Department of Education Aid Sources The major sources of aid from the US Department of Education are: Federal Pell Grants: Pell Grants are only available to undergraduate students. For the 1998-99 year, awards ranged from $400-$3,000. These are grants, which do not have to be repaid. Federal Stafford Loans: Federal Stafford Loans, which are both subsidized and unsubsidized are student loans which must be repaid. If your school participates in the Federal Direct Student Loan Program, your Stafford Loan will be made through the school. (For other schools, the Stafford Loan will be made through a private lender). Stafford Loans are available to graduate and undergraduate students. First year undergraduates are eligible for loans up to $2,625. Amounts for undergraduate students increase to as much as $5,500 annually after two years of study. The interest rate is variable but never exceeds 8.25%. If you qualify (based on need) for a subsidized Stafford Loan, the government will pay the interest on your loan in school, during the six-month grace period and during any deferment periods. You are responsible for paying all of the interest that accrues on an unsubsidized Stafford Loan. Federal PLUS Loans: PLUS Loans are unsubsidized loans made to parents that must be repaid. PLUS Loans are made either through the school (direct loans) or through a private lender. (If you are independent, or your parents cannot get a PLUS Loan, you are eligible to borrow additional Stafford funds.) The interest rate is variable, but never exceeds 9%. Campus-Based Programs: Supplemental Educational Opportunity Grants, Work-Study, Perkins Loans are campus-based funds awarded by the school. SEOG is a grant available for undergraduates only; awards range from $100-$4,000. Federal Work-Study provides jobs to undergraduate and graduate students who are then paid an hourly rate at minimum wage or above. Perkins Loans are low interest (5%) loans that must be repaid; the maximum annual loan amount is $3,000 for undergraduates and $5,000 for graduate students. The free student financial aid materials available in the financial aid office at your school include The Student Guide, a free booklet about financial aid from the US Department of Education, and the Free Application for Federal Student Aid (FAFSA). You may request The Student Guide or the FAFSA by calling the Federal Student Aid Information Center toll-free: 1-800-4 FED AID (1-800-433-3243) - (TDD 1-800-730-8913), Monday-Friday, 8:00 am - 8:00 pm EST.