Types of Financial Aid
Financial aid is money in the form of loans, grants and employment available to students to help pay the cost of attending a college, university, or vocational/technical school. Financial aid comes from the federal government (the largest provider of aid), state governments, the schools themselves, and a large variety of other public and private sources.
The following is information concerning federal financial and state aid you may have been awarded. Unless otherwise indicated, all financial aid is credited directly to your University business office student account.
FEDERAL PELL GRANT
A Federal Pell Grant does not have to be repaid unless a semester is not completed and the aid is not earned. Pell Grants are awarded only to undergraduate students with high financial need who have not earned a bachelor's or professional degree. How much you receive will depend on your cost of attendance, whether you are a full-time or part-time student, and whether you attend school for a full academic year or less. You may not receive Pell Grant funds from more than one school at a time.
FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT (FSEOG)
A Federal Supplement Educational Opportunity Grant is for undergraduates with exceptional financial need, with priority being given to students who receive Federal Pell Grants. A student who has earned the Lifetime Pell Eligibility maximum is not eligible for an FSEOG. An FSEOG does not have to be repaid unless a semester is not completed and it is determined that you did not earn the aid.
BAKER (MTAP) GRANT
This is a state funded grant program for low and middle income students who are Montana residents to help cover the cost of tuition, fees, and books. In order to be eligible, students must meet certain criteria and be enrolled as full-time students. A Baker grant does not have to be repaid.
MONTANA HIGHER EDUCATION GRANT
This is a federal-state partnership funded grant program based on need, which is restricted to undergraduate students who are Montana residents. A MHED grant does not have to be repaid.
Work-study jobs are posted on DIGGERecruiting through the Career Services office. If you were awarded work-study, it will be listed on your Award Notification Letter and you will receive more information regarding employment if you accept your award.
If you did not receive a work-study award as part of your financial aid package, you may have your name added to the work-study request list by sending in a written request or e-mail. If work-study funds become available, students on the request list will be considered for an award based on their eligibility. Being placed on the wait list in no way assures you that you will receive a work-study award.
Work-study awards are not credited to your University business office student account. You are paid directly on the 1st of each month for the actual hours worked during the preceding month. You may not earn more than your work-study award nor are you guaranteed to earn your entire award. Your employer may decide to pay you, as a regular part-time student employee after your work-study award is exhausted.
FEDERAL PERKINS LOAN
A Federal Perkins Loan is a low-interest (5percent) loan for students with exceptional need. The Federal Perkins Loan is for both undergraduate and graduate students. Montana Tech awards Federal Perkins Loans primarily from funds generated from former students repaying these loans. As a Perkins Loan borrower, you are not charged an origination or other loan fee. You have nine months after you graduate, leave school, or drop below half-time status before you must begin repayment. This is called a "grace period". At the end of your grace period, you must begin repaying your loan. Interest begins to accrue at that time. You have up to 10 years to repay. If you accept a Federal Perkins Loan and have not previously borrowed a Federal Perkins Loan from Montana Tech, you must complete Perkins Entrance Counseling and sign a Master Promissory Note through the iPROMise website which will be sent to you from Campus Partners.
Direct Loans are either subsidized or unsubsidized. The federal government pays the interest on the subsidized loan until you begin repayment and during the authorized periods of deferment. Interest begins accruing on the unsubsidized loan from the time the loan is disbursed until the loan is paid in full. If you allow the interest to accrue, it will be capitalized at the end of the grace period and at the end of any deferment or forbearance. This means that at the end of your grace period the interest accrued will be added to the principal balance of your loan. When you are billed the interest will accrue on the new balance. If possible, your best option is to pay the accrued interest prior to capitalization. Most servicers will send you at least an annual statement with accrued interest. You may receive Subsidized Loan, Unsubsidized Loan, or a combination of both.
The interest rate on both loans fixed at 4.66% for loans disbursed between July 1, 2014 and June 30, 2015. The loan fee is 1.073% for loans disbursed between October 1, 2014 and September 30, 2015.
Repayment on Direct Loans begins six months after you graduate, leave school, or drop below half-time enrollment. This is called a "grace period." Exit Counseling at www.studentloans.gov is required when you graduate, withdraw, or drop to below half-time status.
If you have already signed a serial Master Promissory Note with the Department of Education, you will not need to sign another promissory note. If this is the first time you have borrowed from the Direct Loan Program or this is the first time you have borrowed from Montana Tech, you must complete Entrance Counseling and your Master Promissory Note (MPN). Both steps can be completed at www.StudentLoans.gov.
DIRECT PLUS LOAN
Direct Plus Loans are available to graduate students and to parents of dependent undergraduate students. For dependent undergraduate students, parents are the borrower and must have a credit check before the loan is approved. Parents and graduate students can borrow up to the cost of attendance minus any resources or financial aid the student received. If the parent is denied a Plus loan through the credit check process, please contact our office, as you may be eligible for additional assistance from the Direct Unsubsidized Loan Program.