of up to $1,000 for every year the scholarship is in effect. Application packets and information on eligibility may be obtained from: Army ROTC, Gold Quest Center, P.O. Box 3279, Warminster, PA 18974- 0128 or by calling 1-800-USA-ROTC. The AIR FORCE ROTC college scholarship program is intended for high school seniors or graduates who haven't enrolled as full-time college students. The scholarship program is especially targeted to those pursuing technical degrees. Four-year scholarships may be lengthened to four-and-a-half to five years in certain academic majors and programs. AIR FORCE ROTC SCHOLARSHIPS ARE AWARDED ON INDIVIDUAL MERIT, NOT ON FINANCIAL NEED. The Air Force also offers scholarships to individuals who are already in college. These scholarships cover one to three years of a bachelor's degree program in certain engineering and science majors, as well as in other job categories. There are also scholarships for premed and preosteopath majors. Applications for Air Force ROTC may be obtained by writing to: HQ AFROTC College Scholarship Branch, Maxwell AFB, AL 36112- 6663. The NAVAL RESERVE OFFICERS' TRAINING CORPS (NROTC) PROGRAM, offers young men and women an opportunity to qualify for commissions in the Navy and Marine Corps while attending college. The four-year scholarship is available to students who have graduated from high school before August 1 of the year they intend to start college. Scholarships are awarded annually and are based on a competitive selection process in which consideration is given to such factors as high school class standings, college entrance test scores, extracurricular activities, and leadership qualities. Academic accomplishments in rigorous, technically demanding courses are especially noteworthy. During the student's years of college study, the Navy pays tuition, the cost of textbooks, fees of an instructional nature, and a subsistence allowance of $100 per month for a maximum of 40 academic months. Full information concerning the NROTC scholarship program is available from any college that offers NROTC. The U.S. PUBLIC HEALTH SERVICE administers the NURSING STUDENT LOAN PROGRAM for undergraduate and graduate nursing students. This program is intended to assist students to achieve careers in nursing by providing long-term, low-interest loans to help meet costs of education. The Public Health Service also sponsors the HEALTH PROFESSIONS STUDENT LOAN PROGRAM (HPSL), the HEALTH EDUCATION ASSISTANCE LOAN (HEAL) Program, THE EXCEPTIONAL FINANCIAL NEED SCHOLARSHIP PROGRAM (EFN), and the program of FINANCIAL ASSISTANCE FOR DISADVANTAGED HEALTH PROFESSIONS STUDENTS (FADHPS). These programs are for GRADUATE students enrolled in accredited schools in the United States, Puerto Rico, or the Virgin Islands. For more information on financial assistance from the U.S. Public Health Service, please write to: U.S. Department of Health and Human Services Public Health Service Health Resources and Services Administration Bureau of Health Professions Division of Student Assistance 5600 Fishers Lane Rockville, Maryland 20857 Non-Federal Sources: State, Private, Institutional Students should be encouraged to contact their STATE AGENCY for information about STATE PROGRAMS. A student might qualify for a private grant or scholarship for any of the following reasons: academic achievement, religious affiliation, ethnic or racial heritage, community activities, artistic talents, leadership potential, athletic ability, career plans, proposed field of study, or hobbies and special interests. The American Legion offers an inexpensive guide to private sources of aid called NEED A LIFT? (See APPENDIX A for address.) Other books about financial aid may be available through your school or public library. In addition, many postsecondary schools have their own sources of student financial aid. A student should contact the school he or she plans to attend for possible sources of institutional aid. Finally, there are COMPUTERIZED SCHOLARSHIP SEARCH SERVICES that will match a prospective student with sources of financial aid. These services tend to be relatively expensive, so the student or parent should consider the extent of the search being offered before committing to such a service. If someone has had problems with a scholarship search firm, he or she may contact the local Better Business Bureau or the U.S. Postal Service. Some services guarantee that the student will be eligible for at least five sources of financial aid; however, please be aware that these sources may include the major federal student aid programs that are discussed in this Handbook and in the Student Guide. Students may get a free copy of the Student Guide, either from their local school or library, or by calling the U.S. Department of Education's toll-free number, 1-800-4-FED-AID. The Guide describes the major student aid programs of the Department, which provide nearly 70 percent ($27 billion) of the financial aid given to postsecondary students each year. |