With many people out of work or underemployed they are finding that funding college costs for their college kids has become more and more difficult. Many, in desperation, are turning to the government for help. The federal government offers certain financial aid programs that can help fund part of college tuition. For the most part, however, such federal financial aid is needs-based. In most cases, the average family earning more than $50,000 in income a year, will not qualify for much if any federal financial aid.

One of these federal financial aid programs is the subsidized Stafford Loan Program. If you are one of the lucky few who do qualify for this program you will have access to up to $3,500 in loans per year for freshman students, $4,500 per year for sophomore students, $5,500 per year for junior and senior students. Since the average private four-year college costs averaged $26,273 in 2009, it is clear that the Stafford Loan Program, by itself, is little more than a down payment.

With subsidized Stafford loans the federal government pays the interest on the loan while your college son/daughter is in college. Rates are expected to drop to 4.5% for the 2010-2011 academic year and 3.4% for the 2011-2012 academic year. The good news is that if you qualify for the subsidized Stafford Loan Program you may also qualify for other financial aid programs, such as the Pell Grant or the Perkins Loan Program. In order to find out if you do qualify you are required to complete the FAFSA application each year.