Affording College

Pell Grants

The Federal Pell Grant is not a loan, so it does not have to be repaid. Pell Grants are usually awarded only to undergraduate students. So if you have already earned a bachelor’s degree, you may not be eligible.

Pell Grants are the foundation of federal student aid, but aid from other sources might be added. If you are eligible for a Pell Grant, you will receive the full amount you qualify for.

Federal Supplemental Educational Opportunity Grant (FSEOG)

FSEOG is for undergraduates with low Expected Family Contributions (EFC). The EFC is used by colleges to determine a student’s financial aid package. The EFC represents the amount of money the family of a student can reasonably be expected to contribute toward college expenses.

After completing the Free Application for Federal Student Aid (FAFSA), a student will receive a Student Aid Report (SAR) that includes the EFC. The Federal Student Aid Office (part of the US Department of Education) determines the EFC through income, investments, and savings.

The amount of aid you receive depends on many factors including:

Your financial need,
The amount of other aid you will receive, and
The availability of funds at your school.

Federal Work-Study Program (FWS)

Federal Work Study is a federal program that allows students to earn money for school costs through part-time employment. The program offers jobs on campus and off-campus, usually at community service agencies. Students are paid on an hourly basis and usually work 10–20 hours per week. To work in a FWS position, students must apply for financial aid by completing a Free Application for Federal Student Aid (FAFSA) and demonstrate financial need.

Federal Student Loans

When you apply for financial aid, you might be offered loans as part of your financial aid offer and this is money you borrow and must be paid back with interest.

Types of Federal Student Loans

Direct Loan Type	Direct Loan Borrower	Annual Award (subject to change)
Direct Subsidized Loan	Eligible undergraduate students with demonstrated financial need	Up to $5,500 depending on grade level and dependency status
Direct Unsubsidized Loan	Eligible undergraduate, graduate, and professional students	Up to $20,500 (minus any subsidized amounts received for the same period) depending on grade level
Direct PLUS Loans	• Parents borrowing money for their dependent undergraduate students • Eligible graduate or professional students	Maximum amount is the cost of attendance (determined by the school) minus any other financial aid the student receives

Federal student loans are an investment in your future. You should not be afraid to take out federal student loans, but you should be smart about it.

Federal student loans offer many benefits compared to other options you may consider when paying for college:

The interest rate on federal student loans is fixed and usually lower than that on private loans—and much lower than that on a credit card!
You don’t need a credit check or a cosigner to get most federal student loans.
You don’t have to begin repaying your federal student loans until after you leave college or drop below half-time.
If you demonstrate financial need, the government pays the interest on some loan types while you are in school and during some periods after school.
Federal student loans offer flexible repayment plans and options to postpone your loan payments if you’re having trouble making payments.
If you work in certain jobs, you may be eligible to have a portion of your federal student loans forgiven if you meet certain conditions.

Pennsylvania State Grant Program

The PA State Grant is paid in part or in whole by the Commonwealth of Pennsylvania and PHEAA serves as the administrator of the program. The PA State Grant is awarded to degree students based on enrollment and academic progress. Pennsylvania Institute of Technology is required to verify that a student receiving a Pennsylvania State Grant is making “Satisfactory Academic Progress.” For more information regarding the PA State Grant or to apply, visit their website at www.pheaa.org.