Aid Programs - Federal

Make a selection below for more information on available federal aid programs.

Federal Grant Programs

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All federal grants are free money and do not have to be repaid. To be eligible for the federal grant programs you must meet the following criteria:

Federal Supplemental Education Opportunity Grant (SEOG) – The SEOG is also a type of Title IV Federal Aid. A student must be eligible to receive a Federal Pell Grant in order to qualify for SEOG. In order to qualify for SEOG, you must complete the FAFSA form. Unlike Pell Grant funding, SEOG funding is limited, and students must meet the March 1st priority deadline for financial aid in order to qualify for SEOG funds at Frostburg State University.

Academic Competitiveness Grant (ACG) - The ACG is another type of Title IV Federal Aid. ACG Grants are awarded to college freshmen and sophomores to help supplement the cost of college. To qualify, students must have successfully completed a rigorous high school program, as determined by the state or local education agency recognized by the Secretary of Education, or have completed two AP or IB courses with a score of 3.0 or better, or be recognized by their state as a state scholar. In addition to meeting one of these criteria, all students must meet the three following program requirements:

Federal Work-Study Program

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The Federal Work-Study Program (FWS) provides on-campus jobs to undergraduate students who possess financial need as determined by the FAFSA form. Like federal grants, students must be enrolled in a degree-seeking program in order to qualify, and the money earned through the Federal Work-Study Program does not need to be repaid. Unlike federal grants, students must work in order to earn the funds awarded to them through the FWS Program.

FWS students are paid minimum wage. FWS is also a limited fund, and students wishing to receive an on-campus job as part of the Federal Work-Study Program must file the FAFSA form and meet the March 1st priority deadline. Those students who do not receive FWS as part of their original award package will be placed on an automatic waiting list, and will be contacted by our office at a later time if funds become available. Students must meet satisfactory progress standards to receive this award.

Note: Federal Work-Study awards are not directly applied to the recipient’s bill. As a student works, he or she turns in a timesheet for the hours worked and is paid bi-weekly via direct deposit. Federal job placement is held the first week of the fall semester, and those students awarded FWS funds will be contacted under separate cover before the start of each fall semester concerning the location and times for job placement. If a student does not report to job placement during the appointed time, the FWS will be canceled and reallocated to another eligible student.

Federal Loan Programs

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Loans are borrowed money and must be repaid, including interest. Both undergraduate and graduate students may borrow loan money through the federal loan programs. Students must be registered for at least 6 credit hours in order to be eligible to receive federal loan funding. The amount of loan money that a student can borrow in federal loans is determined by the student’s grade level, how many credit hours the student is taking per semester, and yearly and aggregate loan limits imposed by the U.S. Department of Education. It is important to realize that repayment of student loans begins after the student graduates, withdraws, takes a leave of absence from the university, or drops below 6 credits. Students must meet satisfactory progress standards to receive these awards.

Federal Perkins Loan – These loans are offered exclusively to students demonstrating the greatest amount of financial need as determined by the FAFSA. Perkins loans are limited and are therefore awarded to students who meet the March 1st priority deadline. Unlike the other federal loan programs, the lender for the Perkins Loan is the school itself. Perkins loans are subsidized loans, meaning that the government pays the interest on the loan for you while you are still enrolled in school for at least 6 credits. The interest rate on Perkins Loans is fixed at 5%. Repayment will begin 9 months after the student graduates, withdraws, takes a leave of absence from the university, or drops below 6 credits. This 9-month period is known as the “grace period”.

*Please note that first time borrowers are required to complete an online entrance-counseling interview before loan funds will be disbursed to their accounts.

For more information on the Perkins Loan Program at FSU, please visit the Office of Perkins Loans online by selecting the link below.

Federal Stafford Loan – All students qualify for a Federal Stafford Loan in some form. The amount a student receives in a Stafford Loan will depend on the student’s grade level, as well as the federal yearly and aggregate loan limits. Freshmen may borrower $3,500 per year; sophomores, $4,500; and for those who have attained junior class standing, $5,500 per year. However, the amount you may borrow in any given year may not exceed the educational costs as certified by the Financial Aid Office. The aggregate amount one may borrow as an undergraduate cannot exceed $23,000. A graduate or professional student may borrow up to $18,500 per year. Only $8,500 of this may be subsidized. The maximum outstanding debt for graduate or professional students, which includes Federal Subsidized Stafford Loans borrowed for undergraduate study, is $65,000 (excluding unsubsidized loans).

The type of Stafford Loan a student receives is determined by financial need as calculated by the FAFSA form. You do not need to meet the March 1st deadline to qualify for a Stafford Loan. Although you do not need to meet the March 1st priority deadline in order to qualify for a Stafford Loan, please keep in mind that a Stafford Loan alone is not enough to cover the entire cost of attendance for college. The interest rate on Stafford Loans is variable, and changes every year on July 1st. The federal government has placed a cap of 8.25% on the interest rate of all Stafford Loans. Repayment of Stafford Loans begins 6 months after the student graduates, drops below 6 credits, withdraws, or takes a leave of absence from the university. This 6-month period is known as the “grace period.

*Please note that loan funds for first time borrowers in the Stafford Loan Program will not disburse until 30 days after the first day of their enrollment period. Please also note that first time borrowers are required to complete an online entrance-counseling interview before loan funds will be disbursed to their accounts.

Federal Parent PLUS Loan – The Federal PLUS Loan Program grants loans to parents of undergraduate students who are enrolled for at least 6 credits in a degree-seeking program. Parent loans were created as a way for families to fund any portion of the student’s education that is not covered by another form of financial aid. Parents may borrow the difference between the cost of attendance of the University and the amount of other funding the student is receiving from grants, scholarships, tuition waivers, student loans, etc. A credit check is required for parents wishing to borrow funds from the Parent PLUS Loan Program. If a parent is denied a Parent PLUS Loan he or she should contact the financial aid office to inquire about additional funding options. If a parent wishes to find out if he or she will be approved for a Parent PLUS Loan, the parent may complete our online pre-approval process in the PLUS Loan section of this web site, listed under the general heading of “Loans” on our home page. The federal government has placed a cap of 9% on all PLUS Loans.

It is important to realize that repayment on parent loans begin 60 days after the loan has been fully disbursed, unless special arrangements have been made and finalized between the borrower and lender.