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:
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 2010-2011 award year (July 1, 2010 to June 30, 2011) is $5,550. 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 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
· 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 3.4% for loans disbursed after 7/01/11 of the 2011-2012 academic year
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
· Fixed interest rate of 6.8% for the 2011-2012 academic year
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) and be making Satisfactory Academic Progress (SAP), according to policy. See SAP guidelines.
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 Direct 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 7.9%
o Interest may be tax deductible
For additional information about Direct Loans, visit www.direct.ed.gov/student.html