Financial Aid Terms Defined

FAFSA: Free Application for Federal Student Aid – The FAFSA is an application to apply for grants and loans.  Completing and submitting the form is free.  Many states also use the FAFSA to determine your eligibility for state aid.  The FAFSA can be completed online at FAFSA.gov and on the myStudentAid mobile app for iOS and Android.

FSA ID – Your FSA ID is a username and password that you must use to log in to certain U.S. Department of Education websites including the FAFSA.  You can manage your FSA ID online at fsaid.ed.gov.

Federal Pell Grant – You may qualify from $0-$6,095 per award year, which is the period from July 1 through June 30. The Federal PELL grant is gift aid that does not have to be repaid.

Federal SEOG Grant – The average award at Galen College is from $100 – $600 per academic year. The availability of funds to award each year is limited. These funds are awarded to PELL-eligible students with exceptional need. This grant is also gift aid that does not have to be repaid.

Federal Direct Loans – Direct Loans are low-interest loans to help students pay for the cost of their postsecondary education. The lender for this loan program is the U.S. Department of Education.

  • Dependent Students may qualify for up to the following amount of undergraduate Direct Loans per academic year, up to a total limit of $31,000 with no more than $23,000 in subsidized loans.
    • 1st Year: $5,500 – no more than $3,500 in subsidized loans
    • 2nd Year: $6,500 – no more than $4,500 in subsidized loans
    • 3rd Year & beyond: $7,500 – no more than $5,500 in subsidized loans
  • Independent Students may qualify for up to the following amount of undergraduate Direct Loans per academic year, up to a total limit of $57,500 with no more than $23,000 in subsidized loans.
    • 1st Year: $9,500 – no more than $3,500 in subsidized loans
    • 2nd Year: $10,500 – no more than $4,500 in subsidized loans
    • 3rd Year & beyond: $12,500 – no more than $5,500 in subsidized loans.

The financial aid specialist at your appointment will determine your eligibility for subsidized loans. The interest rate is fixed at 5.05% for both subsidized and unsubsidized loans and you will have up to a six-month grace period after leaving school before repayment begins. The minimum payment on Federal Direct Loans is $50 per month. Direct Loans are loans and must be repaid even if you are dissatisfied with your education or are unable to complete the program for any reason. For more information on Federal Direct Loans and the eligibility requirements, visit StudentAid.ed.gov.

Federal Direct PLUS Loans – If you are a dependent student, your parent may borrow up to your cost of attendance, less any other financial assistance received. The interest rate is fixed at 7.6%. Parents may choose to defer payments on the PLUS loan until six months after the date the student ceases to be enrolled at least half time. The minimum monthly payment is $50.  Parents of dependent students can apply for the PLUS loan online at StudentLoans.gov.

Loan Counseling – In accordance with U.S. Department of Education guidelines, students must complete entrance counseling prior to receiving a student loan. All students must complete exit counseling prior to graduation or when no longer enrolled at least half time.  Loan counseling can be completed online at StudentLoans.gov.

Master Promissory Note – The Master Promissory Note (MPN) is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education.  The MPN Loan Agreement can be completed online at StudentLoans.gov.

State Grant Programs – States may have different grant requirements that students may qualify for. Contact your Financial Aid Advisor for more information.

Veteran’s Educational Benefits – Programs offered at Galen College are approved for some Veterans Educational Benefits. Contact your Financial Aid Advisor for details on applying for VA benefits.

Agency Assistance – Galen College works closely with Workforce, TAA, Vocational Rehabilitation, and other job training programs. Please inform your Financial Aid Advisor if you will be receiving assistance from one or more of these agencies.

Payment Plans – Galen College will work with you to arrange an affordable payment plan. There is no interest charged on payments made while in school. Please see the Bursar to arrange a payment schedule.

Out of Pocket Expenses – All funds received by the College on behalf of the student will first be credited to the student’s individual account to pay for tuition. Financial aid will not be available for books, supplies, or other living expenses until tuition has been paid in full. The following costs are not covered by financial aid and are the responsibility of the student:

  • Registration fee: due at the time of enrollment and non-refundable after 72 hours
  • Background check fee: due at the time of enrollment and non-refundable
  • Books & supplies: Generally, students should be prepared to pay for books, supplies, immunizations, physicals, and uniforms prior to the first day of class. Depending on the program of study, these costs may be included in tuition. Contact your admissions representative for more details.