Robert P. Casey Jr.

United States Senator for Pennsylvania

Student Aid

In today’s economy, finding help paying for college can be very difficult. 

To respond to this problem, I was pleased to support efforts to protect student borrowers.  In May, legislation was signed into law that will increase the amount of federally-subsidized loans available and will also stabilize private student loans.  In April, I joined with Senator Dodd and several other Democratic members of the Banking Committee to write to Chairman Bernanke and Secretary Paulson to implore them to take immediate, decisive action to stave off a crisis in the student loan market. 

Thankfully, you have a number of options available to you.  This is by no means a complete list of all the aid available, but it should give you a place to start.  Much of this information has been prepared by the Congressional Research Service.

Student Aid check list: 

  1. Federal Student Aid (FAFSA)
  2. PHEAA
  3. Financial Aid Department at your school
  4. Private Scholarships
  5. Private Loans

Also included in this resource: 

  1. Repaying your loans
  2. Frequently Asked Questions

1. Federal Student Aid

There are many programs for Federal Student Aid available which can be found at www.Studentaid.ed.gov or by contacting the Federal Student Aid Information Center at 1-800-433-3243.  To learn the amount and the type of Federal Student Aid you qualify for, you should fill out a Free Application for Federal Student Aid (FAFSA), which can be found at www.fafsa.ed.gov.    

Here are examples of common Federal student aid programs:

  • Stafford Loans:  This includes Federal Direct Loans, as well as Federal Family Education Loans (FFEL), which may be subsidized or unsubsidized by the Federal Government. In a Federal Direct loan, the funds come directly from the Federal Government, where in the FFEL program, the funds will come through a private bank, credit union, or other lending agency.  On a subsidized loan, you do not have to pay any interest while you are enrolled at least half time, and your principal will be deferred.  Unsubsidized loans will accrue interest as would a typical loan.
  • Federal PLUS loans: Also part of the Stafford Loan program, these are unsubsidized loans available to parents of dependent undergraduate students, or to graduate students and are available through the Federal Family Education Loan Program and the Federal Direct Loan Program.
  • Pell Grants:  Need-based grants that do not have to be repaid. 
  • Work-Study:  Wage-Subsidized positions at the school which will allow you to earn money to pay for your education while you study.   The Student Educational Employment program offers positions with the Federal Government to qualifying students.  This can be accessed at http://www.usajobs.opm.gov/STUDENTS.asp.

Also search the Catalog of Federal Domestic Assistance for other grants, “Congressional” scholarships, and fellowships.  I would suggest you search by Beneficiary. 

After applying, you should keep copies of all forms and correspondence as you must reapply each year. Not every school participates in each program. You should contact your school’s financial aid department to learn about the program in which they participate.

2. Pennsylvania Higher Education Assistance Agency

PHEAA helps students access loans, grants, and scholarships.  While PHEAA is currently not lending from its own funds, it maintains its commitment to assisting students find loans.  Visit their website to learn more, www.pheaa.org. 

3. Financial Aid Department at Your College

The school you have chosen may have its own student aid programs including merit and need-based scholarships.  You should contact your Financial Aid Department to determine what aid they can offer.

4. Private scholarships

There exist an incredible number of privately sponsored scholarships, for some of which you may be eligible.  Often these may be difficult to find.  If you go to www.pheaa.com, they can help you find some of the scholarships for which you may be eligible.  You should speak with local community groups and religious institutions, as well as your high school guidance counselor, to learn of other scholarships that may be available.

Also search:

5. Private Loans

There are many private lenders that will offer you a private loan to pay for college.   Students contemplating taking a private loan should thoroughly research available options before making a decision. Be sure to read the agreement regarding possible interest rate variation, repayment options, as well as early repayment/loan consolidation rights. 

6. Repaying loans

This can be difficult to accomplish, but there is help available for repaying your loans.
Loan Consolidation: 
Federal loans can be consolidated once, with some exceptions.  While simplifying the management of your loans, loan consolidation in general can lead to a significantly lower, fixed interest rate, decreasing your overall expenses.  To learn more about this, please visit http://loanconsolidation.ed.gov/.
Private loans often are able to be consolidated, depending on your individual loan agreement.  You should consult your lender to be sure this option is available to you.
Many employers will include as an employee benefit a student loan repayment program, it may be worth your time to discuss this with your current employer or with any prospective employers.

There are programs to help individuals pay off their loans, examples <missing some links>:

If you are having problems with your loan and all other approaches fail, contact the Department of Education's Office of the Ombudsman.

7. Other information sources

  1. For information regarding targeted aid for special groups, I would suggest these options:
  1. There is often assistance available for those who engage in public service, here are some of those options:

      3.   Regarding aid for private K-12 education, there is no direct federal assistance, you may want to check with schools themselves, or also try these sources:

      4.   For Parents considering saving for your children’s future endeavors, you might also consider prepaid tuition and college savings (“Section 529”) plans. To learn about this visit the College Savings Plan Network at http://www.collegesavings.org/index.aspx.

Keep in mind, many individuals have found it helpful to manage the costs of college by utilizing distance learning and internet courses, or by studying part time while working. 

I hope that this information has been helpful.  If you have any further questions or require and assistance in these matters, please contact my office of constituent services at (717) 231-7540.  I wish you the best of luck in your education and future endeavors.

 

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