Government aid refers to any financial assistance provided by federal and state governments. Federal law states that students can receive federal financial aid for study abroad if they are eligible for such aid and their home institution approved the program for credit transfer. Federal aid can be used to cover reasonable costs associated with study and internships abroad, including:

• Tuition and fees for the program
• Living costs
• Passport and visa fees
• Round-trip transportation
• Health insurance

There are different types of federal financial aid. Most eligible students receive a combination of federal grants and loans.

PELL Grant
A Federal Pell Grant, unlike a loan, does not have to be repaid. Generally, Pell Grants are awarded only to undergraduate students who have not earned a bachelor’s or professional degree. In some cases, you may receive a Pell Grant for attending a postbaccalaureate teacher certification program. For many students, Pell Grants provide a foundation of financial aid to which other aid may be added.

Stafford Loan (FFEL loan)
Stafford loans are the major source of federal self-help aid, and come in two forms:

1. Direct Stafford Loans are awarded directly by the federal government through the William D. Ford Federal Direct Loan (Direct Loan) Program.
2. FFEL Stafford Loans are available through the Federal Family Education Loan (FFEL) Program.

Direct and FFEL Stafford Loans are either subsidized or unsubsidized.

• A subsidized loan is awarded on the basis of financial need. You will not be charged any interest before you begin repayment or during authorized periods of deferment.
• An unsubsidized loan is not awarded on the basis of need. You will be charged interest from the time the loan is disbursed until it is paid in full.

PLUS Loan (Parent Loan)
PLUS Loans are a federal source of funding that enable parents with good credit histories to borrow to pay the education expenses of each child who is a dependent undergraduate student enrolled at least half time. PLUS Loans are available through both the Direct Loan and FFEL programs.

Perkins Loan
A Federal Perkins loan is a need-based loan used to supplement what a Stafford loan cannot cover. The program is in conjunction with the federal government and home institution, and available to both undergraduate and graduate students.

State Aid
State aid refers to any form of financial aid sponsored by the state. Some states offer scholarships, such as the Georgia's Hope Scholarship and West Virginia's Promise Scholarship.

Some states also offer 529 Plans, which are college savings accounts based on stock portfolios. Rules governing scholarships and 529 plans depend on individual states. Since each state has its own policies, students should speak with the study abroad advisor and financial aid office at their home institution.

GI Bill
Students who served in the military can use the GI Bill for study abroad. The first step is to contact your regional Veteran’s Affairs office and speak with the Foreign Schools Representative. Have the following information ready: your name, address in the USA, social security number, program of study and course details. Visit the VA website at www.gibill.gov for more information.

Many students already receive various forms of government aid. Even if you are not one of these students, you may be eligible to receive federal aid.

Not sure if you are eligible for federal aid? Here are the criteria:

• You must be enrolled in an eligible (Title IV) Institution (your college or university) as a matriculated student pursuing a degree or certificate.
• You must be a citizen or legal permanent resident of the United States.
• You must have a high school diploma or its equivalent.
• You must meet eligibility requirements for drug-related convictions, as defined by the Free Application for Federal Student Aid (FAFSA).
• You must be registered for selective service (male students only).

To apply federal financial aid towards your KEI program abroad...

1. Complete the Free Application for Federal Student Aid (FAFSA), if you have not done so already. Make sure to indicate your home institution's Title IV Code, not KEI. (Federal aid is processed through your home institution.) Note that the financial aid year starts with the Summer term (not the Fall term). Most institutions set their FAFSA deadlines in March.


2. Speak with the study abroad advisor and financial aid office at your home institution. Many institutions have specific guidelines and procedures for students planning to study abroad. Make sure that the courses/internship you plan to take abroad are pre-approved for credit transfer.


3. Obtain a Consortium or Contractual Agreement for Study Abroad from your financial aid or study abroad office. This document will be completed by KEI and will enable your federal aid to be applied towards study/intern abroad. If your institution is new to study abroad, KEI can provide a sample Consortium Agreement to facilitate the process.


4. Inform your KEI advisor. We will guide you through the process and work with your institution to facilitate the transfer of aid.


5. If your financial aid will be disbursed after the program registration deadline, you will need to have the following documents completed and signed before the program registration deadline:
   • Financial Aid Disbursement Form
   • Financial Aid Deferment Agreement
   • Financial Information Form
   
   Completing these forms will allow you to defer full payment of the KEI program fee until your financial aid is disbursed. Refer to KEI Policies for detailed information abut payment and deferments.