Federal Grants
The Federal government provides grant assistance from the
Federal Pell Grant Program to undergraduates with demonstrated need. To
apply, applicants complete and submit the Free Application for Federal
Student Aid (FAFSA). The Federal processor will determine eligibility
and send an acknowledgement to the applicant. Federal Pell Grants are
reserved for those applicants with greatest need and those students not
eligible for Pell assistance may be eligible for aid from other Federal
programs. (This program is not available to students pursuing a second
undergraduate degree.)
The Federal Supplemental Educational Opportunity Grant is
funded by the Federal government and awarded by the Financial Aid
Office. It is reserved for undergraduates with exceptional need and is
generally offered to applicants with the lowest family contributions who
are also Federal Pell Grant recipients. The FAFSA is required.
The Academic Competitiveness Grant will provide up to $750
for the first year of undergraduate study and up to $1,300 for the
second year of undergraduate study to full-time students who are
eligible for a Federal Pell Grant and who have successfully completed a
rigorous high school program as recognized by the Secretary of
Education. Second year students must maintain a cumulative grade point
average (GPA) of at least 3.0.
The National SMART Grant will provide up to $4,000 for each
of the third and fourth years of undergraduate study to full-time
students who are eligible for a Federal Pell Grant and who are majoring
in physical, life, or computer sciences, mathematics, technology, or
engineering or in a foreign language determined critical to national
security.
For more information, please visit: http://studentaid.ed.gov/
Federal Student Loans
Federal
Perkins Loan. The Federal Perkins Loan is a deferred payment, deferred
interest loan administered by the Financial Aid Office. Interest (at 5%)
begins to accrue and repayment begins 9 months after the borrower
graduates, leaves school or drops below half-time enrollment. Borrowers
may be allowed up to 10 years to repay. Funds are limited and will be
offered first to aid applicants who file a timely application (February 1
for new applicants, March 2 for continuing students for the following
academic year) and demonstrate the greatest need. The FAFSA is required.
Nursing
Student Loan. The Nursing Student Loan is a deferred payment, deferred
interest loan administered by the Financial Aid Office and funded by the
Federal Department of Health and Human Services to assist students
enrolled in nursing programs. Interest (at 5%) begins to accrue and
repayment begins 9 months after the borrower graduates, leaves school or
drops below half-time enrollment. Funds are limited and will be offered
first to nursing students who file a timely aid application and
demonstrate the greatest need. The FAFSA is required.
Federal Stafford Loans for USF Undergraduate
Students
William D. Ford Federal Direct Loan Program
- The Subsidized Federal Direct Loan is a deferred
payment, deferred interest loan funded by the Federal government and
offered to eligible applicants by the University's Financial Aid Office.
Interest (currently 4.5%) is paid by the Federal government while the
borrower is in school. Repayment of interest and principal begins 6
months after the borrower graduates, leaves school or drops below
half-time enrollment. To participate in the subsidized loan program,
applicants must file a FAFSA and demonstrate need for assistance in
meeting educational costs. The annual loan limits are $3,500 for first
year undergraduates; $4,500 for second year undergraduates; $5,500 for
third and fourth year undergraduates. In no case may a borrower's subsidized loan
amount exceed his or her demonstrated need.
- Dependent aid applicants with limited or no
eligibility for the Subsidized
Federal Direct Loan may borrow from the Unsubsidized Federal Direct Loan
Program. In addition, independent student borrowers may
request additional amounts to supplement their Subsidized Federal Direct
Loan eligibility.
Terms and conditions are identical to those of the
Subsidized program except that interest (6.8%) begins to accrue
immediately and it is the student borrower's responsibility to pay
interest while in school. Payment of interest may be deferred until
after the borrower graduates, leaves school or drops below half-time
enrollment, but if interest payments are deferred, they are added to the
principal borrowed and increase the amount on which future interest is
calculated.
Annual loan limits for dependent student borrowers
(subsidized and unsubsidized Direct Loans combined) are $5,500 for first
year undergraduates; $6,500 for second year undergraduates; and $7,500
for third and fourth year undergraduates. Annual loan limits for
independent student borrowers (subsidized and unsubsidized Direct Loans
combined) are $9,500 for first year undergraduates; $10,500 for second
year undergraduates; and $12,500 for third and fourth year
undergraduates. The FAFSA is required.
- Parents with good credit histories may borrow from
the Direct PLUS (formerly called the Parent Loan for Undergraduate
Students) Program. Funds can be borrowed on behalf of each dependent
child who is enrolled at least half-time in an undergraduate program.
The annual loan limit is the student's cost of education minus estimated
or actual financial aid. The interest rate is 7.9%, and interest begins
to accrue immediately; payment of principal and interest may be
deferred until the student graduates, leaves school, or drops below
half-time enrollment. The FAFSA is required.
Federal Stafford Loans for USF Graduate and
Professional Students
The William D. Ford Federal Direct Loan,
Subsidized and Unsubsidized
The Subsidized Direct Loan is a deferred-interest,
deferred-payment loan. Interest at 6.8% is paid by the Federal
government while the borrower is in school. Repayment of interest and
principal begins 6 months after the borrower graduates, leaves school,
or drops below half-time enrollment. To participate in the subsidized
loan program, applicants must demonstrate need. The annual loan limit is
$8,500 for graduate/professional students. In no case may a borrower's
subsidized loan amount exceed his or her demonstrated need.
Graduate aid applicants with limited or no eligibility for
the Subsidized Direct Loan may borrow from the Unsubsidized Direct Loan
program. In addition, graduate student borrowers may request an
unsubsidized loan to supplement their Subsidized Direct Loan
eligibility. Terms and conditions are identical to those of the
Subsidized program except that interest begins to accrue at the time of
disbursement and it is the student borrower's responsibility to pay
interest while in school. Payment of interest may be deferred until
after the borrower graduates, leaves school, or drops below half-time
enrollment. If interest payments are deferred, they are added to the
principal borrowed and increase the amount on which future interest is
calculated. The combined loan limit per award period for graduate
student borrowers from both the Stafford Subsidized and Unsubsidized
loan programs is $20,500.
Federal PLUS Loans for Graduate and Professional
Students
The Budget Reconciliation Act of 2005, passed by the
Congress and signed by the President in March 2006, authorizes graduate
and professional students to borrow from the Federal Direct PLUS
program.
The Federal Direct PLUS program allows eligible graduate and
professional students to borrow up to the cost of attendance less any
other aid they have been awarded. To be eligible to borrow from PLUS,
graduate and professional students must file the FAFSA and must first
borrow from the Subsidized and/or Unsubsidized Federal Student Loan
program. Among the features of the PLUS program is a fixed 7.9% interest
rate, in-school payment deferment, and fixed monthly payments. PLUS
loans can be consolidated with other Federal student loans and may be a
good alternative to private education loan programs for some student
borrowers.
Federal Student Financial Aid (Title IV) Policy
The Higher Education Amendments of 1998 require that the
University calculate pro-rated student aid eligibility for students who
withdraw before completing more than 60% of any academic term. Aid
awarded to the student and not earned at the time of the effective date
of withdrawal will be returned to the Federal Title IV Student Financial
Aid Programs. The Title IV programs include the Federal Pell Grant
Program, the Federal Academic Competitiveness Grant, the National SMART
Grant, the Federal Supplemental Educational Opportunity (SEOG) Grant
Program, the Federal Perkins Loan Program, the Subsidized and
Unsubsidized Federal Direct Student Loan Programs, and the Federal
Direct Parent or Graduate PLUS Loan Program.
The following is the procedure that the University uses to
comply with the Return of Title IV Funds regulations, which require
that:
- The amount of unearned Federal financial aid be
calculated by measuring the number of days the student completed against
the number of days in the term in which the student withdraws;
- The University's Student Accounts office return the
unearned aid it accepted in payment of charges;
- And the University notify the student of his or her
responsibility for returning unearned aid he or she received as a refund
from Student Accounts after all charges had been paid.
If aid funds must be returned to the Title IV aid programs,
loan funds will be returned before grant funds. Funds received by the
Student Accounts Office and by the student, if any, will be returned in
the following order as long as there is any amount to be returned:
- Unsubsidized Federal Stafford Loan
- Subsidized Federal Stafford Loan
- Federal Perkins Loan
- Federal Direct Parent or Graduate PLUS Loan
- Federal Pell Grant
- Federal Academic Competitiveness Grant
- National SMART Grant
- Federal Supplemental Educational Opportunity Grant
(SEOG)
- Other assistance programs authorized by Title IV of
the Higher Education Assistance Act
The Student Accounts Office and the Office of Financial Aid
Operations have information on this policy for students admitted to and
enrolled in the University's degree and credential programs. Examples
of repayment calculations are available.
