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Federal Aid Programs
Make a selection below for more information on available federal aid programs.
Students attending both the fall and spring semesters, if they qualify financially, are given grants for the academic year. This means that one half of the total grant amount is disbursed for each semester, resulting in two disbursements.
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.
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.
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. Students attending both the fall and spring semesters are given loans for the academic year. This means that one half of the total loan amount is disbursed for each semester, resulting in two loan disbursements. 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, the amount of other financial aid being received, and federal yearly and aggregate loan limits. Freshmen (0 to 29 credits) may be offered $5,500 per year; sophomores (30 to 59 credits), $6,500; and for those who have attained junior class standing (60 or more credits), $7,500 per year, if eligible. Of these amounts, $2,000 may be unsubsidized. 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 $31,000. Of this amount, only $23,000 may be subsidized. A graduate or professional student may borrow up to $20,500 per year. Graduate students can borrow unsubsidized loans only beginning July 1, 2012. The maximum outstanding debt for graduate or professional students, which includes Federal Subsidized Stafford Loans borrowed for undergraduate study, is $138,500 (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. There is a 1.073% origination fee for all Stafford Loans beginning October 1, 2014. This origination fee will increase for loans processed after July 1, 2015, and the new rate will be announced after July 1, 2015. Please see the chart below for more information.
|Dependent Student||Independent Student||Aggregate Lifetime Limit Dependent Student||Aggregate Lifetime Limit Independent Student|
|Freshman||$5,500||$9,500||$31,000 (only $23,000 may be subsidized)||$57,500 (only $23,000 may be subsidized)|
|Sophomore||$6,500||$10,500||same as above||same as above|
|Junior||$7,500||$12,500||same as above||same as above|
|Senior||$7,500||$12,500||same as above||same as above|
Subsidized Stafford Loan - There are two different types of Stafford Loans. The first type of loan is a Federal Subsidized Stafford Loan. A subsidized loan is a loan where the government pays the interest for the student while he or she is in school. Interest begins at graduation and accumulates during his or her 6 month grace period. Subsidized Stafford Loans are awarded to those students demonstrating financial need. The interest rate for undergraduate students for the 2014-2015 academic year is fixed at 4.66%. Beginning July 1, 2012 there are no subsidized loans for graduate students.
Unsubsidized Stafford Loan - The other type of Stafford Loan is called an Unsubsidized Stafford Loan. Any student may borrow a loan through the Federal Unsubsidized Stafford Loan Program. This loan program is not need based. With an Unsubsidized Stafford Loan, the student is responsible for the interest on the loan from the time the loan is disbursed until the loan has been paid in full. Students are given the option of capitalizing the interest on the loan or making payments on the loan’s interest only while they are in school. Capitalizing the interest on the loan means that the student is not required to make interest payments while they are in school. Capitalizing the interest on a loan also means that the interest continually builds on the loan, and the student will end up paying more for the loan in the long run. The interest rate for undergraduate students for the 2014-2015 academic year is fixed at 4.66%. The interest rate for graduate students for the 2014-2015 academic year is fixed at 6.21%.
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. The interest rate for all parents borrowing a Federal Parent PLUS Loan for the 2013-2014 academic year is fixed at 7.21%. All Federal PLUS Loans will have a 4.292% origination fee beginning Octoer 1, 2014. This origination fee will increase for loans processed after July 1, 2015, and the new rate will be announced after July 1, 2015.
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.