Federal Aid Programs

Pell Grant

The Pell Grant program provides grants to financially needy undergraduates to help them pay for college expenses. In the 2005 – 2006 academic year, the minimum grant is $400 and the maximum grant is $4,050.

SEOG

Supplemental Educational Opportunity Grant (SEOG). The SEOG program provides grants to low-income students and is usually awarded to students receiving a Pell Grant. Minimum award is $200 and the maximum award is $4,000. Grants usually range from $500 to $1500. The college financial aid office determines the actual amount of the grant. Priority for this award is given to Pell Grant recipients.

CWS

This College Work Study program provides part-time jobs to undergraduates and graduate/professional students who use the earnings to help finance their education. Students receive an hour’s pay for an hour’s work. Students must be paid at least minimum wage.

Perkins Loan

The Perkins Loan is awarded by the financial aid office.  The program offers low-interest (5%) loan to undergraduate and graduate/professional students who demonstrate high financial need. Loans are awarded through a fund consisting of new federal capital contributions, institutional contributions and loan repayments from prior borrowers. Undergraduates are eligible to borrow up to $4,000 per year, for a maximum of $25,000. Graduate students are eligible to borrow up to $6,000 per year, for a cumulative maximum (including undergraduate Perkins Loans) of $30,000.

Stafford Loan

Federal Family Education Loan (FFEL) Program

The FFEL program makes loans available to students and their families through banks and lending institutions. The Rhode Island Student Loan Authority (RISLA) provides incentives to students and parents who borrow with them. They currently provide over 75% of the Stafford loans to Rhode Island students. There are two types of Stafford loans: the Federal Subsidized Stafford Loan Program, and the Federal Unsubsidized Stafford Loan Program.

William D. Ford Direct Student Loan Program

The Direct Student Loan program uses Federal Treasury funds to provide loan capital directly to schools, which then disburse loan funds to students. You will not need to contact a bank or lending institution as the college will send you an application directly. There are two types of Ford loans: the William D. Ford Direct Subsidized Stafford Loan and the William D. Ford Direct Unsubsidized Stafford Loan.

Both FFEL and Direct Loans feature three types of loans with similar fees and maximum borrowing amounts.

Subsidized Stafford loan

This loan is based on financial need. The interest rate on these Stafford loans is variable by year and is capped at 8.25%. The federal government pays the interest while the student is in school and during certain grace and deferment periods. Apply for a Stafford Loan today!

Unsubsidized Stafford Loans

This loan is offered to students that have limited or no financial need. They are offered at the same interest rate of the Subsidized Stafford Loans, but the federal government does not pay interest for the student during in school, grace, and deferment periods. The student has the option of capitalizing the interest (adding it back onto the loan principle) or paying the interest on a monthly basis. Apply for a Stafford Loan today!

Loan Limits

PLUS - Parent Loan for Undergraduate Students

These loans are available to parents of dependent undergraduate students, and have a variable interest rate by year that is capped at 9%. Unlike student loans, PLUS loan payments cannot be deferred. Loan repayment begins 60 days after the second disbursement. Parents can borrow up to the cost of education minus any financial aid that the student has received. The Rhode Island Student Loan Authority (RISLA) offers an Advantage PLUS with an interest rate a full 1% lower then the published federal rate. To apply now or obtain additional information, please visit PlusLoan.com or call the College Planning Center of Rhode Island at (401) 736-3170.