Federal Pell Grant and Federal Supplemental Educational Opportunity Grant (SEOG)

The Pell Grant is a federal aid program for those with substantial need. The grant may be worth up to $6,095 per year depending on the family’s resources and the federal funds actually available. The Pell Grant has a life time eligibility of 600%. This means that a student cannot receive more than 6 years (12 semesters) of Pell Grant awards. The Supplemental Educational Opportunity Grant provides additional assistance to those with severe need who cannot meet college costs with other forms of aid. The average award is $2,000 per year. The Free Application for Federal Student Aid (FAFSA) is used to determine eligibility for these grants. This is not available to students pursuing a second bachelor’s degree. Priority is given to students who have a $0 EFC.

Federal Teacher Education Assistance College and Higher Education (TEACH) Grant

A federal grant that provides up to $3,736 per year to students who agree to teach for four years at an elementary school, secondary school, or educational service agency that serves students from low income families. The student must agree to teach in a high-need field for four years within 8 years after completing or ceasing enrollment in the course of study for which the grant was received. If the service obligation is not met, the grant is converted to a Direct Unsubsidized Loan in which the student must repay the loan.

Federal Direct Subsidized Loan

A Direct Subsidized Loan is available to students who demonstrate financial need. The maximum amounts are: $3,500 for a first year undergraduate student; $4,500 for a second year student; $5,500 for a third-year or fourth-year student. For Direct Subsidized Loans first disbursed on or after July 1, 2018, the interest rate is 5.045 percent. The Direct Loan interest rates are subject to change in June 2019. There is also a Direct Loans origination fee of 1.066 percent for loans first disbursed after October 1, 2017 (subject to change after September 30, 2018). The Federal government pays the interest on the loan as long as the student is enrolled at least half-time. New borrower on or after July 1, 2013, may receive Federal Direct Subsidized loans for an aggregate of 150 percent of student’s educational program. Once the student has reached the 150% limit, the student may borrow additional funds through the federal direct unsubsidized loans. Interest will begin to accrue on the student’s outstanding Subsidized loan at that time.

Eligibility is based on other sources of financial aid received and a parental contribution factor. Students must complete the Federal Direct Loan form and the Master Promissory Note available through the Office of Student Financial Services, or online at studentloans.gov.

Federal Direct Unsubsidized Loan

This loan is not based on financial need. A student who wishes to apply for the Direct Loan program and is not eligible based on financial need, or is only partially eligible, may apply for the full or balance of his/her eligibility through the unsubsidized loan program. There will be a fixed rate of 5.045 percent. The Direct Loan interest rates are subject to change in June 2019. There is also a Direct Loans origination fee of 1.066 percent for loans first disbursed after to October 1, 2017 (subject to change after September 30, 2018). The student is responsible for all in school interest, which can be capitalized at the end or paid through the enrollment periods. The interest rate for graduate students is 6.595% (subject to change in June, 2019).

If an undergraduate student is not eligible for any Direct Subsidized Loan, the maximum amounts available are: $5,500 for a first-year undergraduate student; $6,500 for a second-year student; $7,500 for a third or fourth-year student, and $20,500 for a graduate student. Independent undergraduate students and dependent undergraduate students whose parents are denied for a PLUS loan are eligible for an additional $4,000 for the first two years and $5,000 for the last two years.

Applications for this loan are made online through www.student loans.gov. Students must complete the Federal Direct Loan form and the Federal Master Promissory Note at lynn.edu/loans.

Federal Direct Parental Loan for Undergraduate Students (PLUS)

This loan is not based on financial need but must be within the cost of attendance determined by the university. The amount a parent can borrow is the difference between the cost of attendance and financial aid eligibility. For PLUS loans there will be a fixed rate of 7.595 percent. Repayment begins within 60 days of the full loan disbursement. Direct Plus Loan interest rates are subject to change in June 2019. There is also a Direct Plus origination fee of 4.264 percent for loans first disbursed after October 1, 2017 (subject to change after September 30, 2018). Parents can choose to defer payments until six months after the student ceases to be at least a half-time student. Application forms are available online at: studentloans.gov

Student Loan Ombudsman

The FSA Student Loan Ombudsman Group is available to help federal student loan borrowers who need assistance with a loan dispute. The Loan Ombudsman Group should only be contacted when the borrower has already attempted to resolve their loan dispute with their financial aid office or loan servicer. The easiest way to contact the Loan Ombudsman Group is via on-line assistance at studentaid.ed.gov or by phone +1 877-557-2575 or fax +1 606-396-4821 or by mail at: FSA Ombudsman Group, P.O. Box 1843, Monticello, KY 46233.

Federal Work Study Program

Under this program, a student is provided with opportunities to work on campus, depending on financial need and the availability of funds. A variety of student job opportunities are posted online, with varying responsibilities and work schedules. To remain eligible for the Federal Work Study program, students are required to attend an online training workshop on preventing workplace harassment and discrimination, maintain a minimum 2.0 GPA, be in good academic standing and have a clean conduct record. Students usually work eight to 12 hours per week. Pay rates start at $10 per hour.