Student loans are borrowed money that must be repaid, with interest, just like car loans and home mortgages. Loans are legal obligations, so before you take out a student loan, think about the amount you'll have to repay over the years and borrow wisely.
Federal student loans require the completion of the Free Application for Federal Student Aid (FAFSA) annually.
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Subsidized and unsubsidized direct loans are available for undergraduate, graduate and professional degree-seeking students who are enrolled at least half-time (6+ credits hours for undergraduate; 4.5+ credit hours for graduate) and have completed the FAFSA (Free Application for Federal Student Aid). Repayment begins six months after the student graduates, leaves school, or drops below half-time enrollment.
Students borrowing federal direct loans need to complete entrance counseling. The goal of entrance counseling is to help you understand what it means to take out a federal student loan, how to manage your educational expenses and your rights and responsibilities as a borrower.
Students must also complete a Master Promissory Note (MPN). This is a legal document in which you promise to repay your loan and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan.
The Parent Loan for Undergraduate Students (PLUS) is a government-guaranteed loan that families can use to cover all or a portion of their student's educational expenses and is available to families of all income brackets. Students must be enrolled at least half-time (6+ credit hours) per semester to be eligible for a Federal PLUS Loan. A FAFSA (Free Application for Federal Student Aid) is required for a Parent PLUS loan.
As a parent of a dependent, undergraduate student, you may complete the following steps to apply for a Federal Direct Parent PLUS Loan.
Once the USF Financial Aid office has received your completed PLUS Loan application, you will be notified if any further information or steps are required.
Student and parent borrowers can consolidate (combine) multiple federal student loans with various repayment schedules into one loan through a Direct Consolidation Loan (through the Department of Education). The result is a single monthly payment instead of multiple monthly payments, which makes it easier for borrowers to manage their debt.
Federal grants are often called "gift aid" because they do not have to be repaid. Eligible students must be enrolled and considered degree-seeking. Federal grants require the completion of the Free Application for Federal Student Aid (FAFSA) annually. The three types of federal grants offered to students are listed below:
A need-based grant program available to students seeking their first undergraduate degree. Eligibility is determined by the student's financial need and cost of attendance. For full-time students, the maximum Pell Grant award amount is determined annually. Less than full-time students may receive Pell Grants, but awards will be pro-rated based on the enrollment status on the last day to add/drop a course without record. Pell Grant funds are disbursed to the student account at the beginning of each semester.
A need-based grant program available first to students who receive the Federal Pell Grant and who have the most financial need. Federal allocations are limited, so priority is given to students who meet the January 1 FAFSA priority date. Amounts range from $400 to $800 per year. FSEOG funds are disbursed to the student account at the beginning of each semester.
A non-need based grant program that provides up to $4,000 per year to students who are planning a career in teaching and agree to serve as a full-time teacher in a higher-need field for four years at a school that serves low-income students. The required four years of teaching must be completed within eight years after graduation.
Note: If you do not meet the requirements of your service obligation, all TEACH Grants you received will be converted to direct unsubsidized loans. You must repay these loans in full, with interest charged from the date of each TEACH Grant disbursement. TEACH Grant funds are disbursed to the student account at the beginning of each semester.
TEACH Grant Eligibility
To be eligible for a TEACH Grant at USF, you must do the following:
*Required each year to apply for TEACH Grant funds.
Questions? Email finaid@usiouxfalls.edu or call 605-331-6623
Billing and payment processing at USF happens through the Student Accounts Office. Learn your payment options.
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