UNV 11000

1. Financial Aid 101:
Key Concepts

2. Financial Aid 101: Welcome
Welcome to Ottawa University! We are truly
excited to have you joining our family. We are
here to answer your questions and provide you
with information on financial aid and how you
can successfully and affordably complete your
education.

3. Financial Aid 101: Applying for Financial Aid
Be a U.S. Citizen or eligible non-citizen
Maintain satisfactory academic progress
Be enrolled in a degree or certificate program
Attend a participating college
If male, you must register with the Selective Service
Be in good standing on any previous student loans
(no defaulted loans)
Some of the eligibility requirements for financial aid are:

4. Financial Aid 101: Types of Financial Aid
Federal Pell Grant
Federal Direct Loans (Subsidized/Unsubsidized)
Federal Direct Parent PLUS Loan
Private/Alternative Loans
Other (VA, outside scholarships, employer
reimbursement etc.)

5. Financial Aid 101: Federal Pell Grant
Free money that does not need to be repaid
Available to Undergraduate students only (if you already have a Bachelor’s
degree, you are not eligible to receive Pell).
Award Amount is based on the Expected Family Contribution (EFC) number
from your FAFSA as well as your enrollment status each term. Your EFC must
be 0 (zero) and you must be enrolled full-time for a full academic year to qualify
for the maximum Pell. The Pell amounts decrease as the EFC increases.
The FAFSA is the application for Pell and must be completed annually, using
Ottawa University’s school code: 001937.
The Pell Grant Fiscal Year is July 1st through June 30th.

6. Financial Aid 101: Key Concepts
1
• It is determined by a federal formula
calculated using data from the FAFSA.
2
• The EFC may change from year to year.
3
• Your EFC helps the Financial Aid department
determine how much and what type of
financial aid you are eligible for.
What is the Expected Family Contribution (EFC)?

7. Financial Aid 101: Federal Direct Loans
Subsidized Loan
Available to Undergraduate students only
The loan starts with your enrollment.
Loans are scheduled for one academic year at a time.
Interest rates are fixed and won’t exceed 8.25%*
Interest is paid by the government while you are in school**.
Repayment begins 6 months after you leave school.
Eligibility is based on financial need (EFC). Not everyone qualifies for subsidized
loans.
*as of 7/1/16, interest rates are 3.76% with fees of 1.069%. Interest and fees are set by Congress and subject
to change. Contact the school for current rates.
**New borrowers as of 7/1/13 are eligible for subsidized loans for a limited time (up to 6 years for an
Undergraduate student). Interest subsidies may be lost if the student hasn’t graduated within this timeframe.

8. Financial Aid 101: Federal Direct Loans
Unsubsidized Loan
The loan starts with the students enrollment.
Loans are scheduled for 4 terms (32 weeks) at a time.
Interest rates are fixed and won’t exceed 8.25%*
You are responsible for the interest that accrues as the loan is disbursed. You
can make interest payments while in school (recommended) or you can
capitalize the interest (add it to the principal of the loan) and repay during
regular repayment period (will end up paying interest on interest).
Repayment begins 6 months after you leave school.
*as of 7/1/16, Undergrad interest rates are 3.76% with fees of 1.069% and Graduate interest rates
are 5.31% with fees of 1.069%. Interest and fees are set by Congress and subject to change.

9. Financial Aid 101: Smart Borrowing
Students should plan to manage their:
• Borrowing (e.g. use loans for educational expenses only – don’t
finance a pizza for the next 20 years)
• Enrollment (e.g. stretch the loan over as many courses as possible)
• Cash flow (e.g. saving credit balances to use toward tuition)
Use the aid estimator tool found under Step 2 of the Financial Aid
application page to determine which approach is best for you

10. Financial Aid 101: Federal Direct Loans
The maximum
amount that you
are eligible to
borrow is
determined by your
grade level and
dependency status,
as determined by
the FAFSA.
Dependent Undergraduates
Maximum Subsidized
(if eligible)
Unsubsidized Total
First Year (0 – 23.9 credits earned) $3,500 $2,000 $5,500
Second Year (24 – 53.9 credits earned) $4,500 $2,000 $6,500
Third Year and Beyond (54+ credits earned) $5,500 $2,000 $7,500
Independent Undergraduates
(and dependents whose parents are unable to
borrow under the PLUS program)
First Year (0 – 23.9 credits earned) $3,500 $6,000 $9.500
Second Year (24 – 53.9 credits earned) $4,500 $6,000 $10,500
Third Year and Beyond (54+ credits earned) $5,500 $7,000 $12,500
Teacher Certification $5,500 $7,000 $12,500
Graduate and Professional Students NA $20,500 $20,500
LIFETIME MAXIMUM LOAN LIMITS
Dependent Undergraduates $23,000 $8,000 $31,000
Independent Undergraduates
(and dependents whose parents are unable to
borrow under the PLUS program)
$23,000 $34,500 $57,500
Graduate and Professional Students NA $138,500 $138,500
MAXIMUM FEDERAL DIRECT STUDENT LOAN AMOUNTS

11. Financial Aid 101: Federal Direct PLUS Loan
Available to Parents of Dependent students only; Credit check required.
Maximum amount is higher than the student could obtain on their own.
Students can get more funds (unsubsidized loans) in their name if the
parent is denied a PLUS Loan.
Direct PLUS Loan interest rates are fixed and won’t exceed 10.5%*
Repayment begins once the loan is fully disbursed; Payments CAN be
deferred but interest will accrue.
*as of 7/1/16, interest rates are 6.31% with fees of 4.276%. Interest and fees are set by Congress and subject to
change.

12. Financial Aid 101: Private/Alternative Loans
These loans are not backed by the Federal Government.
Subject to qualifying:
• Credit checks
• Income Verification
• Co-Signers Recommended
• Interest rates tend to be variable, may be higher than Fed. Loans
• Loan fees may also be assessed

13. Financial Aid 101: Other Types of Aid
Ottawa Tribal Grant
Members of the Ottawa tribe of Oklahoma are eligible for free tuition and fees in any
Ottawa University degree program.
Students must complete a FAFSA (and provide any requested verification documents)
as well as submit a copy of their tribal membership card.
NOTE: Tribal members must meet all Title IV eligibility criteria (e.g. cannot be in
DEFAULT on any previous student loans, must maintain Satisfactory Academic
Progress, etc.).
Tribal members are responsible for the purchase of their text books and are welcome to apply for
Federal student loans to help with this cost. Any gift aid (e.g. Pell Grant, Scholarships etc.) that tribal
members receive is used as an offset and will reduce the amount of the Ottawa Tribal Grant.

14. Financial Aid 101: Scholarships/Other Aid
Contact your finance advisor to learn more about internal and external
scholarship and grant opportunities.
You must report any other financial assistance that you are receiving to the
financial aid department when applying for financial aid (i.e. scholarships,
tuition reimbursement from employer, etc.).
You are encouraged to try to obtain any scholarships or other assistance that
you qualify for. Reducing overall debt is a GOOD thing!