Maximum Time Requirements for Federal Financial Aid
The period of time for which students are eligible to receive financial aid from federal sources depends on the duration of the program of studies as defined by the University. For this purpose, the University has determined the duration of its programs according to the number of credits they require. Students must complete their program of studies within a time period that does not exceed 150% of its duration. The courses considered in this percentage are those required by the selected program. Students accumulate time for transferred credits.
Federal Pell Grant
As of 2012 July, the duration of the eligibility of the Pell Federal Scholarship is reduced to 6 years studying full-time or 600%. The Federal Department of Education calls the percent of use of the scholarship Lifetime Eligibility Used: LEU. To know how the Department of Federal Education does the calculation you can access: www.studentaid.ed.gov/pell-limit.
There are several ways to submit the request:
- The new student completes the application via Internet or submits it to the Financial Aid Office of Inter American University where it will be processed, electronically, to the United States Central Processing Center. Inter American University of Puerto Rico will receive information concerning the eligibility of the applicant informed on the Student Aid Report (ISIR) and will communicate this to the applicant. The advantage of this method is that it speeds up the process, avoids errors and the applicant does not have to wait to receive the response by mail. Normally, Inter American University of Puerto Rico receives the response within 72 working hours from the time the application was transmitted. This method speeds up the process because:
- The Free Application for Federal Student Aid (FAFSA) is available on Internet and may be completed from anywhere at any time.
- Information does not need to go through the mail.
- If the application is not approved or if information was assumed in the approval process, the Financial Aid Director can help and can get in touch with the student. The Financial Aid Office corrects the error electronically.
- If the application is approved, the financial aid offer letter will be prepared when the student selects courses for registration,
- The payment process during enrollment is simplified. It can even be done by mail.
- Applicants that received Federal Aid at Inter American University of Puerto Rico the previous year need only to update their application for renewal via Internet (www.fafsa.ed.gov) by using a personal identification number “PIN number” mailed by the US Department of Education. Students that do not have a PIN number may request it by accessing www.pin.ed.gov. This request will be processed immediately so the process may continue.
- Indicate on the application the campus of Inter American University where the student intends to study, authorize said campus to receive information regarding the applicant’s eligibility and send the application by mail. This method is not as fast as the one described in item #1 because the application is sent by mail to an intermediary agency where the data information is entered and transmitted to the Central Processing Center. Furthermore, the information is not reviewed by a financial aid official to avoid errors. The response is electronically transmitted to Inter American University.
- Send the application by mail without authorizing Inter American University to receive the information electronically. This is the slowest method in processing the application since the application and the response are processed by mail and the University cannot process the application for the grant until the applicant receives it by mail and submits the answer to the Financial Aid Office.
The Financial Aid Officer will determine the amount of aid to be awarded by using the formula which considers the cost of education, the academic load and the Expected Family Contribution.
Eligibility for the Federal Pell Grant expires when the student completes the academic requirements for the first Bachelor’s Degree. Upon completion of the second year of study, students must maintain a minimum grade point index of 1.50 in order to receive federal financial aid.
Students that received their first payment of Federal Pell Grant after the July 1, 2008 have only 18 semesters or equivalent terms to receive this grant.
Federal Supplemental Educational Opportunity Grant (FSEOG)
Inter American University of Puerto Rico distributes this additional aid to economically disadvantaged students. The Financial Aid Office determines the eligibility of the student based on an analysis of economic need. The aid is granted to students who have not completed any bachelor degree. Students with exceptional need are taken care of first in this program. The participants of Beca Pell have priority.
Perkins Federal Student Loan Program
This is a low interest loan available to students whose studies lead to a degree. Students must demonstrate their intention to pay. They are required to sign a promissory note and other documents. Participants will begin payment on principal and interest from six (6) to nine (9) months after the last term in which they studied with an academic loan of at least six (6) credits. Students may apply for deferral and cancellation of installments. The annual interest rate after October 1, 1981 is 5%. These funds are assigned preferably to students with exceptional needs. These funds are matched with Inter American University funds.
Federal Direct Loans
The Federal Direct Loans Program offers both subsidized and unsubsidized loans. Subsidized loans are awarded on the basis of financial need and the federal government pays interest on the loan until the borrower begins to pay and during periods of authorized deferment. Unsubsidized loans are not awarded on the basis of need and interest is charged from the time the loan is disbursed until it is paid in full. Unsubsidized loans may not exceed the family contribution or the cost of education, whichever is less, within the limits established by the Program.
For the Federal Direct Loans program, students should apply directly to the University. After the full Free Application for Federal Student Aid (FAFSA) is reviewed the University will inform students of their loan eligibility. Students must be enrolled in an academic load of at least six credits.
Dependent undergraduate students can borrow up to:
- $2,625.00 if they are first-year students enrolled in a program of study that is at least a full academic year.
- $3,500.00 if they have completed their first year of study and the remainder of their program is at least a full academic year.
- $5,500.00 per year if they have completed two years of study, and the remainder of their program is at least a full academic year.
Federal Work-Study Program
The funds provided by the Federal Government to this Program are augmented by funds contributed by Inter American University unless the Institution is exempt from this requirement. Participants are assigned employment for which they receive compensation, which contributes toward payment of their educational expenses. When possible students are assigned work related to their field of studies.