All needy students can apply for federal, state and other student financial aid to help them pay for college. The two major types of aid are grants or scholarships, which do not have to be repaid, and loans, which are available to students and parents and, like a car loan or a mortgage, must eventually be repaid. Pell Grants are the most important form of student financial aid for the nation s neediest students. In 1999-2000, almost 4 million needy students received Pell grants. The size of the grant depends on the student s need.
Colleges help find jobs for students, and the federal government helps pay the salary.
Work-Study jobs give students valuable work experience and are often related to the student s classes or future career in addition to helping pay the costs of college. The new additions to the Work-Study program, the America Reads Challenge and America Counts , let students work as reading and math tutors for young children helping students give back to the community and pay for college. Federal Loans are available to both students and parents. Stafford Loans for students are either subsidized , for needy students, where some of the accumulated interest is paid by the government, or unsubsidized , where the student pays all of the accumulated interest. PLUS Loans are loans to parents for any costs that are not paid for by other aid.