Title IV Federal Financial Aid Programs
- Pell Grant
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- Federal Work Study (FWS)
- Stafford Loans
- Direct PLUS Loans for Parents
- Direct PLUS loas for Graduate and Professional Degree Students
Federal Pell Grant
A Federal Pell Grant, unlike a loan, does not have to be repaid. Pell Grants are awarded usually only to undergraduate students who have not earned a bachelor's or a professional degree. (In some cases, however, a student enrolled in a post-baccalaureate teacher certification program might receive a Pell Grant.) Pell Grants are considered a foundation of federal financial aid, to which aid from other federal and nonfederal sources might be added.
How much can I get?
The maximum Pell Grant award for the 2011-12 award year (July 1, 2011 to June 30, 2012) is $5,550. The amount you get, though, will depend not only on your financial need, but also on your costs to attend school, your status as a full-time or part-time student, and your plans to attend school for a full academic year or less.
The maximum award amount is given for any Pell Grant eligible student whose parent or guardian died as a result of military service in Iraq or Afghanistan after Sept.11, 2001. You must be under 24 years old or enrolled at least part-time in college at the time of your parent's or guardian's death.Note: Fiscal Year 2011 appropriations eliminated the allowance of receiving up to two consecutive Pell Grant awards during a single award year. Beginning with the 2011-12 award year, you may receive only one Pell Grant award during a single award year.
If you received a Pell Grant for the first time on or after July 1, 2008, you can only receive the Pell Grant for up to 18 semesters or the equivalent.
Federal Supplemental Educational Opportunity Grant (FSEOG)
What is a Federal Supplemental Educational Opportunity Grant (FSEOG)?
FSEOGs are awarded to undergraduate students with exceptional financial need—those with the lowest Expected Family Contribution (EFC) numbers.
Federal Pell Grant recipients receive priority for FSEOG awards.
FSEOG awards range from $100 to $4000 a year. The amount of the award is determined by your school’s financial aid office
Unlike Pell Grants, the amount of an FSEOG you receive depends not only on your financial need but also on the amount of other aid you get and the availability of funds at your school.
Receiving other aid might reduce the amount of your FSEOG award.
Not all schools participate in the FSEOG Program.
The school’s financial aid office decides how to award these funds.
Each school participating in the FSEOG Program receives a certain amount of FSEOG funds each year from the U.S. Department of Education’s Office of Federal Student Aid. When all of those funds have been disbursed for that award year, no more FSEOG awards can be made for that year.
Due to limited program funds, it is important to apply early to be considered for these funds. Not everyone who qualifies for an FSEOG will receive one.
Federal Work Study (FWS)
Federal Work-Study provides part-time jobs for undergraduate and graduate 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.
Will I be paid the same as I would in any other job?
You'll be paid by the hour if you're an undergraduate. No FWS student may be paid by commission or fee. Your school must pay you directly (unless you direct otherwise) and at least monthly. Wages for the program must equal at least the current federal minimum wage but might be higher, depending on the type of work you do and the skills required. The amount you earn can't exceed your total FWS award. When assigning work hours, your employer or financial aid administrator will consider your award amount, your class schedule, and your academic progress.
What kinds of jobs are there in Federal Work-Study?
If you work on campus, you'll usually work for your school. If you work off campus, your employer will usually be a private nonprofit organization or a public agency, and the work performed must be in the public interest.
Your school might have agreements with private for-profit employers for Federal Work-Study jobs. This type of job must be relevant to your course of study (to the maximum extent possible). If you attend a career school, there might be further restrictions on the jobs you can be assigned.
Stafford Loans (FFELs and Direct Loans)
Direct Stafford Loans, from the William D. Ford Federal Direct Loan (Direct Loan) Program, are low-interest loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. Eligible students borrow directly from the U.S. Department of Education (the Department) at participating schools.
Direct Stafford Loans include the following types of loans:
Direct Subsidized Loans—Direct Subsidized Loans are for students with financial need. Your school will review the results of your Free Application for Federal Student Aid (FAFSASM) and determine the amount you can borrow. You are not charged interest while you’re in school at least half-time and during grace periods and deferment periods.
Direct Unsubsidized Loans—You are not required to demonstrate financial need to receive a Direct Unsubsidized Loan. Like subsidized loans, your school will determine the amount you can borrow. Interest accrues (accumulates) on an unsubsidized loan from the time it’s first paid out. You can pay the interest while you are in school and during grace periods and deferment or forbearance periods, or you can allow it to accrue and be capitalized (that is, added to the principal amount of your loan). If you choose not to pay the interest as it accrues, this will increase the total amount you have to repay because you will be charged interest on a higher principal amount.
Additional loan types provided under the Direct Loan Program include Direct PLUS Loans (for parents and graduate and professional degree students) and Direct Consolidation Loans (to combine federal education loan debts into a single loan).
Note: Before July 1, 2010, Stafford, PLUS, and Consolidation Loans were also made by private lenders under the Federal Family Education Loan (FFELSM) Program. As a result of the Health Care and Education Reconciliation Act of 2010, no further loans will be made under the FFEL Program as of July 1, 2010. All new Stafford, PLUS, and Consolidation Loans come directly from the Department under the Direct Loan Program.
How do I apply for a Stafford Loan?
As with all federal student aid, you must complete the Free Application for Federal Student Aid (FAFSA). Most students use FAFSA on the Web to complete their application. Schools use the information from your FAFSA to determine how much student aid you will receive. Stafford Loans are generally included as part of your award package, which may contain other types of aid to help meet the costs of going to college or career school.
Master Promissory Note—When you receive a Stafford Loan for the first time, you must complete a Master Promissory Note (MPN). The MPN is a legal document in which you promise to repay your loan and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan. In most cases, one MPN can be used for loans that you receive over several years of study. If you previously signed an MPN to receive a FFEL Program loan, you will need to sign a new MPN for a Direct Loan.
Your school will either give you a copy of the MPN or offer you the option of completing the MPN online at www.studentloans.gov.
How much can I borrow?
There are limits on the maximum amount you are eligible to receive each academic year (annual loan limit) and in total (aggregate loan limits). These limits are shown in the chart in the next section. The actual amount you can borrow each year depends on your year in school, whether you are a dependent or independent student, and other factors, and may be less than the maximum amounts shown in the loan limit chart. Your school will determine what types of loans and how much you may borrow.
Depending on your financial need, you may be eligible to receive a subsidized loan for an amount up to the annual subsidized loan borrowing limit for your level of study. If you have education expenses that have not been met by subsidized loans and other aid, you may also receive an unsubsidized loan so long as you don't exceed the combined subsidized and unsubsidized annual loan limits.
Annual and Aggregate Loan Limits
The following chart provides maximum annual and aggregate (total) loan limits for subsidized and unsubsidized Direct Stafford Loans.
| Year | Dependent Undergraduate Student (except students whose parents are unable to obtain PLUS Loans) | Independent Undergraduate Student (and dependent students whose parents are unable to obtain PLUS Loans) | Graduate and Professional Degree Student |
| First Year | $5,500—No more than $3,500 of this amount may be in subsidized loans. | $9,500—No more than $3,500 of this amount may be in subsidized loans. | $20,500—No more than $8,500 of this amount may be in subsidized loans. |
| Second Year | $6,500—No more than $4,500 of this amount may be in subsidized loans. | $10,500—No more than $4,500 of this amount may be in subsidized loans. | |
| Third and Beyond (each year) | $7,500—No more than $5,500 of this amount may be in subsidized loans. | $12,500—No more than $5,500 of this amount may be in subsidized loans. | |
| Maximum Total Debt from Stafford Loans When You Graduate (aggregate loan limits) | $31,000—No more than $23,000 of this amount may be in subsidized loans. | $57,500—No more than $23,000 of this amount may be in subsidized loans. | $138,500—No more than $65,500 of this amount may be in subsidized loans. The graduate debt limit includes Stafford Loans received for undergraduate study. |
Note: These annual loan limit amounts are the maximum yearly amounts you can borrow in both subsidized and unsubsidized loans. You can have one type of loan or a combination of both. Because you can't borrow more than your cost of attendance minus any other financial aid you'll get, you may receive less than the annual maximum amounts. Also, the annual loan limits assume that your program of study is at least a full academic year.
The maximum annual and total loan limits include any Stafford Loans you may have received under the FFEL Program.
Graduate and professional students enrolled in certain health profession programs may receive additional unsubsidized Stafford Loan amounts each academic year beyond those shown above. For these students, there is also an increased aggregate loan limit of $224,000 (maximum $65,500 subsidized).
How will I get the loan money?
You'll be paid through your school, generally in at least two installments. No installment may exceed one-half of your loan amount. Your school will use your loan money first to pay for tuition and fees, room and board, and other school charges. If any loan money remains, you'll receive the funds by check or other means, unless you give the school written authorization to hold the funds until later in the enrollment period.
Generally, if you're a first-year undergraduate student and a first-time borrower, your school cannot disburse your first payment until 30 days after the first day of your enrollment period.
What are the current interest rates?
Direct Subsidized Loans:
Undergraduate students—If the first disbursement of your subsidized loan is between July 1, 2011 and June 30, 2012, the interest rate on your loan is fixed at 3.4%.
Graduate and professional degree students—The interest rate is fixed at 6.8%.
Direct Unsubsidized Loans—The interest rate is fixed at 6.8% for all borrowers (undergraduate and graduate).
Prior Federal Loans and Financial Aid History—If you currently have a Stafford Loan and would like to check the interest rate, servicer information, and other financial aid history, go to the National Student Loan Data System.
Interest rate cap for military members—If you qualify under the Service Members Civil Relief Act, the interest rate on loans you obtained before entering military service may be capped at 6% during your military service. You must contact your loan servicer to request this benefit.
In addition, we do not charge interest (for a period of no more than 60 months) on Direct Loans first disbursed on or after October 1, 2008, while a borrower is serving on active duty or performing qualifying National Guard duty during a war or other military operation or other emergency, and serving in an area of hostilities qualifying for special pay.
Other than interest, is there a charge for this loan?
There is a loan fee on all Direct Subsidized and Unsubsidized Loans. The loan fee is a percentage of the amount of each loan you receive. For loans first disbursed on or after July 1, 2010, the loan origination fee is 1.0%. We will deduct the loan origination fee proportionately from each loan disbursement. The specific loan origination fee that you are charged will be reflected in a disclosure statement that we send to you.
How do I pay back my loans?
When you receive your first Direct Loan, you will be contacted by the servicer for that loan (you repay your loan to the loan servicer). Your loan servicer will provide regular updates on the status of your Direct Loan, and any additional Direct Loans that you receive. If you’re not sure who your loan servicer is, you can look it up on www.nslds.ed.gov.
When do I begin repaying my loans?
After you graduate, leave school, or drop below half-time enrollment, you will have a six-month grace period before you begin repayment. During this period, you'll receive repayment information from your loan servicer, and you'll be notified of your first payment due date. Payments are usually due monthly.
Repayment Plans—The Direct Loan Program offers several repayment plans that are designed to meet the different needs of individual borrowers. Generally, you’ll have 10 to 25 years to repay your loan, depending on the repayment plan that you choose. You will receive more detailed information on your repayment options during entrance and exit counseling sessions at your school. To learn more about Direct Loan repayment plans, go to the Repayment Information page on this Web site.
What if I have trouble repaying the loan?
Under certain circumstances, you can receive a deferment or forbearance that allows you to temporarily stop or lower the payments on your loan. For more information, go to the Repayment Information page on this Web site.
Can my loan be cancelled (discharged)?
Yes, but only under a few circumstances. For more information, go to the Cancellation/Discharge page on this Web site.
You also may qualify for forgiveness of some or all of your loan balance:
If you teach full-time for 5 years at a school or educational service agency serving low-income families and meet other requirements, or
After you have made 120 payments on a Direct Loan while employed in certain public service jobs (additional conditions apply).
Go to the Stafford Loan Forgiveness Program for Teachers and Public Service Loan Forgiveness pages for additional details.
Direct PLUS Loans for Parents
Parents of dependent students may apply for a Direct PLUS Loan to help pay their child's education expenses as long as certain eligibility requirements are met. Graduate and professional students may apply for PLUS Loans for their own expenses; click here for details.
To be eligible for a Direct PLUS Loan for Parents:
- The parent borrower must be the student's biological or adoptive parent. In some cases, the student's stepparent may be eligible.
- The student must be a dependent student who is enrolled at least half-time at a school that participates in the Direct Loan Programs. Generally, a student is considered dependent if he or she is under 24 years of age, has no dependents, and is not married, a veteran, a graduate or professional degree student, or a ward of the court.
- The parent borrower must not have an adverse credit history (a credit check will be done). If the parent does not pass the credit check, the parent may still receive a loan if someone (such as a relative or friend who is able to pass the credit check) agrees to endorse the loan. The endorser promises to repay the loan if the parent fails to do so. The parent may also still receive a loan if he or she can demonstrate extenuating circumstances.
- The student and parent must be U.S. citizens or eligible noncitizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the federal student aid programs. For additional information on eligibility requirements, go to the student aid eligibility page.
Direct PLUS Loans for Graduate and Professional Degree Students
Graduate and professional degree students can borrow a Direct PLUS Loan to help cover education expenses.
The terms and conditions applicable to PLUS Loans for parents also apply to PLUS Loans for graduate and professional students. These terms and conditions include:
a determination that you (the applicant) do not have an adverse credit history; and
a fixed interest rate of 7.9% for Direct PLUS Loans.
You are required to complete the Free Application for Federal Student Aid (FAFSASM). In addition, before you can receive a PLUS Loan, your school must have determined your maximum eligibility for Direct Subsidized and Unsubsidized Stafford Loans.
How do I apply for a PLUS Loan?
For a PLUS Loan, you must complete a Direct PLUS Loan Application and Master Promissory Note (MPN). The MPN is a legal document in which you promise to repay the loan and any accrued interest and fees to the Department. It also explains the terms and conditions of the loan. In most cases, one MPN can be used for loans that you receive over several years of study, although a separate Loan Request must be filed for each school year. If you previously signed an MPN to receive an FFEL PLUS loan, you will need to sign a new MPN for a Direct PLUS Loan.
Your school's financial aid office can provide instructions on how to apply for a PLUS Loan and may offer the option of completing the PLUS application and MPN online at www.studentloans.gov.
How much can I borrow?
The maximum PLUS Loan amount you can borrow is your cost of attendance (determined by the school) minus any other financial assistance you will receive.
What is the current interest rate?
The interest rate for Direct PLUS Loans is a fixed rate of 7.9%.
Prior Federal Loans and Financial Aid History—If you currently have a federal loan and would like to check the interest rate, servicer information, and other financial aid history, go to the National Student Loan Data System.
Interest rate cap for military members—If you qualify under the Service Members Civil Relief Act, the interest rate on loans you obtained before entering military service may be capped at 6% during your military service. You must contact your loan servicer to request this benefit.
In addition, we do not charge interest (for a period of no more than 60 months) on Direct Loans first disbursed on or after October 1, 2008, while a borrower is serving on active duty or performing qualifying National Guard duty during a war or other military operation or other emergency, and serving in an area of hostilities qualifying for special pay.
Other than interest, are there any fees or charges to get a PLUS Loan?
Yes. There is a fee of 4% of the loan amount, deducted proportionately each time a loan disbursement is made.
How do I pay back my loans?
When you receive your first PLUS Loan, you will be contacted by the servicer for that loan (you repay your loan to the loan servicer). Your loan servicer will provide regular updates on the status of your PLUS Loan, and any additional loans that you receive. If you're not sure who your loan servicer is, you can look it up on www.nslds.ed.gov.
When do I begin repaying the loan?
The repayment period for a Direct PLUS Loan begins at the time the PLUS loan is fully disbursed, and the first payment is due within 60 days after the final disbursement. However, you may defer repayment while you are enrolled at least half-time. If your Direct PLUS Loan was first disbursed on or after July 1, 2008, you may also defer repayment for an additional six months after you cease to be enrolled at least half-time.
Repayment Plans—There are several repayment plans that are designed to meet the different needs of individual borrowers. Generally, you'll have 10 to 25 years to repay your loan, depending on the repayment plan that you choose. You will receive more detailed information on your repayment options during entrance and exit counseling sessions at your school. To learn more about repayment plans, go to the Repayment Information page on this Web site.
What if I have trouble repaying the loan?
Under certain circumstances, you can receive a deferment or forbearance that allows you to temporarily stop or lower the payments on your loan. For more information, go to the Repayment Information page on this Web site.
Can my loan be cancelled (discharged)?
Yes, but only under a few circumstances. For more information, go to the Cancellation/Discharge page on this Web site.
Under the Loan Forgiveness for Public Service Employees Program, borrowers may have the balance of their loans forgiven if they are employed full-time in a public service job and make 120 payments on their loans during that period. For additional details, go to the Loan Forgiveness for Public Service Employees page on this Web site.
