You've been accepted to the community of your choice.

You've been accepted to the community of your choice. You're ecstatic. You're excited. Then you behold the bill. The No. 1 question for the incoming freshman with financial ne is: Where will the wealth come from? For many close examiners it's a four-part answer.

The financial aid package your guild will offer you may consist of funding from four major sources--the federal sway your state, and your college edifice [i]or[/i] building as well as private scholarship sources.

An in-depth guide to the major financial aid programs for undergraduates tread on the heels ofs Review the information carefully: The last thing you want to do is miss on the outside on money that may have been available to you. Plus, we've included profiles of pupils detailing dollar by dollar in what manner they managed to pay for college

1 FEDERAL GOVERNMENT

Federal programs invest about 70 percent of all financial aid for undergraduates. After you fill without your FAFSA, the essential application form, you'll be told whether you qualify for currency from the following sources:

* Federal Pell Grants. These grants, which do not have to be repaid, go on to students who have significant financial ne and capitals are guaranteed to every close examiner who qualifies. The maximum award for 2002-03 was $4000

* Federal Supplemental Educational Opportunity Grants (SEOGs) Also directed to scholars with exceptional financial need, SEOG range in size from $100 to $4000 Unlike Pell Grants, these awards are not guaranteed to all who qualify. It hangs on the availability of permanent funds at your college, its aid policies, and level how early you turn in your FAFSA.

* Federal Work-Study. This program provides piece of works paying at least minimum wage to undergraduates with financial ne The coin is paid directly to you based upon the hours you work.

* Federal Perkins Loans. These loans get to with a guaranteed low interest rate of 5 percent Undergraduates are allowed to borrow up to $4000 a year, to a total of $20000 across their undergraduate careers. After graduation, you pay the loan back to your school; the minimum annual repayment is $480

* Federal Stafford Loans. The Stafford is the government's major loan program. With interest rates that can vary on the contrary cannot top 8.25 percent, the programs tender loans up to $2,625 for freshmen $3500 for sophomores, and $5500 for juniors and seniors. You can borrow more if you are considered financially independent of your parents. (See the definition of independent in succession page 40.)

There are sum of two units types of Stafford loans. Subsidized loans are based in succession need, and do not charge interest while you're registered in school or while you're in a deferment period (an authorized time when you're allowed to delay repayment, in the same state [i]or[/i] condition as when you're still in teach or unemployed). The government "subsidizes" the loans by means of paying the interest during these periods. Repayment normally begins six month after you graduate or leave school

Unsubsidized loans can be taken regardless of ne if it were not that you're responsible for the interest from the day you receive the loan until it's repaid. You can receive the pair subsidized and unsubsidized loans for the same academic year.

* Federal PLUS Loans. These loans for parents can be taken our to pay education bills for any pendent child enrolled in college at least half-time. PLUS loans are limited to the total take away from of tuition, room and board, minus any aid you've already received.

The in the greatest degree common method of getting a Stafford or PLUS loan is between the walls of a private lender or bank as part of the Federal Family Education Loan (FFEL) Program. However, if you attend individual of the more than 1000 indoctrinates that participate in the Federal Direct Student

Loan Program and take a loan, the U Department of Education directly is your lender No matter the system the terms of the loans stay the same unless some repayment options may differ.

* Tax Credits. Depending onward your family's income, you or your parents may be able to benefit from special tax deductions during the years you're in college edifice [i]or[/i] building and beyond. The Hope Scholarship is a tax credit of up to $1500 your parents can claim during each of your first brace years of college. The Lifetime Learning Credit applies to following years of enrollment. The common maximum tax credit for that program is $1000 through year, but the annual maximum will rise to $2000 in 2003 Additionally, the government's scholar loan interest deduction allows you or your parents to subtract up to $2,500 from your taxes during each of the first five years you repay your loans after community depending on your income. And the management allows you or your parents to make penalty-free withdrawals from Individual Retirement Accounts if the circulating medium will be used to pay for college

2 STATE GOVERNMENT

Your state's department of education can fill you in forward information about grants, tuition assistance, feud reductions, and loans. Your first question should be whether your state will make its aid decision based onward your FAFSA. At least 23 states rely onward the FAFSA exclusively, but others may require you to fill not at home separate paperwork, at least for certain programs. Many state aid programs are restricted to learners who en-roll at in-state colleges; in fact, more [i]or[/i] less have created generous programs designed to entice top observers to stay at home for society But you may be able to take advantage of certain programs flat if you go out of state: Ask if your state has reciprocal arrangements with other states that will help you receive discounted tuition or other benefits elsewhere. chiefly state programs are need-based, moreover others are based on academic achievement, military status, or minority status.