Financial Aid Terms Defined

FAFSA: Free Application for Federal Student Aid FAFSA – 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.

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.

Federal Pell Grant – You may qualify from $0-$5,920 per academic 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 – You may qualify for up to $3,500 subsidized and $2,000 unsubsidized for 1st year and $4,500 subsidized and $2,000 unsubsidized for 2nd year in the subsidized Direct Loan and if you are independent, you may also qualify for up to an additional $4,000 in the unsubsidized Direct Loan per academic year. The Enrollment Specialist at your appointment will determine your eligibility for the subsidized loan. The interest rate is fixed at 4.45% for subsidized and unsubsidized and you will have a six-month grace period after leaving school before payments are due. Your minimum monthly payment will be $50 per month. The Stafford loan is a loan and it must be repaid even if you are dissatisfied with your education, or are unable to complete the program for any reason. Direct Loans are low-interest loans for students to help pay for the cost of a student’s education after high school. The lender is the U.S. Department of Education.

Federal Direct PLUS Loans – If you are a dependent student, your parent may borrow up to your cost of attendance. The interest rate is fixed at 7.0%. 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.

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 many JTPA, Workforce, Impact, 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.