GRANTS
Federal Pell Grant
The Federal Pell program was authorized by the federal government in
1972. This program provides for the payment of awards to students
based on financial need.
The application and award process is outlined as follows:
1. A student will complete the Free Application for Federal Student
Aid (FAFSA). This application will be available at the student's high
school
or through Central Christian College.
2. The U.S. Department of Education will provide Central with a payment
schedule with which to calculate the student's award. For 2012-2013
Pell
Grants range from $555 to $5,550.
Federal Supplemental Educational Opportunity Grant
Federal Supplemental Educational Opportunity Grants (FSEOG)
are available to students with financial need as determined by the Need
Analysis System. FSEOG will be awarded to students who have high need
and
Federal Pell Grant eligibility. These are awarded by Central in $400 increments.
LOANS
Subsidized Federal Stafford Loan
Under the Federal Stafford Loan Program, a student borrows from the
bank, credit union, savings and loan, or other participating lending
institution.
Students may apply for a loan if they are enrolled or have been
accepted
for enrollment at least on a half-time basis in an eligible school. A
need
analysis is required before a student may be considered for this
assistance.
The maximum amount that a student may borrow is $3,500 for a
freshman,
$4,500 for a sophomore, and $5,500 for juniors and seniors. The
interest
rate is fixed at 6.8%. The federal government will pay the
interest until the
student graduates, leaves school or drops below half-time and his/her
repayments
on the loan begin. Repayment of these loans may be extended over a ten-
year period. The Central Christian College financial aid office can
help
determine eligibility.
Unsubsidized Federal Stafford Loan
For students who do not qualify for the Subsidized Federal Stafford
Loan based on need, a new loan was established in 1992 called an
Unsubsidized
Federal Stafford Loan. A student can borrow the same amounts as the
Subsidized
Federal Stafford Loan. With the unsubsidized loan, the student does not
get the same interest subsidies as the Subsidized Federal Stafford Loan
program. The student is responsible for the interest. Repayment
obligations
are the same as the Subsidized Federal Stafford Loan
Program. Independent and dependent students whose parents were denied
the
Federal Parent Loan to Undergraduate Students (FPLUS), are eligible
for additional amounts.
Federal Perkins Loan
Federal Perkins Loans are available to students who demonstrate
financial
need. The loan bears interest at the rate of 5% per year, and repayment
of the loan may be extended over a ten-year period after the student
leaves
school. A student is limited to $4,000 per year in the Federal Perkins
Loan program, and must have already borrowed the Federal Stafford Loan
unless approved otherwise by the Director of Financial Aid. Limited
funds
are available.
Federal Parent Loan
The Federal Parent Loan to Undergraduate Students (FPLUS) is available
to parents as a means of helping their son/daughter to attend college.
A parent can borrow an amount equivalent to the cost of education less
the financial aid received. Repayment begins 30-60 days after the
last loan disbursement and may be paid back over ten years at a
fixed interest rate of 8.5%
