The Federal PELL Grant program provides a foundation of assistance to which other forms of aid may be added. Eligibility for the Federal PELL Grant Program is based on financial need and determined by a standard formula that is revised and approved every year by the federal government. Unlike loans, grants do not have to be paid back.

A Federal Perkins loan is a low interest (5%) loan for students with “exceptional” financial need. Federal Perkins Loans are made through a school’s financial aid office and are up to $5,500 per year. Your school is your lender, and the loan is made with government funds. You must repay this loan to your school. The criteria for eligibility includes:

• Enrollment in an eligible school at least half-time
• U.S. citizenship, permanent residency, or eligible non-citizen status
• Satisfactory academic progress
• No unresolved defaults or overpayments owed on Title IV education loans and grants
• Satisfaction of all Selective Service requirements

Payment is either made to you directly (usually by check) or applied to your loan for school charges. You'll receive the loan in at least two payments during the academic year.

Federal Perkins Loans have a nine-month grace period that starts the day after you stop attending at least half-time (this may be sooner if you are a less than half time borrower). You are not required to make payments during your grace period (you might have longer than nine months if you're on active duty with the military). Once you are ready to begin repayment on your Federal Perkins Loan(s), the school will as a regular practice, establish a standard repayment plan (Federal Perkins Loans offer only one repayment option). The repayment period may be extended during periods of deferment, hardship, or forbearance. You must contact your school or loan provider to discuss or apply for deferment and forbearance options.

Federal Subsidized Stafford Loan
Federal Subsidized Stafford Loans are available to students with financial need. Students may borrow up to $3,500 for their first academic year, and $4,500 for their second academic year, at a fixed interest rate of 5.6 percent (for 2009-2010, rates are established annually by the US Department of Education). The interest is paid by the federal government while students are in school and for six months after students cease their enrollment. Regular payments begin six months after students cease enrollment or fail to carry at least one-half the normal full-time school workload.

Federal Unsubsidized Stafford Loan
Unsubsidized Stafford Loan programs are available for students to borrow for additional education costs. The amount varies depending on student status and eligibility. Independent students may be eligible for up to $6,000 in unsubsidized funds in their first and second year, and dependent students may be eligible for $2,000 for both first and second year, all at a fixed interest rate of 6.8 percent (established annually by the US Department of Education). With the exception of demonstrating financial need, borrowers must meet all eligibility criteria of the Federal Subsidized Stafford Loan program. Interest payments begin immediately after the loan is fully disbursed or may be added to the principal balance. Regular payments begin six months after students cease enrollment or fails to carry at least one-half the normal full-time school workload.

Parents can borrow a PLUS Loan to help pay your education expenses if you are a dependent undergraduate student enrolled at least half time in an eligible program at an eligible school. PLUS Loans are available through the Federal Family Education Loan ProgramSM (FFELPSM) and the William D. Ford Federal Direct Loan (Direct Loan) Program. Your parents may qualify for either loan, but not both, during the same enrollment period. Parents must have an acceptable credit history. Federal student loans will come directly from the U.S. Department of Education under the Direct Loan Program.

For a Direct PLUS Loan, parents must complete a Direct PLUS Loan application and promissory note, available through FCC’s financial aid office. The yearly limit on a PLUS Loan is equal to the cost of attendance minus any other financial aid you receive.

Students and parents who do not qualify for Title IV funds or who need additional funds to cover educational expenses beyond what is covered by Title IV funds may apply for private loans. Franklin Career College participates with several lending institutions that offer private loans. To qualify, a student must be a US citizen, a US national, or a permanent resident and must be creditworthy. A student may be enrolled full-time, half-time or less than half-time. If the student has no credit history, he or she may still qualify for a loan by applying with a credit worthy co-borrower. Our Admissions Office will be happy to assist students who wish to apply for private loans.