Federal Financial Aid Programs
Financial aid, simply defined, is money, which helps students pay for their educational costs. Aid may be in the form of loans, grants, scholarships, employment opportunities, or a combination of all of these.
The Financial Aid Office is primarily responsible for the processing of federal Title IV aid and coordinating federal aid with other funds, such as scholarships. Title IV aid includes Federal Pell Grants, Federal Supplemental Educational Opportunity Grants, Federal College Work Study, and Federal Stafford Loans. Various departments and agencies on and off campus award other scholarships and grants. The Financial Aid Office is a good resource for questions concerning these other types of aid.
Most federal programs require the student to complete the Free Application for Federal Student Aid (FAFSA). The FAFSA gathers information that is used to determine the relative financial strength of the student’s family or the “need” for assistance. Please note that eligibility criterion for each of the programs varies. Students may be able to establish need for all programs while others are able to establish eligibility for one program but not all programs. The following is a general summary of the programs available at PTC and is intended to give you an overview of these programs.
Grants:
Federal Pell Grants
This is the basic grant available to undergraduate students who have demonstrated an exceptional financial need on the FAFSA and have not earned a bachelor or professional degree. Awards for the 2004/2005 academic year range from $400 up to $4,050.
Federal Supplemental Educational Opportunity Grant (SEOG)
SEOG grants are intended, as the name implies, to supplement other aid. These grants are federally funded with each school receiving a fixed amount each year. Funds are awarded to a limited number of undergraduate students with preference being given to Pell recipients demonstrating exceptional financial need.
Loans:
Subsidized Federal Stafford Loans are low-interest loans made to students attending school at least half time. Loans are made by a lender such as a bank, credit union, or saving and loan association. These loans are insured by a state guarantee agency and the Federal Government. Students who are continuously enrolled at least half-time make no payments on the interest or the principal of this loan. Payments begin six months after graduation (or enrollment is terminated).*
Unsubsidized Federal Safford Loans are available to students who might not be eligible for a subsidized loan. The term unsubsidized means that payments on the interest should be made while you are enrolled. Like a Subsidized Federal Stafford Loan, these loans are insured by a guarantee agency and the Federal government. Students who are continuously enrolled at least half time make no payments on the principal of this loan while in school. Payments begin six months after graduation (or when enrollment is reduced to less than halftime or terminated). Unlike Subsidized Stafford, interest begins accumulating immediately. *
Federal Stafford Loan recipients who have never received a student loan while enrolled at PTC are required by federal regulation to complete a loan counseling session. No loan can be disbursed prior to completion of this requirement. Students will receive important information about the Federal Stafford Loan at this counseling session.
FIRST-YEAR, FIRST TIME BORROWERS...
- As a freshman you may borrow up to the maximum loan amount of $2625 in the first academic year.
- Your first disbursement of your loan will be delayed for thirty days from the first day of class.
- You must complete a loan counseling session.
*When you graduate, withdraw, or drop below half-time from PTC, you must complete an exit interview through the PTC Financial Aid Office.
Parent Loan for Undergraduate Students (PLUS) is a low interest loan made to parents or legal guardians of dependent undergraduate students attending school on at least a half-time basis. Eligibility is not based on demonstrated financial need. The amount the parent may borrow under the Federal PLUS Loan Program will depend on the financial aid award established by the institution the student is attending. This loan may not exceed the student's cost of attendance minus other financial aid, but it can be used to replace the "expected family contribution" (EFC). Credit checks are performed on borrowers of Federal PLUS Loans.
Federal PLUS Loan disbursements are sent directly to the financial aid office in at least two equal payments. These funds may be forwarded to the school either by electronic funds transfer (EFT) or by individual check.
1. The Federal PLUS Loan Program interest rate is variable, is adjusted annually, and cannot exceed 9%.
2. The Federal PLUS Loan Program Guarantee and Origination fees are the same as the Federal Stafford Loan Program.
3. The first payment is due no later than 60 days after the date the loan is fully disbursed. Under certain conditions, borrowers may request a deferment of principal and interest. Interest accrues during deferment periods. Contact the lender to learn more about repayment options.
4. To apply for a Parent Loan for Undergraduate Students, contact a lender of your choice for an application.
Campus Employment:
PTC offers students, with financial aid eligibility, Federal College Work study. To learn more about the process of applying for work on campus, contact your Financial Aid Advisor.
State Programs:
www.arkansashighered.com/financial.html
Alternative Loans:
Alternative Loans are private education loans, as opposed to federal or state loan programs. These loans are designed to provide assistance to students who do not meet federal eligibility requirements or who need additional assistance.
There are a number of lenders involved in alternative educational loans and we have listed below a few of the lenders who have contacted our office or provided information to us. The College does not recommend nor do we encourage students to take out alternative loans. We frequently receive requests for information for alternative sources of assistance and we want to make this information easy to access.
Please be a wise borrower and know the terms of the loan and an estimate of the monthly repayment before you take out a loan. For information on alternative loans, visit the lender Web sites on our Local Lender List page.