Are you one of the millions of unemployed or underemployed adults who have had their job prospects derailed in the current economy? If so, take heart – you’re not alone and there are steps you can take to get back on your feet. Believe it or not, you may qualify for a government funded financial aid package that would allow you to go back to college and nail that illusive undergraduate degree.

#1 – First Things First. To determine if you qualify for the most widely awarded aid, the federally funded Pell Grant, you will first need to fill out a Free Application for Federal Student Aid (FAFSA). Pell Grants are need-based, so depending on your current income and whether you are attending college on a full or part-time basis, will determine the amount you are eligible to receive. Maximum award: $5350. per year.

#2 – SMART Grants. These grants are awarded to high performing, low-income upperclassmen that are majoring in mathematics, science or a related field such as computer technology. Maximum award: $4000. per year.

#3 – TEACH Grants. Awarded to education majors, however unless students maintain excellent grades and teach for a minimum of 4 years at designated schools, they will be required to repay these grants with interest. Maximum award: $4000. per year.

#4 – Stafford Loans. These are federally financed, fixed-rate loans that are available to both undergraduate and graduate students as long as they are attending classes on at least a half-time basis. Repayment of loan begins only after graduation. There are several variables that govern the amount of each loan.

#5 – State Government Initiative. Michigan, with the highest unemployment rate in the country, is taking the lead in helping workers go back to school with the No Worker Left Behind, a program that awards up to two years of free tuition to jobless and underemployed workers.
Other hard-hit states like Illinois, Ohio, New Jersey, Missouri, Minnesota and Pennsylvania are developing programs with community colleges, offering a variety of incentives and tuition breaks to workers looking to increase their earning power via a college degree.

#6 – Colleges & Universities. Check your local community colleges, four-year universities, and on-line colleges for programs specifically designated for unemployed and underemployed workers. Admissions and financial aid officers will know if there are specific programs you can apply for in addition to federally financed grants and loans.

# 7- Private Foundations. The Bernard Osher Foundation works nationwide with 74 universities to offer Reentry Scholarships for returning students between the ages of 25 and 50 who wish to complete their undergraduate degrees.