There are two types of federal financial aid available to East West College Students. They are “grants” and “loans.” Special benefits for Veterans are discussed at Veterans Benefits.
The Federal Pell Grant Program
Grants are funds given to a student that don’t have to be repaid. In the federal financial aid system, these funds are called the Federal Pell Grant Program. They are available to East West College students. Awards are based upon demonstrated financial need and the cost and length of the program.
The Federal Direct Loan Program
Loans are funds given to a student that have to be repaid. In the federal financial aid system, these funds are called the William D. Ford Federal Direct Loan Program. These “Direct” loans are designed to help students and parents pay for the student’s education after high school. At this time the lender is the U.S. Department of Education rather than a bank or other financial institution.Interest rates on Direct Loans are low and fixed for the life of the loan. Students are not required to make payments while enrolled for at least 12 hours of classes per week. There is a six-month grace period that begins when a student enrolls for fewer than 12 hours of class, withdraws from all classes, or graduates. Only one grace period is granted during a student’s borrowing history.The Federal Direct Loan Program offers three types of loans: Subsidized Stafford Loans, Unsubsidized Stafford Loans, and PLUS Loans.
Subsidized Stafford Loans
Subsidized Stafford loans are for students with demonstrated financial need as determined by federal regulations. No interest is charged while a student is in school at least half-time (12 hours of classes per week minimum), during the grace period, and during deferment periods.
Unsubsidized Stafford Loans
Unsubsidized Stafford loans are not based on financial need. Interest is charged while the student is in school and during the grace period. Students may elect to either pay the interest but not the principal while in school or postpone paying interest while in school and add it to the principal of the loan. The amount cannot exceed the federal annual limit for combined subsidized and unsubsidized loans.
PLUS Loans
PLUS Loans are unsubsidized loans designed for parents to help pay for their dependent student’s education. The PLUS loan is a credit-based loan that may be borrowed annually. The amount is determined by subtracting the financial aid awarded to the student from the cost of attendance as determined by the school. Interest begins accruing with the first disbursement of funds. Repayment also begins immediately and the first payment is due sixty days after the first disbursement of loan funds. Parents as borrowers may be able to defer payments. This information is available once you have been assigned a servicer.
