Financial Aid Packages Montgomery AL

With college costs rising, most students need help paying for higher education. And most will rely on more than one source to cover costs. Learn how to put together the pieces of your financial aid package.

Grants and scholarships:

Grants are awards based on financial need or funds distributed to support a specific project (e.g. research grants). Federally-sponsored grants include the Pell Grant and the Federal Supplemental Educational Opportunity Grant (FSEOG). Both are based solely on financial need. To apply for federally sponsored grants, fill out a FAFSA (Free Application for Federal Student Aid) as soon after January 1 as possible. To learn more about federal aid, consult the U.S. Department of Education's FAFSA Web site: fafsa.ed.gov.

Scholarships are short-term or lump-sum awards that are distributed according to criteria set by the scholarship provider (financial need, academic or civic distinction, hobbies, etc.). Since criteria vary, be sure to check application requirements before you apply. Scholarships are often provided by private sources, such as schools, companies and organizations. Find scholarship opportunities that are right for you by using FastWeb's free scholarship search.

Work-Study Programs

In work-study, you earn your financial aid by working either on or off campus. It's a great way to earn money for college while gaining valuable work experience.

Work-study assistance may be provided by private sources, through the school or as part of the Federal Work-Study program.

Loans

Federal government loan programs include:

Student Loans:

• Stafford Loan: administered either by the Federal Direct Student Loan Program (FDSLP) (in which funds are provided directly by the federal government) or by the Federal Family Education Loan Program (FFELP) (in which funds are provided by private lenders, such as banks, credit unions and savings & loan associations).
• Perkins Loan: for undergraduate and graduate students with exceptional financial need. This is a campus-based loan program, with the school acting as the lender using a limited pool of funds provided by the federal government.
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The American Opportunity Credit is not available on the 2008 returns taxpayers are filing during 2009. The new credit modifies the existing Hope Credit for tax years 2009 and 2010, making the Hope Credit available to a broader range of taxpayers, including many with higher incomes and those who owe no tax. It also adds required course materials to the list of qualifying expenses and allows the credit to be claimed for four post-secondary education years instead of two. Many of those eligible will qualify for the maximum annual credit of $2,500 per student.

The full credit is available to individuals whose modified adjusted gross income is $80,000 or less, or $160,000 or less for married couples filing a joint return. The credit is phased out for taxpayers with incomes above these levels. These income limits are higher than under the existing Hope and Lifetime Learning Credits

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