The document discusses various types of federal financial aid available for students, including: 1) The Free Application for Federal Student Aid (FAFSA) which is used to apply for grants, work-study, and loans. 2) The Pell Grant which does not need to be repaid and can be awarded to students in post-baccalaureate teacher programs. 3) Federal loans including Perkins Loans, Direct Subsidized and Unsubsidized Stafford Loans, and Direct PLUS Loans. These have varying interest rates and eligibility requirements. 4) Options for loan forgiveness such as programs for teachers working in low-income schools, and different repayment plans like income-based repayment

2. I. FAFSA
II. PELL GRANT
III. LOANS
IV. FORGIVENESS
V. REPAYMENT

3. FREE APPLICATION FOR FEDERAL
STUDENT AID
Used to apply for federal financial aid (grants, work-study, and loans)
Documents needed to apply:
• income tax returns, W-2 forms, and other records of income.
• identification documents (social security cards, drivers licenses).

4. PELL GRANT
• Does not have to be repaid.
• Can be awarded to students enrolled in a post-baccalaureate teacher certification
program.

5. FEDERAL PERKINS LOAN
• Low-interest (5 percent) loan for students with exceptional financial need.
• Your school is your lender, and the loan is made with government funds.
• Can borrow up to $8,000 per year

6. DIRECT STAFFORD
Subsidized and Unsubsidized.

7. BREAKDOWN
SUBSIDIZED UNSUBSIDIZED
for students with financial need do not need to demonstrate financial need
not charged interest while in school interest accrues from the time it’s
first paid out

8. MORE DEETS
• Complete the FAFSA and Master Promissory Note (MPN).
• Maximum for graduates is $138,500
• Interest rate is fixed at 6.8%

9. DIRECT PLUS
• Do not have an adverse credit history.
• Fixed interest rate of 7.9% for Direct PLUS Loans.

10. MORE DEETS
• Complete the FAFSA and a Direct PLUS Loan Application .
• School must have determined your maximum eligibility for Direct Subsidized and
Unsubsidized Stafford Loans.
• Complete a Master Promissory Note (MPN). The MPN is a legal document in which
you promise to repay the loan and any accrued interest and fees to the Department.

11. REPAYMENT
10 to 25 years, depending on which repayment plan you choose.

12. INCOME-BASED REPAYMENT
A repayment plan for the major types of federal student loans that caps
your required monthly payment at an amount intended to be
affordable based on your income and family size.

13. FAST FACTS
• All Stafford, PLUS and Consolidation Loans made under the Direct Loan Program
are eligible for repayment.
• If your debt is high relative to your income and family size. Use the U.S. Department
of Education’s IBR calculator to estimate whether you would likely qualify for the
IBR plan.

14. PERKINS TEACHER CANCELLATION
Teach full time for 5 consecutive, complete academic years in certain
elementary and secondary schools that serve low-income families
may be able to forgive up to $17,500 on their Direct Loan program
loans.

15. PERKINS TEACHER CANCELLATION
Cancel up to 100 percent of this loan if you serve full time in a public or nonprofit
elementary or secondary school system as a:
• teacher in a school serving students from low-income families; or
• special-education teacher, including teachers of infants, toddlers, children, or youth
with disabilities; or
• teacher in mathematics, science, foreign languages, or bilingual education, or in any
other field of expertise determined to have a shortage of qualified teachers.

16. BREAKDOWN
DEFERMENT FORBEARANCE
temporary suspension of payments for temporary postponement or reduction of
specific situations such as reenrollment in payments for a period of time due to
school or economic hardship financial difficulty.
don’t have to pay interest on subsidized interest accrues, and you’re responsible for
Direct, Stafford, or Perkins Loan. repaying it

17. DEFAULT:
THE CRAPPIEST OF THEM ALL
Failed to make your loan payments as scheduled. Anyone who gave you money can pretty
much hunt you down one way or another. Here are some consequences of default:
• You credit rating will be severely harmed.
• You will be ineligible for additional federal student aid if you decide to return to
school.
• You can be sued.