Federal
Funds
Information provided on the Free Application for Federal
Student Aid (FAFSA) and the applied Federal Methodology are
used to determine a student's eligibility for all federal
awards. The amount of each federal award may vary
due to specific program funding. To be eligible, students
must be U.S. citizens or eligible non-citizens, demonstrate
financial need (except for the unsubsidized Federal Stafford
and PLUS programs), meet specific enrollment criteria, and
make satisfactory progress toward a degree. Here is
a brief summary of each federal aid program:
Federal Pell Grant Program
Grants from this program provide the foundation of financial
aid to which other aid is added. These awards are determined
by the federal government through its own methodology. To
apply, a student must file a FAFSA. During the 2009-2010
award year, Federal Pell Grant awards for full-time students
range from $976 to $5,350.
Federal Supplemental Education Opportunity Grants (FSEOG)
These federal grants range from $100 to $4,000 per award
year. In general, students with Federal Pell Grants are
awarded FSEOG grants if they have additional need under the
Federal Methodology. The number of FSEOG awards can vary
from school to school due to a school's allocated FSEOG
funding. As a result, not all Pell recipients receive FSEOG
awards.
Federal Perkins Loans
Federal Perkins Loans are
long-term, low interest (5 percent) loans. No interest is charged
nor is repayment required on Federal Perkins Loans while a
borrower is enrolled in school at least half-time. Repayment
begins nine months after a student graduates, leaves school,
or drops below half-time enrollment. Depending on the amount
borrowed, the repayment period can be up to 10 years. The
annual Federal Perkins Loan limit is $5,500 for
undergraduate students.
Federal Work-Study (FWS)
The Federal Work-Study program provides job opportunities
for needy students. The College designates recipients of FWS
awards based on the availability of funding and the
application of the Federal Methodology. Most FWS jobs are on
campus, but some may be at nearby agencies. The work program
can add both breadth and depth to a student's educational
experience and can be a valuable asset when seeking
employment after college.
Federal Stafford Loan Program
The Federal Stafford Loan Program offers both subsidized and
unsubsidized student loans. Students qualifying as needy
through application of the Federal Methodology pay no
interest on their loans while enrolled in school at least
half-time; during the in-school period, the interest is paid
by the government. If a student does not qualify for the
interest subsidy, he or she is required to pay interest
during his or her enrollment period. No loan principal must
be repaid during the in-school period regardless of the
eligibility for the interest subsidy. Borrowers of both
subsidized and unsubsidized loans do not begin to repay
their loan principals until six months after they graduate,
drop below half-time, or withdraw from school.
The interest rate on subsidized Stafford loans disbursed
between July 1,
2009 through June 30, 2010 is fixed at 5.6%; interest on unsubsidized Stafford
loans is fixed at 6.8%. Subsidized Stafford loans are
available depending on student eligibility and are limited
to
$3,500 for first year students, $4,500 for second year
students, and
$5,500 for third and fourth year students. An
additional unsubsidized Stafford of $2,000 is available each
year. The actual loan amount possible is contingent upon the
length of the period of enrollment (one semester or two) and
the student's enrollment status. Loan fees of up to 1.5% for loans
disbursed after July 1, 2009 may be collected by the lender.
Federal PLUS Program
The Federal PLUS Program is a federally sponsored parent
loan program. Pomona College policy requires that students
whose parents borrow a PLUS loan must file a valid FAFSA. Through this program, parents may borrow each
year up to the full cost of attendance less any financial
aid. Interest on PLUS loans begins to accrue
immediately once the loan is made, and repayment begins
within 60 days of the second disbursement. Some
lenders offer interest-only payments or deferment of
interest and principal payments while the student is in
school.
The interest rate on PLUS loans
is fixed at 8.5%. At the time the loan is made, the
borrower is charged an origination fee of 3 percent of the
loan principal. In addition, the guarantor may collect
an insurance premium of up to 1% of the loan principal.
Learn more about
Federal aid.