Federal Direct Parental Loans for Undergraduate Students (PLUS)
Federal Direct PLUS Loans allow parents of dependent undergraduate students to borrow up to the full cost of college less other student aid. There is no need requirement for the PLUS loan, but the student must file a FAFSA and parents must pass a credit review in order to qualify for the loan. Repayment may be deferred for up to six months after the student is no longer enrolled at least half time. However, interest does accrue on the loan and is capitalized into the loan principal before repayment begins. The interest rate on these loans is fixed at 6.84 percent. Federal Direct PLUS Loans have an origination fee of 4.292 percent.
Federal Pell Grants
Eligibility for a Federal Pell Grant is determined by the United States Department of Education, using a national formula. These grants range up to $5,775 annually. Actual awards vary according to the cost of attendance, the student’s enrollment status (full, three-quarter, half, or less than half time), and a family’s expected contribution.
Federal Perkins Loans
Perkins loans are long-term, low-interest (5 percent) loans. Eligibility for a Federal Perkins Loan is based on financial need as determined by the Office of Student Financial Aid using information from the FAFSA. Annual loan amounts may total up to $5,500 for undergraduates and $8,000 for graduate students. The cumulative borrowing limit is $27,500 for undergraduates and $60,000 for graduate students. Actual award amounts vary depending on federal funding levels, and priority is given to those applicants with the greatest need. Repayment begins nine months after graduation or after dropping below half-time status (6 credits per semester). Students may be allowed up to 10 years to repay; however, a minimum monthly repayment of $40 is required. This program will be gradually phased out after the 2015-2016 academic year. Only students who received loans at Rhode Island College prior to 2015-2016 will be eligible for loans in subsequent academic years.
Federal Direct Loans
Eligibility for a subsidized Federal Direct Loan is based on financial need as determined by the Office of Student Financial Aid using information from the FAFSA. Subsidized loans are interest free during the student’s period of enrollment. Students have a six-month grace period after leaving school or dropping below half-time status before repayment begins, but interest will accrue during this period. Unsubsidized Direct Loans, which do not require financial need, have an interest charge during the in-school and grace periods.
Effective July 1, 2015, both subsidized and unsubsidized loans for undergraduate students have a fixed interest rate of 4.29 percent. Both loans also have a 1.073 percent origination fee. In addition, as of July 1, 2012, subsidized loans are limited to undergraduate students.
Annual loan limits are as follows:
$5,500 for freshmen, but only $3,500 can be subsidized
$6,500 for sophomores, but only $4,500 can be subsidized
$7,500 for upper-class undergraduates, but only $5,500 can be subsidized
$20,500 for graduate students
Financially independent undergraduate students may apply for an additional unsubsidized loan of $4,000 in the freshman and sophomore years and $5,000 in the junior and senior years.
Aggregate loan limits are as follows:
$31,000 for undergraduate dependent students, but no more than $23,000 can be subsidized
$57,500 for undergraduate independent students, but no more than $23,000 can be subsidized
$138,500 for graduate students
Federal Supplemental Educational Opportunity Grants
Eligibility for a Federal Supplemental Educational Opportunity Grant is based on financial need as determined by the Office of Student Financial Aid, using information from the FAFSA. Awards range from $100 to $4,000 per year, depending on funding and student need. Priority for funding is given to students who are eligible to receive Federal Pell Grants.
Federal Work-Study Program
This is a part-time employment program based on financial need. A work-study award is paid biweekly at an hourly rate based on hours worked. Wage rates reflect both the level of responsibility and the experience of the student worker. Eligibility is determined by the Office of Student Financial Aid using information from the FAFSA. The Career Development Center helps work-study students identify opportunities both on and off campus; however, Rhode Island College cannot guarantee that a student will secure a work-study position.