financial aid options

what types of financial aid are available?

Federal Pell Grant

A Federal Pell Grant, unlike a loan, does not have to be repaid. Pell Grants are considered a foundation of federal financial aid, to which aid from other federal and nonfederal sources might be added. Eligibility for the Pell Grant is based on financial need. Need is determined by the data submitted on your Free Application for Federal Student Aid (FAFSA). In 2010-2011, the grants range from $555 to $5,550. The average grant in 2009-2010 was approximately $3,593. This grant is only available to Undergraduate Students.

Federal Subsidized Stafford Loan

Direct Federal Subsidized Loans are for students with financial need. Your school will review the results of your Free Application for Federal Student Aid (FAFSA^SM) and determine the amount you can borrow. The interest rate on subsidized Stafford Loans is a fixed rate of 6% (6.8% for graduate-level students). The interest is subsidized while you are enrolled for at least half time and for an additional six-month grace period. (Students must register for a minimum of six credit hours at the beginning of each term (16-week period) to be considered a half-time student.) Payments on the principal may be deferred until you drop below half-time status and for the additional six-month grace period. These loans are administered by the United States Department of Education, but your school must certify your eligibility for the amount you borrow. You will need to complete a Master Promissory Note (MPN).

Federal Unsubsidized Stafford Loan

Eligibility is not based on need, so the loan is available regardless of your own income or your family`s income. The amount you borrow must be certified by your school. The interest rate on unsubsidized Stafford Loans is a fixed rate of 6.8%. Interest is not subsidized while you are in school. You don’t have to make payments while you are in school, but you are responsible for the interest that accrues on your loan during that time. You may pay the interest if you can afford it. Unpaid accrued interest will be capitalized (added to your loan amount) at repayment. You will then pay interest on a higher loan amount. These loans are administered by the United States Department of Education. You will need to complete a Master Promissory Note (MPN).