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 2009-2010 award year (July 1, 2009 to June 30, 2010) is $5,350. Students must be enrolled a minimum of 3 credit hours.
Pell Grants are limited to 18 semesters (or equivalent) for students who first receive a Pell Grant on or after July 1, 2008. Only the amount (or percent) of time that a student is enrolled will count against that time limit.
The Academic Competitiveness Grant
The Academic Competitiveness Grant is available for first year students who graduated from high school after January 1, 2006, and for second year students who graduated from high school after January 1, 2005. The Academic Competitiveness Grant award is in addition to the student's Pell Grant award.
An eligible student may receive an Academic Competitiveness Grant (ACG) of up to $750 for the first academic year of study and up to $1,300 for the second academic year of study.
To be eligible for each academic year, a student must:
· Be a U.S. citizen;
· Be a Federal Pell Grant recipient;
· Effective July 1, 2009, be enrolled at least half-time (6 hours) in an associate’s, bachelor’s, or combined undergraduate/graduate (if it includes at least three years of undergraduate education) degree program or in a two-academic year program acceptable for full credit toward a bachelor’s degree;
· Be enrolled in the first or second academic year of his or her program of study at an eligible institution;
· Have completed a rigorous secondary school program of study (after January 1, 2006, if a first-year student, and after January 1, 2005, if a second-year student);
· If a first-year student, not have been enrolled previously as regular students in an ACG-eligible college program when they were still in high school and were at or below the age of compulsory attendance; and
· If a second-year student, have successfully completed their first year and have a cumulative GPA of at least 3.0 on a 4.0 scale.
Federal Stafford Loan (subsidized and unsubsidized)
Stafford 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 subsidized loan
· Based on financial need
· Federal government paying interest to the lender while the student is in school at least 6 credit hours and for 6 months after graduation.
· Fixed interest rate of 5.6% for the 09-10 academic year
The unsubsidized loan
· Not based on need
· Interest accrues while the student is in school
· Interest payments can be made
· Fixed interest rate of 6.8% for the 09-10 academic year
New borrowers
· Complete Online Entrance Counseling and a Master Promissory Note at http://www.aultmancollege.edu/financialaid/onlineloanapplication.aspx.
· If you are a first-year undergraduate student and a first-time borrower, we do not disburse your first loan payment until 30 days after the first day of your enrollment period.
o This practice ensures you won’t have a loan to repay if you don’t begin classes or if you withdraw during the first 30 days of classes.
Grade level for Stafford loans is based on the institution in which you are enrolled. Students must be enrolled at least half-time (6 credit hours).
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.
The PLUS loan
· Not need based
· Repayment begins either 60 days after the loan is fully disbursed or six months after the student graduates or ceases to be enrolled on at least a half-time basis.
o Please note: the parent must apply for deferment of payments.
· 3% origination fee and a 1% federal default fee
· Fixed interest rate of 8.5%
o Interest may be tax deductible
