Federal Financial Aid
General Eligibility for Federal Financial Aid Programs
- File a Free Application for Federal Student Aid (FAFSA) each year.
- Be admitted as a matriculated student in a degree or certificate program at Pace University.
- Enroll in at least 6 credits per semester (except for Pell Grants).
- Maintain Satisfactory Academic Progress toward degree.
- Be U.S. citizen or eligible non-citizen (permanent residents, certain refugees).
- Register for Selective Service (only applicable to males ages 18 and older).
- Not be in default of a federal student loan.
- Not owe a repayment on a federal student grant.
- Have and provide a valid Social Security Number.
Federal Pell Grant Program
Matriculated students who have not previously received a bachelor’s degree may be eligible to apply for this federal grant. Eligibility is based on financial Need as determined by the Federal Need Analysis Formula. Applicants must be accepted to an undergraduate degree or certificate program and be enrolled for at least one credit per semester. Students must maintain Satisfactory Academic Progress (p. 7). Awards for the 2020-2021 academic year range from $320 to $6,345. Students must complete the Free Application for Federal Student Aid (FAFSA) annually, and list Pace University as a school to be attended on the form. Students may receive Pell Grants for a maximum of 12 full-time semesters or the equivalent.
Federal Supplemental Opportunity Grants (FSEOG)
Federal funds are available for a limited number of undergraduate students with exceptional financial need who are matriculated (accepted to a degree or certificate program) and who are enrolled for at least six credits per semester. Students must maintain Satisfactory Academic Progress to receive FSEOG. The amount of the grant typically ranges from $100 to $2,400 per academic year at Pace University based on the level of our federal funding. The Financial Aid Office determines who will receive FSEOG and the amount of the grant. A student must be a Pell Grant recipient to receive FSEOG. Students must complete the Free Application for Federal Student Aid (FAFSA) annually, and list Pace University as a school to be attended on the form. FSEOG funds are extremely limited; generally only students who file the FAFSA by the November 15th priority deadline each year will be considered for FSEOG
Federal Work-Study Program (FWS)
Federally subsidized employment opportunities are available to students with financial need who are matriculated (accepted to a degree or certificate program) and who are enrolled for at least six credits per semester. Students must maintain Satisfactory Academic Progress to receive FWS. Students must complete the Free Application for Federal Student Aid (FAFSA) annually, and list Pace University as a school to be attended on the form.
Students receiving Federal Work Study awards may be employed on campus by Pace University. Most of the students approved for Federal Work Study can be placed in jobs, but it is the student’s responsibility to research job openings and to successfully obtain a position. Students interested in on-campus employment should visit Pace University’s Human Resources Department’s Careers at Pace site (http://www.pace.edu/human-resources/careers-pace) on the web for links to the application system and instructions.
Numerous off-campus positions are also available through the America Reads/Counts/JumpStart program which allows Pace students the opportunity to tutor young children to help improve their reading and math skills. Applications and eligibility criteria for this program are available through the New York City Campus Dyson College offices.
It is important to understand that any Federal Work Study award included on a Financial Aid Award Notice only represents the student's eligibility to earn FWS funds. These funds will not be available at the start of the academic year to pay the Fall semester bill. Federal Work Study paychecks are issued twice each month based on the number of hours worked and the hourly wage rate. Paychecks are issued on a half-month delay which means that students will be paid on September 30th for hours worked from September 1st through 15th . Employment under the program will normally average 10–15 hours per week while classes are in session. During vacation periods, students may work up to 40 hours per week. Total earnings under Federal Work Study are limited to the award amount authorized by the Financial Aid Office.
Students who have not been awarded Federal Work Study who have filed the FAFSA and who have financial Need, may ask the Financial Aid Office to review their eligibility. In addition, non-FWS recipients may also apply for most on-campus jobs.
Federal Direct Stafford Loans
Undergraduate students who have been accepted to a degree or certificate program may apply for loans of up to $3,500 for the freshman year (up to 31 credits earned), $4,500 for the sophomore year (32 to 63 credits earned), and $5,500 for junior and senior years (64 or more credits earned).
Students who demonstrate financial need, qualify for the Subsidized Direct Stafford Loan. Subsidized loan recipients pay no interest during the period of enrollment and for a six-month grace period after the last day of their final semester or termination of half-time study. Students who do not demonstrate financial need may receive an Unsubsidized Direct Stafford Loan for the same amounts. Interest accrues on the Unsubsidized loan as soon as the loan is disbursed.
Dependent undergraduates may borrow an additional Unsubsidized Direct Stafford Loan of $2,000 per year. Independent undergraduates or Dependent undergraduates whose parents have been denied a Federal Direct Parent Loan (see below) may borrow an additional Unsubsidized Direct Stafford Loan of $4,000 per year as a freshman or sophomore and $5,000 per year as a junior or senior.
Interest begins accruing on Unsubsidized Stafford loans as soon as the loan is disbursed. We strongly recommend that the student try to make interest payments on these loans while in school to avoid having the interest added to the principle of the loan after leaving school.
All applicants, regardless of income level, are required to file the Free Application for Federal Student Aid (FAFSA). The Financial Aid Office will calculate the student’s eligibility for Federal Direct Stafford Loans and include them on the Financial Aid Award Notice. Once the student accepts a Federal Direct Stafford Loan, the Financial Aid Office will originate the loan with the federal government’s Common Origination and Disbursement Center beginning approximately June 1st and on a daily basis thereafter. The student will then need to sign the Master Promissory Note (MPN) for the Direct Stafford Loan (if the student has not previously borrowed a Direct Loan and signed an MPN). First time borrowers must also complete Loan Entrance Counseling before the loan funds can be disbursed to their college accounts. This requirement is also satisfied online at https://studentaid.ed.gov/sa/types/loans.
To qualify for a Federal Direct Stafford Loan, students must be matriculated in a degree or certificate program and enrolled for at least six credits per semester. Students must maintain Satisfactory Academic Progress to receive Direct loans. Only U.S. citizens or eligible non-citizens are eligible.
Students are currently charged a 1.059% loan origination fee that is assessed on the face value of each loan borrowed. This fee is deducted prior to disbursement of funds. Repayment of the principal on these loans begins six months after graduation or after the student ceases to be enrolled for at least 6 credits per semester. The minimum monthly installment is generally $50 including interest. The interest rate for new Subsidized and Unsubsidized Direct Stafford loans first disbursed on or after July 1, 2019, is a fixed rate. The maximum rate for loans first disbursed on or after July 1, 2020 is 2.75%. The standard repayment period is 10 years, but students may extend repayment under the Consolidation Loan Program or by selecting the Graduated, Extended, Income-Based, Pay as you Earn, or Income-Contingent repayment plan. The aggregate borrowing limit for undergraduate study is $31,000 for Dependent students and $57,500 for Independent students. Of those aggregate amounts, up to $23,000 may be borrowed in the form of a Subsidized Stafford Loan.
Repayment of the whole or part of the loan may be made in advance at any time without an interest penalty. Borrowers may defer repayment for up to three years while the student serves in the Armed Forces, Peace Corps, or as a full-time volunteer in VISTA.
For additional information on the Direct Stafford Loan program, please visit: https://studentaid.ed.gov/sa/types/loans.
Federal Direct Parent Loan for Undergraduate Students (PLUS)
The parents of a dependent student may borrow up to the full Cost of Attendance minus other financial aid, for each academic year for a child matriculated into a degree or certificate program. Parent loans have a fixed interest rate of 5.30%. Loan repayment begins within 60 days after disbursement. However, parents may request a deferment (from the federal Loan Origination Center) until six months after the student graduates or ceases to be enrolled in at least 6 credits. The standard repayment period is 10 years, however alternate repayment options are available. All borrowers are required to pay an origination fee. Currently the loan origination fee is 4.236% and is deducted from the face value of each loan borrowed.
Parents (biological or adoptive) or step-parents (currently married to the parent) of dependent matriculated students may borrow through this program. The student must be enrolled at least half time (6 credits per semester) and must maintain Satisfactory Academic Progress. The parent/ step-parent must have a positive credit history. Both the parent/step-parent and the student must be U.S. citizens or eligible non-citizens. Neither the parent/step-parent nor the student may be in default of a federal student loan or owe a repayment on a federal grant. The student must have filed a Free Application for Federal Student Aid (FAFSA) for the parent to be eligible for a PLUS loan.
The Financial Aid Office includes its “Parent Loans For Students (Plus) - Request For Federal Direct Plus Loan And Consent To Obtain Credit Report” form with Award Letters and has them available in the offices or on the Financial Aid website, under “Forms”. Parents who wish to borrow a PLUS loan must complete this form and submit it to the Financial Aid Office. Upon receipt of this form, the Financial Aid Office will originate the loan with the federal government’s Common Origination and Disbursement Center beginning approximately June 1st and on a daily basis thereafter. If credit-approved, the parent must sign a Master Promissory Note (MPN) if not previously completed. The MPN can be signed online at www.studentloans.gov. There is no ‘Need” requirement for this loan. The parent/step-parent may borrow up to the cost of attendance per student minus financial aid available to the student. Funds are disbursed twice during the loan period. However, PLUS loans cannot be used to replace the student’s eligibility for the Stafford Loan, so it is generally to the family’s advantage to have the student borrow the lower interest rate Stafford Loan. Parents must reapply each year if they want a PLUS loan.
As with all student loans, Parent Loans for Undergraduate Students are to be used exclusively for educational expenses.
Nursing Student Loan (NSL)
Up to $2,500 per academic year may be borrowed by students matriculated in a program leading to a degree in nursing. Eligibility is limited to students with exceptional financial need. Repayment begins nine months after the borrower ceases at least half-time study in a school of nursing and may extend over a 10-year period. During the repayment period interest will be charged at the rate of 5% on the unpaid balance of the loan. The minimum monthly installment will be $40 plus interest. Repayment of the whole or part of the loan may be made in advance at any time without penalty.
Borrowers must arrange for an exit interview with the Collection’s Office during their final semester at Pace University.