GRANTS
The following grant programs are awarded to South Central College students based on financial need as determined by the Federal Processor. Grant funding does not have to be repaid. Students must complete the Free Application for Federal Student Aid (FAFSA) to be considered for grant funding.
Federal Pell Grant
The Federal Pell Grant is funded through the Federal Government. It is available to undergraduate students (those who have not completed their first bachelor’s degree). Funding from this program is available to help students with their educational and living expenses while attending an eligible institution. Pell Grant funding is disbursed towards the student's billing first. Any remaining Pell Grant funding is disbursed to the student after the institution’s billing is paid in full. The Pell Grant is funding that does not have to be repaid.
The Pell Grant was created to assist students with high financial need. Eligibility for the Pell Grant is based on the student’s Expected Family Contribution (EFC) as determined by the Federal Processor. To apply for a Federal Pell Grant, students must complete the Free Application for Federal Student Aid (FAFSA). Federal Pell Grants awards are based on full-time attendance (12 or more credits) and will be prorated if the student is enrolled for less than 12 credits per semester. Students may not receive a Pell Grant from more than one institution at a time, even if enrolled at two different institutions for the same term.
Minnesota State Grant
The Minnesota State Grant is funded through the Minnesota Office of Higher Education (MOHE). It is available to undergraduate students (those who have not completed their first bachelor’s degree) who are attending eligible Minnesota institutions. Funding from this program is available to help students with their educational and living expenses. Minnesota State Grant funding is disbursed towards the student's billing first. Any remaining Minnesota State Grant funding is disbursed to the student after the institution's billing is paid in full. The Minnesota State Grant is funding that does not have to be repaid.
The Minnesota State Grant was created to assist Minnesota resident students with high financial need. Eligibility for the Minnesota State Grant is based on the student’s need. The student must also be a Minnesota resident (as defined by MOHE), attending a Minnesota college. Eligibility for the Minnesota State Grant expires after a student has attempted the equivalent of four years of attendance. All credits the students may have attempted at any institution will be counted toward the four-year limit, excluding Post-Secondary Option and military service credits.
To apply for a Minnesota State Grant, students must complete the Free Application for Federal Student Aid (FAFSA). The Minnesota State Grant is based on an enrollment of 15 credits and will be prorated if the student is enrolled for less than 15 credits per semester. Students may not receive a Minnesota State Grant from more than one institution at a time, even if enrolled at two different institutions for the same term.
The Federal Supplemental Educational Opportunity Grant (FSEOG)
The Federal Government funds the FSEOG. It is available to undergraduate students (those who have not completed their first bachelor’s degree). Funding from this program is available to help students with their educational and living expenses while attending an eligible institution. FSEOG funding is disbursed towards the student's billing first. Any remaining FSEOG funding is disbursed to the student after the institution’s billing is paid in full. The FSEOG is funding that does not have to be repaid. The FSEOG was created to assist students with highest financial need. Eligibility for the FSEOG is based on the student’s Expected Family Contribution (EFC) as determined by the Federal Processor. To apply for a Federal FSEOG Grant, students must complete the Free Application for Federal Student Aid (FAFSA). Federal FSEOG awards are based on full-time attendance (12 or more credits) and will be prorated if the student is enrolled for less than 12 credits per semester. Students may not receive a FSEOG from more than one institution at a time, even if enrolled at two different institutions for the same term.
WORKSTUDY
Federal and State Work-study
The Federal government and the Minnesota Office of Higher Education (MOHE) fund work-study programs.
Funding to the student comes in the form of a paycheck for hours worked in a designated work-study position. It is the intention of the program that students use the income they earn from their work-study position to pay any outstanding billing and to help them pay for their living expenses. Work-study funding is the only financial aid program that funding goes directly to the student without paying towards the student’s billing first. Students will receive a paycheck (direct deposit or paper check) for hours worked on a regular pay schedule as determined by the institution.
LOANS
Students should attempt to keep their educational loan indebtedness to a minimum. Any loan program should be looked at as a last resort when financing your education (see the Financing Your Education section). The following are the most recommended student loan funding programs available to students. All loan funding MUST be repaid. To be considered for any of the following loan programs, students must complete the Free Application for Federal Student Aid (FAFSA).
Federal Direct Loan (Subsidized and Unsubsidized)
The Federal Direct Loan Program is a low interest educational loan program provided to students by the Federal Government. This loan program is available to students to assist them in meeting their educational and living expenses while attending an eligible institution. The Federal Direct Loan Program has limitations on the amount of loan a student may borrow depending on their grade classification and dependent status (see chart below).
There are two significant differences between the Direct Subsidized and Unsubsidized Loan programs: How eligibility is determined and the responsibility of interest payments.
How eligibility it determined:
- The Federal Direct Subsidized Loan is a NEED-based program. Eligibility for the program is based on the amount of NEED the student has after any grants, scholarships, work-study or outside funding have been considered. A Direct Subsidized Loan award can never exceed the student’s NEED.
- The Federal Direct Unsubsidized Loan is a Non-NEED-based program. Eligibility for this program is not based on NEED. An Direct Unsubsidized Loan can never exceed the student’s Cost of Attendance.
Responsibility of Interest:
- The Federal Direct Subsidized Loan is a NEED-based program. The Federal Government is responsible for the interest on the Federal Direct Subsidized Loan during the time the student is attending college (enrolled at least 1/2 time). The student is responsible for the interest through the 6 month grace period and through the repayment period.
- The Federal Direct Unsubsidized Loan is a Non-NEED-based loan. The student is responsible for the interest on the Federal Direct Unsubsidized Loan during the time the student is attending college, through the 6 month grace period, and through the repayment period.
Loan limits
- The Federal Direct Subsidized and Unsubsidized Loan Programs limit the amount students may borrow based on the students grade classification and dependent/independent status.
In combination of Subsidized and Unsubsidized, the annual loan limits for dependent students are:
Freshman - $5,500 with the Subsidized Stafford not to exceed $3,500
Sophomore - $6,500 with the Subsidized Stafford not to exceed $4,500
For independent students:
Freshman - $9,500 with the Subsidized Stafford not to exceed $3,500
Sophomore - $10,500 with the Subsidized Stafford not to exceed $4,500
Grace Period.
Both the Direct Subsidized and Unsubsidized Loans have a six-month grace period. The first six months after the student has dropped below 1/2 time enrollment, graduates or withdraws from college is considered the student’s grace period. During the grace period, students are not required to make payments towards the principle balance on their Direct Subsidized or Unsubsidized Loans Students are still required to make interest payments during their grace period. As soon as the six-month grace period ends, the student will begin full repayment on their Direct Subsidized and Unsubsidized Loans.
Repayment.
Federal Direct Subsidized and Unsubsidized Loans are NOT free money. You MUST repay your loan indebtedness in full plus any interest. You are responsible to repay your loan regardless of your satisfaction with your education, whether or not you completed your education, or whether or not you were able to gain suitable employment. If you find at any time you are experiencing difficulty making your repayment obligation, contact your lender/servicer immediately.
The repayment of your Direct Subsidized and Unsubsidized Loans begins six-months after you graduate, drop below 1/2 time enrollment, or leave school. The amount of your monthly repayment will be determined by the servicer and will be based on the amount you borrowed and the type of repayment schedule you choose.
Students are encouraged to make interest payments on their Direct Unsubsidized Loans while in school. Students are also encouraged to repay their Direct Subsidized and Unsubsidized Loans as soon as possible. There is no penalty for making prepayments on your Direct Subsidized and Unsubsidized Loans. It is possible to save a great deal of money by repaying your Direct Subsidized and Unsubsidized Loansearly because you will be saving interest payments.
Federal Direct Parent Loan for Undergraduate Students (PLUS) Program
The PLUS Loan program is a low interest educational loan provided by the Federal Government. The PLUS Loan was created to assist parents of dependent students in obtaining educational loan funding. The borrower of this loan is the parent.
The PLUS Loan will be applied to any outstanding balance on the student’s bill. If the amount of PLUS Loan exceeds the student's charges after the bill has been paid in full, an overage will be issued to the student (or the parent if so elected on the PLUS application).
PLUS Loan funding is not included in the student's financial aid award package. Parents must apply for PLUS Loan funding separately at www.studentloans.gov. The parent will sign-in using their own name, SSN, date of birth, and the PIN number they used to sign the FAFSA. While completing the application, the parent will be asked to identify the student, the student's college, and how they would like any overage funds disbursed. Students must have completed the Free Application for Federal Student Aid (FAFSA) before a parent may apply for the PLUS Loan. Eligibility for the PLUS Loan program is determined by the student’s COA minus any other financial aid the student may have been awarded. Parents must also be determined to be credit-worthy or credit-eligible to be considered for the loan. If a parent is denied a PLUS loan based on credit-worthiness, the student may present a copy of the denial notice to the financial aid office to request additional Federal Direct Unsubsidized loan (up to $4,000).
Loan Limit
The annual amount a parent may borrow in the PLUS Loan program is limited only by the student’s Cost of Attendance (COA) and the amount of other financial aid the student will be receiving. The PLUS Loan cannot exceed the COA - other financial aid.
Repayment
Parents are responsible for the repayment of the PLUS loan with interest. Interest is fixed at 7.9%. Repayment for the PLUS Loan begins within 60 days from the disbursement of the loan.
Supplemental Educational Loan Fund (SELF) Program
The SELF Loan is a low interest educational loan provided to students by the Minnesota Office of Higher Education (MOHE). The SELF Loan was created to assist students to meet their educational and living expenses. It is intended to be used as a supplement to all other types of financial aid (including the Federal Direct Loan program).
SELF Loans are not included in the financial aid award package like the Federal Direct Loan program. Students must apply for a SELF Loan separately at www.selfloan.org. Students must complete a Free Application for Federal Student Aid (FAFSA) before applying for a SELF Loan. The student is the borrower of the SELF Loan. The student is also required to provide a credit-worthy co-signer for this loan. The co-signer requirement is for all students regardless of the student’s own credit-worthiness, age, dependent or independent status. Eligibility is determined by the student’s Cost of Attendance (COA) minus any other financial aid the student was awarded.
Loan Limits
The SELF Loan does have loan borrowing maximums per grade classification. First year students at SCC (0-29 earned credits) may borrow up to $7,500. 2nd year students at SCC (30+ earned credits) may borrow an additional $7,500.
Repayment
The SELF Loan is not free money. It is an educational loan that MUST be repaid in full plus interest.
Students must pay the interest on the SELF Loan while they are in-school. In-school interest-only payments are made on a quarterly basis. There is no deferment option for the in-school interest payment. The SELF loan has a variable interest rate of 3.3% or students can choose the fixed interest rate of 7.25%.
After the student graduates or drops below 6 credits of enrollment, the interest payment on the SELF Loan changes to a monthly interest only payment for 12 months. The 12 months of monthly interest-only payments is referred to as the transition payments.
After the transition period ends (after 12 months of interest-only payments) the student will begin full repayment (principle and interest) on the loan.
Private Educational Loan Programs
There are several private educational loan programs available for students. These educational loans are provided by private lenders and are not guaranteed in any way by Federal or State governments. Students must obtain applications for these private loans from the individual lenders. Private educational loans may not exceed the student's Cost of Attendance (COA) minus any other financial aid the student may be receiving.
Students should consider these loans only as a last resort for funding. Students should contact the SCC Financial Aid Office before applying for a Private Educational Loan to talk about different options they may have. Private Education Loan Programs tend to have higher interest rates, may include lender fees and usually have rigid repayment terms that provide few, if any deferment options.
Students in a non-degree seeking or non-eligible certificate program can quality for these funds.
