Grants and Loans

Eligibility for grant aid is based on financial need as determined through information provided on the FAFSA. Grant awards are given to qualifying students and, except under extremely limited conditions, do not need to be repaid.

The two largest grant programs are:

• Federal Pell Grant - Available almost exclusively to undergraduates and all eligible students will receive the Federal Pell Grant amount they qualify based on financial need. Annual awards range from $602 to $5,550 and these grants are prorated based on the number of enrolled credit hours.
• Ohio College Opportunity Grant - This is a grant that is offered to Akron students who are Ohio residents. Annual awards up to $672.00 for eligible students. These grants are also prorated based on full or part-time enrollment status.

Other federal grant programs include:

• The Federal Supplemental Educational Opportunity Grant (FSEOG) - These grants are awarded only to students who meet the strict need guidelines established by the U.S. Department of Education, as well as meet the priority award deadline of March 1. You must be Pell eligible to receive this grant.
• The Academic Competitiveness Grant (ACG) - An eligible student may receive an Academic Competitiveness Grant (ACG) of $750 for the first academic year of study and $1,300 for the second year. To be eligible for the first year award, the student must be a Pell grant recipient, be enrolled as a full-time student, and have completed a "rigorous" high school program.
• The National Science and Mathematics Access to Retain Talent Grant (SMART) - An eligible student may receive a SMART Grant of $4,000 for each of the third and fourth years of study. To be eligible, the student must be enrolled in college majors in the physical, life and computer sciences; engineering; technology; mathematics; or certain foreign languages.
• The TEACH Grant - A federal grant for students planning to be teachers in a high-need field within a low-income school.

Loans

There are several types of loans available to students and their families:

Loans Based on Financial Need

The following loans are based on financial need:

• Subsidized Direct Loan - The most popular federal student loan, a Stafford Loan is awarded based on need as determined from information on the FAFSA form. The U.S. Department of Education pays interest while the borrower is in school and during any grace and deferment periods. The student must be at least a half-time student and have financial need. The annual loan limit ranges from $3,500 to $8,500 based on grade level.
• Perkins Loan - The Perkins Loan is another need-based loan program. Students must have filed their FAFSA by March 1 to be considered for this program. Interest charged on this loan is 5 percent.
• Nursing Student Loan - Nursing Student Loans are available only to undergraduate students who have been admitted into the nursing program who meet priority awarding criteria.  

Loans NOT Based on Financial Need

The following loans are not based on financial need: 

• Unsubsidized Direct Loan - Students must complete the FAFSA to be eligible for this loan program. This loan is given in lieu of, or in combination with, Stafford Subsidized Loans. Terms are the same as the Stafford Subsidized Loan, except the borrower is responsible for the interest from the date of disbursement.
• Parent Loan for Undergraduate Students (PLUS) - The applicant is the parent of the student who is responsible to begin repayment almost immediately upon disbursement. The interest rate is fixed at 8.5%. If a parent is denied for this loan, the student may be eligible for a Stafford Unsubsidized Loan. To receive the PLUS loan, no FAFSA is required.  Apply at www.studentloans.gov
• Alternative Loans- These are private loans that are generally in the name of the student; a FAFSA is not generally required for these loans. Often the student is the borrower and may need to have a creditworthy co-borrower. Interest rates, repayment plans and deferment options vary widely among lenders. Be sure to "shop" for the option that is right for your situation since these are loans that are designed to bridge the funding gap when savings, scholarships, grants, federal loans and other resources are not sufficient.