Federal Pell Grants are for undergraduate students who demonstrate financial need, and who have not yet earned a bachelor's, graduate, or professional degree. Unlike loans, Pell Grants do not require repayment, unless the student withdraws from school and owes a refund.

A student can receive Federal Pell Grants for no more than 6 years (roughly 12 semesters). Award amounts can change annually. For the 2023-20224 award year, a student may be awarded up to $7,395 (scheduled award). The exact amount of the scheduled award will depend on the student’s Expected Family Contribution (EFC), the school’s Cost of Attendance (COA), whether the student is full-time or part-time, and whether the student will be attending school for a full academic year during the award year. In some cases, a student may be eligible to receive 150% of their scheduled award (sometimes called “Year-Round Pell”).

A Pell-eligible student can expect to receive the full amount they qualify for - all participating schools receive enough funds to pay all eligible students from the U.S. Department of Education. Federal Pell Grant amounts are not affected by other student aid amounts.

For more information, visit https://studentaid.gov/understand-aid/types/grants/pell.

Direct Subsidized Loans are for undergraduate students who demonstrate financial need. The U.S. Department of Education pays interest on Subsidized Loans while the student is in school at least half-time, during the grace period, and during deferments.

Direct Unsubsidized Loans are available to undergraduate and graduate students. Financial need is not required. The borrower (student) is responsible for paying the interest on an Unsubsidized Loan during all periods.

Student borrowers must complete Entrance Counseling (Undergraduate) and sign the Master Promissory Note for Subsidized and Unsubsidized Loans before their first Subsidized or Unsubsidized Loan will be disbursed.

Borrowers must complete Exit Counseling (Undergraduate) any time they drop below half-time enrollment, graduate, or leave school for any reason.

The maximum amount of Direct Subsidized and Unsubsidized Loan money a student may borrow in an academic year (the “annual limit”) is based on the student’s academic year in school (grade level) and whether they are classified as a dependent or independent student. The exact amount the student is eligible for will depend on whether the student will be attending for a full academic year, the student’s expected family contribution, the school’s cost of attendance, and the amount of other student aid (such as Pell Grants). A dependent undergraduate student can borrow no more than $31,000 in Subsidized and Unsubsidized Loans (of which no more than $23,000 may be in Subsidized Loans) and an independent undergraduate student may borrow no more than $57,000 in Subsidized and Unsubsidized Loans (of which no more than $23,000 may be in Subsidized Loans) over the course of their schooling (the “aggregate limit”) without paying the loan back.

Direct Subsidized and Unsubsidized Loans must be paid back with interest. The first payment is due after the grace period (the first six months after the student leaves school or drops below half-time enrollment). The interest rate is 5.50% for loans first disbursed on or after July 1, 2023 and before July 1, 2024. This interest rate is fixed for the life of the loan. A loan fee is deducted from each disbursement. The loan fee for loans first disbursed on or after October 1, 2020 and before October 1, 2023 is 1.057% of the net disbursement amount.

For more information, visit https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized.

Direct PLUS Loans (also called Parent PLUS Loans) are for the eligible parent of a dependent undergraduate student who is enrolled at least half-time. Financial need is not required. The borrower (parent) must apply for a PLUS Loan, not have an adverse credit history (pass a credit check), and sign the PLUS MPN for Parents of Dependent Undergraduate Student.

The maximum amount of Direct PLUS Loans a parent may borrow is the school’s cost of attendance minus any other financial assistance the student receives.

Direct (Parent) PLUS Loans must be paid back with interest. Your first payment is due after the loan is fully disbursed, unless a deferment is requested. If a deferment is requested, the first payment is due after the grace period (the first six months after the student leaves school or drops below half-time enrollment). The borrower (parent) is responsible for all interest. The interest rate is 6.28% for loans first disbursed on or after July 1, 2022 and before July 1, 2023. This interest rate is fixed for the life of the loan. The maximum award amount is the cost of attendance minus any other financial aid received. A loan fee will be deducted from each disbursement. The loan fee for loans first disbursed on or after October 1, 2022 and before October 1, 2023 is 4.228% of the net disbursement amount.

For more information, visit https://studentaid.gov/understand-aid/types/loans/plus/parent.