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- Federal Pell Grant
- Academic Competitive Grant (ACG)
- National SMART Grant
- Supplemental Educational Opportunity Grant
- Federal Perkins Loan
- Federal Work-Study
- Federal Direct Stafford Loan
- Parent Loans for Undergraduate Students (PLUS)
For a detailed explanation of the federal programs, consult the Student Guide, at the U.S. Department of Education web site.
A Brief History of the Federal Programs
In 1958 when the Soviet Union successfully launched the satellite "Sputnik," there arose a concern about Russia's scientific advancement. The National Defense Education Act of 1958 was passed to revitalize both public and private education. Included in this legislation was the National Defense Student Loan program (NDSL). Now called the Federal Perkins Loan, this program provides for long-term (up to ten years to repay), low-interest (5%) loans for students. Preference is given to students with exceptional need.
By 1964 the College Work-Study (now called Federal Work-Study) program was enacted to provide students the opportunity to work to earn their educational expenses. The federal government pays for most of the students' earnings under the program. In 1965, Congress created the Educational Opportunity Grant Program (EOG) (now called Supplemental Educational Opportunity Grant). These are reserved for low-income students who could not otherwise meet their educational expenses. Grants do not have to be repaid.
That same legislation in 1965 created the Guaranteed Student Loan program (renamed Federal Stafford Loan in 1988) to provide more money for loans to students through banks or other lending agencies because of rising costs of education. In 1993 the William D. Ford Federal Direct Student Loan program was established, allowing students to borrow these loans directly from participating postsecondary schools who receive the funds directly from the U.S. Department of Education. The University of Iowa began participating in this program with the 1995-96 academic year.
Several other federal programs have been created since that time to further meet student needs. In 1972, Congress established the Basic Educational Opportunity Grants (renamed Federal Pell Grants in 1980), which are awarded directly to students by the federal government and are available solely on the basis of financial need. In that same year, Congress also established the State Student Incentive Grant program, which provides monies to students by supplying matching federal funds for state grants.
In 1981 the Parent Loans for Undergraduate Students program was established. It allows upper-income families to borrow for college costs, but at significantly higher interest rates than those of the GSL (now known as the Federal Stafford Loan) program. These loans are now provided at the UI through the Federal Direct Loan Student Loan program. Funds for this program are received directly from the U.S. Department of Education.
The Iowa College Student Aid Commission (ICSAC) is the agency responsible for administering the Iowa Grant. The Iowa Grant, which is based on financial need, is awarded by The University of Iowa Office of Student Financial Aid to resident undergraduates on a first come, first served basis.
For information on state grant assistance, contact your state higher education agency.
Financial assistance for disabled students is administered through state vocational rehabilitation offices. Contact any district office for information. Information is also available from The University of Iowa Office of Student Disability Services in Burge Hall.
For information about Education Aid to War Orphans, contact the Iowa Bonus Board, State House, Des Moines, Iowa 50329. Dependents of veterans who are deceased or significantly disabled as a result of military service may qualify for educational aid. Iowa residents can obtain information by calling 800-827-7683. Residents of other states can contact the Veterans Affairs Office.
Institutional Programs
Two major goals of the University are to provide access for those with limited financial resources and to attract students who will contribute to the quality and diversity of the student population. To help accomplish these goals, The University of Iowa awards institutional scholarships to students based on a variety of factors including pre-admission test scores, high school rank, financial need, special talents, and academic achievement at The University of Iowa. Institutional grants may also be provided to students who demonstrate exceptional financial need with little or no ability to provide family financial resources to attend The University of Iowa. The opportunity to renew their scholarships and grants annually helps students to continue their education each year and to graduate from The University of Iowa. Institutional scholarships and grants are included in the scholarships and grants listings.
It is not true that millions of dollars of financial assistance goes unclaimed each year, as some private scholarship search companies claim. However, some foundations and corporations do offer scholarships and loans to qualifying students. Many places of employment, professional associations, and labor unions have programs to help pay the cost of education for employees or members (or for their children). Other possible sources include religious organizations, fraternities or sororities, local clubs, and civic groups such as the Chamber of Commerce, YMCA, 4-H Club, PTA, Kiwanis, Jaycees, Elks, the American Legion, Rotary Club, and the Girl or Boy Scouts. Organizations connected with the student's field of interest (for example, the American Medical Association or the American Bar Association) may be additional possibilities.
Many private sources of aid are also listed in scholarship directories, which can usually be found in your local public library.