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 7.60 percent. Federal Direct PLUS Loans have an origination fee of 4.248 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 $6,195 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 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, 2018, both subsidized and unsubsidized loans for undergraduate students have a fixed interest rate of 5.05 percent. Both loans also have a 1.060 percent origination fee. Subsidized loans are limited to undergraduate students. The unsubsidized loan interest rate for graduate students as of October 1, 2018 is 6.60 percent with a 1.062 origination fee.
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.
Independent undergraduate students (as determined by the FAFSA) may be eligible 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 students with work-study awards identify opportunities both on and off campus; however, Rhode Island College cannot guarantee that a student will secure a work-study position.