The primary purpose of financial aid is to help students who otherwise might not be able to attend a post-secondary institution meet the cost of higher education. The basic responsibility for financing the student’s education lies with the student and their family.
Grants and Loans may be awarded if a student is determined to have financial need based on the Free Application for Federal Student Aid (FAFSA). The application can be completed by going to the following website: www.fafsa.gov.
Federal Pell Grant Program
Type of Award: The Pell Grant is considered a need-based aid that students must qualify eligibility as determined by the Department of Education in order to receive aid. This Grant is generally awarded to only undergraduate students and is not repaid by the student.
Amount per Academic Year (2019-20) $650.00 - $6195.00
The William D. Ford Federal Direct Loan Program
The Federal Direct Loan program allows students to borrow loans from the Department of Education with no credit history needed. These loans are repayable with interest after the student graduates. Students must be enrolled a minimum of half-time to be eligible for the loans. An Entrance Counseling Agreement and a Master Promissory Note must be completed and signed before Direct Loans are awarded.
Type of Award: Direct Loans including the following:
Direct Subsidized Stafford Loan
The Direct Subsidized Stafford loan is considered to be a need-based aid. The loan is long-term with a fixed interest rate. The U.S. Department of Education pays the interest on a Direct Subsidized loan while the student is in school at least half-time, for the first six months after the student leaves school (referred to as a grace period), and during a period of deferment (a postponement of loan payments).
Grade Level Progression
A student’s grade level for annual loan limit purposes is set according to the school’s academic standards. The student’s degree level is not the indicator of the student’s annual loan limits. Grade level progression takes place as defined by the institution’s academic year definition.
Taylor College’s definition of an Academic Year is defined as: 24 Semester Credits (12 credits per term) and 30 Weeks (15 weeks per term)
Student aid will be packaged according to the following grade level progression:
- First-Year Undergraduate 0-23 completed credits
- Second-Year Undergraduate 24-47 completed credits
- Third-Year Undergraduate 48-72 completed credits
Unsubsidized Stafford Loan
The Unsubsidized Stafford Loan is not a need-based loan. This loan is long-term with a fixed interest rate. The student-borrower is responsible for paying the interest on a Direct Unsubsidized Loan during all periods. If the student-borrower chooses not to pay interest while in school and during grace periods and deferment or forbearance periods, the interest will accrue (accumulate) and be capitalized (meaning, the interest will be added to the principal amount of the loan).
The following chart shows the annual limits for subsidized and unsubsidized loans.
(except students whose parents are unable to obtain PLUS Loans)
(and dependent undergraduate students whose parents are unable to obtain PLUS Loans)
|First-Year Undergraduate Annual Loan Limit||$5,500—No more than $3,500 of this amount may be in subsidized loans.||$9,500—No more than $3,500 of this amount may be in subsidized loans.|
|Second-Year Undergraduate Annual Loan Limit||$6,500—No more than $4,500 of this amount may be in subsidized loans.||$10,500—No more than $4,500 of this amount may be in subsidized loans.|
|Third-Year Undergraduate Annual Loan Limit||$7,500—No more than $5,500 of this amount may be in subsidized loans.||$12,500—No more than $5,500 of this amount may be in subsidized loans.|
Direct Parent Plus Loans
Type of Award: Eligibility for the Direct Plus Loan is determined based upon the parent’s credit history. This loan is for parents of graduate or professional students enrolled at least half-time at an eligible school in a program leading to a graduate or professional degree or certificate, or to parents of a dependent undergraduate student enrolled at least half-time at an eligible school. The parent is in full responsibility of the loan borrowed and repaid. The Plus loan has a fixed interest rate. Repayment of the loan begins after the loan has been fully disbursed. To apply for this loan, go to the following website: www.studentloans.gov to complete the Direct Plus Loan Application and Master Promissory Note.
Eligible Award per Academic Year: Based upon the college’s cost of attendance
Additional Applications for Direct Loans:
Master Promissory Note (MPN) and Entrance Counseling Agreement: These informational applications explain the terms and conditions of borrowing the loan. The MPN is a legal binding agreement to repay student loans to the Department of Education. These applications can be electronically completed and signed on the following website: https://studentloans.gov.