Great Advice for Parents 2022



Federal Work-Study is a federal program administered by schools to provide students with part-time jobs so they can earn money for school. The full amount listed on the offer is not awarded up front, so work-study compensation won’t help to pay expenses due at the beginning of the academic period. You will need to find an eligible work-study job, and you’ll be paid wages throughout the year just like with any other job. NOTE THE FUNDING THAT YOU HAVE TO PAY BACK Evaluate each school’s offer for the financial aid you do have to pay back, such as loans. Compare each loan listed in your offer. Consider interest rates, grace periods, and repayment plans. You may see the terms “Direct Subsidized Loan” and “Direct Unsubsidized Loan.” 9 • Direct Subsidized Loans are based on your financial need. The U.S. Department of Education pays the interest while you’re in school at least half-time, and during grace and deferment periods – which means interest isn’t accruing while you’re in school and growing the amount you have to pay back. • Direct Unsubsidized Loans are not based on financial need. From the time the loan is disbursed, interest accumulates. But it’s not added to what you borrowed (the principal) until you’ve graduated and the loan grace period is over. If you can afford it, consider paying the interest on these loans while you’re in school – it will save you money over time. A federal Direct PLUS Loan may also be part of your offer. See more about this loan type below.

You must be enrolled at least half-time to be eligible for Direct Loan Program funding.

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