Federal Aid


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Federal Aid

Federal Aid

Federal grant and loan guidelines are established by federal agencies and are not subject to alteration by the Financial Aid Office. Federal Aid programs available to Aultman College students include:

 

Pell Grant

This is a federal grant program based solely on need (EFC).  Students are not required to repay these monies. The amount of the grant is determined by the student’s need, enrollment and the cost of attendance at the school and is disbursed by semester. The Pell Grant is not available to students with baccalaureate degrees.  The maximum Pell Grant award for the 2014-2015 award year (July 1, 2014 to June 30, 2015) for full-time students is $5,730. The smallest Pell Grant Award for 2014-2015 for full time students is $602.

 

Federal Work Study

Federal Work Study (FWS) is a federally funded program that allows students to work part-time to earn money to assist with college expenses. Students who are employed through the FWS program are hired for the academic year. Schedules are flexible to allow time for coursework and studying. Students are paid directly and may use their money to assist with education-related expenses.

 

To be eligible to apply for FWS, you must complete the FAFSA and meet all federal eligibility requirements. An award does not guarantee earnings. Students are paid with a bi-weekly paycheck for actual hours worked. Eligibility does not guarantee employment.

 

The William D. Ford Direct Loan Program (Subsidized and Unsubsidized)  

Direct Loans are loans which must be repaid and are available on either a subsidized or unsubsidized basis.  The maximum annual amounts are $3,500 for freshmen, $4,500 for sophomores or an aggregate total of $31,000 for dependent students. The aggregate limit for independent students is $57,500 for undergraduate study. Eligible dependent students may borrow up to an additional $2000 yearly. Eligible independent students may borrow up to an additional $6,000 yearly.

 

The Direct Subsidized loan

·        Based on financial need as determined by federal regulations 

·        The federal government pays interest to the lender while the student is enrolled at least 6 credit hours, during deferment and for 6 months after graduation* for loans disbursed before June 30, 2012.

 

*Note: If you receive a Direct Subsidized Loan that is first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.

 

 

The Direct Unsubsidized loan

·          Not based on need

·          Interest accrues during all periods, even during the time a student is in school and during grace and deferment periods

·          Interest payments can be made       

 

Grade level for Direct Stafford Subsidized and Unsubsidized loans is based on the institution in which you are enrolled.

 

Direct PLUS - Parent Loan for Undergraduate Students

This credit-based loan program is available to parents of eligible dependent undergraduate students.  The loan can be used to pay the “Expected Family Contribution” (EFC) portion of the student’s education expenses and cannot exceed the cost of attendance.  Students must be enrolled a minimum of half-time (6 credit hours) and should the number of credit hours change, so may the loan amount. The PLUS loan allows a parent to borrow the total cost of undergraduate education including tuition, room and board, and any other eligible school expenses, minus any aid the student is receiving in their name.

 

In order to receive a Direct PLUS loan, your child must complete the Free Application for Federal Student Aid (FAFSA) at  http://www.fafsa.ed.gov/

The Direct PLUS Loan:

·         The U.S. Department of Education is the lender.

·         The borrower must not have an adverse credit history.

·         The maximum loan amount is the student’s cost of attendance (determined by the school) minus any other financial aid received.

·         Borrower must be the parent (biological, adoptive, or in some cases, stepparent) of a dependent undergraduate student enrolled at least half-time at a participating school; and

·         Meet the general eligibility requirements for federal student aid. If you are borrowing on behalf of your child, your child must also meet these requirements.

 

What are the current Direct loan interest rates?

The interest rates for Direct Subsidized Loans and Direct Unsubsidized Loans are shown in the chart below.

Loan Type

Borrower Type

Loans first disbursed on or after 7/1/13 and before 7/1/14

Loans first disbursed on or after 7/1/14 and before 7/1/15

Direct Subsidized Loans

Undergraduate

3.86%

4.66%

Direct Unsubsidized Loans

Undergraduate

3.86%

4.66%

Direct PLUS Loans

Undergraduate

6.41%

7.21%

 

 

Other than interest, is there a charge for this loan?

Yes, there is a loan fee on all Direct Subsidized Loans and Direct Unsubsidized Loans. The loan fee is a percentage of the loan amount and is proportionately deducted from each loan disbursement. The percentage varies depending on when the loan is first disbursed, as shown in the chart below.

 

Loan Fees for Direct Subsidized Loans and Direct Unsubsidized Loans

First Disbursement Date

Loan Fee

On or after Dec. 1, 2013, and before Oct. 1, 2014

1.072%

On or after Oct. 1, 2014, and before Oct. 1, 2015

1.073%

Loan Fees for Direct PLUS Loans

First Disbursement Date

Loan Fee

On or after Dec. 1, 2013, and before Oct. 1, 2014

4.288%

On or after Oct. 1, 2014, and before Oct. 1, 2015

4.292%

Loans first disbursed prior to Dec. 1, 2013, have different loan fees.

 

For additional information about Direct Loans, visit http://www.direct.ed.gov/student.html

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