The student may borrow Federal Direct Stafford Loan (Subsidized and Unsubsidized). The interest for these loans is at a variable cap not to exceed 6.8%. Repayment is optional, not required, while the student remains in school on at least a half-time basis. If the student chooses not to begin repayment during his/her enrollment period, repayment will then begin six months after the students last day of attendance either by graduating, withdrawing or being withdrawn. The six-month period is known as the student’s grace period. Interest for the Federal Direct Stafford loans, both Subsidized and Unsubsidized, starts to accrue when the loans are disbursed (approximately thirty-one days after the student starts class). The federal government has elected to pay the interest for the subsidized portion of the student’s loan during the time the student is in school as well as during the six-month grace period. The six-month grace period starts when the student completes the program or is no longer enrolled in the program. The student then becomes responsible for the interest on the subsidized portion of his/her loan upon completion of the six-month grace period. The federal government, however, does not pay any interest for the unsubsidized portion of a student’s Stafford loan. Any interest, which does accrue on a student’s unsubsidized portion of his/her Stafford loan, will be capitalized (added) to the students loan balance upon the expiration of the student’s six-month grace period unless the student elects to pay the interest while in school.
If a student obtains a loan to pay for an educational program, the student will have the responsibility to repay the full amount of the loan plus interest, less the amount of any refund, and that, if the student has received federal student financial aid funds, the student is entitled to a refund of the money’s not paid from federal student financial aid program funds.
For dependent students, a parent may borrow up to the cost of attendance, to include direct and indirect costs, annually on behalf of the student. The parent may choose to only borrow the remaining cost of the student’s education minus any other financial aid the student may have already received or the parent may choose to borrow the full amount of the student’s education not including any other financial aid. Unlike the Federal Direct Stafford loans, the Federal Direct PLUS loan is credit based. The parent applying for the Federal Direct PLUS loan will be required to complete a simple pre-approval application. A response to the application will be received within one to two days. The interest rate on the Federal Direct PLUS Loan is at a variable cap not to exceed 7.9%. Repayment on this loan begins within 60 days after the loan has been fully disbursed.
Federal Work-Study (FWS) provides part-time jobs for undergraduate students with financial need, allowing them to earn money to help pay education expenses. The program encourages community service work and work related to the recipient’s course of study.
Federal Supplemental Educational Opportunity Grants (FSEOG) is for undergraduates with exceptional financial need. Pell Grant recipients with the lowest EFCs will be the first to get FSEOGs. Just like Pell Grants, FSEOGs don’t have to be paid back.