The federal government is the largest single source of student financial aid. And according to the College Board, provides about 75% of all aid dollars. Some of this aid is based on financial need, some is available to all families.

When determining your eligibility for aid programs based on financial need, the federal government considers your family's income, assets, expenses, family size, and other factors. A standard formula calculates your Expected Family Contribution (EFC), which is the amount your family is judged capable of paying toward college costs. For most programs, there isn't a set cut-off that determines eligibility. Rather, your "financial need" is the difference between what your family is expected to pay, and the total cost of a particular college. Consequently, assuming there's enough aid to go around, you could end up paying the same amount out-of-pocket at a high-cost college as at a lower-cost one. Although this determination process is basically standard, financial aid administrators can make some adjustments if they believe your family's documented financial circumstances warrant it.

Here's a rundown of current federal financial aid programs:

Pell Grants are for undergraduate students from lower-income families. The maximum award for the 1997-98 year was $2,700; awards for the 1998-99 school year depend on program funding. The amount students actually receive depends on their financial need, the cost of attendance at a particular college, and their student status.

Federal Supplemental Educational Opportunity Grants (FSEOGs) are for undergraduate students with exceptional financial need. For the 1998-99 school year, students can get between $100 and $4,000 a year, depending on when they apply, their level of need, and the funding level of the school they're attending. Priority is given to students who receive Pell Grants. There is no guarantee that every eligible student will receive aid since grants are awarded based on the availability of funds.

Work Study provides on- and off-campus part-time jobs for undergraduate and graduate students with financial need. Awards are made in dollar amounts and students may work until they have earned this sum. The program encourages community service work and work related to a student's course of study. Pay is at least the current federal minimum wage, but may be higher depending on the type of work and skills required. Award amounts depend on when students apply, level of need, and the college's program funding level.

Perkins Loans are 5% low-interest loans for undergraduate and graduate students with exceptional financial need. How much students can borrow depends on when they apply, their level of need, and the program funding level of the school. For the 1998-99 school year, students can borrow up to $3,000 for each year of undergraduate study -- up to a total of $15,000, and up to $5,000 for each year of graduate study -- up to a total of $30,000, including any Perkins loans borrowed as an undergraduate. The federal government pays the interest while students are in school, and students have nine months after graduation or leaving school to begin repayment.

Subsidized Stafford Loans are awarded to students on the basis of financial need. The federal government pays the interest on these loans while students are enrolled in school at least half-time, and during a grace period and authorized periods of deferment. The interest rate charged on loans that were disbursed on or after July 1, 1994 is variable and adjusted annually, with an 8.25% cap.

For the 1998-99 school year, dependent undergraduate first-year students who meet the general eligibility requirements can borrow up to $2,625, second-year students up to $3,500, and third-year students up to $5,500. Graduate students can borrow up to $8,500 each academic year. Dependent undergraduates can have a total outstanding debt of $23,000. Graduate students can have a total of $65,500, including any Stafford loans received for undergraduate study. After graduation or leaving school, students generally have a grace period of six months before they have to begin repayment.

Subsidized Stafford Loans are available through both the Federal Direct Loan Program and the Federal Family Education Loan Program. Under the Direct Loan Program, the federal government makes the loans directly to students through colleges. Under the Family Education Loan Program, private lenders, including credit unions and banks, usually make the loans. The terms and conditions of the loans provided under each program are similar, however, the process of applying, receiving funds, and repayment methods differ.

Unsubsidized Stafford Loans, while similar to Subsidized Stafford Loans, are not based on financial need and are available to all students who meet the general eligibility requirements. Also in contrast to Subsidized Stafford Loans, the government doesn't pay the interest while students are in school. So while students may defer repayment of these loans until after they finish school, they're charged interest from the day the loan is disbursed until it's repaid in full. Students can choose to pay this interest while still in school, or allow it to accumulate.

Plus Loans/(Loans for Parents) are available to parents of undergraduate students through both the Federal Direct Loan Program and the Federal Family Education Loan Program. Loans are not based on financial need, but parents have to be creditworthy and meet general eligibility requirements. Parents may annually borrow an amount equal to their child's cost of college attendance, less any other financial aid their child receives. The interest rate is variable and adjusted annually, with a 9% cap. Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full. Parents must generally begin to repay both the principal and interest within 60 days of taking out the loan.

The AmeriCorps Program provides full-time educational awards in return for work in community service. Students can use the funds either to pay current educational expenses or to repay federal student loans. Students can work before, during, or after their post-secondary education.

Military sources of aid include service academies that offer a college education at no cost to students, and ROTC programs that help students pay for education at participating colleges and universities. Benefits are also available to military personnel, veterans, and military dependents through the Veterans Administration, military associations, state governments, and other programs.