Federal Aid Programs
The Pell Grant program provides grants to financially needy undergraduates to
help them pay for college expenses. For the 2008-2009 academic year, the
maximum grant is $4,731.
Supplemental Educational Opportunity Grant (SEOG). The SEOG program provides
grants to low-income students and is usually awarded to students receiving a
Pell Grant. Minimum award is $200 and the maximum award is $4,000. Grants
usually range from $500 to $1500. The college financial aid office determines
the actual amount of the grant. Priority for this award is given to Pell Grant
recipients.
This College Work Study program provides part-time jobs to undergraduates and
graduate/professional students who use the earnings to help finance their
education. Students receive an hour’s pay for an hour’s work. Students must be
paid at least minimum wage.
The Perkins Loan is awarded by the financial aid office. The program
offers low-interest (5%) loan to undergraduate and graduate/professional
students who demonstrate high financial need. Loans are awarded through a fund
consisting of new federal capital contributions, institutional contributions
and loan repayments from prior borrowers. Undergraduates are eligible to borrow
up to $4,000 per year, for a maximum of $25,000. Graduate students are eligible
to borrow up to $6,000 per year, for a cumulative maximum (including
undergraduate Perkins Loans) of $30,000.
Federal Family Education Loan (FFEL) Program
The FFEL program makes loans available to students and their families through
banks and lending institutions. There are two types of Stafford loans: the
Federal Subsidized Stafford Loan Program, and the Federal Unsubsidized Stafford
Loan Program.
William D. Ford Direct Student Loan Program
The Direct Student Loan program uses Federal Treasury funds to provide loan
capital directly to schools, which then disburse loan funds to students. You
will not need to contact a bank or lending institution as the college will send
you an application directly. There are two types of Ford loans: the William D.
Ford Direct Subsidized Stafford Loan and the William D. Ford Direct
Unsubsidized Stafford Loan.
Both FFEL and Direct Loans feature three types of loans with similar fees and
maximum borrowing amounts.
Subsidized Stafford loan
This loan is based on financial need. The interest rate on these Stafford loans
is fixed at 6.0% for undergraduate students and 6.8% for graduate students. The
federal government pays the interest while the student is in school and during
certain grace and deferment periods.
Unsubsidized Stafford Loans
This loan is offered to students that have limited or no financial need. The
rate on these loans is fixed at 6.8% for both undergraduate and graduate
student. The student is fully responsible for all interest charges on an
unsubsidized Stafford Loan. The student has the option of capitalizing the
interest (adding it back onto the loan principle) or paying the interest on a
monthly basis.
Loan Limits
The borrower limits listed below are effective July 1, 2008.
Borrowing Limits for Dependent Students:
Grade Level 1 - $5,500 (up to $3,500 can be subsidized)
Grade Level 2 - $6,500 (up to $4,500 can be subsidized)
Grade Level 3 & above - $7,500 (up to $5,500 subsidized)
Borrowing Limits for Independent Students:
Grade Level 1 - $9,500 (up to $3,500 subsidized)
Grade Level 2 - $10,500 (up to $4,500 subsidized)
Grade Level 3 & above - $12,500 (up to $5,500 subsidized)
Graduates & Professionals - $20,500 (up to $8,500 subsidized)
Repayment: Repayment does not begin until 6 months after the
student leaves school.
These loans are available to parents of dependent undergraduate students and to
graduate/professional students, and have a fixed interest rate of 8.5%. Loans
made for the 2008/09 academic year may be deferred until 6 months after the
student leaves school. Otherwise, loan repayment begins 60 days after the last
disbursement. Parents or graduate students can borrow up to the cost of
education minus any financial aid that the student has received .