Financial Aid & Scholarships

• The student must be admitted or enrolled in a degree, certificate, or other recognized credential program at an eligible school.
• The student must be a United States citizen or eligible non-citizen.
• If the student is male, he must have registered with Selective Service (required for men ages 18-25)
• The student must not have a conviction for illegal drug-related offense while attending college and receiving federal financial aid.
• The student must have a valid social security number.
• The student must not be in default on a federal student loan.
• The student must not owe repayment of a federal grant.
• The student must be making satisfactory academic progress as defined by the school.

FAFSA stands for Free Application for Federal Student Aid. To apply for federal and state financial aid, you need to complete FAFSA. In addition, many states and colleges use FAFSA data to determine a student’s eligibility for state and school aid, and some private financial aid providers may use FAFSA information to determine whether a student qualifies for their aid.

FAFSA collects the financial information on the student and his/her family, as well as demographic information. This information is then used to calculate an Expected Family Contribution (EFC), thus determining the amount of financial assistance that a student may receive when enrolling in post-secondary education.

Expected Family Contribution is the amount of money that a family is expected to be able to contribute to a dependent student’s college education each year. The EFC is recalculated each year when the student completes the FAFSA application.

The Expected Family Contribution (EFC) is calculated based on the following factors: parent income, parent age, student income, untaxed income (SNAP, child support), assets, household size, number of dependents currently attending college, and allowable exclusions.

Financial need is calculated by subtracting the Expected Family Contribution (EFC) from the total cost of attendance for the indicated college. The difference, if any, then becomes the amount of financial need for the student.

The online FAFSA becomes available on January 1. To increase a student’s chances of receiving financial aid, FAFSA should be completed and submitted as early in the year as possible. Most colleges recommend completing the application in February.

Federal Pell Grants are awarded to eligible undergraduate students who are pursuing their first bachelor’s degree. The actual award amount is based on a student’s financial need, cost of college attendance, and a student’s status as a full- or part-time student. The grant amount changes from year to year; the federal maximum award for the 2017-18 award year is $5,920. A student can receive the Federal Pell Grant for no more than 12 semesters. Unlike a loan, a grant does not have to be paid back (with the exception of certain circumstances).

Federal Supplemental Educational Opportunity Grants are awarded to eligible undergraduate students who are pursuing their first bachelor’s degree. This grant a form of campus-based aid as it is awarded by colleges to their students who receive Federal Pell Grants and have the most financial need, as indicated via low EFC amounts. While the award amount is dependent on a variety of factors, the minimum annual amount is $100 and the maximum annual amount is $4,000. Students who complete and submit FAFSA early, and meet the award requirements, have a better chance of receiving an award. Unlike a loan, a grant does not have to be paid back (with the exception of certain circumstances).

The TEACH Grant Program provides grants are awarded to eligible undergraduate students who are enrolled in course work needed to being a career in teaching. The amount of the grant is $4,000 a year, with a maximum of $16,000 for an undergraduate degree.

As a condition of receiving a TEACH Grant, a student must sign a TEACH Grant Agreement, which requires recipients to entering a high-need teaching field, teach for a minimum of four complete academic years within eight years of graduation, and teach at a school eligible for Title I assistance. If the teaching requirement is not met, the grant becomes an unsubsidized loan with interest accruing from the date the grant is first disbursed.

A Federal Direct Loan is a loan provided to students by the United States Department of Education. There are four types of Direct Loans: Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans.

There are limits to how much aid can be borrowed through Federal Direct Loans. During your first year of undergraduate study, a total of $5,500 (including $2,000 in Direct Unsubsidized Loans) can be borrowed. During your sophomore year, of undergraduate study, a total of $6,500 (including $2,000 in Direct Unsubsidized Loans) can be borrowed. During your junior and senior years, a total of $7,500 (including $2,000 in Direct Unsubsidized Loans) can be borrowed each year. Federal Direct Loans are also available for students in graduate or professional programs; the yearly borrowing for loans in these circumstances is much higher.

Subsidized and unsubsidized loans are essentially the same, expect for the duration of eligibility and when interest is charged to the student.

Recipients for subsidized loans must demonstrate a financial need, while those granted unsubsidized loans do not. Subsidized loans begin accruing interest at the date of loan disbursement, but the federal government pays for the interest while a student is enrolled at least part time in a post-secondary education program. Unsubsidized loans also begin accruing interest at the date of loan disbursement, but the federal government does not cover this cost. Instead, the interest accrues until the loan is paid in full by the student. Students utilizing unsubsidized loans may choose to capitalize interest. Both subsidized and unsubsidized loans provide a six-month grace period before repayment begins following a student’s graduation.

The Federal PLUS Loan is a loan that parents can take to help pay for their dependent child’s undergraduate studies. There is an annual loan limit for a PLUS Loan, which can be calculated by the cost of attendance at the student’s school, minus other financial aid the student is receiving for that year. Unlike student loans, the PLUS Loan repayment begins 60 days after disbursement of the loan, but there is the opportunity for parents to apply for payment deferment if their child is enrolled at least half time.