Some of the differences between the items included in the calculation of family contribution are outlined below. Typically, the student is required to contribute a higher percentage of their income and assets than their parents. Understanding these components is the key to formulating a financial aid strategy. After the figure for financial aid has been calculated, governmental and campus-based programs are used to meet the need. An outline of each of these programs is presented below.
Pell grants are outright gifts from the federal government.
Students are notified of their eligibility for these grants on their Student Aid Reports. Students are also eligible to Stafford Loans. The loans are taken out by the student at below-market interest rates. While the student is still in school, the government subsidizes the loan until six months after graduation. At this point, the student must start paying it back monthly and is allowed 10 years to repay the debt in full.