Federal Financial Aid Programs

You are eligible to apply for assistance under various federal financial aid programs if you are a citizen or have permanent residence status in the United States.  You only need to complete and submit the FAFSA to be considered for all of the following federal programs.

Federal Pell Grant

Once you have submitted you 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 2009-20010 school year, awards range from $976 to $5,350.

Federal Supplemental Educational Opportunity Grant (FSEOG)

Students selected for this award are among those with the lowest expected family contributions (EFC) and who will also receive a Federal Pell Grant for that year.  At LeTourneau University, FSEOG funds are extremely limited, so this program requires an early application for federal aid as most of the money is appropriated to students early in the aid process.  The student must be enrolled full-time to receive FSEOG.  Students with a bachelor's degree are not eligible for an FSEOG award.

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 up to $5,500 per year.  Repayment begins nine months after you graduate or leave school for other reasons.  You will be charged 5% interest on the unpaid balance of the loan principal.  Perkins Loan funds are extremely limited.

The Federal Family Education Loan - Federal Stafford Loans

Stafford loans (subsidized and unsubsidized) are low interest loans to help eligible students pay for their education.  This program enables you to borrow directly from a bank, credit union, savings and loan association, or other participating lender.  The loan is guaranteed by a state or private nonprofit agency and is insured by the federal government.  You must be enrolled (or have been accepted) as a degree-seeking student for at least a half time course of study to apply for this loan and must show financial need as determined by the FAFSA.

Under this program you may borrow the amount of financial need or up to the maximum eligibility per year.  Maximum eligibility for dependent undergraduates is $5,500 for their freshman year, $6,500 for their sophomore year, and $7,500 for the remaining years.  Independent students may be eligible for an additional amount in an unsubsidized Stafford loan.  Two fees may be deducted from the loan when the loan is funded:   a guarantee fee and an origination fee.  Maximum rates for both fees are set by Congress.

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

PLUS loans are 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.  Like Stafford loans, a guarantee and origination fee may be charged.

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 with in 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.

Federal College Work - Study

This program provides jobs for students who qualify and wish to earn a part of their educational expenses.  You are eligible to apply for work-study if you are enrolled in the University at least half-time.  All students wanting campus employment are encouraged to apply.  Wages received under this program are at least equal to the current minimum wage.  The University does not guarantee that you will be able to earn the entire amount of your work-study award through campus employment.  Your eligibility will be indicated on your financial aid offer.