Federal Financial Aid Programs

Federal Pell Grant

Once you have submitted your FAFSA, you will receive a Student Aid Report (SAR) notifying you of your Expected Family Contribution (EFC). The lower the EFC, the higher the award you will receive. For the 2009-2010 school year, awards for full-time students will range from $976 to $5,350.

Federal Supplemental Educational Opportunity Grant (FSEOG)

This program is designed to assist students who have exceptional financial need and who would be unable to continue their education without such a grant. The amount of the FSEOG ranges from $100 to $4,000. You are not eligible for an FSEOG unless you qualify for a Federal Pell Grant. FSEOG funds are very limited and are assigned very early in the process.

Federal TEACH Grant

The Teacher Education Assistance for College and Higher Education (TEACH) Grant Program, provides up to $4,000 a year in grant assistance to students who are completing or who plan to complete course work needed to begin a career in teaching.  In exchange for the grant, a student must sign an "Agreement to Serve" as a full-time teacher at certain low-income schools and within certain high-need fields for at least four academic years within eight years after completing (or ceasing enrollment in) the course of study for which the candidate received a grant.  TEACH Grant recipients must submit evidence of employment as certifed by the chief administrative officer of the school upon completion of each year of teaching service.  If the grant recipient fails or refuses to carry out his or her teaching obligation, the amounts of the TEACH Grants received are treated as an unsubsidized Direct Loan and must be repaid with interest. 

Further details on how to apply for the Federal TEACH Grant at LETU.

Federal Perkins Loan

The Federal Perkins Loan program provides low-interest loans to assist you in meeting your educational expenses. Those who are eligible for this loan may borrow from $500 to $4,000 per year. Repayment begins nine months after you graduate or leave school for other reasons. You will be charged 5 percent interest on the unpaid balance of the loan principal.

The Federal Family Education Loan Program
- Federal Stafford Loans

Features

• Subsidized Stafford: Federal government pays interest while student is enrolled "in school" (at least half-time, pursuing a degree or certificate) and during a six-month grace period after leaving "in-school" status. This loan is need-based.
• Unsubsidized Stafford: Interest accrues while student is "in school." Unpaid accrued interest is capitalized at repayment. This loan is not need-based.
• Loan counseling is required (entrance and exit).
• Base loan limit:
  Freshman: $3,500
  Sophomore: $4,500
  Junior and Senior: $5,500
  Graduate/Professional: $8,500
• Additional unsubsidized limits for independent students are: $6,000/year freshmen and sophomores; $7,000/year juniors and seniors; $12,000/year graduate and professional.
• Minimum payment is $50/month.
• Maximum total Stafford debt limit when you graduate: $31,000 (dependent undergrad); $57,500 (independent undergrad); $138,500 (grad/professional).

Interest Rates

• The interest rate on subsidized Stafford loans first disbursed beginning July 1, 2008 is fixed at 6 percent. For all subsidized Stafford loans for graduate and professional students, and for all unsubsidized Stafford loans for all students, the interest rate is fixed at 6.8 percent.
• The interest rate on Stafford loans first disbursed July 1, 2006 is fixed at 6.8 percent.

How to Apply Online

1. Stafford Loan Master Promissory note must be completed before any funds will be disbursed to the student account. 
2. Apply online at Loans by Web (LBW). https://lbw.tgslc.org/LBW/start.do . LeTourneau University is a Loans By Web school and utilizes this Web site in order to facilitate the online ease of completing the Stafford loan application process. E-signing is available.
3. Entrance Counseling: First-time Stafford borrowers must complete the online Stafford Loan Entrance Counseling as directed through LBW.
4. Promissory Note: First-time Stafford borrowers must select a lender and complete a Master Promissory Note. Repeat borrowers using their prior lender do not need to complete a new promissory note.
5. Authorize loan amount: All Stafford borrowers must complete and return their Financial Aid Award Letter to the Financial Aid Office before loan funds are requested.

The Federal Family Education Loan Program
- Federal Parent Loan to Undergraduate Students (PLUS)

PLUS loans are designed to help the parents or legal guardians of dependent students pay for post-secondary education. They may be obtained in addition to or in place of Stafford loans.

Interest Rates:

• The interest rate on PLUS loans first disbursed beginning July 1, 2006 is fixed at 8.5 percent.
• The interest rate on PLUS loans first disbursed July 1, 2005- June 30, 2006 is variable and may change annually on July 1 but will never exceed 9 percent.  The current interest rate on PLUS loans is 7.94 percent.

PLUS borrowers may receive up to the student's estimated cost of education less other financial aid, including Stafford loan assistance for which the dependent student is eligible. Borrowers will be subject to a credit evaluation. If a PLUS loan is denied, the dependent student may be eligible for an unsubsidized Stafford loan.

Repayment of the PLUS loan will begin within 60 days after the final disbursement, unless the borrower qualifies for deferment. Interest must be paid or capitalized (added to the principal) if payment is deferred.

How to apply online:

• LeTourneau University uses the Sallie Mae online PLUS loan application in order to facilitate the ease of completing the loan application process. E-signing is available. https://opennet.salliemae.com

Federal Work-Study

Under the Federal Work-Study Program, students can work part-time to earn money for their education.  All students wanting campus employment are encouraged to apply at www.letu.edu/CampusJobs.  Students are eligible to apply for campus employment  if they are enrolled in the university at least half time.  Eligibility for the Federal Work Study Program is offered to students who demonstrate financial need.  Eligibility will be indicated on the student's financial aid Offer of Financial Assistance.  LeTourneau University does not guarantee employment in an on-campus job or that students will be able to earn the entire amount of their work study award through campus employment. Students who find employment in on-campus jobs through the Federal Work-Study program are paid by LeTourneau University n the form of a paycheck.  Paychecks are made payable to the student and are distributed bi--weekly.  Wages received under this program are at least equal to the current federal minimum wage.