Definitions of Financial Aid
- Scholarship: Scholarships are a gift award of money, generally in combination with other types of aid, to a student of at least average academic qualifications with an amount determined by financial need.
- Grant: Grants are a gift award of money based upon financial need.
- Loan: A loan is financial aid that requires repayment. All applicants for loans, except parents applying for PLUS loans, are required to file a Free Application for Federal Student Aid (FAFSA). Eastern Gateway participates in the Federal Direct Stafford Loan Program (DL).
Direct Subsidized Loan – This is a loan for a student based on financial need as determined by federal regulations. No interest is charged while you are in school at least half-time or during deferment periods.
Direct Unsubsidized Loan – This is a loan for a student that is not based on financial need. Interest is charged during all periods. With the unsubsidized Stafford loan, you can defer the interest payments until after graduation by capitalizing the interest. This adds the interest payments to the loan balance, increasing the size and cost of the loan. Important Note: All students, regardless of need, are eligible for the unsubsidized Stafford Loan.
Direct ParentPLUS Loan – Parents of dependent students may borrow an unsubsidized loan. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods. Parent PLUS loan borrowers cannot have an adverse credit history (a credit check will be done). In addition, parents and their dependent child must be U.S. citizens or eligible noncitizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid programs. There are no set limits for Direct PLUS Loans, but you may not borrow more than the cost of your child’s education minus any other financial aid received, such as a Direct Subsidized or Unsubsidized Loan. The school will determine the actual amount you may borrow.
- Work Study: Federal Work Study allows students with demonstrated financial need, enrolled at least half time, to earn money at an on-campus or off-campus job to help pay for their educational expenses.