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Four Steps to Financial Aid

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 Connecticut 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 CTMentor 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.

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Connecticut State Programs
In addition to the programs listed above, the state of Connecticut has several programs available to its residents and students.

Program	Who Is Eligible	Amount*	Basis of Selection	How & When to Apply
Capitol Scholarship (application)	CT resident, U.S. citizen or permanent resident alien who is a high school senior or graduate with a rank in top 20% of class, or SAT scores of at least 1,800	Up to $3,000 a year to be used at a CT college or at colleges located in states which have reciprocity agreements with CT	Financial need	File applications through high school guidance office by February 15
CT Aid for Public College Students	CT resident attending a CT public college or university	Up to amount of unmet financial need	Financial need	Apply at college financial aid office
CT Independent College Student Grant	CT resident attending a CT independent college or university	Up to $8,500 a year	Financial need	Apply at college financial aid office
CT Minority Teacher Incentive Program (brochure and nomination form)	Minority junior or senior enrolled in a CT college or university teacher preparation program	Grants up to $5,000 a year for 2 years; loan reimbursement of $2,500 a year for up to 4 years of teaching in a CT public school	Nomination by education dean	By October 1, contact education deans at CT colleges which offer teacher preparation programs listed at www.ctdhe.org or call the EEIC Hotline (800) 842-0229
Robert C. Byrd Scholarship (application)	High school seniors who rank in top 2% of class or have SAT scores above 2,100	$1,500 per academic year	SAT scores & class rank	File applications through high school guidance office by April 1
Tuition Set-Aside Aid	Student attending a CT public college or university	Up to amount of unmet financial need	Financial need	Apply at college financial aid office
Connecticut Family Education Loan Program (CT FELP)	Families with a student enrolled at least half-time in a CT non-profit college or a CT resident enrolled at least half-time at a non-profit college anywhere in the U.S.	May annually borrow up to full cost of education less other aid at a low fixed interest rate (5.50%). Family only pays interest during in-school years. Graduate and professional students may capitalize interest while in school. Upon completion of college, the loan is paid off over 11 years.	Ability to repay loan & credit history	Apply online via www.chesla.org

* Amounts may vary; information is current as of 10/2005.

For more information, be sure to check a listing of additional financial aid resources on the web.

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STEP 2: STUDENT LOANS >>>

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