Federal Financial Aid Programs
United States University offers federal grant and loan programs funded by the U.S. Department of Education. Grants are gifts of money that do not have to be repaid, provided they are used to complete the student’s education. Loans are borrowed money that must be repaid with interest.
Other sources of financial assistance are often available. Some of these include veteran education benefits and employer sponsorships. A student should research all possible sources of financial assistance.
The amount and type of financial aid that students may receive are determined through federal and state guidelines. Depending on eligibility, the typical financial aid award will be a combination of grants and/or loans. Federal Student Assistance Title IV funds are available only to students who qualify.
Federal Pell Grant
Pell Grants are federally funded, need-based grants for college students that do not need to be repaid as long as the student was and remains eligible for the grant. Federal Pell Grants are usually awarded only to undergraduate students who display exceptional financial need and have not earned a bachelor's, graduate, or professional degree. The amount of the grant available to the student will depend on the Student Aid Index (SAI) (2024-25 FAFSA) and the cost of attendance.
The 2024-2025 award year maximum Pell Grant scheduled award amount is $7,395, and the minimum is $740.
Federal Direct Loan Program
United States University students are eligible to apply for the Title IV federal student loan programs. The U.S. Department of Education offers Direct Federal loans to help students pay for college and are available to both undergraduate and graduate students. The University currently offers Federal Direct Subsidized, Federal Direct Unsubsidized, and Federal Direct Parent/Graduate PLUS loans through the William D. Ford Direct Loan program with the U.S. Department of Education. Students who graduate, withdraw from school, or enroll less than half-time, have a six-month grace period before repayment begins. For current interest rate information, please visit https://studentaid.gov/understand-aid/types/loans/interest-rates.
Federal Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need, and the eligible amount cannot exceed the student’s financial need. The U.S. Department of Education pays the interest on a Direct Subsidized Loan:
- While the student is enrolled at least half-time,
- For the first six months after the student leaves school (referred to as a grace period), and
- During a period of deferment (a postponement of loan payments).
Federal Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students, but eligibility is not based on financial need. The U.S. Department of Education defers repayment of the loan principal while the student is enrolled at least half-time and for the first six months after the student leaves school. The student is responsible for paying the interest on the outstanding principal during all periods, including times of approved deferred principal payments.
Federal Direct PLUS Loans are loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid. Eligibility is not based on financial need, but a credit check is required. Borrowers with adverse credit histories must meet additional requirements to qualify.
Eligible Direct Loan Amounts
The amount a student is eligible to borrow depends on whether they are an undergraduate student, a graduate or professional student, or a parent.
- For an undergraduate student, the maximum amount you can borrow each year in Direct Subsidized Loans and Direct Unsubsidized Loans ranges from $5,500 to $12,500 per year, depending on what year you are in school and your dependency status (i.e., independent versus dependent).
- For a graduate or professional student, you can borrow up to $20,500 each year in Direct Unsubsidized Loans. Direct PLUS Loans can also be used for the remainder of your college costs, as determined by the University, not covered by other financial aid.
- A parent of a dependent undergraduate student can receive a Direct PLUS Loan for the remainder of their child’s college costs, as determined by the University, that is not covered by other financial aid.
Terms and Conditions of Direct Loans
The terms and conditions of Direct Loans can be found on the Master Promissory Note and/or the Loan Entrance Counseling the student completes. A student borrower who has reached their aggregate loan limit may not receive additional loans. More information on these limits can be found here.
WASHINGTON STATE RESIDENTS
For Washington State residents seeking information and resources about student loan repayment or seeking to submit a complaint relating to your student loans or student loan servicer, please visit Student Loan Advocate here.