As you prepare to pay college expenses, it’s important to know the amount of federal financial aid that may be available to you. Each year, grant amounts and student loan interest rates are subject to change. Here’s what you can expect for Academic Year 2021-2022.
Federal Pell Grant: Available to undergraduate students who qualify based on the level of their financial need as determined by Federal Student Aid, a division of the U.S. Department of Education. Beginning July 1, 2021, the maximum allowable Pell amount you may be able to receive for one year of college will increase to $6,495.
Federal Work-Study Program: If your campus administers work-study funds, you may be able to sign up for a part-time job, either on-campus or an approved site off-campus, enabling you to earn money to pay some of your college expenses. The maximum amount you can earn in the work-study program will be determined by your level of financial need. If you’re interested in work-study, be sure to ask the financial aid office if would qualify for the program.
Federal Student Loans: To provide relief to student loan borrowers during the COVID-19 national emergency, the interest rate on most federal student loans borrowed before July 1, 2020 is currently 0%. In addition, federal student loan borrowers are automatically being placed in an administrative forbearance, which allows you to temporarily stop making your monthly loan payments. This 0% interest and suspension of payments will last through September 30, 2021, but you can still make payments if you choose.
The following table outlines the projected federal student loan interest rates for Academic Year 2021-2022, beginning October 1, 2021, after the COVID-19 relief program has ended:
|Loan Type||Borrower Type||Fixed Interest Rate|
|Direct Subsidized and Unsubsidized Student Loans||Undergraduate students (through Bachelor’s degree)||3.73%|
|Direct Unsubsidized Student Loans||Graduate or professional students||5.28%|
|Direct PLUS Loans||Parents of undergraduate students OR graduate/professional students||6.28%|
Be sure to visit StudentAid.gov for up-to-date information regarding interest rates and special allowances due to the COVID-19 pandemic.