What are grants?
Grants are supported by the College and the federal and state governments and are provided based on need. The timely filing of the FAFSA each year and documented need and sufficient academic progress are all requirements for need-based aid renewal.
The federal government provides loans to help students bridge the gap between the cost of attendance and other financial aid available.
What are loans?
Loans are funds given to an applicant that will be repaid in the future with the agreed interest. Only subsidized loans are included in the College’s financial aid awards, and the loan amount provided each year will rise according to the chart below. Depending on eligibility, additional loans may be acquired to cover the expected family contribution.
College loans may be available to graduate and undergraduate students studying part-time. Loans come with terms and conditions, as well as interest rates.
Examples/ popular loans
- Direct Loans from the Federal Government
Subsidized– Subsidized loans have a set interest rate and do not begin charging interest until after graduation. The origination fee for federal student loans is deducted automatically from the loan amount. Only undergraduate students are eligible for these loans based on financial need. The amount of your loan is determined in part by which school you attend. While interest begins to accrue right away, the US Department of Education pays your interest while you’re in school.
Unsubsidized – unsubsidized loans have a fixed interest rate and accumulate interest upon distribution. The origination fee for federal student loans is deducted automatically from the loan amount. These student loans are given to graduates and students who do not have a financial need. The amount of your loan is determined in part by the school you attend and the cost of attendance. Interest begins to accumulate immediately, and you are responsible for repaying the loan in full, including interest.
Federal direct graduate plus
Graduate students who require additional support beyond the unsubsidized loans can apply for a federal direct graduate PLUS loan if they meet the credit standards.
- Private Loans
These loans are funded by private institutions and may not have the same benefits as federal loans, and they may also have higher interest rates.
Examples/ popular grants
- Grants for College Grants, largely from the federal and state governments, are referred regarded as “gift aids” because they do not require repayment, unlike student loans. College grants are given out based on financial need and include the following:
Pell Grants from the federal government – Pell Grants are a critical source of federal student financial aid for students with extraordinary financial needs enrolled in their first undergraduate program. Once a student qualifies for a Pell Grant, they can apply for other types of financial aid.
- State Grants – To assist with educational costs, the student’s home state government may offer grants for college.