Types of Federal Aid for Online Programs
There are two major types of Federal Aid offered to Liberty University Online students – grants and loans. Details of each are below.
Grants are financial awards from the federal and state governments that do not have to be paid back. Most grants are not available to graduate students or to students seeking a second bachelor’s degree.
Grants are awarded to students who meet each set of the qualifications. All U.S. citizens (and eligible non-citizens) must complete the Free Application for Federal Student Aid (FAFSA) each school year in order to determine eligibility for federal grants.
Financial Aid Grants
Liberty University accepts loans to help pay for your education. Liberty's Financial Aid department can process loans for those in need of assistance. Please remember that loans must be repaid.
Students who indicate an interest in loans on the FAFSA are automatically considered for federal loan eligibility. Although Liberty University awards students up to their maximum yearly eligibility, we encourage students to borrow only what they need.
In addition to federal loans for college, a wide variety of consumer loans are available to help finance the cost of education. First-time student borrowers need to complete an online Entrance Counseling session in order to receive a loan.
Additional and application information for any of these loans may be found on Liberty University's Financial Aid office website (note: external link to www.liberty.edu).
Federal Student loans
Federal student loans for college are low-interest loans with fixed interest rates and are either subsidized or unsubsidized.
Based on financial need as determined by the FAFSA, other aid sources and educational costs
Federal government pays loan interest as long as student is enrolled at least half time
Not based on financial need
Student can either pay loan interest while in school, or defer payment of interest until after graduation (or until student drops below half time). Deferred interest is added to the principal, thus increasing loan amount.
The Federal Parent PLUS Loan is for credit-worthy parents of dependent students. Loan amounts are determined by educational costs minus any other aid. Loan interest rate is fixed at 7.9 percent and repayment typically begins 60 days after the final disbursement of the loan. Students whose parents are denied the PLUS Loan may be eligible to receive additional unsubsidized loans.
The Federal Graduate PLUS Loan is awarded to students with sufficient credit who are enrolled at least half time in a graduate or professional program. Loan amounts are determined by educational costs minus any other aid and interest rate is fixed at 7.9 percent. Repayment typically begins within 60 days of the final loan disbursement; however, students enrolled at least half time may be eligible for deferred payment. For options concerning deferment and grace periods, borrowers are advised to visit www.studentloans.gov for additional information.
In addition to federal loans for college, a wide variety of private loans are available to help finance the cost of education. You may view private loan options from the following link: ELM Select.