Federal Awards

Applying for federal aid

In order to apply for any of the federal student aid programs detailed below, you'll first need to fill out the FAFSA. This determines your EFC, or Estimated Family Contribution, which will help you determine the federal aid you're eligible for.

Please note that federal grants, work awards, and loan funding will not be replaced by Morningside College if you are considered ineligible by the federal government due to incomplete paperwork, late filing, insufficient funding, or loss of need-based funding due to changes in your FAFSA information.

Types of federal aid

Federal Pell Grant

Full-time undergraduate students can get up to $5,730  if your EFC is at or below $5,157.

Federal Supplemental Education Opportunity Grant (SEOG)

You may be eligible if your EFC is at or below $5,157 and you are receiving a Federal Pell Grant.

We select the Pell Grant students with the greatest financial need to receive these awards.

Federal Work Study

Need-Based

Students receive Work Study funds based on demonstrated financial need.

Fund Distribution

Work Study funds are not deducted from your college bill. Rather, students will receive a monthly payment as they earn funds.

Maximum Amounts

The amount of Work Study money listed on your award letter is the maximum amount that you may earn.

Job Fair

We hold a job fair in the first week of the fall semester, though students are ultimately responsible for securing employment.

Jobs are available in most campus departments and with nonprofit agencies in the community. Pay rates may vary with experience.

Payroll Forms

Be sure to get your payroll forms (federal and state W-4, I-9, and direct deposit) from the Morningside business office and complete them before you begin employment.

Federal Perkins Loan

Need-Based

Students receive Perkins Loan funds based on demonstrated financial need.

Student Enrollment

You must be enrolled in 6 or more credit hours to qualify for a Perkins Loan.

Repayment

This is a loan and it must be repaid. Repayment and interest (at a fixed rate of 5%) begins 9 months after enrollment is less than half-time.

Maximum Amounts

The maximum amount students may borrow per year is $5,500 for undergraduates and $8,000 for graduate students.

The amount you may borrow is determined by Morningside funding levels. Awards are normally larger in the first two years due to lower amounts available from the Federal Stafford Loan Program.

Federal Direct Subsidized Stafford Loan (Need-Based)

This need-based loan is interest-free while the student is enrolled at least half-time.

Application

To apply for this loan, you must complete a Master Promissory Note and receive loan counseling prior to your first disbursement. This counseling may be done online.

Repayment

This is a loan and it must be repaid. Repayment of principal and accrued interest, if any (at a fixed rate of 4.66%), begins 6 months after enrollment is less than half-time.

Maximum Amounts

The maximum amount that may be borrowed each year is as follows:

  • Freshman: $3,500 plus an additional $2,000 unsubsidized loan
  • Sophomore: $4,500 plus an additional $2,000 unsubsidized loan
  • Junior: $5,500 plus an additional $2,000 unsubsidized loan
  • Senior: $5,500 plus an additional $2,000 unsubsidized loan

Please note that the federal government may deduct up to 1.072% of the loan before disbursing the proceeds to the college.

If Your Parent Does Not Qualify for the Federal Direct PLUS Loan

Federally determined independent students and dependent students whose parents do not qualify for the Federal Direct PLUS Loan are eligible to borrow additional Federal Direct Unsubsidized Stafford Loans up to the following amounts: 

  • $4,000 for freshman and sophomore students
  • $5,000 each year for up to three additional years of undergraduate study. 

Dependent undergraduate students may receive up to a maximum of $31,000 in Stafford Loan funding (this includes both Subsidized and Unsubsidized Loans).

Independent undergraduate students may receive up to a maximum of $57,500 in Stafford Loan funding (this includes both Subsidized and Unsubsidized Loans). 

The maximum lifetime loan limit is $138,500 in Federal Direct Stafford Loan funding (this includes both Subsidized and Unsubsidized Loans) of which a maximum of $65,000 in Subsidized funding is allowed.

Federal Direct Unsubsidized Stafford Loan (Non-Need-Based)

This non-need-based loan accrues interest while the student is enrolled in school.

Application

To apply for this loan, you must complete a Master Promissory Note and receive loan counseling prior to your first disbursement. This counseling may be done online.

Repayment

This is a loan and it must be repaid. Repayment of principal and accrued interest, if any (at a fixed rate of 4.66%), begins 6 months after enrollment is less than half-time.

You may pay interest on this loan on a quarterly basis during enrollment, or defer until payment of principal begins.

Maximum Amounts

The maximum amount that may be borrowed each year is as follows:

  • Freshman: $3,500 plus an additional $2,000 unsubsidized loan
  • Sophomore: $4,500 plus an additional $2,000 unsubsidized loan
  • Junior: $5,500 plus an additional $2,000 unsubsidized loan
  • Senior: $5,500 plus an additional $2,000 unsubsidized loan

Please note that the federal government may deduct up to 1.051% of the loan before disbursing the proceeds to the college.

If Your Parent Does Not Qualify for the Federal Direct PLUS Loan

Federally determined independent students and dependent students whose parents do not qualify for the Federal Direct PLUS Loan are eligible to borrow additional Federal Direct Unsubsidized Stafford Loans up to the following amounts: 

  • $4,000 for freshman and sophomore students
  • $5,000 each year for up to three additional years of undergraduate study. 

Dependent undergraduate students may receive up to a maximum of $31,000 in Stafford Loan funding (this includes both Subsidized and Unsubsidized loans).

Independent undergraduate students may receive up to a maximum of $57,500 in Stafford Loan funding (this includes both Subsidized and Unsubsidized Loans). 

Graduate students may receive up to $20,500 per year.

The maximum lifetime loan limit is $138,500 in Federal Direct Stafford Loan funding (this includes both Subsidized and Unsubsidized loans) of which a maximum of $65,000 in Subsidized funding is allowed.

Federal TEACH Grants

Federal TEACH (Teacher Education Assistance for College and Higher Education) grants can supply up to $4,000 per year (pro-rated for part-time students) to students who intend to teach in a public or private elementary or secondary school that serves students from low-income families.

Conditions

In exchange for receiving a TEACH Grant, you must agree to serve as a full-time teacher in a high-need field in a public or private elementary or secondary school that serves low-income students.

As a recipient of a TEACH Grant, you must teach for at least four academic years within eight calendar years of completing the program of study for which you received a TEACH Grant.

If you fail to complete this service obligation, all amounts of TEACH Grants that you received will be converted to a Federal Direct Unsubsidized Stafford Loan. You must then repay this loan to the U.S. Department of Education. You will be charged interest from the date the grant(s) was disbursed.

Application

To receive a TEACH Grant, you must meet the following criteria:

  • Complete the FAFSA, although you do not have to demonstrate financial need.
  • Be a U.S. citizen or eligible non-citizen.
  • Be enrolled as an undergraduate, post-baccalaureate, or graduate student in a postsecondary educational institution that has chosen to participate in the TEACH Grant Program.
  • Be enrolled in coursework that is necessary to begin a career in teaching or plan to complete such coursework.  Such coursework may include subject area courses (e.g., math courses for a student who intends to be a math teacher).
  • Meet certain academic achievement requirements (generally, scoring above the 75th percentile on a college admissions test or maintaining a cumulative GPA of at least 3.25).  The GPA requirement does not apply to graduate degree candidates who are current teachers or retirees from another occupation with expertise in a field where there is a shortage of teachers (e.g. math, science, special education, English language acquisition, or another high-need field).
  • Complete TEACH Grant Initial and Subsequent Counseling and sign a TEACH Grant Agreement to Serve available online.

Your Agreement to Serve

Each year you receive a TEACH Grant, you must sign a TEACH Grant Agreement to Serve. This agreement requires the following:

For each TEACH Grant-eligible program for which you received TEACH Grant funds, you must serve as a full-time teacher for a total of at least four academic years within eight calendar years after you completed or withdrew from the academic program for which you received the TEACH Grant.

You must perform the teaching service as a highly-qualified teacher at a low-income school. The term highly-qualified teacher is defined in section 9101(23) of the Elementary and Secondary Education Act of 1965 or in section 602(10) of the Individuals With Disabilities Education Act.  Schools serving low-income students include any elementary or secondary school that is listed in the Department of Education’s Annual Directory of Designated Low-Income Schools for Teacher Cancellation Benefits.

Your teaching service must be in a high-need field:

  • Bilingual Education and English Language Acquisition
  • Foreign Language
  • Mathematics
  • Reading Specialist
  • Science
  • Special Education
  • Other identified teacher shortage areas as of the time you begin teaching in that field.  These are teacher subject shortage areas (not geographic areas) that are listed in the Department of Education’s Annual Teacher Shortage Area Nationwide Listing (Word document). 

You must comply with any other requirements that the Department of Education determines to be necessary.

If you do not complete the required teaching service obligation, TEACH Grant funds you received will be converted to a Federal Direct Unsubsidized Stafford Loan that you must repay, with interest charged from the date of each TEACH Grant disbursement.

Important Reminder

If you receive a TEACH Grant, but do not complete the required teaching service as explained above, you will be required to repay the grants as a Federal Direct Unsubsidized Stafford Loan, with interest charged from the date of each TEACH Grant disbursement.

Disclaimer

This fact sheet provides a preliminary summary of the TEACH Grant Program based on the College Cost Reduction and Access Act of 2007. The information in this document is subject to change and is not binding on the Department of Education or Morningside College.

Federal Direct Parent PLUS Loan

Non-Need-Based

This program is for parents of enrolled, dependent students. It offers alternative financing that replaces some or all of the expected family contribution (EFC). It is not need-based.

Eligibility

Eligibility is based on the parent borrower's credit.

Repayment

This is a loan and it must be repaid. Repayment typically begins within 60 days after the second disbursement has been issued to the college.

The interest rate is fixed at 7.21%.

Please note that the federal government may deduct up to 4.204% for origination and default fees.

Application

To apply, fill out the Federal Direct PLUS Loan Information Request Form, in addition to a Master Promissory Note and credit check.

Maximum Amounts

Parents can borrow up to the full cost of education, less any financial aid received by the student.

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