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Financial Aid
Federal Financial Aid is available to PC AGE students if they qualify. Your entire tuition including books may be covered by financial aid if you qualify. Federal Financial Aid includes Pell Grant that you do not need to repay and loans that you need to pay back with low interest supported by federal government. Your monthly payment will start 6 months after your graduation and it is estimated to be about $149/month. You may delay your payments (deferment) for up to 3 years if you are unable to find full-time employment or have economic hardship. Please read below or visit
http://www.federalstudentaid.ed.gov/ for more and up to date information.
PC AGE is also approved for funding for training available to unemployed people or veterans.
For more information, please visit: http://lwd.dol.state.nj.us/labor/wfprep/aidgrant/FinancialIndexNew.html
The following is more detailed information about federal financial aid:
Federal Pell Grant
Financial aid that doesn’t have to be repaid (unless, for example, you withdraw from school and owe a refund.) Amounts can change yearly. The maximum award for the 2008-09 award year was $4,731.
Federal Loans
Stafford Loans are the most common source of loan funds. There are two types: subsidized and unsubsidized. Your FAFSA will establish your eligibility for both. You may also qualify for a federal PLUS loan.
Subsidized Stafford Loans are need-based loans. Full time students may be eligible to borrow up to $2,625 the first academic year and $3,500 the second. While you attend school, the federal government pays the interest on the loans, during the grace period before repayment begins, and during periods of deferment. Payments begin six months after you graduate, drop below half time, or withdraw from school. To qualify for a subsidized Stafford loan, you must meet all the requirements for federal financial aid and have had your eligibility for a Pell Grant determined.
Unsubsidized Stafford Loans are for all qualified students and are not based on income or assets. This means you have to meet the same requirements for the subsidized Stafford loan, but you don't have to demonstrate financial need. Students may borrow from the unsubsidized Stafford loan up to $4,000 per year. One main difference with the unsubsidized loan is that interest accrues from the time the loan is disbursed. Interest payments begin immediately but can be deferred while you are in school. Repayment begins six months after you graduate, drop below half time, or withdraw. These low-interest loans have a variable rate, adjusted each July 1, with a cap of 8.25%. Total undergraduate borrowing may not exceed $23,000 for dependent students and $46,000 for independent students (no more than $23,000 of which may be in subsidized Stafford loans). Unless you qualify and opt for an alternative repayment plan, you must repay Stafford loans within 10 years.
Federal PLUS Loans enable parents of dependent undergraduates with good credit histories to borrow up to a maximum of the student's unmet costs. Interest rates are set annually July 1, with 9% being the maximum rate allowed by law. Parents begin repayment 60 days after the final loan disbursement. To qualify for the PLUS loan, you must meet the requirements for federal financial aid. Your parents must meet some of these general requirements.
Repaying Your Loans
After you graduate, leave school, or drop below half-time enrollment, you have a period of time before you have to begin repayment. This “grace period” will be six months for a Federal (FFEL) or Direct Stafford Loan.
Monthly Payments
Example Loan Amount: $13,000; Standard Payment Period: 120 Months (10Years) Interest Rate: 6.8%; Monthly Payment: $149.60
Deferment and Forbearance
Deferment: A deferment is a period of time during which no payments are required and interest does not accrue (accumulate), unless you have an unsubsidized Stafford Loan. In that case, you must pay the interest. To qualify for a deferment, you must meet specific eligibility requirements. The most common loan deferment conditions are enrollment in school at least half-time, inability to find full-time employment (for up to three years) and economic hardship (for up to three years).
Forbearance: If you temporarily can’t meet your repayment schedule but you’re not eligible for a deferment, your lender might grant you forbearance for a limited and specific period of time. Forbearance occurs when your lender or loan-servicing agency agrees to either temporarily reduce or postpone your student loan payments. Interest continues to accrue (accumulate), however, and you are responsible for paying it, no matter what kind of loan you have. Generally, your lender can grant forbearance for periods up to12 months at a time, for a maximum of three years. You’ll have to provide documentation to the lender to show why you should be granted forbearance. The lender must send you a notice confirming the terms that were agreed to and record them in your file.
For more and up to date information, please check:
http://www.federalstudentaid.ed.gov/
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