Financial Aid Opportunities

Types of federal financial aid

Federal Pell Grant

Federal Pell Grants are "gifts" of assistance to students who meet financial standards set by the federal government. They are available to students who demonstrate financial need, based on a federal formula, and who have not already received a bachelor's degree. The amount available varies from year to year based on Congressional appropriations. Recent grants for full-time, eligible students ranged from $523 to $4731 in the 2008-2009 financial aid year. Part-time students who are eligible for grants receive smaller amounts. Please contact the Financial Aid Department for current Pell Grant ranges and your eligibility for that grant. Grants do not have to be repaid.

How to apply

Complete the Free Application for Federal Student Aid (FAFSA). South University will receive an Institutional Student Information Report (ISIR) from the Federal Financial Aid Processor when you indicate the school as a choice on your FAFSA. The ISIR establishes your eligibility for the Federal Pell Grant and authorizes the school to credit your tuition account with Federal Pell Grant payments. If you bring or mail the FAFSA to the school, we can tell you if you will be eligible for a Pell Grant and the approximate amount that you will receive. Your actual Pell Grant amount will be given to you on your award letter.

How payments are made

If we have a valid ISIR for you, we can receive your Pell Grant funds directly from the federal government. Your account is then credited with your Pell Grant funds at the beginning of each term of eligibility. The credit is automatic as long as your financial paperwork is complete each year, you remain eligible for aid, and you officially register for and attend classes each term.

Federal Supplemental Educational Opportunity Grant (FSEOG)

FSEOGs are "gifts" of assistance to students. They are available to students who demonstrate exceptional financial need and who have not already received a bachelor's degree. The amount available varies and program funds are limited. Eligible students generally receive an award for each academic year (three quarters or two semesters). Grants through this program do not have to be repaid.

How to apply

Complete the Free Application for Federal Student Aid (FAFSA). The school will receive an Institutional Student Information Report (ISIR) from the Federal Financial Aid Processor when you indicate the school as a choice on your FAFSA. The school will use the information from the ISIR to determine whether you are eligible for an FSEOG. If you bring or mail the FAFSA to the school, we can tell you if you will be eligible for an FSEOG and the approximate amount that you will receive.

How payments are made

If we have a valid ISIR for you, we can receive your FSEOG funds directly from the federal government. Your account is then credited with your grant funds each term. The credit is automatic as long as your financial paperwork is complete each year, you remain eligible for aid, and you officially register for classes each term.

Federal Stafford Student Loan

Subsidized and Unsubsidized Federal Stafford Student Loans carry a variable interest rate (adjusted annually each July 1) that will not exceed 8.25 percent. Contact the Financial Aid Department for the most current interest rates. The program is funded through banks, savings and loan associations, credit unions, and other lending institutions. Eligibility is based on financial need. If you are eligible, you may borrow once per academic year as long as all of the required paperwork has been completed. The federal government pays the interest on a Subsidized Federal Stafford Loan while you attend school, during the grace period, and during periods of deferment. As a student, you are responsible for interest on an Unsubsidized Federal Stafford Loan.

Amount

Dependent students may borrow combinations of Subsidized and Unsubsidized Federal Stafford Loans up to a maximum of $5,500 during the first grade level, $6,500 during the second grade level, and $7,500 for the third and fourth grade levels. Independent students and dependent students whose parents cannot borrow under the Federal PLUS Loan program may borrow the maximum annual amounts stated above, plus an annual maximum of $6,000 in Unsubsidized Federal Stafford Loans for the first and second grade levels, and $7,000 in Unsubsidized Federal Stafford Loans for the third and fourth grade levels. A variable origination fee (up to three percent) and a variable insurance fee (up to one percent) are deducted from the amount borrowed for both Subsidized and Unsubsidized Stafford Loans. Maximum loan amounts may be reduced for loan periods less than an academic year and if the student has previous loans. Graduate students may borrow $20,500 for each year of study. No more than $8,500 of this amount may be in subsidized loans.

Repayment for subsidized loans

Repayment begins six months after you leave school or drop below half-time status. While you are in school in at least a half-time status and during the six-month grace period, the interest is "subsidized" by the federal government.

Repayment for unsubsidized loans

Your first payment of principal is due six months after you leave school or drop below half-time status. Interest can be paid quarterly while you are attending school or can be accrued during the in-school and six-month grace periods. If it accrues, it is added to the principal when you begin to repay the loan. See your Student Financial Aid Officer to obtain a sample loan repayment schedule.

How payments are made

Federal Stafford Loans are usually sent directly to the school from the lender electronically. This process is called Electronic Funds Transfer (EFT). The EFT loan funds are usually automatically credited to your tuition account at the beginning of each term. Contact the Financial Aid Department for details. If your loan funds have not been received when you start class, we will defer payment of the school charges until the funds are received, as long as all of the paperwork has been completed.

Access South University's recommended Stafford Lender Lists and Borrower Benefits for Undergraduate and Graduate Students.

Federal Parent Loan for undergraduate students (PLUS)

Click here to learn more

Getting Started

The Free Application for Federal Student Aid (FAFSA) is a standard document used to determine your eligibility for federal student aid. Prior to completing the FAFSA form, you must request a personal identification number (PIN) from the US Department of Education. You will use your PIN to electronically apply for federal student aid and to access your U.S. Department of Education records online.

You can request a Department of Education PIN online at http://www.pin.ed.gov/.
You can complete the FAFSA form online at http://www.fafsa.ed.gov.
The U.S. Department of Education assigns a number called a Federal School Code to each school that is qualified to receive and disburse federal financial aid. The South University Federal School Code number is 013039.

Any student that takes out a Stafford loan is also required to complete an Entrance Counseling.The Entrance insures that students understand their rights and responsibilities in taking out the Stafford loans.