Loans & Grants

Need-based assistance is provided to students who cannot afford college using only their own or their family's financial resources. 

The level of need is determined through federal, state, and institutional (ex., Pierpont Community & Technical College) formulas. 

The most common forms of need-based aid are grants, work-study programs, and subsidized student loans. 

Merit-based help is given to students with a particular skill, achievement, talent, or characteristic (ex., academic, athletic, artistic, etc.), and it does not consider the financial need of the student or family.

These are usually given as scholarships from institutions and organizations. Most require applications separate from college applications, and they often require written essays and/or referrals. 

A loan is borrowed money that needs to be paid back with interest. 

Student loans are much like any other loan, except that they are specifically used to pay for educational expenses (ex, tuition, textbooks, room & board).

While loans can be a good option for paying for college, it is important to understand what they involve.  Otherwise, you might take on a financial burden difficult to pay off. 

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In relation to need-based loans...

What are the differences between subsidized and unsubsidized (need-based) loans?

Subsidized student loans are federal loans in which the government pays the interest for you while you are in school and you start paying interest when you leave school. 

Unsubsidized student loans will accrue (accumulate) interest while you are in school, and the interest will be added to the amount due. 

Grants are basically free money. 

The federal government, the states, and various institutions award grant money to students without expecting them to pay any of it back. 

Some grants are available to students who participate in specific activities, other grants are offered to students who excel in school.  

For example, both the Pell Grant and WV Higher Education Grants are provided for students of lower-income families.

Research grants available to college to see what you might qualify for. 

Loans

Annual Loan Limit 

(the maximum a student can receive in an aid year) 

Aggregate Loan Limit 

(the total amount that can be borrowed for Federal Student Loans)

https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized

Definitions

Grade Level: Pierpont is a 2-year college, meaning that the programs are created to be able to be completed within two years.  A student may qualify to receive loans for a third and fourth year. 

Earned Credits:  Earned credits are the number of hours a student earns in classes.  Most classes provide 3 earned credits.  So, if a student has 4 classes in a semester with 3 credits for each class, when the semester is completed, the student has 13 earned credits. When a student has 30-59 earned credits, they are seen as a sophomore regardless of their standing in the college.  

Dependent Undergraduate Student:  A dependent student, for the purposes of filling out the Free Application for Federal Student Aid (FAFSA), is someone who is evaluated for financial aid based both on their own income and their parents’—even if that student’s parents will not contribute financially to their college education. A dependent student does not meet the qualifications to be an independent student.  An undergraduate student has not completed an undergraduate degree (ex., AAS, BA, etc.) 

Independent Student: An independent student must fall into at least one of the following categories: 

• Age 24 by Dec. 31 of the following academic year

• Married

• A graduate or professional student

• A veteran or current member of the armed forces

• An orphan

• A ward of the court

• Has legal dependents

• An emancipated minor

• Is homeless or at risk of becoming homeless

Subsidized Loans:  These loans do not accrue interest while you are in school at least half-time or during deferment periods. The federal government pays accrued interest on your behalf while you’re in school.

Unsubsidized Loans: Direct unsubsidized loans don’t qualify for a government subsidy, which means interest accrues at all times, even when you’re enrolled in school.  

https://www.forbes.com/advisor/student-loans/dependent-vs-independent/

https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized

If you would like to print a paper copy,

click below to access a PDF version.

Pell Grant Maximum award - Lifetime Limit

The Federal Pell Grant Program provides need-based grants to low-income undergraduate and some graduate students.

The amount of Federal Pell Grant funds a student may receive over her/his lifetime is limited to be the equivalent of six years of Pell Grant funding. 

Since the amount of a scheduled Pell Grant award that can be received each award year is equal to 100%, the six-year equivalent is 600%.  

https://www2.ed.gov/programs/fpg/index.html

 To get more understanding and/or information about the information shown above,

contact Pierpont's Financial Aid advisors - they are ready to help you! 

financialaid@pierpont.edu