Category Archives: Work Study

Grants, Work Study and Student Loans

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 TypeBorrower TypeFixed Interest Rate
Direct Subsidized and Unsubsidized Student LoansUndergraduate students (through Bachelor’s degree)3.73%
Direct Unsubsidized Student LoansGraduate or professional students5.28%
Direct PLUS LoansParents of undergraduate students OR graduate/professional students6.28%

Be sure to visit StudentAid.gov for up-to-date information regarding interest rates and special allowances due to the COVID-19 pandemic.

Financial Aid Letter

The Free Application for Federal Student Aid (FAFSA) is an important first step in the financial aid process. After you’ve submitted the FAFSA, your college(s) of interest will process the information you provided and will determine your eligibility for federal and state aid. The college(s) will also calculate the loans and institutional scholarships you’re eligible to receive. The summary will be sent to you in an award letter, either electronically or via the U.S. Postal Service. Keep in mind, it takes time to process this information, so most campuses will send out aid offers in late March or early April for those starting college in the fall.

When your offer arrives, it’s important to read it carefully. You’ll be asked to accept or decline all or some of the offered financial aid. On your aid offer, you’ll see several different numbers, which are outlined below.

Cost of Attendance (COA): This is the estimated cost to attend your college for one year.

Expected Family Contribution (EFC): This number is used by the college to determine how much financial aid you’re eligible to receive. While the EFC is a calculation of all the information provided on the FAFSA by you and your parent, it’s most likely not the amount you’ll be expected to contribute. Want to learn more about the EFC? Check out our EFC Overview .

Award Package: The letter will list the types and amounts of aid the college can offer to you. You may see some of the following:

Grants: These are considered gift aid that can come from federal, state and tribal governments. Grants are usually based on financial need.

Scholarships: These can be based on need, merit or interests. They’re awarded by colleges, state agencies, companies, foundations, tribal and private organizations.

Federal Work-Study: This is an opportunity to work on- or off-campus to earn financial aid. Think of it as a part-time job specifically to pay for college.

Federal Student Loans: Loans are borrowed money to help you pay for college. Loans must be repaid, with interest.

Remember, you don’t have to accept all of the aid offered to you, especially when it comes to borrowing student loans. A monthly payment of tuition and fees during college may be a better option for you or your family than a loan payment with added interest after you’ve completed your education. To learn more about the different types of financial aid, check out our publication: Are You Looking for Money?

Talk with your family about your financial situation and decide how much financial aid and which types of aid you need to accept. Still have questions about the financial aid letter? Take a look at our new resource, Understanding Your Award Letter.


Financial Aid Awareness Month

February is Financial Aid Awareness Month! This is the time for you to learn all about the financial aid process for college.

What is financial aid?
Free Money

Federal and State Grants

Scholarships

Earned Money

Borrowed Money

How do I apply?

  • Complete the FAFSA (Free Application for Federal Student Aid)
    • Apply every year you need financial aid for college
    • Apply on or after October 1
    • Complete your application online at FAFSA.gov
    • Create an FSA ID to access and sign your FAFSA

How will I know how much financial aid I’ve been offered?

  • After your FAFSA has been submitted and you’ve been admitted, your school will send you an aid offer
  • Review and research all programs offered, and accept only the aid you need
  • You don’t have to accept everything you’ve been offered

To learn more about the financial aid process, review these tools on this site:

  • FAFSA Learning Modules
  • Finish the FAFSA in Five Steps
  • Dependency Questionnaire
  • FAFSA Fundamentals 2021-2022 PowerPoint
  • FAFSA Parent Flyer

You will also find these helpful FAFSA videos:

UCanGo2.org also offers many beneficial FAFSA resources:

  • The EFC (Expected Family Contribution) PowerPoint
  • The FSA ID (Federal Student Aid Identification) PowerPoint
  • The Financial Aid Award Letter PowerPoint

Learn more about Financial Aid Awareness Month here!

Have You Submitted Your FAFSA?

The Free Application for Federal Student Aid (FAFSA) for next fall became available Oct. 1. That means people are applying for financial aid almost a year before they’ll need it for college. It’s a long time until the next fall semester starts, so why is it so important to file now?

It’s best to file your FAFSA as soon as you can once it becomes available. While some types of financial aid are available year-round, other forms are not.

Federal Work-Study
Work-study is a type of aid that is earned, rather than borrowed. Your eligibility is determined by your financial need. Students use the money they earn at a part-time job to pay toward their college expenses. There is a limit to the number of work-study jobs available each semester, so if you don’t submit your FAFSA early and answer yes to the “I’m interested in work-study” question, those jobs could all be filled before you start the school year.

Oklahoma Tuition Aid Grant (OTAG)
OTAG is a grant funded by the state of Oklahoma for students who are Oklahoma residents and will be enrolled at an Oklahoma college or technology center. It’s an example of first-come, first served aid because it’s funded only once a year. Typically, OTAG receives more eligible applications than can be awarded with available funds, and how early a student applies can be the deciding factor in whether that student is offered an OTAG award. To apply, you simply have to complete a FAFSA. Your eligibility for OTAG is determined by your financial need, and the amount of the award is $1,000 ($500 in fall and spring).

Oklahoma Tuition Equalization Grant (OTEG)
OTEG is also funded by the state of Oklahoma, and goes to students who demonstrate financial need on a first-come, first served basis. Recipients must be Oklahoma residents. To receive this grant, your annual family income must be at or below $50,000, and the grant can only be used at an approved private/independent, not-for-profit postsecondary institution in Oklahoma. OTEG funds are sent to the approved institutions; students to be awarded OTEG will be selected and notified by the institutions. The grant pays $2,000 ($1,000 in fall and spring).

Visit OKcollegestart.org to learn more about OTAG and OTEG and a list of approved OTEG schools.

Be sure to submit your FAFSA as soon as you can. You don’t want to miss out on these chances for earned and free money for college that doesn’t have to be repaid!

The FAFSA Is Now Available

The Free Application for Federal Student Aid (FAFSA) is now available!

It’s the key you need to unlock money that will help you pay for college or other education after high school. Students often ask if the FAFSA is a scholarship, it’s not. The FAFSA is simply a statement about a family’s financial situation, and it’s used to determine how much federal financial aid a student may be eligible to receive.

A new FAFSA is available October 1 each year. You can submit your FAFSA even if you haven’t applied to any colleges yet. In fact, if you’re not sure which college you want to attend, you can request that your FAFSA information be shared with up to 10 different campuses that you may want to learn more about. Every student who may need money for college for the 2021-22 school year should complete this FAFSA.

The current FAFSA is available online at FAFSA.gov.

Need some guidance to get started on your FAFSA? Check out our resources:

FAFSA in Five Steps: This publication explains the steps to completing the application and provides reminders for additional materials you might need.

FAFSA Modules: These five PowerPoint presentations walk through the details of each step of the FAFSA process.

FAFSA and Financial Aid Video: Sometimes it helps to hear someone explain the FAFSA process. Our new FAFSA video walks students through common FAFSA questions.

If you’re still wondering why the FAFSA is so important, keep in mind that during the 2018-2019 school year, $2.6B dollars in federal financial aid for college was left unclaimed by students. They would have been qualified to receive the aid, but they didn’t simply because they didn’t submit a FAFSA. Discover what you’re eligible for by submitting your FAFSA today!

New Videos

Our friends at UCanGo2 have produced two new videos about financial aid!

FAFSA and Financial Aid provides an overview of the Free Application for Federal Student Aid and how it is the first step in successful financial aid!

Scholarships 101 provides an overview of looking for and applying for scholarships.

You can also view these two videos on our Videos page!

Student Loans: How To Borrow Smart from the Start

When you receive your financial aid offer from a college you may be interested in attending, it’s quite possible that one or more student loans will be included in the offer. If you need a student loan(s) to help cover the costs of college, you’ll want to borrow smart from the very start of your college experience to minimize your debt after graduation. Here are some things you need to know as you consider student loans.

  • Use ‘free money’ first. Take advantage of all the gift aid you’re offered—grants and scholarships—before deciding how much you’ll need to borrow.
  • You don’t have to accept student loans. You can decline any amount of financial aid that is offered to you. If you must borrow to pay college costs, only borrow what you’ll need to get you through one year of college. Review your finances each semester, and keep that commitment to borrow only what you need to cover school expenses.
  • Do your research. Some experts recommend that your monthly loan payment should be no more than 8-10% of the monthly income you expect to earn during the first year after graduation. To estimate your loan payments, try the Loan Calculator found at ReadySetRepay.org.
  • Subsidized = less expensive. Interest won’t be added to a subsidized federal student loan balance until after you graduate, withdraw or drop your class load to less than half-time status.
  • Make interest payments. Students who borrow federal unsubsidized loans are responsible for all interest on the loan as soon as their institutions receive the first disbursement. Student loan interest payments are generally affordable, even on a college student’s budget. If possible, keep the interest paid down while you’re in school and during your grace period. To help you think it through, see how two students took different paths to repay their student loans.
  • Keep in touch with your lender(s) and loan servicer(s). Always make sure you let them know your current address, and contact them if you’re having trouble making your payments. You can find contact information for your lenders/servicers at StudentAid.gov under Manage Loans. Be sure to have your FSA ID handy—it’s the username and password you created when you submitted your FAFSA. You’ll need it to access your federal student loan information.
  • Stay informed. Find more information and FAQs at ReadySetRepay.org and StudentAid.gov.

Financial Aid Awareness Month

Happy Financial Aid Awareness Month! February is the time to learn how you can fund your education with various financial aid options. In order to receive federal financial aid, you must submit a Free Application for Federal Student Aid, or FAFSA. Once your FAFSA has been submitted, your school’s financial aid office will notify you of your aid eligibility. Before you decide which options you’ll accept, take time to learn about the different kinds of aid that are available to you. Since they’re all beneficial, here’s an overview of each type of financial aid.

  • Scholarships. Potentially the most significant type of financial aid available is a scholarship. It’s free money you can earn from your own hard work, financial need, merit, family history, skills, hobbies or athletics. The more scholarship applications you complete, the more likely you are to win an award. While you don’t have to submit a FAFSA to apply for a scholarship, some programs may request that you do. Scholarship applications could ask you to write an essay, submit a video, take a photograph or complete a service project. To make sure your application matches the scholarship requirements, read all directions carefully before you start the process. If you’re not sure where to look for scholarships, UCanGo2.org and OKcollegestart.org are great places to start your search. Remember that scholarships can be the additional assistance you need to help you reach your educational goals.

  • Grants. Sometimes referred to as free money since they usually don’t have to be repaid, grants are given to those who demonstrate financial need. A common type of grant is the Pell Grant. The Federal Supplemental Educational Opportunity Grant, or FSEOG, is not as common since it is only given to students who show extreme financial need. For students interested in becoming teachers, there’s the Teacher Education Assistance for College and Higher Education Grant, or TEACH Grant. Students interested in the TEACH Grant should carefully read all guidelines. If the grant requirements are not met, the money could turn into a loan that must be repaid with interest. Additionally, there’s the Iraq and Afghanistan Service Grant for those who’ve lost a parent or guardian due to military service in Iraq or Afghanistan after 9/11. As with any type of financial aid, be sure to speak with your financial office if you have questions about grants.
  • Work-study. Also called earned aid, work-study allows students to work and earn money for college expenses while they’re in school. Work-study positions are part-time jobs that can be on or off campus. The supervisors over these positions tend to recognize that school is a priority and are usually mindful of your class schedule. Take advantage of these positions because they can give you work experience and time to focus on your academic responsibilities. Each school will have different ways to apply for a work-study job, so talk with your school to learn more about the application process.

  • Student Loans. While this type of aid is borrowed money that must be repaid with interest, student loans can help you bridge the gap between grants and scholarships. When it comes to borrowed money, it’s important that you borrow only the amount you need to pay school expenses! Federal loans can be beneficial due to their fixed interest rates (it will not change over time) and flexible repayment options. One type of federal student loan is the Direct Subsidized loan. This aid is for undergraduate students who demonstrate financial need. The government will pay the accruing interest on a subsidized loan while the student is enrolled in school at least half-time. Another federal loan, the Direct Unsubsidized student loan, is for students who do not show financial need. With this loan, the interest will always be accruing on the loan and students will be responsible for paying the interest. For those who need extra financial assistance there’s the Direct Parent Loan for Undergraduate Students or the Direct PLUS loan. Parents of dependent undergraduate students can apply for the PLUS loan to help cover additional college expenses for their child. In order to receive a Direct PLUS loan, parents must complete the loan application and meet certain credit requirements. Students will have six months from the time they graduate, drop below half-time enrollment or leave school to start repaying Direct Subsidized and Unsubsidized loans. Those who take out a PLUS loan will have to start repayment once funds have been disbursed.

Now that you know a little more about financial aid, use this month to decide which options could be right for you. For more financial aid information, go to StudentAid.gov.

New Year, New Habits

The new year often comes with fresh enthusiasm for a renewed lifestyle. Whether it’s working out regularly, eating out less or resisting the snooze button, there is no time like the present to commit to new habits.

In addition to health and financial goals, there are some helpful academic goals that will prove beneficial from this school year to the next.

Scholarships: By completing the Free Application for Federal Student Aid (FAFSA), you’re considered for a variety of state and federal financial aid. We encourage you to “start” with FAFSA, and then continue seeking scholarship opportunities throughout the year. Check out UCanGo2.org for new scholarships by category and by deadline. Make a profile on OKcollegestart.org to view scholarship applications that are the perfect fit for you. It’s important to apply for as many scholarships as possible year-round, so make a habit of applying for 2-3 scholarships a week.  

Study Habits: While your grades and GPA are not taken into consideration with your FAFSA, schools will look at your academic achievements when deciding academic scholarship offers as well as acceptance to their school. Your grades in college will also determine if you maintain certain scholarship offers from year to year. To start or keep up good study habits, check out these study tips: https://ucango2.org/publications/student/Perfect_10.pdf

 Extracurricular Involvement: Many schools take more than just your grades into consideration. Join a club or volunteer in your community after school hours. Your involvement will look impressive on a college application. Are you already in college? Join a club or find opportunities in your community to share the skills and knowledge that you’re developing. It looks great on resumes for future employers. Whether you’re still in high school or you’re headed into the career field, extracurricular involvement is a good commitment to make in the new year.

Grants, Loans & Work Study

By now you probably know that it’s important to submit the Free Application for Federal Student Aid, or FAFSA, but do you know what you’re actually submitting? This application allows colleges to see which types of financial aid you’re eligible to receive. Financial aid can help you cover educational expenses and comes in the form of grants, work-study and student loans.

Grants, sometimes referred to as gift aid, are need-based aid that usually don’t have to be repaid. The most common federal grant is the Pell Grant. This form of financial aid is available for undergraduate students (those who haven’t received their first bachelor’s degree). The maximum amount of Pell Grant a student can receive is $6,195 for the 2019-2020 school year. Financial aid offices will determine students’ financial need and inform them of their Pell eligibility. Another federal grant that’s available is the Federal Supplemental Educational Opportunity Grant, or FSEOG. Only students who have extreme financial need are eligible to receive this grant. Other grants require students to meet certain criteria. The TEACH (Teacher Education Assistance for College and Higher Education) Grant is an example of aid that has conditions attached to it, as it requires students to take certain courses and work specific jobs. There is also the Iraq and Afghanistan Service Grant that’s available for students who lost a parent or guardian as a result of military service in Iraq or Afghanistan after the events of 9/11. Eligible students should contact their school if they have any questions. Some states offer grants to their residents as well. Oklahoma has the Oklahoma Tuition Aid Grant, or OTAG, for eligible state residents who will be attending an Oklahoma public or private institution.

Work-study is also a type of financial aid that can help with the costs of college. Eligible students who receive this aid will have the chance to work a part-time job and earn money for educational expenses. Undergraduates and graduates with financial need are able to receive a work-study opportunity. Talk with your financial aid office to learn about potential places, on or off campus, that are hiring.

Student loans are another type of financial assistance. Different than other aid, student loans must be repaid with interest. There are various federal loans available for students. One type is the Direct Subsidized Loan for undergraduates who demonstrate financial need. The maximum amount for freshmen in the 2019-2020 school year is $5,500, with a fixed interest rate of 5.05 percent. A fixed interest rate means that the interest won’t change over time. The federal government will pay the interest on a subsidized loan while the student is enrolled in school at least half-time. In contrast, Direct Unsubsidized Loans are not based on financial need and are given to undergraduates and graduates. Students are responsible for the interest on this loan during all periods. The interest rate on an unsubsidized loan is 5.05 percent for undergraduates and 6.6 percent for graduate students. Other borrowed aid that isn’t based on financial need is the Parent PLUS Loan. This is available for parents of dependent students who need extra assistance with college expenses. In addition, parents must also be credit worthy to qualify for this type of aid. PLUS Loans have a 7.6 percent fixed interest rate. Speak with your financial aid office to learn more details.

There are a variety of resources available to help you pay for college. Not all schools offer each program, so be sure to contact your financial aid office with any questions. For more information about grants, student loans and work-study go to studentaid.ed.gov.