Federal Assistance Programs

Federal Pell Grants The Pell Grant is the largest need-based federal grant program, serving nearly 3,000,000 students a year. Pell Grants are available only to undergraduate students. These grants ranged from $400 to $5,350 for the 2009-2010 academic year, depending on the need of the applicant. Regularly enrolled students who are U.S. citizens, permanent residents, or eligible noncitizens who have demonstrated financial need and who have complied with Selective Service registration requirements are eligible to apply for a Pell Grant. Pell Grant is an entitlement program, meaning all students who are eligible will receive awards. While the award is actually paid to the student through the school, the student's eligibility and award amount are determined by the Department of Education. A student will automatically be considered for a Pell Grant when the Free Application for Federal Student Aid (FAFSA) is submitted each year.

Federal Stafford Student Loans The Stafford Student Loan Program makes low-interest loans available to students who are enrolled at least half-time (6 hours per semester for undergraduate students, 4.5 hours for graduate students). To be eligible for the federally subsidized loan, the student must show financial need unmet by other sources. This loan provides a fixed interest rate of 6.8%. Repayment begins six months after the student ceases half-time enrollment, and no interest accrues until that time. Unsubsidized Federal Stafford Loans also are available to students without regard to financial need. Loan limits and interest rates are the same as those in the subsidized program. Repayment of the principal begins six months after the student ceases half-time enrollment, but interest begins to accrue immediately.

Federal Academic Competitiveness Grants The Academic Competitiveness Grants are available to undergraduate students who are U.S. citizens and Federal Pell Grant recipients. Students must be enrolled full-time, be in their first or second year of their academic program, and complete a rigorous secondary school program to be eligible. The grant amount is $750 for first-year students and $1,300 for second-year students. Students must complete the Free Application for Federal Student Aid (FAFSA) to apply for this grant. Second-year ACG recipients also must have a 3.0 or higher cumulative grade point average.

State Assistance Programs

Freedom of Choice Grants Students who receive an Indiana Higher Education Award and who attend a private college are awarded these grants, which can range up to $7,034. This program is administered by the State Student Assistance Commission and is designed to help equalize costs and provide students greater selection among institutions. A separate application is not required for this program. A student receiving an Indiana Higher Education Award will automatically receive the Freedom of Choice Grant.

Indiana Higher Education Awards These awards are made by the State Student Assistance Commission to eligible high school graduates attending institutions of higher learning in Indiana. An applicant is eligible if he or she is an Indiana resident and a full-time student who demonstrates financial need by filing the Free Application for Federal Student Aid. Parents of dependent students also must be Indiana residents. The awards can range up to $3,958. The FAFSA must be received by the federal processor by March 10 preceding the academic year of attendance. Students may receive state grants for eight semesters of full-time undergraduate enrollment.

Part-time State Grants These awards are made to eligible students who are residents of Indiana, are enrolled in three to 11.5 credit hours, and have state grant eligibility remaining. The student cannot be in default or owe a repayment of federal funds to be eligible for this award. The FAFSA must be received by March 10 preceding the academic year of attendance.

21st-Century Scholars Program 21st-Century Scholars Program. This program, funded by the state and administered by the State Assistance Commission of Indiana, is available to Indiana students who, during their eighth grade year, were eligible to receive free lunches. Students who pledged to remain drug- and alcohol-free, refrain from committing any criminal activity, achieve a high school GPA of 2.0, and file the Free Application for Federal Student Aid each year by the March 10 receipt deadline are eligible to receive a grant comparable to the tuition at a public state school. Eligibility for the Higher Education and Freedom of Choice Awards may reduce the award amount. This tuition-only award is available to full-time undergraduate students for eight semesters. Awards range up to approximately $6,012 at the University of Indianapolis.

Other Sources Available

Alternative Loans These interest-accruing private loans are available if loan funds are needed in addition to the Federal Stafford Loans. To be eligible, the student must demonstrate creditworthiness or have a cosigner who is creditworthy. Interest rates vary depending on credit score. Payments are deferred until graduation or the student is enrolled less than half-time. For more information or an online application, contact Sallie Mae at http://www.studentloannet.com.

Sallie Mae Tuition Pay Tuition Pay by Sallie Mae is a monthly payment plan that allows students and parents to spread payments across a 10-month period interest-free. A nominal annual application fee to enroll (currently $55) is required. Tuition Pay can be used to pay all educational expenses or the remainder of charges after financial aid has been calculated. For more information or an application, contact Sallie Mae at http://www.tuitionpay.com.