The Federal Pell Grant is awarded to eligible undergraduate students seeking their first degree. The maximum Pell Grant award for the 2016-17 award year (July 1, 2016 to June 30, 2017) is $5,815. The amount you receive will depend not only on your financial need, but also on your Cost of Attendance, your status as a full-time or part-time student, and your plans to attend school for a full academic year or less.
The Subsidized Federal Direct Loan is based on financial need, which is determined by using a federal formula. A loan is subsidized when the government pays the interest for the student during the following periods: while the student is enrolled in school at least half-time, during the six month grace period after the student stops attending school at least half-time, and during periods of authorized deferment.
The Unsubsidized Federal Direct Loan is not subsidized by the government; the student is responsible for all interest which accrues during in-school, grace, and deferment periods. Students may choose to make interest payments while in school or they may defer the interest until repayment when the interest will be added (capitalized) to their principal balance.
Student loans are required to disburse in equal installments for the loan. The school will verify that the student is still enrolled at least half-time, attending classes and making satisfactory academic progress before disbursing the funds to the student’s account.
Interest rates for federal student loans
The following table provides interest rates for each type of federal student loan.
|Loan Type||Loans first disbursed on or after 7/1/16 and before 7/1/17|
|Direct Subsidized Loans (Undergraduate Students)||3.76%|
|Direct Unsubsidized Loans (Undergraduate Students)||3.76%|
|Direct PLUS Loans (Parents)||5.31%|