Reed's financial aid program includes federal, state, and institutional funding sources. Financial aid may be in the forms of grants, loans, and employment opportunities. All grants are based on need; Reed offers no merit-based grants or scholarships.
- Reed Grants: The primary source of grant assistance at Reed is the college itself. Reed budgeted approximately $21.6 million in grant funds for the 2013-14 academic year, with individual awards ranging from about $1,000 to $56,800.
- Federal Pell Grants: These grants, awarded by the federal government, are based primarily on parent and student income, and determined financial need. Pell grants range up to a maximum of $5,645 for the 2013-14 academic year.
- Federal Supplemental Educational Opportunity Grants: These grants, also known as SEOGs, are federal funds disbursed by Reed to Federal Pell Grant recipients who demonstrate exceptional financial need. SEOGs at Reed are typically $750 for an academic year.
Financial aid packages at Reed usually include a student loan. A student loan may be a recommended Direct Loan, a Federal Perkins Loan, or a combination of both. The amount in student loans the college usually recommends for first-year students is $2,500. This recommended loan amount increases $1,000 annually to $3,500 for sophomores, $4,500 for juniors, and $5,500 for seniors. If a student receives an outside scholarship other than a state grant or federal funds, the recommended loans are the first type of aid reduced.
- William D. Ford Federal Direct Loans: There are two types of Direct Loans: subsidized and unsubsidized. To be eligible for an interest-subsidized loan, a student must demonstrate financial need. Most Direct Loans included in a need-based financial aid package are subsidized. The federal government pays the interest on subsidized loans while the student is enrolled. The federal government does not pay the interest on unsubsidized loans. The annual interest rate for the subsidized loan will be 3.86 percent; annual interest on the unsubsidized loan will be 3.86 percent for undergraduate and 5.41 percent for graduate borrowers. Monthly repayment is usually made over a period of 10 years and begins six months after graduation or when the student ceases to be enrolled at least half time. The interest on an unsubsidized loan begins to accrue as soon as the loan is borrowed; however, the student may request a deferment of these interest payments while in school.
- Federal Perkins Loans: Federal Perkins Loans bear a low interest rate of 5 percent and are distributed by the college. There is no processing fee related to this loan. Interest accrual and repayment begins nine months after graduation or after a student ceases to be enrolled at least half time, and cannot exceed 10 years. Due to the limited availability of Federal Perkins Loans funds, recipients of these loans at Reed are usually students who demonstrate the greatest financial need.
Work is available both on campus and off campus for Reed students. Both on- and off-campus opportunities include regular student employment and federal work-study (FWS) employment. Regular student employment is funded by the college. The federal work-study program is funded primarily by the federal government. The employment portion of a financial aid award is usually $1,500 per year. Students typically work about five to 10 hours per week. The college recommends that first-year and transfer students work fewer hours during their first semester, until they become accustomed to the time required for academic programs.