Financial Aid Programs

All Title IV financial aid funds received by the University will be credited to the student’s account with the exception of requirements set forth in Section 6.82.604 of current federal regulations. The different types of financial aid programs available to those who qualify are discussed in detail below.

Federal Pell Grant

A Federal Pell Grant, unlike a loan, does not have to be repaid. Federal Pell Grants are only awarded to undergraduate students who have not earned a bachelor’s or professional degree and students who are enrolled in an eligible Post-baccalaureate teacher certification program if they meet certain requirements. 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 Department of Education. The amount of the grant available to the student will depend on the Expected Family Contribution (EFC) and the cost of attendance.

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 college education. A student may apply online by completing the FAFSA at www.fafsa.ed.gov. The application will be transmitted electronically through a federally approved need analysis system, which will determine the applicant’s Expected Family Contribution (EFC).

William D Ford Federal Direct Loan Program (Direct Loans)

Direct Loan programs are low-interest loans for eligible students to help cover the cost of education. Eligible students borrow directly from the U.S. Department of Education. The loan is then sent to the U.S. Department of Education’s Common Origination and Disbursement Center (COD) and disbursed to the school electronically through the G-5 website. The loans are serviced by the Direct Loan Servicing System. Direct loans include Direct Subsidized, Direct Unsubsidized and Direct PLUS loans.

Direct Subsidized Loans

Direct Subsidized Loans are loans available to students with financial need. Undergraduate students may borrow up to $3,500 for their first academic year, $4,500 for their second academic year, and $5,500 for their third or fourth year at a fixed interest rate established annually by the U.S. Department of Education. The interest is paid by the federal government while students are in school and for six months after students cease their enrollment. As of 7/1/13, for “first-time borrowers” there is a 150% loan limit provision. A first-time borrower is an individual who doesn’t have an outstanding balance on a Direct Loan or a FFEL Program Loan on or after 7/1/13. This provision states that a student may not receive Direct Subsidized Loans for more than 150% of the published length of the student’s program of study.

Regular payments begin six months after students cease enrollment or fail to carry at least one-half the normal full-time school workload. Deferments after the student drops below half-time status are not automatic and the student must contact the lender concerning their loan. Applications can be obtained at www.studentloans.gov. Total Indebtedness for an independent undergraduate student is $57,500; no more than $23,000 of this amount may be subsidized loans.

There may be an origination fee charged as an expense of borrowing one of these loans. The loan fee is a percentage of the amount of each loan the borrower receives, and is subtracted proportionately from each loan disbursement. This must be repaid. The loan interest rate is fixed and set on July 1st of each year.

Direct Unsubsidized Loans

Direct Unsubsidized Loan programs are available for students to borrow to help cover the additional education costs regardless of family income and for those who may not qualify, in whole or in part, for a Subsidized Loan. An Unsubsidized Loan is not awarded based on financial need. The term “unsubsidized” means that interest is not paid for the student so the student is charged interest from the time the loan is disbursed until the loan is paid in full.

Independent students and dependent undergraduate students whose parents are unable to obtain a PLUS loan can borrow up to $9,500 for their first academic year as a combined total with the Federal Subsidized Loan, and up to $10,500 for their second academic year, at a fixed interest rate established annually by the U.S. Department of Education. Dependent students whose parents are approved for a PLUS loan are limited to a combined total of $5,500 for the first academic year and $6,500 for the second academic year. With the exception of demonstrating financial need, borrowers must meet all eligibility criteria of the Direct Subsidized Loan program. Graduate students may borrow up to $20,500 each year. Interest payments begin immediately after the loan is fully disbursed or may be added to the principal balance. The Government does not pay interest on the student’s behalf on an Unsubsidized Federal Loan. Regular payments begin six months after students cease enrollment or fail to carry at least one-half the normal full-time school workload.

Direct PLUS Loans

The Federal Direct PLUS loan is available to graduate or professional students enrolled at least half-time at an eligible school in a program leading to a graduate or professional degree or certificate or 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.

Graduate students or a dependent student’s parent may borrow up to the cost of attendance minus other aid per eligible student. There may be an origination fee charged as an expense of borrowing one of these loans. The loan fee is a percentage of the amount of each loan the borrower receives and is subtracted proportionately from each loan disbursement. This must be repaid. The loan interest rate is fixed and is set on July 1st of each year.

For graduate students, repayment begins six months after students cease enrollment or fail to carry at least one-half the normal full-time school workload. Interest begins to accumulate at the time of the first disbursement is made. Applications can be obtained at www.studentloans.gov.

For a dependent student’s parent, repayment begins within 60 days of the final disbursement unless the dependent student’s parent qualifies for and is granted a deferment by the lender. There is not a grace period for these loans. Interest begins to accumulate at the time of the first disbursement is made, and parents will begin repaying both the principal and interest while the student is in school. Although, the minimum monthly payment amount is $50 with at least five years but no more than 10 years of repayment, the actual payment and schedule is determined by the total amount borrowed. Applications can be obtained at www.studentloans.gov.

For deferment information, contact the Office of Financial Aid.

Terms and Conditions of Direct Loans

The terms and conditions of Direct Loans can be found on the Master Promissory Note or through the Entrance Counseling the student completes. A borrower who has reached his or her aggregate borrowing limit may not receive additional loans. To view the loan limits, visit the Federal Student Aid’s website.

Final Course and Capstone Course

Undergraduate students who have only one course remaining towards the end of their program are considered less than half-time and may or may not qualify for federal financial aid depending on FAFSA eligibility.

Graduate students who have only one course remaining towards the end of their program are considered half-time and may qualify for federal financial aid.