Federal Pell Grants
The Federal Pell Grant is need-based financial aid provided by the U.S. Department of Education, designed to assist eligible undergraduate students in pursuing their higher education by providing repayment-free funds. The grant amount is determined by factors such as the student’s Federal Tax Information or FTI, enrollment status, and the cost of attendance.
Federal Pell Grants eligibility
To be eligible for the Federal Pell Grant at SAU, students must meet certain criteria, including:
- Pell Grants are awarded based on financial need as determined by the Free Application for Federal Student Aid (FAFSA). Students must complete the FAFSA to be considered for the Pell Grant.
- Pell Grant eligibility is calculated based on enrollment intensity. The grant amount varies and is based upon the number of credits enrolled from 1 credit to 12 credits.
- Pell Grants are typically for students pursuing their first bachelor's degree.
- Students must be U.S. citizens or eligible non-citizens.
Federal direct loans
Subsidized loans: Need-based loans. The government covers the interest while the student is in school at least half-time, during the grace period, and deferment periods. Eligibility is determined based on financial need.
Unsubsidized loans: These are not need-based. Interest accrues from the time of disbursement. Students are responsible for paying the interest. It can be deferred while in school, but will be capitalized if not paid during deferment.
Federal Parent PLUS Loans: A program to help parents cover the educational costs of their dependent undergraduate children. Parents can borrow up to $20,000 per student starting in the 2026-2027 academic year. These are credit-based loans. Eligibility is determined by the borrower's credit history. FAFSA is required for a parent to borrow the PLUS loan.
Federal Grad PLUS Loans*: A program designed to assist graduate and professional students in covering educational costs. These are credit-based. Eligibility is determined by the borrower's credit history. Graduate students can borrow up to the cost of attendance minus any other financial aid received.
*Based on changes to federal aid from the One Big Beautiful Bill Act (OBBBA), Graduate PLUS loans will be eliminated after June 30th, 2026. New students enrolling in the fall of 2026 will not have access to this federal loan program. Please see your financial aid office for more information and borrowing options. If you are a continuing graduate student and have a Graduate PLUS loan disbursed before July 1st, you may continue to borrow under the old rules for up to three academic years or until you finish your current program.
Loan interest rates and repayment
Federal Direct Loan interest rates
The government sets Federal Direct Loan interest rates. Rates may vary depending on the type of loan and the academic year. It's essential to check the current rates when considering these loans.
Loan deferment and forbearance
In certain situations, such as financial hardship or returning to school, students may qualify for deferment or forbearance, temporarily postponing or reducing loan payments.
Federal Work-Study (FWS) Program
The Federal Work-Study (FWS) Program provides part-time employment opportunities for eligible students to earn money for education expenses. Work-study jobs are varied, both on- and off-campus. Positions may involve the student's course of study or community service. FWS knows the importance of balancing work and academics, offering flexible schedules. To be considered for the Federal Work-Study Program, students must complete the Free Application for Federal Student Aid (FAFSA), which determines financial need as eligibility for work-study.
Work-Study Program Benefits for Students
- Work-study provides a valuable source of income for students, helping cover educational expenses such as tuition, books, and living costs.
- Many work-study positions align with students' academic interests or majors, providing practical experience and enhancing their resumes.
- Beyond academics, work-study jobs offer opportunities for skill development, including time management, communication, and teamwork.
- Students working on campus may establish connections with faculty and staff, creating a network that can be beneficial for future career opportunities.
- Opportunities: Some work-study positions involve community service, allowing students to give back to the community while earning their financial aid.
Federal Supplemental Educational Opportunity Grant (FSEOG)
The FSEOG is a federal grant that provides additional financial assistance to undergraduate students with exceptional financial need. It's a campus-based grant with limited funds, but the funds don't have to be repaid. Priority is given to students with the most significant financial need. The amount awarded through FSEOG varies based on financial need, other aid received, and the availability of funds at the institution.
FSEOG Eligibility Criteria
To be eligible for the FSEOG at SAU, students must meet certain criteria, including:
- FSEOG is offered to Pell Grant eligible students, determined by the information provided in the Free Application for Federal Student Aid (FAFSA).
- Students with an SAI of -1500 to 0 receive priority consideration for FSEOG funds.
- FSEOG eligibility is often contingent on being enrolled at least half-time, though specific requirements vary.
- Generally, only undergraduate students pursuing their first bachelor's degree are eligible for FSEOG.
The Iowa Tuition Grant
The Iowa Tuition Grant, awarded by the state, supports Iowa residents attending private institutions like SAU with a grant of $7,500 annually.
Iowa Tuition Grant Eligibility Criteria
To be eligible for the Iowa Tuition Grant, students must meet certain criteria, including:
- Iowa resident
- Undergraduate enrollment in an associate or bachelor degree
- Enrolled at an eligible Iowa private college or university
- FAFSA submitted by July 1 of award year
- Have an eligible Student Aid Index (SAI) on the FAFSA:
- 2025-26 eligible SAI range at Iowa not-for-profit private institutions: -1500-16,000
- 2026-27 eligible SAI range at Iowa NFP private institutions TBD, FAFSA filing deadline of July 1st, 2026
