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Alternatives to Student Loans

 
Student loans are not the only form of financial aid available to students. There are federally funded grants, work-study programs and other modes of financial assistance  that do not require repayment. Most are based upon financial need, but others are based on merit. Some are administered by the DOE but others are offered at the discretion of the Financial Aid office of a student’s school.

 

National Science and Mathematics Access to Retain Talent Grants, or National SMART grants, reward Pell Grant recipients in their third and fourth undergraduate years of college with outstanding academic records (for 2006 – 2007 academic year that means having 3.0 cumulative grade point average) majoring in computer sciences, mathematics, technology related subjects, or a critical-need foreign language. These grants, awarded on top of Pell funds, total as much as $4,000.00 per year.

The Federal Work Study Program, or FWS, is not a grant program. It is a way for students to obtain a job that provides funds to pay for their education. FWS is open to undergraduate and graduate students. FWS is administered through the Financial Aid office of colleges and universities. It is offered on a need basis and in theory it can provide work in a student’s chosen field. In practice it is more likely to involve  restocking library shelves or doing community work on behalf of the college. Participants can either be paid directly by the university or have their salaries paid directly to the college to cover school expenses.

 Federal Supplemental Educational opportunity Grants, or FSEOG, are grants awarded only to applicants with the lowest EFC scores.  The amount awarded is based upon need and the total sum of additional financial aid the student is receiving. FSEOG is managed through the Financial Aid office of colleges.

 Academic Competitiveness Grants, or ACG, are supplemental grants awarded to Pell Grant recipients with strong academic histories. Students who have taken and passed Advanced Placement classes, for example, are eligible for these $750.00 grants.

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