STEP 1: What is Financial Aid?
Financial aid is the money you receive from a variety of sources to cover the cost of your education. The good
news is that, regardless of income, most people are eligible for some form of financial aid. The financial aid sources available to a student attending college in Georgia include:
Grants
A grant is a need-based form of financial aid that does not have to be repaid. Grants are generally provided by individual states or the federal government and include:
- Federal Pell Grants:
This is the most common form of federal aid. They are need based, provided by the federal government and awarded by schools.
- Federal Supplemental Educational Opportunity Grants (FSEOG):
These grants are awarded by schools and provide assistance for undergraduates with the greatest financial need.
The program gives priority to students who receive Federal Pell Grants.
Loans
A loan is a form of financial aid that must be repaid with interest. The main loan options are student loans, parent loans, and private loans. Federal programs for loans include:
- Federal Perkins Loans:
These are available to students who demonstrate the most serious financial need. They are federally funded and awarded by
the school. Generally, these loans have the best terms and conditions; however, they are usually small in amount due to limited funds.
- Federal Stafford (Subsidized and Unsubsidized) Loans:
These loans are awarded on the basis of financial need and are regulated by the federal government. Students may be borrowing from a bank, a credit union, or directly from the government.
A subsidized Stafford Loan is the loan of first choice, since the government pays the interest while students are in school.
Students who do not qualify for a subsidized Stafford Loan may take out unsubsidized Stafford Loans. These students are responsible for paying the interest while still in school, but may postpone payment of interest and principal until after graduation. Any unpaid interest is capitalized once repayment begins.
- Federal PLUS Loans: These loans are for parents of
undergraduate students. They are based on credit history and require a credit check. The interest
rate is low and repayment begins within 60 days after the disbursement of funds to the parent.
Scholarships
Scholarships are a form of aid to help you pay your undergraduate tuition. Like grants, they do not have to be repaid. Generally, scholarships are reserved for students with special qualifications, such as financial need and/or academic, athletic, or artistic talent.
Institutional scholarships can be based on financial need, academic ability, or outstanding talent. Many are offered by private colleges and universities, though thousands of private scholarships are also available from other sources. To find out more about these scholarships visit your high school guidance counselor, college financial aid office, the Internet, your local library, or with the GAcollege411 scholarship search
Work Study
Work study provides students with employment opportunities both on and off campus. Participation in a work-study program is typically based on the student's financial need. Funding for work-study programs can come from either the federal or state level:
- Federal Work-Study Program:
This program allows students to subsidize their tuition and expenses with on-campus jobs. To be eligible, applicants must demonstrate financial need.
- State work-study programs work the same as the federal program, the only difference being the source of funding.
Benefits for Specific Groups and Other Options
There are several financial assistance programs benefiting specific groups. Getting creative with your options may also help in paying your way through college.
For more information, visit frequently asked questions about financial aid or the Federal Student
Financial Aid Homepage.
GEORGIA STATE PROGRAMS
In addition to the programs listed below, the Georgia Student Finance Commission also offers access to many other scholarships, grants and loans.
Helping Outstanding Pupils Educationally (HOPE)
HOPE is Georgia's unique program that rewards students' hard work with financial assistance in degree, diploma, or certificate programs at any eligible public or private college, university, or public technical institute in Georgia. Additionally, other HOPE assistance is available for students who received a GED after July 1, 1993. HOPE is funded by Georgia's Lottery for Education.
HOPE PROMISE Teachers Scholarship
The PROMISE Teacher Scholarship is funded by the Georgia Lottery for Education and is a component of the HOPE Scholarship Program, a division of the Georgia Student Finance Authority. PROMISE provides service cancelable loans up to $3,000 per academic year for direct and indirect education-related costs. The purpose of the program is to attract high-achieving undergraduates to the teaching profession and provide them with financial assistance beginning their junior year and continuing through their senior year. Students agree to teach after graduation in a Georgia public school at the preschool, elementary, middle, or secondary level. Loan funds may be used for tuition and fees, room and board, and any other part of the student's cost of attendance.
Georgia Tuition Equalization Grant
The objectives of the Georgia Tuition Equalization Grant are 1) To promote the private segment of higher education in Georgia by providing non-repayable grant aid to Georgia residents who attend eligible independent colleges and universities in Georgia; and 2) To provide non-repayable grant aid to residents of Georgia who live near the State borders to attend certain four-year public colleges out of state, so that a four-year public college is equally available to all Georgians.
Governor's Scholarship
To reward high academic achievement, the Georgia Student Finance Commission administers Governor's Scholarships which are earned by graduating Georgia high school seniors who are valedictorians, salutatorians, or STAR students of their class, or demonstrated exceptional achievement by being named Georgia scholars.
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STEP 2: STUDENT LOANS >>>
