Federal Loans, Grants & Work-Study Update Delete



Federal Direct Loans

Federal low-interest loans for eligible students to help cover the cost of higher education. Funds are borrowed directly from the U.S. Department of Education and the student must meet the general eligibility requirements for federal student aid. For additional information on Federal Direct Loans, please visit studentaid.gov/loans.

Direct Loan interest rates are set each year by Congress, and are fixed rates for the life of the loan. The interest rate varies depending on the loan type and first disbursement date of the loan. Most federal loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionally from each loan disbursement received. The percentage varies depending on when the loan was first disbursed. For additional information on Direct Loan interest rates and loan fees, please visit studentaid.gov/interest.

Direct Subsidized Loans

Loans available to undergraduate students with financial need/financial status according to the FAFSA. The U.S. Department of Education pays the interest on the loan as long as the student is enrolled in school at least half-time. The student must sign a master promissory note (MPN), complete entrance counseling online at StudentAid.gov before the loan is released onto their account. Repayment of the loan generally begins six months after the student graduates, leaves school or drops below half-time enrollment. For additional information, please visit studentaid.gov/sub-unsub.

Direct Unsubsidized Loans

Loans available to students, regardless of need/financial status according to the FAFSA. The student is responsible for paying the interest, which accrues while enrolled in school at least half-time. The student must sign a master promissory note (MPN), complete entrance counseling online at StudentAid.gov before the loan is released onto their account. Repayment of the loan generally begins six months after the student graduates, leaves school or drops below half-time enrollment. For additional information, please visit studentaid.gov/sub-unsub.

Direct PLUS Loans (Parent PLUS)

Loans made available to parents of dependent undergraduate students who are enrolled in school at least half-time. Parents must sign a master promissory note (MPN) online at StudentAid.gov before the loan is released to the student's account. The yearly loan limit is the cost of education minus any estimated financial aid that the student is eligible to receive. For additional information on Parent PLUS loans, please visit studentaid.gov/plus.

NOTE: Southern Adventist University can refuse to certify a loan application, or can certify a loan for an amount less than the maximum amount. Students/Parents will be notified in writing, with a full explanation, if such a circumstance should arise.

Federal Nursing Loan

Low-interest federal student loans, made by Southern Adventist University, available to undergraduate students, who are pursuing a course of study leading to a BS Nursing degree. Students may borrow up to $5,200 per year. The amount can be increased to $8,200 per year if in final 2 years of BS degree. A borrower must repay this loan. Funds are dependent on student's financial need and the availability of funds. Students must sign a promissory note and complete entrance counseling online each academic year before the loan is released onto their student account. Interest rates for Nursing Student Loans is five percent. Repayment of loans begins nine months after student graduates, leaves school, drops below half-time enrollment or is no longer pursuing a BS Nursing degree.

Federal Grants

Grants are similar to scholarships in that they are financial awards that do not have to be repaid. However, unlike scholarships, they are typically awarded based on financial need rather than on demonstrated academic achievement.

Federal Pell Grant

The Federal Pell Grant Program is offered to undergraduates and is designed to assist students from low-income households. A Federal Pell Grant, unlike a loan, does not have to be repaid, except under certain circumstances, To qualify for a Pell Grant, a student must demonstrate exceptional financial need, as determined by the FAFSA and have not earned a bachelor's degree. For additional information regarding eligibility and grant amounts, please visit studentaid.gov/grants.

Federal Supplemental Educational Opportunity Grant (FSEOG)

FSEOG is a grant funded by the federal government for undergraduate, degree-seeking students with exceptional financial need. FSEOG grant does not have to be repaid. The amount of FSEOG funds is limited. Priority is given to students who receive maximum Federal Pell Grants (zero EFC), and submit the FAFSA by the priority deadline. There is no guarantee that every eligible student will be able to receive a FSEOG award. For more information about the FSEOG, please visit studentaid.gov/grants.

Federal Work-Study (FWS)

This program is available to undergraduate students with demonstrated financial need. Under the Federal Work-Study program, the employer pays a small part of the student's wages, and the government pays the remainder. The Federal Work-Study Program is a method of payment. It is not additional funding on top of the student's earnings. Most work-study positions are on campus. Students are responsible for acquiring their own jobs. Students can work maximum of 24 hours per week during the fall and winter semesters, including vacation periods. They can work a maximum of 38 hours a week during the summer. The basic pay rate is no less than the current minimum wage. The rate varies depending on the skill and experience needed for the job. Students who receive Federal Work-Study earnings will receive 100% of their earnings unless they give written permission for their earnings to be applied to their student account or their account is flagged as past due. Further information is available from the Student Finance Office.