Federal Financial Aid Programs

There are standard eligibility requirements for receiving any type of federal student aid at Pace University. You must be matriculated (enrolled in a degree program) and enrolled at least half-time (at least 6 credits per semester; except for Pell). You must be a U.S. citizen or eligible non-citizen. 

Federal Pell Grant
 
The Federal Pell Grant does not need to be repaid. Pell Grants are available only to undergraduate students who have not yet received a bachelor’s or professional degree.
 
The maximum amount awarded during the 2008 – 2009 academic year was $4,731. The maximum amount may change each year.
 
For more information, visit the U.S. Department of Education’s Pell Grants website.
 
Federal SEOG Grants
 
The Federal SEOG (Supplemental Educational Opportunity Grant) does not need to be repaid. SEOGs are given to students with exceptional financial need who are also eligible for Pell.
 
Awards range between $100 - $4,000 a year, depending on when a student applies, their level of financial need, and the funding and financial aid policies of the student’s college.
 
For more information, visit the Department of Education’s SEOG Grants website.
 
Federal Perkins Loans
 
Students must repay all loans, but repayment of Federal Perkins Loans does not begin until the student stops attending school at least half-time. These are low-interest (5%) loan for undergraduate and graduate students with exceptional financial need. Though a student’s potential eligibility is determined by filing the FAFSA, the school determines the amount of Perkins loan each student can be offered based on financial need, available funding, and the financial aid policies of the student’s college. The loan is given by and repaid to the college a student attends.
 
You are able to borrow up to $5,500 per year of undergraduate study, and a maximum of $27,500 total as an undergraduate.
 
Repayment for Perkins Loans begins nine (9) months after the student stops attending school at least half-time (6 credits or more). For more information on repayment, see the Repaying Your Loans section of the FAFSA website.
 
Federal Work-Study
 
Federal Work-Study (FWS) is a program that allows undergraduate or graduate students to earn money for education expenses by working part-time. FWS eligibility is offered based on financial need, available funding, and the financial aid policies of the student’s college.
 
Undergraduate students are paid hourly, and are usually employed by their college – they must be paid at least the current federal minimum wage. A student works with their college to determine where they will work and base a student’s hours on financial need, class schedule, and academic progress.
 
Typically, students work on their college’s campus. If a student works off-campus, it is usually at a private, non-profit, or public organization whose work is in the public interest.
 
For more information, see the U.S. Department of Education’s FWS website.
 
Subsidized Federal Direct Stafford Loans
 
Stafford Loans must be repaid over time. Repayment begins when the student stops attending school at least half-time.
 
Federal Direct Subsidized Stafford Loans are processed through the Office of Financial Aid. The money is borrowed directly from and repaid to the U.S. Department of Education.   Stafford loans are either subsidized or unsubsidized. Subsidized loans are given on the basis of financial need – the government then pays (subsidizes) the interest on the loan while a student attends college.
 
If you’re a dependent undergraduate student, you may borrow:
 
  • $3,500 if you’re a first-year student. At Pace, first-year students have completed less than 32 credits earned toward the degree.
  • $4,500 if you are a second-year student. At Pace, second-year students have completed between32 and 63 credits earned toward the degree.
  • $5,500 if you have completed two years of study. At Pace, students must have at least 64 credits earned toward the degree to qualify for this amount. 
Note: If you do not have enough financial need (based on the results of the FAFSA) to receive the full amounts listed as subsidized loans, you may receive these amounts as unsubsidized loans.
 
Stafford loans offer a variety of repayment options; the most common is to repay within 10 years. Repayment begins six (6) months after the student stops attending at least half-time (6 or more credits).
 
For more information about interest rates and Stafford loans, visit the U.S. Department of Education’s Federal Stafford Direct Loans website.
 
Unsubsidized Federal Direct Stafford Loans
 
In addition to subsidized loans, students may borrow unsubsidized loans while they complete their program of study. Unlike subsidized loans, interest accumulates on unsubsidized loans while the student is attending college. Students should pay this interest while they are in school. Students may get unsubsidized loans regardless of financial need.
 
Federal Direct Unsubsidized Stafford Loans are processed through the Office of Financial Aid. The money is borrowed directly from and repaid to the U.S. Department of Education.
 
If you are a dependent undergraduate student, you may borrow $2,000 in unsubsidized loans. You may also borrow any amount that you did not have enough need to borrow from the subsidized loan for your grade level.
 
If you are an independent undergraduate student, you may borrow any amount that you did not have enough need to borrow from the subsidized loan for your grade level. And, in addition, you may borrow:
 
  • $4,000 if you are a first- or second-year student. At Pace, a student with less than 64 credits earned toward their degree qualifies for this level.
  • $5,000 if you have completed two years of study. At Pace, a student must have at least 64 credits earned toward their degree to qualify for this amount.
 
Stafford loans offer a variety of repayment options; the most common is to repay within 10 years. Repayment begins six (6) months after the student stops attending at least half-time (6 or more credits).
 
For more information about interest rates and Stafford loans, visit the U.S. Department of Education’s Federal Stafford Direct Loans website.
 
Federal Direct Loan PLUS
 
Parents of dependent, undergraduate students may borrow money through a PLUS Loan to help pay for their child’s college education. The student must be enrolled at least half-time to be eligible for the loan. Federal Direct PLUS Loans are processed through the Financial Aid Office. The money is borrowed directly from and repaid to the U.S. Department of Education.
 
For eligibility, parents must complete and submit a PLUS Loan application, which is available from the Office of Financial Aid. The Office of Financial Aid also lists the parents’ maximum eligibility on the students’ Financial Award notice and sends a PLUS loan application with the Financial Award notice. Following completion, the application is sent to the Office of Financial Aid for evaluation. Parents are required to pass a credit check – even if they do not pass the credit check, they may still be able to receive the loan with the endorsement of a credit-worthy co-signer.
 
The yearly limit on PLUS Loans is equal to the cost of the college education – minus any other financial aid a student has received.  
 
For complete information, visit the U.S. Department of Education’s Federal Direct Loan PLUS Loans website.