Federal Aid


Federal Pell Grant

The Federal Pell Grant is awarded to assist undergraduate students pay for their college education. Unlike Federal Direct Loans, grants do not have to be paid back.  Students who have earned a Bachelor’s degree are not eligible to receive the Pell Grant. To qualify for a Pell Grant, a student must have financial need (as indicated by the FAFSA) and be enrolled in a degree seeking program on a full or part time basis. The maximum award is disbursed over two semesters.

Year-Round Pell

The U.S. Department of Education Appropriations Act of 2017 allows a student to receive a Federal Pell grant for up to 150% of the student’s Pell Grant Scheduled Award.  This provision is effective beginning with the 2017-2018 award year.

Eligibility:

  • Must be eligible to receive the Federal Pell Grant for the payment period
  • Must be enrolled in at least half-time status (6 credit hours) in the payment period for which the student will be awarded the additional Pell grant funds
  • The financial aid office at CLTCC will post your Year Round Pell amount before the beginning of the summer semester.  The available amount will be calculated based on your Pell Grant usage and your remaining eligibility at the 100% scheduled award, plus the additional 50%.
  • Students must use 100% of the initial Pell grant in Fall and Spring in order to expand to 150% Pell Grant eligibility for the summer semester.

Year-Round Pell Calculations:

The student was enrolled full time in both the Fall 2017 and Spring 2018 semesters and has an Expected Family Contribution (EFC) of 0.  The student enrolls full time for the Summer 2018 semester.

Scenario 1

Fall 2017

Spring 2018

Summer 2018

Enrollment

12 credit hours

12 credit hours

12 credit hours

Pell Grant Award

$2960

$2960

$2960

Percentage of Pell Used

50%

50%

50%

Student was enrolled full time in the Fall 2017 and Spring 2018 semesters. The student also has an Expected Family Contribution (EFC) of 0, and will enroll half-time for the Summer 2018 semester.

Scenario 2

Fall 2017

Spring 2018

Summer 2018

Enrollment

12 credit hours

12 credit hours

6 credit hours

Pell Grant Award

$2960

$2960

$1480

Percentage of Pell Used

50%

50%

25%

The student was enrolled full time in the Fall 2017 semester and ¾ time in the Spring 2018 semester. The student also has an Expected Family Contribution (EFC) of 0 and will enroll in 12 credit hours for the Summer 2018 semester.

Scenario 3

Fall 2017

Spring 2018

Summer 2018

Enrollment

12 credit hours

9 credit hours

12 credit hours

Pell Grant Award

$2960

$2220

$2960

Percentage of Pell Used

50%

37.5%

50%

Pell Lifetime Eligibility Limit

The amount of Federal Pell Grant funds a student may receive over a student’s lifetime is limited by a new federal law to be the equivalent of six years of Pell Grant funding. Because the maximum amount of Pell Grant funding a student receives each year is equal to 100 percent, the new regulations state that a student may receive up to 12 full time semesters or the six year equivalent of 600 percent.

Whether a student has used all of his/her Pell Grant eligibility or only a portion, the student needs to be aware of the lifetime limit of the Pell Grant when changing majors and/or scheduling classes. The Pell Grant equivalent of 600 percent will be for the student’s entire award history.

To view Pell Grant Lifetime Eligibility Used, (Pell LEU), students can log on using their FSA ID and Password to the National Student Loan Data Systems (NSLDS) at www.nslds.ed.gov/nslds_SA/ to view the LEU. This will be found on the Financial Aid review page. This information will include all of the Pell grants received over a student’s lifetime for any college attended.

For additional information on the Pell Grant program, please visit http://studentaid.ed.gov/types/grants-scholarships/pell/calculate-eligibility.

Federal Supplemental Educational Opportuntity Gran (FSEOG)

FSEOG money is limited and available only for those who have exceptional financial need. Students with exceptional financial need are those who are eligible to receive a Federal Pell Grant, have the lowest Expected Family Contribution (EFC), are enrolled at least half-time and still have unmet financial need.

Federal College Work-Study (FWS)

The Federal Work-Study (FWS) program encourages and provides part-time employment for students to assist in meeting the cost of attending college. Hourly wages must not be less than the minimum wage.  Students must complete the Free Application for Federal Student Aid (FASFA) as part of the application process, and must indicate on the FAFSA that they are interested in Federal Work-Study. 

Community Service jobs are defined as positions that improve the quality of life for community residents, particularly low income individuals, or solve particular problems related to their needs, including on campus child care services that are open and accessible to the community and that they meet other FWS conditions and limitations.

The Family Literacy Program provides literacy or pre-literacy education to children and literacy training for parents or other caregivers of children in the program.  It also provides a means of equipping parents or other caregivers with the skills needed to partner with their children in learning as well as providing literacy activities between parents or other caregivers and their children.

Student Eligibility:

  • Students must meet the eligibility requirements for student aid.  There is no restriction for students who have previously earned a bachelor’s degree.
  • Students must be approved for a Federal Work Study position by the FWS coordinator before beginning employment, and must pass a background check.
  • Students must also demonstrate financial need as determined by the FAFSA and be enrolled in a course of study leading to a degree or certificate.  Students must be enrolled in at least 6 credit hours.

Federal Direct Loans 

First Time Borrowers

All First Time Borrowers must receive loan counseling before any loan funds can be disbursed.  Students must complete a Master Promissory Note and Entrance Counseling at www.studentloans.gov.  You must have  your FSA ID and Password to log in. 

Federal regulations require that the College delays delivering the proceeds of educational loans to first time borrowers until 30 days after the start of classes.

Types of Loans

Direct Subsidized Loans

The Federal Subsidized Loan is a loan that must be repaid upon completion of school or interruption of studies. The student who qualifies may borrow up to $3500 for the academic year as a freshman and $4500 as a sophomore.  All borrowers are required to complete Entrance Counseling at www.studentloans.gov.

  • Are awarded to students who demonstrate financial need as indicated on the FAFSA
  • Students must be enrolled in school at least half-time (6 credit hours) to be eligible to receive the loan
  • The payments on the loan begin 6 months after the student exits, graduates from the program, or drops below half-time enrollment.
  • Fixed Interest Rate not to exceed 6.8%
  • 1.5% Loan Origination fee DOES apply
  • Amount of loan offered is determined by grade level or hours earned at CLTCC.
  • Students are required to be actively enrolled for at least 6 credit hours each semester to maintain loan eligibility.

150 Percent Direct Subsidized Loan Limit

In July 2012, President Obama signed the Moving Ahead for Progress in the 21st Century Act to cover the temporary extension of the 3.4 percent interest rate on Direct Subsidized Loans through June 30, 2013.  This new law, commonly called the 150 Percent limit, includes two key changes for certain Direct Subsidized loan borrowers:

  • Limitation on Direct Subsidized loan eligibility
  • Potential loss of interest subsidy.

On May 16, 2013, the U.S. Department of Education issued an Interim Final Rule which became effective on the date of publication. These regulations only apply to first time borrowers on or after July 1, 2013, and limit the time students may borrow Direct Subsidized loans to no more than 150 percent of the published length of the student’s educational program.

New borrowers who reach the 150 percent limit:

  • Do not qualify for Direct Subsidized loans for future enrollment unless they enroll in a longer program of study
  • May lose interest subsidy for prior loans when they:
    • Received Direct Subsidized loans for 150 percent of the length of a program of study; AND
    • Have not completed their programs; AND
    • Continue to be enrolled on at least a half-time basis in the same program, a different program of the same length or a program of shorter duration.
  • For students who lose interest subsidy, interest on affected loans may begin to accrue in the same manner as interest on unsubsidized loans.  Those prior loans do not become unsubsidized loans; rather, they remain Direct Subsidized loans but no longer qualify for interest subsidy.

Direct Unsubsidized Loans

Direct Unsubsidized loans enable students to borrow regardless of need.  Interest will accrue on this loan while the student is enrolled and may be paid or capitalized as agreed by the borrower and the lender. If a student elects to pay the interest payment during school, the student can complete a Master Promissory Note (MPN) electing to pay. If a student elects not to pay the interest payments during the school, the interest will be added, or capitalized onto the principle balance at repayment, which means that the interest will be added to your principle balance.

  • Financial need not required to receive this loan
  • Interest begins to accrue once the first disbursement is made
  • Payments on the principal may be deferred while students are enrolled at least half-time, during authorized periods of deferment and through the grace period. Students may choose to capitalize the interest, have it added to the principal, capitalization increases the total cost of the loan.
  • Payments on total amount of loan start 6 months after student leaves, graduates from program or drops below part-time (less than 6 hours)
  • Fixed interest rate not to exceed 6.8%
  • 1.5% loan origination fee does apply
  • Amount offered is determined by dependency status.

Direct Plus Loan For Parents

The Direct Plus Loan for Parents allows parents of dependent students to borrow per year up to the cost of attendance less any other aid.  The repayment period begins on the day the loan is disbursed and the first installment to the Department of Education is due within 60 days of that date. This loan is not based on need.

The student must meet the eligible student definition according to Federal Regulations and Central Louisiana Technical Community College criteria; the student must meet Satisfactory Academic Progress requirements and enrolled in at least half-time in credit hour courses.

The parent applying for the loan is the one responsible for repaying the loan.  Parent is defined as your parent, adoptive parent, or step-parent.

A Plus loan is available without regard to financial need and may include the full cost of education minus other forms of financial aid.

The lender is required to verify that the parent borrower does not have an adverse credit history.

  • Must be repaid
  • Available only to parents of dependent students
  • Fixed interest rate of 7.9%, which begins to accrue when the funds are disbursed
  • 4% loan origination fee does apply
  • Borrower has the option to start repayment 60 days after the loan is fully disbursed or 6 months after the student leaves school, graduates from program or drops below part-time (6 hours)
  • Subject to a credit check

Mandatory Exit Counseling

Each loan recipient is required by federal regulations to participate in an exit interview. Students should complete Exit Counseling online at www.studentloans.gov. Exit counseling must be completed each time a student

  • Drops below 6 hours
  • Graduates
  • Leaves school