of financial aid. In recent years, government has responded to the financial crisis students are facing and therefore passed legislation that boosted the value of grants for low-income students and trimmed subsidies for private education lenders. Schools have also taken action for the sake of students. Harvard University, a well-known costly but wealthy institution that had previously cut tuition for students whose families earned less than $60,000 a year, proceeded to cut costs by nearly fifty percent for those students whose families earned between $120,000 and $180,000 a year. Institutions will consider students' financial needs as well as their academic merit standing when applying for financial aid. Merit-based aid and need-based aid have been linked together for many financial aid scholarships. This relationship is beneficial as it underlies that one form of financial aid, particularly merit-based, is not completely taking over need-based aid. Statistics do show results of studies performed from 1992-2000 that the increase in financial aid awarded was based entirely on merit. However, when viewing numbers of both merit-based and need-based aid closely, the differences are not significant. Graduate and professional students The following types of federal financial aid are available to graduate and professional students. Aid for these students is primarily loans. The William D. Ford Federal Direct Loan (Direct Loan) Program: Eligible students may borrow up to $20,500 per school year. These loans are unsubsidized; Congress has determined that subsidized loans (no interest while enrolled) are only available to undergraduates. Graduate and professional students enrolled in certain health profession programs may receive additional Direct Unsubsidized Loan amounts each academic year. These federal loans, although unsubsidized, are far superior in interest rate and repayment terms to private student loans. Federal Perkins Loan (Perkins Loan) Program: This is a school-based loan program for eligible students with exceptional financial need. Students may qualify for a Perkins Loan of up to $8,000 each year depending on financial need, the amount of other aid received, and the availability of funds at the school. Each college has a set amount of Perkins Loans for its students; there has been controversy over the formula that is used to apportion the loans to colleges. Teacher Education Assistance for College and Higher Education (TEACH) Grant: The TEACH Grant Program provides grants of up to $4,000 a year to students who are completing or plan to complete coursework needed to begin a career in teaching. The