Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

Sources of Aid

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.

Last Modified: 02/19/1998