Title IV Programs

Federal Student Aid administers the federal student financial assistance programs, authorized under Title IV of the Higher Education Act (HEA) of 1965, as amended. In fiscal year 2006, Federal Student Aid provided approximately $80 billion in new aid to nearly 10 million postsecondary students and their families through the following federal grant, loan and work-study programs. These programs are described below:

Grants

Academic Competitiveness Grants: This program provides up to $750 for first-year undergraduates and up to $1,300 for the second-year undergraduates to students who have completed a rigorous high school academic program and are eligible for a Pell Grant. This grant is available to first-year students who graduated from high school after January 1, 2006, and for second-year students who graduated from high school after January 1, 2005. It is awarded in addition to the student’s Pell Grant award.

Federal Pell Grants: Most need-based of the student aid programs, these provide grant aid to low- and middle-income undergraduate students. The awards vary depending on the cost of attendance and financial circumstances of students and their families, with maximum award of up to $4,050 in the 2005–2006 award year. $12.7 billion in Pell Grants were disbursed in 2005-2006, averaging $2,456 to 5.2 million students.

Federal Supplemental Education Opportunity Grants (FSEOG): Participating schools award FSEOG to undergraduate students with exceptional financial need. Pell recipients receive priority for FSEOG awards, which range from $100 to $4,000 per year.

National Science and Mathematics Access to Retain Talent (SMART) Grants: This grant provides up to $4,000 for each of the third and fourth years of undergraduate study to Pell-eligible students, majoring in physical, life, or computer sciences, mathematics, technology, or engineering or in a foreign language determined critical to national security. The SMART Grant is offered in addition to the student’s Pell Grant award.

Special Leveraging Educational Assistance Partnership (SLEAP)/Leveraging Educational Assistance Partnership (LEAP): These state-formula grant programs make federal funds available to assist states in providing student assistance programs for individuals with substantial financial need.

Loans

Federal Family Education Loans (FFEL): FFEL funds are provided by private and non-profit lenders, insured by loan guaranty agencies and reinsured by the federal government. $46.2 billion in loans were delivered to 6.2 million FFEL recipients in 2005–2006 award year.

Federal Perkins Loans: Perkins loans are made through participating schools to undergraduate, graduate and professional students. These loans are offered to students demonstrating the greatest financial need. Undergraduates may receive up to $4,000 a year and graduate students may receive up to $6,000 a year based on a student’s need and a school’s available funding.

Direct Loans: These funds are lent directly to students through participating postsecondary schools, with funds borrowed from the U.S. Treasury. Direct Loans include subsidized and unsubsidized loans, PLUS loans for parents, and Consolidation Loans, which allow borrowers to combine federal education loan debt. $12.4 billion in Direct Loans were awarded to 1.8 million recipients in FY 2006, excluding consolidation loans.

Federal Work-Study Program

Work-study programs provide part-time employment for students while they are enrolled in school. Students are paid directly for their work and schools are responsible for administering the program. Award amount varies based on student’s needs and school’s funding level.