More than eight billion dollars in award money is available to incoming college students this year. Here, we break down the different categories of financial assistance, with help from the 2008 Edition of Peterson’s College Money Handbook and the U.S. Department of Veterans Affairs.
 
Scholarship: Money awarded to eligible students to pay for the cost of college. Scholarships are not repaid, but many require that you meet certain criteria to keep receiving them.

Pell Grant: A government-sponsored, need-based award determined by your Expected Family Contribution. The Federal Supplemental Educational Opportunity Grant, a supplement to the Pell, is for particularly underprivileged students. Neither needs to be repaid.

Federal Work Study: Government funding that pays your salary. You can earn only up to the amount awarded in the financial aid package, and all money must be spent on educational expenses.

Loans: All loans, including Federal Perkins [FPL], Stafford and Direct Loans, must be repaid. An FPL is a low-interest loan for students with exceptional financial need; a Stafford Loan is directly from a bank or credit union; and a Direct Loan is from the U.S. Department of Education.

Military Funding
Montgomery GI Bill: Provides up to 36 months of education benefits for soldiers for 10 years following release from active duty. Members of selected Reserves [Army Reserve, Navy Reserve, Air Force Reserve, Marine Corps Reserve, Coast Guard Reserve, Army National Guard and Air National Guard] are eligible.

Reserve Educational Assistance Program: Provides educational assistance to members of the Reserve components called or ordered to active duty in response to a war or national emergency.

National Call to Service Program: Participants must perform a period of national service to be eligible for benefits.

Visit www.gibill.va.gov for more information.

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