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Financial Resources: Federal Financial Aid Programs
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"Cal State Fullerton's online
master's program provides the flexibility necessary for today's busy executives
to earn a degree in information technology. The course helps executive management
bridge the gap between business needs, application development, system support
requirements, and ongoing application/system support. I can now make more
knowledgeable and informed information technology decisions leading to more
efficient and cost-effective operations."
-- Alan Cseresznyak
Vice President, Finance & Information Technology, Toyota Materials Handling, U.S.A., Inc. |
Federal financial aid programs provide over 70 percent of the funding currently
available for student financial aid. The following are the primary federal programs
through which CSU students receive aid.
Federal Work-Study Program (FWS)
Provides both on- and off-campus jobs for eligible undergraduate and graduate students
through private or public nonprofit organizations, local school districts, and other
local, state, or federal agencies. Private sector employers may hire work-study students
if the employers provide jobs related to a student's course of study or career objective.
A portion of FWS funds is also dedicated to promoting community service on the part of students.
Federal Perkins Loan
Provides low-interest loans for eligible undergraduate and graduate students with
preference to students with exceptional financial need. The annual loan limit is $3,000
for undergraduate students and $5,000 for graduate students. The aggregate loan limits
are $15,000 for undergraduate students pursuing a bachelor's degree and $30,000 combined
for undergraduate/graduate or professional study.
Federal Family Education Loan Program (FFELP) and William D. Ford Federal
Direct Student Loan Program (Direct)
Campuses typically participate in the federal loan programs either through the FFELP or
the Direct loan program. The primary difference between the programs is that funding for
FFELP loans is obtained from private lenders such as banks, credit unions, and savings and
loan associations and guaranteed by the federal government through various guaranty agencies
while funding for Direct loans is obtained directly from the Department of Education with
funding from the U.S. Treasury.
Both FFELP and the Federal Direct Student Loan Program provide the same types of loans, which are:
Federal Stafford Subsidized Loan
Provides government-insured, long-term, low-interest loans for eligible undergraduate and
graduate students. The federal government pays the interest on the loan to the lender while
the student remains enrolled in college. Graduate students may borrow up to $8,500 per year.
The combined aggregate undergraduate/graduate limit may not exceed $65,500.
Federal Stafford Unsubsidized Loan
Provides long-term, low-interest loans for eligible undergraduate and graduate students
who generally do not qualify for other need-based financial assistance or students who need
loan assistance beyond the maximums provided by the subsidized loan program. The student pays
all interest charges on the loan while enrolled in college. The combined total of the Stafford
Subsidized Loan and the Stafford Unsubsidized Loan may not exceed regular Stafford loan limits
($65,500 for combined undergraduate/graduate).
The Department of Education's Student Guide provides more comprehensive descriptions of these programs.
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