Federal Programs

General Eligibility Requirements 

A student must meet the following criteria for the receipt of aid:

1. Be enrolled or accepted for enrollment as a regular student on at least a half-time basis in an eligible program
2. Be a U.S. citizen, U.S. national or eligible non-citizen
3. Maintain satisfactory progress, as defined by this institution, toward a degree (see Academic Bulletin for requirements)
4. Not owe a refund on any grant or loan, not be in default on any loan and not have borrowed in excess of the loan limits, under Title IV programs, at any institution

Federal Stafford Loan Program (Subsidized and Unsubsidized)

Graduate students who enrolled after July 1, 1998 may borrow up to $18,500 annually in the Federal Stafford Loan Program (subsidized and unsubsidized) with a maximum amount of $8,500 of the $18,500 in a subsidized Federal Stafford Loan and the remaining amount up to $10,000 in an unsubsidized Federal Stafford Loan.

Undergraduate independent students may borrow the following amounts:

• First-year students may borrow up to $6,625 annually in the Federal Stafford Loan Program (subsidized and unsubsidized) with a maximum amount of $2,625 of the $6,625 in a subsidized Federal Stafford Loan and the remaining amount up to $4,000 in the unsubsidized Federal Stafford Loan.

• Second-year students may borrow up to $7,500 annually in the Federal Stafford Loan Program (subsidized and unsubsidized) with a maximum amount of $3,500 of the $7,500 in a subsidized Federal Stafford Loan and the remaining amount up to $4,000 in the unsubsidized Federal Stafford Loan.
• Third- and fourth-year students may borrow up to $10,500 annually in the Federal Stafford Loan Program (subsidized and unsubsidized) with a maximum amount of $5,500 of the $10,500 in a subsidized Federal Stafford Loan and the remaining amount up to $5,000 in the unsubsidized Federal Stafford Loan.

Undergraduate dependent students may borrow the following amounts:

• First-year students may borrow up to $2,625 a year if enrolled in a program of study that is for at least a full academic year.
• Second-year students may borrow up to $3,500 a year if you have completed the first year of study and the remainder of your program is at least a full academic year.
• Third-year students may borrow up to $5,500 a year if you have completed two years of study and the remainder of your program is at least a full academic year.

The difference between the subsidized and unsubsidized loan is that the federal governmentpays the interest on your subsidized Stafford Loan while you are in school and during any grace periods; if you have an unsubsidized Stafford Loan, you must either pay the interest while you are in school or have it deferred and capitalized (added to your principal).

The interest rate on all Federal Stafford Loans is now variable, regardless of any previous interest rate you may have. The variable interest rate is based on the bond equivalent rate of the 91-Day T-Bill plus 3.1% with an 8.25% cap. The origination fee that a lender may charge is 3%; the guarantee fees are capped at 1%. Repayment begins six months after you cease to be enrolled as at least a half-time student (excluding summers during which you need not be enrolled).

If you would like updated information regarding this loan, or would like a loan application, please contact the lender of your choice. In addition, the Gratz Business Office has a supply of Stafford Loan application forms for your convenience.

Pell Grants - (Available only to undergraduate students)

Available to full- and at least half-time undergraduate students and eligible non-citizens. Grants may be awarded based on the cost of the school and the student's family income. Apply as soon as possible after January 1 using the Free Application for Federal Student Aid (FAFSA) Form. For more information call 1-800-4FEDAID.

State Programs

Pennsylvania State Grant Program- (Undergraduate students only)

Available for full- and at least half-time students from Pennsylvania who are U.S. citizens or eligible non-citizens and a graduate of an approved high school or a recipient of a Commonwealth Secondary School Diploma. Grants may be awarded based on the financial needs of the student's family. The application deadline is May 1st. For more information, call the Pennsylvania Higher Education Assistance Agency (PHEAA) at 1-800-692-7435.