Federal Student Aid Programs

Selection of Eligible Applicants

In accordance with Title 34 of the Code of Federal Regulations, Part 668.43(B)(3), the following procedures describe how aid recipients are selected from the pool of eligible applicants.

Federal Financial Aid Eligibility

To be eligible for federal student aid, you must:

• Enrolled as a regular student in an eligible program of study on at least a half-time basis;
• Have a high school diploma or the equivalent;
• A U.S. citizen, or an eligible non-citizen;
• Demonstrate financial need (for most programs);
• Maintain Satisfactory Academic Progress;
• Sign statements on the FAFSA that you are not in default onh a federal student loan and do not owe money on a Federal student grant, and you will use Federal student aid only for educational purposes
• Register for the Selective Service, if a male born after December 31, 1959; and
• Have a valid Social Security number.

Federal Pell Grant

This grant is designed to assist students who desire to continue their education beyond high school. Federal Pell Grants are only awarded to undergraduate students who have not earned a Bachelor or professional degree. Each student is entitled to apply for a Federal Pell Grant.

Eligibility is determined by the student’s need, the cost of attendance, and the amount of money appropriated by Congress to fund the program. The amount of the grant is determined by a standard formula used by the U.S. Department of Education.

The amount of grant available to the student will depend on the Expected Family Contribution (EFC) and the Cost of Attendance (COA). See www.fafsa.gov for current amounts.

For many students, the Federal Pell Grant provides a “foundation” of financial aid to which other aid may be added to defray the cost of a college education. Students or prospective students may secure an application to participate in the Federal Pell Grant program from the Office of Financial Aid or from a high school counselor.

The application are transmitted electronically through a federally approved needs analysis system that will determine the applicant’s EFC.

Supplemental Education Opportunity Grant

Supplemental Education Opportunity Grant (SEOG) is awarded to applicants with a zero (0) EFC as funds are available.

Iraq and Afghanistan Service Grant

For students who are not Pell-eligible due only to having less financial need than is required to receive Pell funds; whose parent or guardian died as a result of military service in Iraq or Afghanistan after the events of 9/11; and who, at the time of the parent’s or guardian’s death, were less than 24 years old or were enrolled at least part-time at an institution of higher education. The maximum grant is the same as Pell maximum; payment adjusted for less-than-full-time study. Grants do not need to be repaid.

Federal Direct Loans

Eligible students and parents may borrow directly from the U.S. Department of Education to attend participating schools. Direct Loans include Direct Subsidized and Unsubsidized Direct Loans, Direct PLUS Loans, and Direct Consolidation Loans.

Federal Direct Subsidized Loans

Subsidized loans are available to undergraduate students with financial need. They may be deferred while the student is enrolled at least half time and for a period of six months beyond the student’s last date of attendance (grace period). During this period the interest is paid by the U.S. Department of Education. The annual limit for Subsidized loans is as follows:

• $3,500 if he or she is a first-year student enrolled in a program of study that is at least a full academic year.
• $4,500 if he or she has completed the first year of study and the remainder of the program is at least a full academic year.
• $5,500 a year if he or she has completed two years of study and the remainder of the program is at least a full academic year.

The maximum Subsidized loan indebtedness for a graduate student is $138,500 with no more than $65,500 of this amount being in subsidized loans,

For periods of undergraduate study that are less than an academic year, the amounts the student can borrow are less than those previously listed. Contact the Office of Financial Aid for specific details. and graduate student limits The maximum indebtedness for a dependent undergraduate student is $23,000.

Any origination and insurance premium fees are deducted proportionately from each disbursement and paid to the federal government.

Unsubsidized Federal Direct Loans

Unsubsidized Direct loans are available to students without requiring demonstrated financial need. An unsubsidized Direct loan is not awarded based on need. The term “unsubsidized” means that interest is not paid by the U.S. Department of Education for the student during the “in-school” period.

If the student is an independent student or a dependent undergraduate student whose parents are unable to get a PLUS loan, he or she may borrow up to:

• $9,500 if he or she is a first-year student enrolled in a program of study that is at least a full academic year. (No more than $3,500 of this amount may be in subsidized loans.)
• $10,500 if he or she completed one year of study and the remainder of the program is at least a full academic year. (No more than $4,500 of this amount may be in subsidized loans.)
• $12,500 a year if he or she completed two years of study and the remainder of the program is at least a full academic year. (No more than $5,500 of this amount may be in subsidized loans.)

For periods of undergraduate study that are less than an academic year, the amounts the student can borrow are less than those previously listed. The maximum total indebtedness for an independent undergraduate student is $57,500. (No more than $23,000 of this amount may be in subsidized loans.)

The student is charged an origination fee/insurance premium on the amount of the unsubsidized loan. The fee is deducted proportionately from each disbursement and paid to the federal government.

Direct Plus Loans

The Federal PLUS Loan is available to parents of dependent students to help pay for the educational expenses of the student. PLUS loans are not based on need, but when combined with other resources, cannot exceed the student’s cost of education.

Parents may borrow up to cost of attendance minus other aid per eligible dependent student. There is an origination fee on a PLUS loan and a fixed interest rate. The payment schedule is determined by the total amount borrowed. For information on federal student aid programs, visit: www.studentaid.gov.