About Federal Financial Aid
To make college more affordable, the federal government offers a variety of need-based grants and loans for qualified students. You must be a U.S. citizen or eligible non-citizen and you must complete the FAFSA (Free Application for Federal Student Aid) form each year to receive federal financial aid.
Monroe's Federal Financial Aid school code is 004799.
This is a need based award determined from information provided on the FAFSA. For the 2023-2024 academic year, full-time student annual awards will range up to $7,395. Students can only receive Pell awards for up to 12 full-time semesters. The Pell Grant does not need to be repaid.,
Supplemental Educational Opportunity Grant (SEOG)
These need based awards are determined from information provided on the FAFSA. SEOG funds are awarded to the neediest students (Pell recipients with the lowest Estimated Family Contribution (EFC) as determined by the federal needs analysis from the FAFSA). Award amounts may vary based on student enrollment status and availability of funds. SEOG grants do not need to be repaid.
College Work-Study Program
These need based awards enable students to work in order to earn funds to help pay for their cost of attendance. Need is determined from information provided on the FAFSA. Employment placement and the amount students can earn depend on the availability of funds and job sites. Continued eligibility for Work-study is also contingent upon satisfactory academic progress, attendance, and job performance. Students must begin the application process at the Office of Student Financial Services to determine their eligibility. If eligible, they will be sent to the Office of Career Advancement (OCA). Authorization and job placement is contingent upon successful completion of OCA requirements and the availability of a job assignment.
Federal Direct Loans
This federal loan program enables eligible applicants to obtain student loans to meet their cost of attendance expenses. Undergraduate Students must be matriculated and enrolled in a minimum of six credits. Graduate Students must be matriculated and enrolled in a minimum of four credits.
Loan Terms are determined by federal statute and may vary each year. Before funds can be disbursed, students must complete an online loan counseling Entrance Interview and a Master Promissory Note (MPN).
Entrance and Exit Counseling
First-time Direct Loan borrowers must complete entrance counseling sessions on the web at studentloans.gov. During this counseling session students will learn about the terms of the loan and their rights and responsibilities as loan borrowers. No loans can be credited to a student’s account until entrance counseling is complete.
All recipients of a Federal Direct Loan who withdraw, drop below six (6) credits, or graduate must complete an Exit Counseling session on the web at studentloans.gov.
During this counseling, students will be able to view their loan history and learn about deferral and repayment options.
The repayment of Direct Loans begins six (6) months after a student graduates or drops below half-time matriculated status. Visit studentloans.gov and click on the link “Repayment Plans and Calculators” to learn more.
Enhanced Loan Counseling
Monroe College has been selected to participate in a Department of Education Experimental Site initiative involving enhanced loan counseling. Of all undergraduate Direct Loan borrowers, those with a Social Security Number that ends in an even number will be part of the enhanced counseling group. These students will be required to complete enhanced counseling once each year in order to receive their loans. Those with a Social Security number that ends in an odd number will be part of the control group and will not be required to complete enhanced loan counseling. Information about students in both groups will be reported annually to the Department of Education.
Subsidized Student Loans
The Federal government pays the interest on the loan while students are enrolled at least half-time in college and during times of authorized deferment and forbearance. Repayment of the loan begins six months after the student graduates or the student’s enrollment status changes to less than half-time. Loan Terms: for disbursements made from July 1, 2023 through June 30, 2024, the interest rate for undergraduate subsidized Direct Loans is a fixed 5.50%. Loan Terms are determined by Federal statute and may vary each year.
Unsubsidized Student Loans
Unlike the subsidized loan program, interest on unsubsidized loans begins when the loan is disbursed and is paid by the borrower, not the Federal government. Students have the option of paying these interest charges while attending school. If they choose not to pay the interest, it will accrue and be capitalized. Repayment of the loan begins six months after the student graduates or the student’s enrollment status changes to less than half-time.
Federal Direct Parent Loans (PLUS Loans)
These loans are available to parents of dependent students to help meet their children’s cost of attendance expenses. PLUS loan repayment begins within 60 days of disbursement of funds. PLUS Loan borrowers are subject to a credit check. If approved, parents are required to complete a Master Promissory Note (MPN). If a PLUS Loan denial is received, a student is eligible for an additional $2,000-$2,500 per semester, depending on grade level, in unsubsidized loan funds.
Loan terms are determined by federal statute and may vary each year.
Students in need of funds beyond those available from federal, state, college, and outside grants, or work study and federal loans, may seek alternative non-federal loans. Students should carefully research these options as interest rates, fees, and loan terms vary widely among loan providers. Monroe College does not have a preferred lender list and it is up to the student and/or parent to find such alternative lenders. Once a desirable lender option is found and the student is approved, the student must then notify the Financial Aid Office who will work with the lender to have the funds disbursed electronically to the school.
In order to complete the approval process of an alternative non-federal loan, students must obtain the required form from the appropriate Student Financial Services Office.
Maintain Funding Status
All Federal financial aid requires that students complete the FAFSA application each year to remain matriculated (which means continuing to work toward your degree or certificate) and to maintain the required Grade Point Average and Completion Percentage at the end of each semester. These are Satisfactory Academic Progress (SAP) requirements.
In addition, applicants
- must be a citizen or eligible non-citizen;
- must have a high school diploma or equivalent GED, or have completed an approved home school program. If you do not have one of these, you will need to speak with a Financial Aid Counselor to determine how to resolve this issue;
- must have a valid social security number;
- must not be in default on a federal student loan, and not owe money on a federal student grant.
FAFSA & TAP Guide
If you are completing the FAFSA for the first time, there are many details you to be aware of before, during and after you submit the application. Monroe's Financial Aid department has created a FAFSA & TAP guide so you can know every step in the process.