Financial Aid

Financial aid is money used to pay for your education and associated expenses. The best way to finance your education is through money you don’t have to repay, such as grants and scholarships. If you can’t get enough free money to pay for college and you aren’t able to cover your costs with savings or other resources, student loans are another option.  Here are some of your financial aid options.

Types of Financial Aid

Pell Grants

The Federal Pell Grant is awarded to students based upon the information the student and parent(s), if dependent, provide on the Free Application for Federal Student Aid (FAFSA). The Pell Grant is based on need as assessed by the U.S. Department of Education. For the 2010-2011 academic year, the Pell Grant ranges from $400 to $5550. Grant limits have not been set for 2011-2012.

FSEOG

The Federal Supplemental Educational Opportunity Grant is awarded to students based upon the information the students and their parent(s) provided on the FAFSA. Funds are awarded to students who have been awarded Pell Grant and have the lowest Expected Family Contributions. Award range varies from year to year based on school funding.

Cal Grants A & B

The Cal Grant is a California state scholarship program that is dependent on the California State Budget and is available only to students who are residents or children of taxpayers in California. Eligibility for Cal A or B is determined by the California Student Aid Commission (CSAC) based upon family income, assets and the academic record of the student. Awards are scheduled to be $9708. Cal Grant B also carries a stipend of an additional $1551 that is credited to your student account. 

Federal Work-Study (FWS)

Federal Work-Study is part of the financial aid package providing jobs for undergraduate with financial need, allowing them to earn money to help pay educational expenses.

Subsidized Direct Loans

Awards are based on need. On the subsidized loan, the federal government is paying the interest for you while you’re in school. Repayment begins six months after you graduate or drop below half-time status. For loans disbursed between July 1, 2010 and June 30, 2011, the interest rate is fixed at 4.6% and is paid for the student while in school.  Maximum award amounts depend on your year in school and range from $3500 to $5500 for undergraduates.

Unsubsidized Direct Loans

These loans are not based on financial need. Interest is accruing on the loan while you are in school. Repayment begins six months after you graduate or drop below half-time status. For loans disbursed between July 1, 2010 and June 30, 2011, the interest rate is fixed at 6.8%. Independent students and undergraduate students whose parents do not qualify for the PLUS Loan program (see below) may also apply for additional Unsubsidized Federal Direct Loan funds. (Parents of independent undergraduate students cannot apply for PLUS loans). Maximum unsubsidized loan amounts are $4000 for first and second year students and $5000 for third and fourth year students.

Federal Direct Parent Loans

PLUS loans are not based on financial need so parents may borrow from this program to replace a part or all of the Expected Family Contribution. The maximum loan is based on the Cost of Attendance minus other financial aid. These loans are available to parents who have satisfactory credit histories and whose dependent students are studying at least half time. The interest rate for the PLUS loan is 7.9%. Interest accrues and repayment begins 60 days after the final disbursement for the year. However, if requested, loans can be deferred until the student graduates.

Private Loans

Private loans may be available to help bridge the gap between financial aid and the cost of education. The terms of these loans differ according to the lender and you should compare the information to determine which loan best suits your needs.

Palo Alto University Scholarship

Entering students are eligible to apply the PAU Scholarship.  Students who apply and are selected can receive awards from $250. to $5,000 per academic year. Commitment to community service is a major consideration in selecting recipients. International students are considered for these awards. Awards are based on academic merit and financial need:  Palo Alto University Scholarship Form.