The U.S. government offers a variety of assistance to students of varying ages who desire a college education. Its mission is to equalize the playing field so that all graduating high school students, active-duty military personnel, veterans and other adults have the opportunity to pursue a college degree, regardless of income. President Obama’s emphasis upon higher education, which is focused upon significantly increasing the number of college graduates in the United States, has already led to a sweeping number of legislative changes. These changes are transforming the federal student aid system, so that students are protected and supported throughout the financial aid process. Students may access federal financial aid by completing the FAFSA (Free Application for Federal Student Aid).

The primary forms of federal financial aid for non-military students are:

• the Federal Pell Grant Program,

• Federal Work Study Program, and

• Federal Student Loan Program.

Eligible students may receive financial aid from all three of these categories, as well as from other federal aid sources for which they qualify.

The Federal Pell Grant is generally a need-based gift award provided to students whose income and college costs meet specific criteria. It is designed to help low-income students gain entry to a college education. However, it is also awarded, at the maximum level, to children under age 24 whose parent or guardian was a fallen soldier in Iraq or Afghanistan after 9/11.

The Federal Work Study Program provides federal funding for students to work part-time to earn money for their college expenses. The total amount of Work Study wages cannot exceed the amount awarded to the student through financial aid. Students are paid by the hour for jobs that may be on or off campus; and they receive their paychecks from the college or university. Jobs must pay at least minimum wage.

The Federal Student Loan Program helps fill in the gaps that scholarships, grants and work study do not cover; so that each student has the necessary amount to cover tuition, fees, books and other education-related expenses. Federal student loans are fixed low-interest rate loans that do not have to be repaid until six months after graduation, or earlier, if the student drops out of school. Students must remain enrolled in school continuously, and at least part-time, in order to benefit from this deferred repayment. The most prominent student loans are the Direct Stafford Loans. Students who qualify for Subsidized Direct Loans will have their interest paid for them by the government while they are enrolled in college. Those who do not qualify for this benefit will be awarded Unsubsidized Direct Loans; and interest will accrue continuously during the years that the student is in school. Students may pay this interest along the way, or they may wait until the loan repayment period begins. However, putting off loan interest payments will result in a higher total loan debt when that interest is added to the original loan. Parents may also borrow for their child’s college expenses under the Direct Plus Loan Program, which also provides fixed low-interest rates and attractive repayment options.