When gathering up the money to pay for college, 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 2022-2023:
- The Federal Pell Grant: Available to 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, 2022, the maximum allowable Pell amount you may be able to receive is $6,895, which is an increase over the current maximum amount of $6,495.
- The 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 for 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.
- Federal Student Loans: On March 13, 2020, interest on student loans was reduced to 0% to provide relief to student loan borrowers during the COVID-19 pandemic. In addition, federal student loan borrowers were automatically placed in an administrative forbearance, which allowed borrowers to temporarily stop making payments on their student loans. The payment pause has been extended multiple times, but it is scheduled to end Aug. 31, 2022. You are still able to make interest-free payments until then, if you desire.
The following table shows the Federal student loan interest rates for the 2022-23 academic year. These rates show an increase over the rates charged prior to the payment freeze.
|Loan Type||Borrower Type||Fixed Interest Rate|
|Direct Subsidized and Unsubsidized Student Loans||Undergraduate students (up to Bachelor’s degree)||4.99%|
|Direct Unsubsidized Student Loan||Graduate or professional students||6.54%|
|Direct PLUS Loan||Parents of undergraduate students OR graduate/professional students||7.54%|
Be sure to visit StudentAid.gov for up-to-date information regarding interest rates and the current allowances being made during the COVID-19 pandemic.