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Federal Aid, State Aid, and Loans

Federal Aid

Pell Grant

A Pell Grant is awarded by the federal government. The amount is determined by the student's Expected Family Contribution from the FAFSA. A student may receive up to 12 full-time semester awards only.

Supplemental Educational Opportunity Grant (SEOG)

Known more commonly known as SEOG, the Federal Supplemental Educational Opportunity Grant, is reserved for college students who have the most need for financial aid.

Direct PLUS Loan

A credit-based federal loan program for the parents of dependant undergraduate students. Credit-worthy parents can borrow up to the cost of education not covered by other aid through the Federal PLUS Loan program.

Federal Work Study

Each year, Rosemont College receives federal funding to provide employment opportunities to students who qualify. Work study is a part of your overall financial aid and will be listed as a type of aid on your award letter. Although funding for the program is limited, it provides an excellent opportunity for students to gain work experience and earn money.


Direct Subsidized/Unsubsidized Loans

A federal student loan program to help fund educational costs. Most students who qualify for federal student aid are eligible for the Federal Direct Loan. The maximum amount a student can borrow is determined by the student's grade level. If the student has financial need, the Direct Need will be subsidized (which means the federal government pays the interest during the enrollment and 6-month grace periods).

If the student has no financial need, if the financial need has been met through other sources, or if the student has already borrowed the maximum, then the Direct Loan will be Unsubsidized (the studentis responsible for the interest payments during the enrollment and 6-month grace periods).


 

Loan Limits

Students who qualify for federal student aid generally qualify for Direct Loans. The maximum amount a student can borrow is determined by his or her grade level. First year students can borrow up to $5,500; second year students can borrow up to $6,500; and third and fourth year students can borrow up to $7,500 for the academic year.

The annual loan limits include $2,000 Unsubsidized Direct Loan eligibility per academic year. Independent students may be able to borrow additional Unsubsidized Direct Loan in addition to the base loan amounts. Independent students may be able to borrow up to an additional $4,000 Unsubsidized Direct Loan for the first and second academic year and up to an additional $5,000 for the third and fourth academic year. Dependent students whose parents are denied the PLUS can borrow at the same loan limits as independent students.

In addition to the annual loan limits, there is a limit to the total amount a student can borrow during his or her educational career. The chart below summarizes the lifetime Direct Loan limits.


 

Dependent Students

Annual Loan Limits - Direct Loan

Dependent
Students
Combined Base Limit for Subsidized and Unsubsidized Loans Additional Limit for Unsubsidized Loans Total Limit for Subsidized and Unsubsidized Loans
First-Year
Undergraduate
$3,500 $2,000 $5,500
Second-Year
Undergraduate
$4,500 $2,000 $6,500
Third & Fourth Year
Undergraduate
$5,500 $2,000 $7,500

Independent Students

Annual Loan Limits - Direct Loan

Independent

Students

Combined Base Limit for Subsidized and Unsubsidized Loans

Additional Limit for Unsubsidized Loans

Total Limit for Subsidized and Unsubsidized Loans

First-Year
Undergraduate
$3,500 $6,000 $9,500
Second-Year
Undergraduate
$4,500 $6,000 $10,500
Third & Fourth Year
Undergraduate
$5,500 $7,000 $12,500

 

The amount of Direct Subsidized/Unsubsidized Loan listed on the financial aid award letter is the gross amount. The government charges loan processing fees of 1% upfront on all new loans effective July 1, 2010 with an upfront rebate of .05% for future on time payments for a net fee of .05%. The net amount of the loan will be reflected on your student bill. A Direct Plus loan has a loan fee of 4.0% with an upfront rebate of 1.5% for a net fee of 2.5%.

If the student has financial need, a portion of the Direct Loan will be Subsidized (which means the federal government pays the interest during the enrollment and 6-month grace periods). If the student has no financial need, if the financial need has been met through other sources, or if the student has already borrowed the maximum Subsidized, then the Direct Loan will be Unsubsidized (the student is responsible for the interest during the enrollment and 6-month grace periods). Interest on Direct Unsubsidized Loans begins to accrue after disbursement, however, the student may choose to have the interest payments deferred during enrollment and capitalized (added to principal) at the time repayment begins.

Direct Subsidized Loans for undergraduate students disbursed between July 1, 2011 and June 30, 2012 will have a fixed interest rate of 3.4%, and Direct Unsubsidized Loans during this timeframe will have an interest rate of 6.8%.  For graduate students, both Direct Subsidized/Unsubsidized Loans will have a fixed interest rate of 6.8% 

In addition to the annual loan limits, there is a limit to the total amount a student can borrow during his or her educational career. The chart below summarizes the lifetime Direct Loan limits.