Types of Aid

• Grants – awards based on financial need which do not have to be repaid.


• Scholarships – non-repayable awards, which may be based on merit, special talent and/or financial need.


• Student employment – allows students to earn money toward their education by working part-time while attending school.
  For detailed information on these Federal Aid Programs go to the Federal Student Guide web site.


• Loans – available to students and/or their parents at low interest rates (variable 6.8-8.5%) with the option to defer repayment until after graduation or after the student drops below half-time. Federal Stafford loans are available to students to help meet the cost of education after grant/scholarship options are exhausted. Loans are considered a form of financial aid. Since the loans are federally guaranteed there are no credit checks. Every student is eligible as long as eligibility criteria is met, you are not in default on a current student loan, or have not exceeded the federal aggregate loan limit.


• Subsidized – is awarded to student’s demonstrating a financial need as determined by the federal processor. Interest payments on this loan is subsidized (you are not charged interest) by the federal government while you are in school or during authorized periods of deferments.


• Unsubsidized – a student does not have to demonstrate financial need to receive this loan, however not every student will qualify for this loan. Interest payments on this loan are not subsidized by the government (you must pay). You can make arrangements with your lender to pay while you are in school or you can allow the interest to capitalize, add, to your principal balance.

Eligibility/Requirements:
Recipients of federal loans must meet the following criteria:

• U.S. citizen or eligible non-citizen
• Admitted to a degree seeking program or an eligible certificate program
• Be enrolled at least half time (6 credits/ 5 credits grad) when loan proceeds are received
• Complete an entrance counseling seminar (first time borrowers only)

Annual Loan Limit & Aggregate Limit Information:
There are federal limits on how much a student can borrow during one academic year depending on their grade level. The annual loan amounts are as follows:

Entrance/Exit Counseling Requirement:
All first time borrowers are required to complete an entrance counseling, which informs you of basic loan information including repayment options, Master Promissory Note (MPN) information and how interest rates are determined.

If you have received a loan (Perkins and/or Stafford) during your enrollment at the University, you will be required to complete an "Exit Interview" prior to leaving the University or graduating, whichever comes first. Stafford Loan recipients can fulfill this requirement by completing the Exit Counseling online. Perkins Loan recipients must sign the appropriate Exit Interview materials available only at the Bursar's Office.

Choosing a Lender:
Since your Federal Loan has to be repaid we advise you to conduct your own research of our Lender Partners before you select one. The lender is your choice, therefore you may borrow from any lending organization, however we can only guarantee the services of our Lender Partners. When you enter into the agreement with your lender this will be a long term decision therefore consider the following incentives when selecting the lender of choice.

• Origination fees – these are fees charged by each lender for processing your loan. This fee varies with each lender.
• Repayment options – borrowing is a long term decision, so repayment options come into play when you have either finished your degree or left school early and you must start making payments. These are incentives a lender offers for consecutive on-time payments, automatic payment deduction, etc.
  
  Note: Keeping one lender is very important. It will reduce the chance of having to repay more than one bank when your repayment period starts. So taking the time now to select the best lender for you will cause less confusion when your repayment period starts.