Today,we continue addressing Todd's questions about qualifying for financial aid—both grants and loans. He's considering returning to school and wants to know what his options are.

Dewey Knight, Associate Director of Financial Aid at the University of Mississippi  in Oxford, Miss., offers this advice:

"YourStudent Aid Report (SAR)  indicates that you will not qualify for any federal grants , but you do qualify for other types of federal student aid including theStafford Loan  program. The amount of loan money available will be based on your academic standing (freshman, sophomore, junior, or senior). The Stafford Loan program is a guaranteed loan program with no credit considerations involved. The interest rate is fixed at 6.8%, and many lenders offer low or no fees and attractive borrower benefits at repayment."

Interesting that Dewey mentions repayment benefits. Did you know that if you make your loan payments automatically and on time, you might be able to lower your interest rates? Think of it as a bonus for being a responsible borrower. Wells Fargo offers these, and many lenders have similar programs. We'll be discussing repayment benefits more in the future.

These recommendations come from Renee Leach, Associate Director of Financial Aid at the University of Sioux Falls  in Sioux Falls, S.D.:

"A great place to look for answers to your financial aid questions is the Financial Aid Office at the school you are planning to attend. Part of their job is to help you find funding to reach your educational goals.

"You mentioned that your SAR reported your EFC as 09988. That tells me that although you will not qualify for federal grants such as the Pell and SEOG , you will probably qualify for a Stafford Loan. Without going into a ton of detail, there are basically two categories of Stafford Loans. A 'subsidized' Stafford Loan is one in which the federal government pays the interest on the loan while you are enrolled at least half time in school. An 'unsubsidized' Stafford Loan is one in which you, the student, are responsible for the interest that accrues on the loan. The interest rate on unsubsidized Stafford Loans that were borrowed after July 1, 2006, is a fixed rate of 6.8%.

"As long as you have not defaulted on a federal loan or do not owe an overpayment on a Pell Grant, you are eligible to access these loans. There are annual maximum amounts that you can borrow through these programs depending on your grade level and your dependency status. The financial aid office at the school you plan to attend can help you identify a lender and guide you through their preferred application process."

More to come on Friday, so check back.