Grants & Loans
Grants are a form of financial aid that do not have to be repaid! Loans, however, do.
Grants
How to Apply
You can apply for all federal, state, and some institutional financial aid programs by completing the Free Application for Federal Student Aid (FAFSA) online at:
For more information on completing the FAFSA, visit Apply for Financial Aid.
Federal Pell Grant
A Pell Grant is money the government provides to eligible students each year. This grant is based on financial need and full payment can be made if the student carries 12 or more credit hours per semester. A student carrying one to 11 hours can receive a proportionately reduced award.
Pell Grant Policies: 2024-2025 and forward
Scheduled Pell Award
The Scheduled Pell Award is the maximum amount a student can receive during the award year if the student attends full-time for a full academic year
Annual Pell Award
The Annual Pell Award is the Scheduled Pell Award adjusted for enrollment intensity. The FAFSA Simplification Act (the Act) changes the way a Scheduled Pell Grant must be reduced for students enrolled less than full-time. Per the Act, the Pell Grant must be prorated according to the student's enrollment intensity rounded to the nearest whole percent.
Enrollment Intensity
Enrollment intensity is the percentage of full-time enrollment at which a student is enrolled, rounded to the nearest whole percent. For example, if full-time enrollment is 12 credit hours and the student is enrolled in 7 hours, the enrollment intensity would be 7 ÷ 12 × 100% = 58%.
Programs Offered in Standard Terms For federal student aid purposes, full-time enrollment for programs offered in standard terms is 12 credit hours. Below is a chart of enrollment intensity relative to full-time. Note that enrollment intensity cannot exceed 100% for purposes of Pell Grant proration.
| Credit Hours | Enrollment Category (Old) | Enrollment Intensity (New) |
|---|---|---|
| 12 (or more) | Full-Time | 100% |
| 11 | Three-Quarter Time | 92% |
| 10 | Three-Quarter Time | 83% |
| 9 | Three-Quarter Time | 75% |
| 8 | Half-Time | 67% |
| 7 | Half-Time | 58% |
| 6 | Half-Time | 50% |
| 5 | Less-than-Half-Time | 42% |
| 4 | Less-than-Half-Time | 33% |
| 3 | Less-than-Half-Time | 25% |
| 2 | Less-than-Half-Time | 17% |
| 1 | Less-than-Half-Time | 8% |
Use the following rules when determining Federal Pell Grant amounts.
- Subtract the student's SAI from the Max Pell, then round to the nearest $5 to get the Scheduled Pell Award for that student.
- If the Max Pell minus the SAI calculation results in a Scheduled Pell Award less than the Min Pell amount, the student is ineligible for Pell based on SAI. However, they may still be eligible for Min Pell if they meet the criteria described in Step 3 of the 2024-2025 Draft Pell Eligibility and SAI Guide.
- When using fractions, multiply first, then divide.
- If the Scheduled Pell Award exceeds COA, reduce the Scheduled Pell Award to COA (do not round; truncate cents).
Families making less than 175% and single parents making less than 225% of the federal poverty level will see their students receive a maximum Federal Pell Grant award. Minimum Pell Grants will be guaranteed to students from households below 275%, 325%, 350%, or 400% of the poverty level, depending on household structure. Pell awards between the maximum and minimum amounts will be determined by SAI.
Year-Round Pell
Students may be eligible to receive up to 150% of their Scheduled Pell Grant Award for an award year. The FAFSA Simplification Act made one change to Year-Round Pell. Previously, a Pell Grant-eligible student must have been enrolled at least half-time in a payment period during which they received more than 100% of their scheduled award. The Act removed the half-time enrollment requirement beginning with the 2024-25 award year but made no other changes to the Year-Round Pell provision.
Pell Regulations
The institution must receive an ISAR/SAR with an official SAI with a processed date prior to a student's last day of enrollment.
Pell Grant Recalculation Regulations
Southern State has a policy of disbursing aid after the official college drop/add period. This is referred to as the college's census date. However, for Pell Grant purposes only, there are some regulations that require the recalculation of the Pell Grant after the census date.
Required Pell Recalculations After Census Date
If the student's SAI changes due to corrections, updating or an adjustment, and the SAI change would change the amount of the Pell award, the college must recalculate the Pell award for the entire award year.
A student selected for verification cannot increase their eligibility based on a corrected output document that the student receives during the late disbursement period (definition outlined above). For example, if a student submits a reprocessed SAR during the late disbursement period (the student is not enrolled) and the SAR has a lower EFC which would increase the Pell Grant, the college cannot recalculate the Pell Grant based on higher award. The college will change the needs analysis based on the new SAI, but the Pell Award will be based on a lower amount. However, if the correction reduces the student's eligibility, we must recalculate based on the reprocessed SAI.
If the college receives the reprocessed SAR after the end of the payment period for a student who is still enrolled, the college must pay the Pell Grant retroactively for any completed payment periods within the award year (if the student was eligible for payment during the payment period). However, the college can only base a retroactive disbursement on completed hours. For example, if the student has enrolled full-time at the beginning of fall term but dropped to half-time status by the end of the term, the retroactive disbursement must be based on the completed (half-time status). For purposes of this regulation, completed hours include earned F's and incompletes. Students selected for verification have different guidelines listed below.
The college must pay a student retroactively for any completed payment periods within the award year if the student was eligible for payment in those periods. Thus, if the college does not receive a valid ISAR/SAR for a student until the spring term, but the student was also enrolled and eligible for a disbursement in the previous fall term, that student must be paid retroactively for the previous term if the student is currently still enrolled.
Pell Recipients Selected for Verification
If a student is selected for verification and submits all documentation and the funds are disbursed during the semester, the student's Pell Grant will be based on hours locked in at the college's census date and the valid SAR.
If the student selected for verification submits verification documentation after the term has ended and is still enrolled, the amount of disbursement will be based on the valid EFC and the hours attempted at the college' census date.
If the student is no longer enrolled or ceases to be eligible, the student can submit verification documentation and receive a late disbursement (120 days after the last date of enrollment). However, the amount of disbursement will be based on the highest SAR and hours completed, regardless.
For other need-based Title IV Aid (Federal Supplemental Educational Opportunity Grant (FSEOG), Federal Work-Study (FWS), and Direct Loan programs, PowerFAIDS converts any negative SAIs to a 0 SAI for awarding purpose.
Federal Supplemental Educational Opportunity Grant (FSEOG)
This is another federal grant provided to assist a student with exceptional financial need. Priority is given to those who are also Federal Pell Grant recipients. The amount awarded is therefore based on federal funding levels and college policy. A typical award at Southern State ranges from $200 to $300 per academic year.
Loans
How to Apply
To apply for student loans through the federal government you must first complete the Free Application for Federal Student Aid (FAFSA). The FAFSA results are received by the college and returned to you with the information on grants and/or loans, if you qualify. Southern State will mail the initial FAFSA results notification to your home address. If your application was selected for verification, the mailing will include documents required to complete the financial aid process in addition to borrowing student loans. Apply online at:
In an effort to reduce student borrowing, Southern State requires a Student Loan Request Form for all Federal Student Loans. Upon notification of your FAFSA awards from the Financial Aid Department you may complete the student loan request form. The loan request must be returned to the Office of Financial Aid. The student loan will be added to your financial aid package and a revised award letter will be mailed. If you are a first-time student loan borrower you must also complete the Required Counseling.
Federal Student Loans
Southern State understands the importance of managing the cost of education. In addition to grants, scholarships and federal work study, Southern State participates in the William D. Ford Federal Direct Student Loan Program. The loan program is designed to assist students with low-interest educational loans. The loan money comes from the federal government directly to Southern State. The loan proceeds are applied to the student account toward tuition, fees and other approved charges. If students borrow more than the direct charges (tuition, fees and books) the remaining money is mailed by check to the address that the student has on file with the college.
To obtain and determine eligibility for the loan students must complete the FAFSA (Free Application for Federal Student Aid). This loan may be Subsidized, Unsubsidized or a combination of both. The loan is in the student’s name and is repaid by the student. Loan amounts are based on cost of attendance, the grade level, dependency status and other financial aid resources of the student. Students must be enrolled and attend at least half time (6 semester hours) to be eligible for a student loan.
Subsidized Loan – This is a need based loan. The government pays the interest while the student is in school at least half time.
Unsubsidized Loan – This is a non-need based loan. Students are responsible for the interest from the time of disbursement until the loan is paid in full. The student may pay the interest while in school or the interest may be capitalized (added) to the principle amount. Students are encouraged to pay the interest to the loan servicer while they are in school.
Annual Subsidized (Sub) and Unsubsidized (Unsub) Loan Limits:
Dependent Student
- Freshman (0-29 Credits earned) up to $5,500 ($3,500 Sub and $2,000 Unsub)
- Sophomore (30+ Credits earned) up to $6,500 ($4,500 Sub and $2,000 Unsub)
Independent Student
- Freshman (0-29 Credits earned) up to $9,500 ($3,500 Sub and $6,000 Unsub)
- Sophomore (30+ Credits earned) up to $10,500 ($4,500 Sub and $6,000 Unsub)
Loan Fees – Currently the U.S. Department of Education will charge 1.057% as a fee for processing the loan. This fee is deducted from each disbursement of the loan.
Interest Rates – The interest rate for student loans is determined by the time when it was disbursed not when it is in repayment. Therefore, from year to year interest rates may vary.
Interest Rates for Direct Loans First Disbursed on or after July 1, 2023 and before July 1, 2024:
| Loan Type | Borrower Type | Fixed Interest Rate |
|---|---|---|
| Direct Subsidized Loans and Direct Unsubsidized Loans | Undergraduate | 5.50% |
| Direct PLUS Loans | Parents and Graduate or Professional Students | 9.08% |
Interest Rates for Direct Loans First Disbursed on or after July 1, 2024 and before July 1, 2025:
| Loan Type | Borrower Type | Fixed Interest Rate |
|---|---|---|
| Direct Subsidized Loans and Direct Unsubsidized Loans | Undergraduate | 6.53% |
| Direct PLUS Loans | Parents and Graduate or Professional Students | 9.08% |
Disbursements – The first disbursement of a loan for a first time borrower to Southern State must be delayed until 30 days into the first semester. Loan disbursements for returning borrowers are scheduled for the 5th week of the semester if all documents have been completed.
Master Promissory Note – All students who borrow a Federal Direct Loan are required to complete a Federal Direct Loan Master Promissory Note (MPN). The MPN can be completed online at https://studentaid.gov/mpn/. This is a contract with the U.S. Department of Education and is the promise to repay student loans. The MPN is good for up to 10 years and additional loans may be obtained using the same MPN.
Required Counseling
Entrance Counseling – Prior to receiving federal student loan funds all first-time borrowers are required to complete entrance counseling at www.studentaid.gov. A first-time borrower is someone who has no outstanding balance on a direct loan or federal family education loan (FFEL) program when he or she receives a direct loan or FFEL program loan on or after a specific date. You will need your FSA ID to log in. Entrance Counseling ensures you understand the terms and conditions of your loan and your rights and responsibilities. You will learn what a loan is, how interest works, your options for repayment, and how to avoid delinquency and default.
When you are finished, a record of your completion will be sent to the schools you selected. Keep in mind that you cannot save and leave an incomplete session; you must complete entrance counseling in one sitting.
First-time borrowers at SSCC will not have their loans disbursed until 30 days after the start of the term and attendance has been verified.
Exit Counseling – Exit counseling is required by law when you graduate, leave school, or drop below half-time enrollment. Exit counseling provides important information that you will need as you prepare to repay your federal student loan(s). During exit counseling, you will review the terms and conditions that apply to your federal student loans, be introduced to various repayment options, and learn the importance of avoiding default. Exit Counseling is completed at www.studentaid.gov. You will need your FSA ID to log in.
As part of the exit counseling process, you'll need to provide the name, address, email address, and telephone number of your closest living relative, two references who live in the U.S., and your current or expected employer, if known.
The office of Financial Aid at Southern State Community College will notify students who withdraw or drop below half-time enrollment during a term that loan funds are awarded and at graduation that counseling is required. You can view your federal student loan information by logging onto www.studentaid.gov. Your profile will provide personalized information like your federal student loan balance, disbursement dates, and contact information. You can also view information on your federal loan servicer(s).
Repaying Student Loans
Once you graduate, drop below half-time enrollment, or leave school, your federal student loans are subject to repayment. However, if you have a Direct Subsidized, Direct Unsubsidized, or Federal Family Education loan, you have a six-month grace period before you are required to start making regular payments. When your loan enters repayment, your loan servicer will automatically place you on the Standard Repayment Plan. A loan servicer is a company that the department of education assigns to handle the billing and other services of your federal student loans, at no cost to you. You can request a different repayment plan at any time by contacting your federal loan servicer. Below is a list of repayment plans, along with a brief explanation of each, that are currently available for students going into repayment. For additional information, visit "Loan Repayment" at www.studentaid.gov.
Fixed Payment Repayment Plans
The fixed payment repayment plans include the Standard Repayment Plan, the Graduated Repayment Plan, and the Extended Repayment Plan. These plans base your monthly payment amount on how much you owe, your interest rate, and a fixed repayment time period. If you want to be placed on one of these plans, contact your loan servicer.
When you leave school, you will be automatically enrolled in the Standard Repayment Plan unless you pick a different repayment plan.
| Fixed Plans | Eligibility | Monthly Payment Amount |
|---|---|---|
| Standard | These loan types are eligible:
|
Payments are a fixed amount that ensures your loans are paid off within 10 years (within 10 to 30 years for Consolidation Loans). |
| Graduated | These loan types are eligible:
|
Payments are lower at first and then increase, usually every two years. Payment amounts are designed to ensure your loans are paid off within 10 years (within 10 to 30 years for Consolidation Loans). |
| Extended | To qualify for this plan, you must have more than $30,000 in outstanding Direct Loans (if you're a Direct Loan borrower) or more than $30,000 in outstanding FFEL Program loans (if you're a FFEL borrower). These loan types are eligible:
|
Payments can be fixed or graduated and will ensure that your loans are paid off within 25 years. |
Income-Driven Repayment (IDR) Plans
IDR plans base your monthly payment amount on how much money you make and your family size. We offer four IDR plans:
- Saving on a Valuable Education (SAVE) Plan-formerly the REPAYE Plan
- Pay As You Earn (PAYE) Repayment Plan
- Income-Based Repayment (IBR) Plan
- Income-Contingent Repayment (ICR) Plan
After satisfying a certain number of months of qualifying payments on an IDR plan, you can get the remaining balance of your loan(s) forgiven.
Because payments are based on your income and family size, you must provide your loan servicer with updated income and family size information each year so that your servicer can recalculate your payment amount. This process is called recertification. You must recertify your plan even if there has been no change in your income or family size.
If you agree to the secure disclosure of your tax information, we and your loan servicer will automatically recertify your enrollment in IDR and adjust your monthly payment amount once a year. You’ll be notified when your payment is changing, and you'll always be able to recertify your plan manually.
| IRD Plans | Eligibility | Monthly Payment Amount |
|---|---|---|
| SAVE Plan | These loan types are eligible:
|
10% of discretionary income |
| PAYE Plan | To be eligible, you must be a new borrower on or after Oct. 1, 2007, and must have received a disbursement of a Direct Loan on or after Oct. 1, 2011. These loan types are eligible:
|
10% of discretionary income but never more than what you would pay under the 10-year Standard Repayment Plan |
| IBR Plan | These loan types are eligible:
|
Either 10% or 15% of your discretionary income (depending on when you received your first loans) but never more than what you would pay under the 10-year Standard Repayment Plan |
| ICR Plan | These loan types are eligible:
|
The lesser of
|
Debt Management
Student loan debt awareness is critical to the success of students at Southern State. Unfortunately, not every student qualifies for free or non-loan financial assistance. The Office of Financial Aid at Southern State strives to help students with debt awareness and borrowing wisely.
Borrow Only What You Need
Education is an investment in the future. Borrow only the amount of loan that is needed. Federal Subsidized and Unsubsidized Loans are offered to students at maximum levels to provide the full financial aid based on the cost of attendance at Southern State. Before accepting student loans on the award letter, students should determine what is needed to cover expenses. The award offer provides estimated expenses per semester in addition to all financial aid awards. The award letter will provide a breakdown of direct costs (money owed to the college) such as tuition and books, as well as indirect cost (money not charged directly to students) such as transportation.
Accepting loan money can be easy. Repayment can be more difficult. To determine potential salary and job information for the degree or major you are seeking visit mappingyourfuture.org. It is important to understand the comparison between what you are borrowing and the anticipated salary range for the job or career you choose. This information can help assist in budget preparation. Look at the total loan debt but also at the monthly payment associated with the loan. This will help to determine what students can reasonably expect to repay upon entering repayment of the student loan.
Know Your Current Student Loan Debt
As a student loan borrower students can check on how much in loans they have borrowed to-date by logging on to nsldsfap.ed.gov. Tools within the website are designed to assist with understanding repayment amounts based on the size of student loan debt. Students who have prior student loan debt will receive a copy of their student loan history from the nslds website within the award package.
Parent PLUS Loans
Parents may borrow a Parent PLUS Loan for their dependent student up to the cost of attendance minus other awarded financial aid. You must be the biological or adoptive parent (or, in some cases, the stepparent) of the student for whom you are borrowing.
- Your child must be a dependent undergraduate student who is enrolled at least half-time at a school that participates in the Direct Loan Program. Generally, your child is considered dependent if he or she is under 24 years of age, has no dependents, and is not married, a veteran, a graduate or professional degree student, or a ward of the court. Learn about dependency status at StudentAid.gov/dependency.
- You cannot have an adverse credit history (a credit check will be done).
- In addition, you and your child must be U.S. citizens or eligible noncitizens (see StudentAid.gov/noncitizen), not be in default on any federal education loans, not owe an overpayment on a federal education grant, and meet other general eligibility requirements for the federal student aid programs.
How do I request a Direct Parent PLUS Loan?
Your child must complete the Free Application for Federal Student Aid (FAFSA®). The fastest and easiest way to complete the FAFSA is online at fafsa.gov, but there are several ways to complete it. Check with the financial aid office for other ways to complete the FAFSA.
Go to https://studentaid.gov/PLUS-app/ to apply. You (the parent) must also complete the Federal Direct PLUS Loan Master Promissory Note (MPN). The MPN explains the terms and conditions of your loan and is your legal agreement to repay your loan to ED. In most cases, a single MPN can be used for loans that you receive over multiple academic years. To complete the MPN go to https://studentaid.gov. You will need your FSA ID information to complete both the PLUS loan application and the MPN.
What happens after a parent PLUS loan application is received
- Southern State will receive your Direct Parent PLUS loan information from Federal Student Aid and we will review the application.
- If the Parent PLUS loan is approved we will add the loan to the student account, up to the cost of attendance minus any other aid they have, and the student will be able to review their funding on MyRecords.
- We will send out a student loan award letter showing the Parent PLUS loan and any other aid the student might have on their account.
- If the parent borrower is denied, the parent can reapply with an endorser or the student can be eligible for an additional Unsubsidized loan of up to $4,000 for the academic year. SSCC will send an email to the student's SSCC email letting them know how to apply for the additional Unsubsidized Direct Loan. The amount of the additional loan can vary, but cannot exceed the cost of attendance. Students cannot receive both the Parent PLUS loan and the additional Unsubsidized loan.
- If the Parent PLUS loan is approved, the loan will be disbursed the 5th week of the semester to the student's account if all the requirements for the PLUS loan are been completed. If there is a credit balance due from the Parent PLUS loan, refunds will be sent to either the student or parent depending on how they answered the question on their application about where they want their credit balance to be sent.
Repayment of Parent PLUS loan
Repayment of the Parent PLUS loan is made by the parent and cannot be transferred to the student. The repayment period begins 60 days after the parent received the last installment of the loan for a school year. To request or postpone payments until after the student is graduated or withdrawn parents should contact the loan servicer.
Alternative Loans
These are loans based upon the credit rating of the student or parents. Eligibility is determined by the lender. Southern State does not promote any particular vendor, but will certify any qualified candidate.
