Pikeville College - Student Financial Services - Federal Aid

 
 

Federal Aid Programs

Pell Grant

Federal Supplemental Educational Opportunity Grant (FSEOG)

Federal Work Study

Federal Family Educational Loans (FFEL)

Federal PLUS Loan

Pell Grant

A federal Pell Grant, unlike a loan, does not have to be repaid. Pell Grants are awarded only to undergraduate students who do not have a bachelor’s degree and who meet criteria set by the U.S. Department of Education. Students who receive Pell Grants will be paid by the College, and the College will be reimbursed by the Department of Education. A student’s EFC (Estimated Family Contribution), cost of attendance and academic load determines the amount of Pell Grant for which the student is eligible. For the 2008-09 academic year the maximum amount of Pell Grant is $4,731. The minimum award amount is $400.

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Federal Supplemental Educational Opportunity Grant (FSEOG)

FSEOG is a grant that is for undergraduate students with exceptional financial need. Students must also receive at least 75% of Pell Grant to be considered for an FSEOG. The maximum FSEOG award is $1,000. Students who receive between 75% and 100% of Pell Grant may be awarded $500 of FSEOG.

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Federal Work Study

Through the Federal Work Study (FWS) Program students work part time to help pay for the cost of their education. Students are paid at least the current federal minimum wage and will be placed within the College or within a community setting. Off-campus FWS jobs with federal, state or local public agencies or private nonprofit organizations must be in the public interest.

Students may earn between $250 and $2,000 per year through the work study program.

To be eligible for an FWS job, a student must meet all eligibility requirements and indicate their interest in FWS when filling out the FAFSA. In addition, a student must have financial need; that is, his or her cost of attendance must be greater than his or her Expected Family Contribution (EFC). A financial aid administrator may not award FWS employment to a student that if awarded, when combined with all other resources, would exceed the student’s need.

For questions about the Federal Work Study Program please contact Jondra Branham at (606) 218-5256 or jbranham@pc.edu.

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Federal Family Educational Loans (FFEL)

The Federal Stafford Student Loan program is the Department of Education’s major form of self-help aid. Stafford Loans are either subsidized or unsubsidized and interest on both loans is variable.

A subsidized loan is awarded on the basis of financial need. The federal government pays the interest on the loan (“subsidizes” the loan) until the student begins repaying the loan.

An unsubsidized loan is not awarded on the basis of need. Students are charged interest from the time the loan is disbursed until it is paid in full. If the interest is allowed to accumulate on an unsubsidized loan it is “capitalized,” or added to the principal amount of the loan, thus increasing the repayment amount. If a student chooses to pay the interest as it accrues, he or she will have less to repay later.

A student must be a regular student, enrolled in an eligible program of study and enrolled at least half-time to be eligible for a Stafford Loan. Eligibility is established by the Department of Education.

A freshman is eligible for $3,500, a sophomore for $4,500, and juniors and seniors for $5,500 per academic year although certain conditions may be applicable and may decrease the total yearly amount.

In general, a Stafford Loan may be deferred until the student graduates, leaves school or drops below half-time enrollment. At that time, the student will have a six-month grace period before beginning repayment. Under certain circumstances students may receive deferments or forbearance on student loans; however, these are not automatic. It is the student’s responsibility to contact the lender or agency that holds the loan and to provide documentation for the request. Students must also continue making scheduled payments until notification is received that deferment or forbearance has been granted. Students are required to attend entrance counseling sessions prior to receiving loan funds and exit counseling sessions prior to leaving school.

The following is our preferred lender list. After carefully reviewing the features offered by a wide range of lenders, we have chosen the lenders on this list because they offer a superior combination of savings, customer service and loan processing reliability.

You may, however, select a lender of your choice that is not on this list. Please contact the Financial Aid Office if you would like to do so and we will provide instructions on how to apply for a loan with that lender.

Lender

Benefits for Academic Year 2007-2008
Regions Bank
  • 0.25 percentage-point interest rate reduction for automatic debit.
  • 24/7 access to your loan account.

Apply
edAmerica
  • 0% origination fees - edAmerica will pay the 1.5% origination fee on the borrower’s behalf on Stafford Loans for Academic Year 2007-2008.
  • 0% default fee available - edAmerica will pay the 1% federal default fee on Stafford Loans that are guaranteed by Kentucky Higher Education Assistance Authority (KHEAA) July 1, 2007, through June 30, 2008.
  • 1% interest rate reduction for graduation at repayment.
  • 0.25% interest rate reduction for auto-debit.
  • 1% rebate after first 12 on-time payments.
  • 1% rebate after next 12 on-time payments.
  • Benefit repair option after 24 months of on-time payments.

Apply
Fifth Third Bank
  • 0% default fee available - Fifth Third Bank will pay the 1% federal default fee on Stafford Loans that are guaranteed by Kentucky Higher Education Assistance Authority (KHEAA) July 1, 2007, through June 30, 2008.
  • 0.53 percentage point interest rate reduction — after first on-time payment — with benefit reinstatement opportunity.
  • 0.53 percentage point interest rate reduction for automatic debit.
  • Upromise Loan Link to help pay down student loan balance.
  • Borrower benefits are effective for loans serviced by Sallie Mae and first disbursed July 1, 2007, through January 31, 2008.

Apply
PNC Bank
  • 0.50% interest rate reduction for automatic payments.

Apply
Student Loan Funding
  • 0% default fee available - Student Loan Funding will pay the 1% federal default fee on Stafford Loans that are guaranteed by Kentucky Higher Education Assistance Authority (KHEAA) July 1, 2007, through June 30, 2008.
  • 0.53 percentage point interest rate reduction — after first on-time payment — with benefit reinstatement opportunity.
  • 0.53 percentage point interest rate reduction for automatic debit.
  • Upromise Loan Link to help pay down student loan balance.
  • Borrower benefits are effective for loans serviced by Sallie Mae and first disbursed July 1, 2007, through January 31, 2008.

Apply
The Student Loan People
  • 0% origination fee - The Student Loan People will pay the 1.5% origination fee on the borrower’s behalf on Stafford Loans for Academic Year 2007-2008.
  • 0% default fee available - The Student Loan People will pay the 1% federal default fee on Stafford Loans that are guaranteed by Kentucky Higher Education Assistance Authority (KHEAA) July 1, 2007, through June 30, 2008.
  • 3.5% credit is made to the original principal of the loan after 30 on-time payments.
  • 0.25% interest rate reduction for automatic payments.
  • Interest and loan forgiveness benefits are available to Kentucky nurses, teachers and some attorneys. The principal of the loan is reduced by 20% each year for Kentucky math, science, ESL and special education teachers and for select Kentucky nurses and attorneys.

Apply

If additional funding is necessary, lending organizations can also provide additional loan funds. It’s important to note that Alternative Loan Program features are different than the Federal Loan Programs and may not offer the same terms and conditions, and the interest rates and repayment terms may not be as attractive as the Federal Programs. Before receiving an Alternative Loan, the student should borrow through Federal Loan Programs first, and then determine if additional funds need to be borrowed through an Alternative Loan Program.

To learn more about Alternative Loans, check out the Web sites of the lenders below.

Campus door

Nellie Mae

Student Loan Funding

TERi

US Bank

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Federal PLUS Loan

Federal PLUS Loans enable parents with good credit histories to borrow funds for the educational expenses of each child who is a dependent undergraduate student enrolled at least half-time. The interest rate is variable and accumulates on the loan from the date of the first disbursement made until the loan is paid in full. The PLUS Loan will go into repayment within 60 days of the final loan disbursement; there is no grace period. The yearly limit on the PLUS Loan is equal to the student’s cost of attendance minus any other financial aid that is received.

The following is our preferred lender list. After carefully reviewing the features offered by a wide range of lenders, we have chosen the lenders on this list because they offer a superior combination of savings, customer service, and loan processing reliability.

You may, however, select a lender of your choice that is not on this list. Please contact the Financial Aid Office if you would like to do so and we will provide instructions on how to apply for a loan with that lender.

Lender

Benefits for the Academic Year 2007-2008
edAmerica
  • 0% Default Fee.
  • 1% interest rate reduction after full disbursement.
  • 3.5% credit to the original loan principal after making the first 30 consecutive on-time payments.
  • 0.25% interest rate reduction for automatic payments.

Apply
Fifth Third Bank
  • 0% Default Fee.
  • 1.25 percentage point interest rate reduction for making payments using automatic debit.
  • 3% loan credit after first 36 payments by the due dates according to that schedule.
  • Upromise Loan Link to help pay down student loan balance.
  • Borrower benefits are effective for loans serviced by Sallie Mae and first disbursed July 1, 2008, through January 31, 2008.

Apply
PNC Bank
  • 0.70% interest rate reduction for automatic payments.

Apply
Regions Bank
  • 0.25 percentage-point interest rate reduction for automatic debit.
  • Immediate pre-approval status when you apply online.
  • Flexible repayment options.

Apply
Student Loan Funding
  • 0% Default Fee.
  • 0.75 percentage point interest rate reduction — with benefit reinstatement opportunity — after first on-time payment.
  • 0.25 percentage point interest rate reduction for making payments using automatic debit.
  • 2% loan credit after first 24 on-time payments.
  • Upromise Loan Link to help pay down student loan balance.
  • Borrower benefits are effective for loans serviced by Sallie Mae and first disbursed July 1, 2007, through January 31, 2008.

Apply
The Student Loan People
  • 0% Default Fee.
  • 1% interest rate reduction after full disbursement.
  • 3.5% credit to the original loan principal after making the first 30 consecutive on-time payments.
  • 0.25% interest rate reduction for automatic payment.

Apply

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