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The Student Financial Assistance (SFA) programs are
administered by the Office of Postsecondary Education
within the U.S. Department of Education. Many of these
programs are authorized by Title IV of the Higher
Education Act of 1965, as amended by the Reauthorization
Act of 1998, and have come to be known as the "Title IV
Programs." |
Federal Pell Grant Program
The Federal Pell Grant Program provides grant
assistance directly to eligible undergraduate students.
A student’s eligibility for a Pell Grant is based on a
congressionally-approved formula which considers family
financial circumstances. Pell Grants are available to
full and part-time students with proven financial need
who are making satisfactory progress towards a
bachelor’s degree. Federal Pell awards range from $400
to $4710 per year as determined by the federal formula.
Federal Supplemental Educational Opportunity Grant
Program
Grants ranging from $100 to
$600 a year are awarded to students with exceptional
financial need who for lack of financial means would not be
able to attend college. Supplemental Grants are
restricted to undergraduates. A FSEOG may be received through
the period required for degree completion.
Federal Perkins Loan Program
Perkins Loans are available to students
who are enrolled on at least a half-time basis (6 semester hours)
attending Cleveland campus, and who
demonstrate a financial need. Subject to the availability of funds, an eligible
undergraduate may borrow up to $3,000 per academic year or a maximum of
$15,000 in undergraduate studies. While the borrower is enrolled at least
half-time, there is no repayment of the loan and no interest accrues. Repayment
of the loan begins nine months after graduation or termination of studies.
The interest rate is five percent (5%) on the unpaid balance. However,
deferments extending the repayment period may be made for a member of the
armed forces of the United States, a volunteer under the Peace Corps, a
member of VISTA or a full-time law enforcement officer.
Federal Subsidized Stafford Loan Program
This program enables a student to borrow directly from a bank, credit union,
savings and loan association, or other participating lender who is willing to
make educational loans. The loan is guaranteed by a State or private non-profit
agency and insured by the federal government. The maximum amount which may be
borrowed per year is $3500 for freshmen, $4500 for sophomores, and
$5500 for juniors and seniors. The total amount
which may be borrowed for undergraduate study is $23,000. Repayment is made to
the lending institution, and payments begin six (6) months after the student
graduates or leaves school. The amount of repayments depends upon the size of
the debt, but at least $600 per year must be paid. Deferment from repayment
is granted for up to three (3) years while a borrower serves in the Armed
Forces, Peace Corps, VISTA or in full-time study. Information and
application forms are available from schools, lenders, State Guarantee
Agencies, and Regional Offices of the U.S. Department of Education.
Federal Unsubsidized Stafford Loan
Program
A new federal law called the Higher
Education Amendments of 1992 created a new program of
Federal Unsubsidized Stafford Loans for students who do
not qualify, in whole or in part, for Federal Subsidized
Stafford Loans. The terms of the Unsubsidized loan are
the same as the terms for Federal Subsidized Stafford
Loans, except that the federal government does not pay
interest on the student’s behalf. Monthly or quarterly
interest payments must be made during the time of
enrollment in school, during the grace period, or during
any period of deferment or repayment.
Federal Plus Loan Program
The Federal Parent Loan for Undergraduate Student program
enables parents to borrow a loan for an amount
up to the Cost of Education less other aid received. Parents may
borrow for dependent undergraduate students.
Forty-five days after the loan is processed, a minimum of
$52.00 monthly payments begin for up to a ten (10) year
repayment period. Applications are secured from lending
institutions of your choice or are available through the
Financial Aid Office.
Loan Entrance Counseling
Federal Regulations require all students who participate in one of the Federal
Student Loan programs to attend a Loan Entrance Counseling session conducted by
the Financial Aid Office. The purpose is to provide loan information to students
who anticipate receiving a Federal Student Loan. All first-time borrowers
at Lee University are required to attend Loan Entrance Counseling prior to
receiving the first disbursement of their loan. This requirement may be
fulfilled by utilizing
Mapping your Future electronic
loan counseling.
Loan Exit Interview
Federal regulations require all students who participated in one of the Student
Loan programs to attend an Exit Interview conducted by the Financial Aid
Office. The purpose of the Exit Interview is to review loan history and
repayment terms with each student borrower. The Exit Interview is required
for graduation and must be completed before a diploma will be issued.
This requirement may be fulfilled by utilizing
electronic loan counseling.
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Federal Programs
