PELL FEDERAL GRANT
This federal grant program was created with the primary purpose of subsidizing the educational expenses of students up to the time when they obtain a bachelor’s degree or up to 150% of the duration of the program in which he or she is enrolled, whichever comes first. The Federal Pell Grant is the largest financial aid program, and eligibility determination is made by the Processing Center of the U.S. Department of Education. The determination is based on the information submitted on the FAFSA, such as income, household size, and other factors.
FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT (FSEOG)
It is granted to students who demonstrate exceptional financial need, who are enrolled in an undergraduate program without having completed the requirements of a four-year bachelor’s degree or post-graduate program. National University College, per federal requirement, must give priority to students eligible for the Federal Pell Grant and with an expected family contribution of zero.
FEDERAL STUDENT LOANS
Student loans come from the federal government or from private sources and usually offer lower interest rates and more flexible payment options than banks. As part of the requirements to apply for Federal Direct Loans, the student must complete Entrance Counseling and Master Promissory Note (MPN).
Link for completing the Entrance Counseling and Master Promissory Note (MPN):https://studentloans.gov
TYPES OF STUDENT LOANS
Subsidized Federal Direct Loan: This program provides low-interest loans and helps students meet their educational expenses. Students applying for the first time as of July 1, 2013, shall be entitled to continue applying for subsidized loans until 150% of the duration of the program in which he or she is enrolled. The federal government insures the loan during the period when the student is enrolled at least half time (6 credits or more). Students who receive loan funds are required to repay money received, plus accrued interest, six months after decreasing their academic load to less than six credits to graduate, completing graduation requirements, or filing a total withdrawal.
Unsubsidized Federal Direct Loan: This loan program was created for students who do not show financial need through the federal formula. Therefore, at the time when your campus’s Bursar’s Office issues the loan disbursement, the student is responsible to start paying interest to the bank or lending agency. The student is responsible to start paying the loan’s principal and accrued interest six months after decreasing his or her academic load to less than six credits to graduate, completing graduation requirements, or filing a total withdrawal.
Federal Direct Parent PLUS Loan: This program was designed to support parents of dependent students in meeting the educational expenses of their child. The borrower (parent) is responsible for starting to pay interest at the time when the Bursar’s Office issues the loan disbursement. You will begin to pay the principal of the loan six months after your child has completed his or her studies, decreased his or her course load to less than six credits, or filed a total withdrawal.
Learn more about student loans by visiting the website https://studentloans.gov.