Saltsburg Middle-High School Guidance Office

Financial Aid & Scholarships

Types of Financial Aid

Federal Pell Grants

Federal Pell Grants are awarded to undergraduate students who have not earned a bachelor’s or professional degree.  Grants are awarded to students with financial need and do not have to be repaid.

Federal Perkins Loan Programs

Providing long-term, low interest (5 percent) loans to students with exceptional financial need and are enrolled at least half-time at a participating institution.  Annual loan limits are $4,000 for undergraduate students and $6,000 for graduate students.  Repayment and interest begin 9 months after the student finishes school or drops below half-time enrollment.  Active duty military personnel may have longer than 9 months.  Repayment may be made over 10 years.  Deferments may be granted if the student enrolls again at half-time or more.

Federal Work-Study Programs

The Federal Work-Study Program provides jobs for undergraduate and graduate students with financial need who are enrolled in eligible schools.  This program allows students to earn money to pay for their educational expenses.  Students may work part-time while attending school, and full-time during the summer and other vacation periods.  Most work is on or around campus.  Pay is based on federal minimum wage standards, but varies with job requirements, skill, and experience levels.

Federal Supplemental Educational Opportunity Grant Programs

The Federal Supplemental Educational Opportunity Grant Program provides grants to undergraduate students with exceptional financial need.  Priority for the FSEOG goes to Pell Grant Recipients and students with the lowest expected family contributions.  This program is administered by schools and has a maximum award of $4,000 per year.  Students at each school are paid based on the availability of funds and there is no guarantee that every eligible student will get a grant.  An FSEOG does not have to be paid back.

Federal Stafford Loans (Subsidized and Unsubsidized)

Federal Stafford Loans are either subsidized or unsubsidized.  Subsidized loans are awarded on the basis of financial need, while an unsubsidized loan is not.  The government pays the interest on subsidized loans while the student is in school.  The student has to pay the interest on an unsubsidized loan, including the amount that accrues while in school.  A fee of up to 4 percent of the principal loan amount is deducted before it is disbursed.  Repayment and interest begin 6 months after the student graduates, leaves school, or drops below half-time enrollment.  The interest rate is variable but will never exceed 8.25 percent. 

Federal Plus (Parent) Loans

Federal PLUS Loans enable parents with good credit histories to borrow to pay the education expenses for each child who is a dependent undergraduate student enrolled at least half time.  The annual PLUS loan yearly limit is the cost of education minus other aid.  Loans are not based on financial need.  Your lender will send the loan funds directly to your school.  Repayment begins within 60 days after final disbursement.  There is no grace period for these loans.  Interest begins to accumulate after the final loan disbursement.

Federal Consolidation Loans

Federal Consolidation Loans are available from participating lenders such as banks, credit unions, and savings and loan associations.  They are designed to help borrowers simplify loan repayment by allowing the borrower to consolidate several loans with various repayment schedules into one loan.  Most federal student loans and FFEL PLUS Loans can be consolidated.

Direct Stafford Loans (Subsidized and Unsubsidized)

For student borrowers, Direct Stafford Loans are either subsidized or unsubsidized.  Under the Direct Loan Program, the federal government makes loans directly to students through participating schools.  A subsidized loan is awarded on the basis of financial need, an unsubsidized loan is not.  If the student qualifies for a subsidized loan, the federal government pays interest on the loan until repayment begins and during authorized periods of deferment.  If the student qualifies for an unsubsidized loan, he or she pays interest from the time the loan is disbursed until it is paid in full.

Direct PLUS (Parent) Loans

The Direct PLUS Loans enable parents with good credit histories to borrow to pay the education expenses for each child who is a dependent undergraduate student enrolled at least half time.  The yearly limit is the cost of education minus other aid.  Loans are not based on financial need.  The U.S. Department of Education will send the loan funds directly to your school.  Repayment begins within 60 days after final disbursement.  There is no grace period for these loans.  Interest begins to accumulate after the final loan disbursement.

Direct Consolidation Loans

Direct Consolidation Loans are available from the U.S. Department of Education.  They are designed to help borrowers simplify loan repayment by allowing the borrower to consolidate several types of federal student loans with various repayment schedules into one loan.  Most federal student loans can be consolidated.

State Programs

Most states have financial aid programs that include scholarships, grants, and loans, as well as special programs.  These include:

·          COMPETITIVE STATE SCHOLARSHIP PROGRAMS – Scholarships are awarded in statewide competition on the basis of academic ability and financial need.

·          STATE LOAN PROGRAMS- Loans are made by commercial lenders and guaranteed by the state.

·          TUITION EQUALIZATION PROGRAMS – Students at private colleges receive grants to help absorb the higher cost of tuition.

·          STATE GRANT PROGRAMS – These are need-Based grants available to students to attend wither public or private institutions.

·          STATE EDUCATIONAL OPPORTUNITY PROGRAMS – These are programs that identify, encourage, and in some cases subsidize in-state students who are economically disadvantaged or academically under prepared for postsecondary education.

·          STATE WORK PROGRAMS – Funds are available to needy students which provide the opportunity to earn money, while attending school, to contribute towards their education.

To learn more about financial aid programs in Pennsylvania, see your counselor, write directly to the state scholarship agency in Harrisburg, and/or check out www.pheaa.org . 

Scholarships

When looking for scholarships, students and parents need to keep the following in mind:

1.       Colleges award most of the scholarships.

2.       Private colleges generally award more scholarships than public colleges.

3.       A one-year scholarship is for one year only; a renewable scholarship can become a

          four-year scholarship.

4.       Outside scholarships must be reported to the college’s financial aid office.

5.       It’s important to remember that most financial aid is not awarded in the form of a          scholarship.  Parents and students therefore need to pursue all financial aid opportunities.

6.       Smaller, local scholarships are often much easier to get than those sponsored by large organizations or businesses.

There are thousands of scholarships available, and while they can be difficult to get, those who invest the time and energy often find that their efforts pay off handsomely.

Types of Scholarships

Academic Scholarships

While many academic scholarships are privately sponsored, most are awarded by the colleges themselves.  Because colleges award scholarships to their best applicants, students are more likely to receive an academic scholarship if they are in the top 25 % of the students applying.

Minority Scholarships

Most colleges are interested in having a diverse student body.  Many colleges therefore offer programs and scholarships in order to support and recognize outstanding minority students.

Athletic Scholarships

Sports are big business, and outstanding athletes are often offered large scholarships.  To ensure that all athletes are prepared for college level work, the NCAA & NAIA have strict eligibility requirements that athletes must meet before they can receive a scholarship or play a sport in college.

Talent Scholarships

Most talent scholarships are awarded in music, art, theatre, and dance.  While clubs, organizations, and corporations all offer talent scholarships, most talent scholarships are awarded by the colleges.

Local Scholarships

These scholarships are generally for smaller amounts, but they are easier to get because the competition isn’t as great.  Counselors receive information and applications for local scholarships throughout the school year. 

General Scholarship and Financial Aid Websites

The Pennsylvania Higher Education Assistance Agency helps to create access to education for Pennsylvania students.