Federal Grants to Pay Off Student Loans

Federal Government Grants to Pay Off Student Loans

There are many ways government can give grants to help pay off student loans. Government's solution to paying off your student loans are student aid in the form of various grants, campus based aid, Stafford loans, PLUS Loans or parent loans as well as PLUS loans to professionals and graduate students. Federal student aid programs are the largest in America. Right now, these programs offer students more than $100 billion a year in loans, grants and work-study assistance.

Ways Government Grant Money To Pay Off Student Loans

An educational grant, educational grant-in-aid or grant of fund is a sum of money appropriated by one level of government to be spent by a lower governmental unit or a student for education. It is important to remember that to obtain a grant, you must have certain specifications and standards.

In general, these grants include: TEACH Grant, Academic Competitiveness Grant, Federal Supplemental Enrichment Opportunity Grant, Federal Pell Grant and the Federal Supplemental Education Opportunity Grant. The TEACH Program was enacted by the U.S. Congress. It offers you up to $4000 per year to low-income students who would want to be a teacher in a deficient-need field like math, science, special education, foreign language and English.

The Academic Competitiveness Grant (ACG) provides $750 for the first year and $1,300 for the second year for students who have already availed of the Pell Grant. This grant, not like a usual loan, does not need repayment. Usually, Pell Grants are given to undergraduate students. The Pell Grant provides the maximum award of $5550, depending on financial need. The National Science and Mathematics Access to Retain Talent (SMART) Grant is for achieving students who excel in math and sciences.

The FSEOG program, Federal Perkins Loans, and Federal Work Study are examples of Campus-Based Aid. The FSEOG, is for undergraduate students in extraordinary financial need. You can receive $100 to $4000 every year, depending on the time of application, financial need, funding and the guidelines of your school's financial office of your school of attendance. This does not need repayment.

The Federal Perkins Loan is a 5% loan for undergraduate and graduate students in extraordinary financial need. Here, the loan must be repaid to the school. You may borrow $5500 (until a total of $27000) per year for undergraduate students and $8000 per year (until a total of $60000) for graduate students. The Federal Work-Study allows part-time community service and course-related jobs to undergraduate and graduate students for them to pay for their education expenses.

Stafford Loans generally include: (FFEL) and the Direct Loan. Your parents can avail of PLUS Loans for their children or dependents. PLUS Loans are also provided to professional degree and graduate students.