College Planning & Financial Aid

A grant is a monetary gift to qualified undergraduate students, primarily with the most financial need. Eligibility is based on financial need as determined by filling out the FAFSA form. Two types of grants are Federal Pell Grant, and the Supplemental Educational Opportunity Grant. Due to limited funding, Federal Pell Grant recipients are given priority to receive Supplemental Educational Opportunity Grant. This is a federally funded, campus based program administered directly by the financial aid office at each participating school. Not all schools participate in both programs. It is important to apply for financial aid early using the FAFSA form so that both of these programs are available to your family.

The money you earn from Federal Work Study is generally subject to Federal and State income tax but exempt from Social Security taxes. This is provided you are enrolled full time, and work less than half-time.

No. You can apply for financial aid any time after January 1st. It is strongly recommended you apply as soon after January 1st that you can. You can use the prior year’s tax return to estimate the amounts required on the application form. To actually receive the financial aid you must be admitted and enrolled at the college.

The financial need analysis process for financial aid uses your family's income, assets and tax information from the most recent tax year. This is called the base year. It is used to evaluate your eligibility for need based financial aid during the upcoming academic year This is called the award year. Since the "base year" ends December 31st, you cannot submit a financial aid application until January 1. Your parents may earn a year-end bonus or realize huge capital losses from selling stocks before December 31st. Financial aid applications sent before January 1st will be rejected.

Yes. Most Financial Aid offices require that you apply for financial aid every year. If your financial circumstances change, Your financial aid may change and you may get more or less aid. After your first year you will receive a FAFSA Renewal Application which contains preprinted information from the previous year's FAFSA form. Your eligibility for financial aid may change significantly, especially if your parents work situation has changed or you have a different number of family members in college. Renewal of your financial aid package also depends on your continued satisfactory academic progress toward a degree, such as earning a minimum number of credits or achieving a minimum grade point average.

Currently Plus Loans can be obtained at a Fixed interest rate of 8.5%. Your parents will be notified of interest rate changes throughout the life of their loan. Interest is charged on the loan from the date that the first disbursement is made until the loan is paid in full. This loan is based on credit-worthiness and the parent starts repayment 60 days after the full disbursement of the loan. The parent may borrow up to the student's cost of education, excluding awarded financial aid.

Yes, your parents will have an opportunity to cancel their loan after they sign the promissory note. Your college must notify your parents in writing whenever it credits your account with your PLUS Loan funds. This notification must be sent to your parents no earlier than 30 days before and no later than 30 days after the college credits your account. Your parents may cancel all or a portion of their loan if they inform your college that they wish to do so within 14 days after the date that your college sends this notice, or by the first day of the payment period, whichever is later. Your college can tell you the first day of your payment period. If your parents receive PLUS Loan funds directly by check, they may refuse the funds by not endorsing the check.

Generally, repayment must begin within sixty days after the final loan disbursement for the academic year. There is no grace period for these loans. This means that interest begins to accumulate at the time the first disbursement is made. Your parents must begin repaying both principal and interest while you are in school.

Possible Yes. Under certain circumstances. A discharge releases your parents from all obligations to repay the loan. A complete listing of the discharge conditions is given in your loans Borrower Rights documentation. Your parents' loan cannot be discharged because you did not complete your program of study at your school unless you were unable to complete the program because the school closed, didn't like the school or the program of study, or did not obtain employment after completing the program of study. For more information about loan discharge or repayment PLUS Loan borrowers should contact the lenders or agencies that hold their loans.