Robert P. Casey Jr.United States Senator for Pennsylvania

In today's economy, many people struggle to afford the costs of higher education. I was proud to work with my colleagues to include an additional $15.64 billion for the Pell Grant program in the American Recovery and Reinvestment Act of 2009. This increase in discretionary funding for the 2009 fiscal year brings the maximum Pell Grant award amount to $5350.

In the 110th Congress, I worked to pass critical legislation to update the federal student lending programs. And in response to the growing credit crisis, the Ensuring Continued Access to Student Loans Act of 2008 was passed on May 6, 2008. As a member of the Health, Education, Labor and Pensions Committee, I will continue to work with my colleagues in the Senate to make higher education accessible to all hard-working Pennsylvanians.

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
6. Free Education for Workers Who Have Lost Their Jobs

Also included in this resource: 

1. Repaying your loans
2. Other Information Sources

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, scholarships and grants, including the Pennsylvania State Grant.  To learn more about the services that PHEAA can offer, you may visit their website at 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.org, 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:

• FastWeb
• Free Scholarship Search
• Grants for Individuals
• Scholarship Search
• College Board Pay for College Page
• Magic Johnson Taylor Michaels Scholarship Program

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. Free education for workers who have lost their jobs

In response to the economic crisis, many of Pennsylvania's 14 community colleges have graciously volunteered to offer an amount of free education to workers who have lost their jobs during the current recession. If you have recently lost your job and are interested in advancing your education, I would suggest you contact your community college listed below to determine if you would be eligible. Below are a list of all the colleges that are participating and a list of the counties that are covered by their offers.

• Community College of Allegheny County - Allegheny County
• Community College of Beaver County - Beaver County
• Bucks County Community College - Bucks County
• Delaware County Community College - Delaware County
• Harrisburg Area Community College - Adams, Cumberland, Dauphin, Franklin, Fulton, Juniata, Lancaster, Lebanon, Mifflin, Perry, Schuylkill, and York Counties
• Lehigh Carbon Community College - Lehigh, Carbon and Schuylkill Counties
• Luzerne County Community College - Luzerne County
• Montgomery County Community College - Montgomery County Resident
• Northampton Community College - Northampton, Monroe Counties
• PA Highlands Community College - Cambria County
• Community College of Philadelphia - Philadelphia County
• Reading Area Community College - Berks County
• Westmoreland County Community College - Westmoreland County

7. Repaying loans

This may often seem like a difficult task, but thankfully there is help available for repaying your loans.

For those having difficulty repaying federally student loans, there is a now an option for a new Income Based Repayment plan in which you pay an amount designed to be affordable based on your income and family size. As part of this plan, if you met certain requirements any remaining debt after 25 years of consistent payments will be forgiven, or after 10 years if you work in public service. For more information about this program please see this United States Department of Education website.

Another option for managing your debt is 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:

• Loan Forgiveness for Public Service Employees
• Teacher Loan Forgiveness Program
• Cancellation/Deferment Options for Teachers
• Nurse Education Loan Forgiveness Program
• National Health Service Corps
• Federal Student Loan Repayment Program
• State Loan Repayment and Forgiveness Programs for Law school graduates

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

8. Other information sources

      1.   For information regarding targeted aid for special groups, I would suggest these options:

• Veterans: The new Post 9/11 GI Bill gives veterans with active-duty service, on or after 9/11/01, up to 36 months of enhanced educational benefits, including:
  - Tuition and fees paid directly to the school (equivalent to the highest in-State tuition and fees for a four year public institution of higher learning)
  - Monthly living allowance
  - Ability to transfer unused benefits to a spouse or child.
  Veterans may use the benefit for up to fifteen years following release from service.
  Beginning on May 1, 2009, veterans may begin to apply for a certificate of eligibility on line at www.gibill.va.gov
  Beginning on August 1, 2009, veterans may begin training under the new GI Bill.
  Since the Department of Veterans Affairs (VA) will be paying the stipend allowance on a "look back" basis (as it does all other education benefits), the first checks to individuals should be issued on September 1, 2009.
  For more information, please visit www.gibill.va.gov or call VA at 1-888-GI-BILL (1-888-442-4551)
• Disabled students: HEATH Resource Center
• Financial Aid for Law School: Law School Admission Council
• Medical students: Association of American Medical Colleges
• Science, Mathematics And Research For Transformation (SMART) Scholarship for Service Program is a United States Department of Defense program to support undergraduate and graduate students pursing the degrees in science, technology, engineering, and mathematics disciplines.
• Study abroad (for U.S. and non-U.S. citizens): International Education Financial Aid
• Foreign students: Financial Aid for International Students
• Grants for Minorities: Asians, Blacks, Hispanics, Latinos, Native Americans, and Other Ethnic Groups
• African Americans: Scholarships (UNCF)
• Hispanic Americans: Scholarships (HSF)
• Native Americans: American Indian College Fund

      2.   There is often assistance available for those who engage in public service, here are some of those options:

• AmeriCorps
  Volunteers who complete one year of service receive an education award for current higher education expenses or to repay student loans.
• Military academies:
  U.S. Air Force Academy
  U.S. Coast Guard Academy
  U.S. Merchant Marine Academy
  U.S. Military Academy
  U.S. Naval Academy
• National Health Service Corps
  Scholarships and loan repayment for health profession students who agree to work in underserved areas.
• Nursing Scholarships
  Offered in exchange for two years of service in areas with critical nursing shortages.
• Reserve Officers Training Corps (ROTC)
  For students who want to be commissioned as officers after graduating from college.
  U.S. Air Force ROTC
  U.S. Army ROTC
  U.S. Navy ROTC
• United States Army Education Division
  Additional benefits for Army personnel.
• Bureau of Health Professions
  Scholarships and loans to needy health profession students from disadvantaged backgrounds.
• e-Scholar
  Scholarships, grants, fellowships, internships, and cooperative education with federal agencies.
• Indian Health Service
  Scholarships for American Indian/Alaskan Native health profession students and loan repayment for persons working in IHS facilities.

      3.   Regarding aid for private K-12 education: While there is no direct federal assistance for this area, I would suggest investigating these sources:

• Coverdell Education Savings Accounts: for elementary and secondary school expenses as well as higher education.
• Children's Scholarship Fund: partial tuition assistance to low-income students.

      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.