By: Eric Johnson
Amanda is a transfer student at Goldey-Beacom College and previously earned her associate’s degree at Delaware Technical Community College. Amanda is an energetic student who plans to complete her baccalaureate degree within two academic years. However, Amanda frets over her Pell Grant eligibility and is uncertain how many more Pell Grant awards she can receive before earning her degree.
It’s important to remember that Amanda’s situation is not unique. Many transfer students and adult learners find themselves in a similar position. After several semesters of study, losing track of your remaining Pell Grant eligibility is possible. Understanding the Pell Grant award and how your enrollment patterns affect your ability to receive additional awards is key.
The first thing to comprehend about the Pell Grant award is how the federal government calculates your Pell Grant Lifetime Eligibility Usage figure. Each enrollment status (i.e., less-than-half-time, half-time, three-quarters-time, and full-time) corresponds with a usage percentage. The chart below depicts the usage level for each possible enrollment status:
Figure 1: A chart depicting the Pell Grant usage level for each possible enrollment status.
For most undergraduate students, the fall and spring semesters are a time of full-time enrollment, a status that brings with it a scheduled award amount of 100% for the academic year. This commitment to full-time study not only maximizes your Pell Grant award but also helps you to make the most of your academic journey. The federal government allows students to receive a Pell Grant award for up to six academic years, assuming a student enrolls full-time each academic year and receives a Pell Grant award in each applicable semester.
It’s important to note that non-traditional students, who may enroll in school part-time, have a different Pell Grant award amount and usage. These students enroll in fewer credit hours each semester, resulting in a smaller Pell Grant award amount and usage compared to full-time undergraduate students. For instance, an undergraduate student who only enrolls in six credit hours per semester (i.e., half-time enrollment) will have used only 25% of their Pell Grant award in those semesters. Therefore, a student who completes six credits in the fall and spring semesters will have only used 50% of their scheduled Pell Grant award for that academic year.
Another important consideration when using lifetime eligibility is summer enrollment. Students who enroll in summer courses not only accelerate their degree completion but also use up their lifetime eligibility of their Pell Grant award. It’s crucial for students to take summer enrollment seriously to avoid unnecessary waste of their Pell Grant awards. In the past academic year, the federal government made a significant change, allowing students to enroll in summer classes and receive a Pell Grant award at any enrollment status. This is a departure from previous regulations, which required most Pell Grant recipients to enroll in six credits in the summer to receive a Pell Grant award.
Figure 2: A chart depicting the Pell Grant usage of a student enrolled full time in the fall and spring semesters, and less than half-time in the summer session.
Students considering full-time enrollment in the summer session should be aware that they can receive up to 150% of their scheduled Pell Grant award. While accelerating their degree programs has numerous benefits, it’s important to note that there are also risks. If a student withdraws or drops classes, they may fall behind, negatively impacting their lifetime eligibility usage percentage. Therefore, it’s crucial for students to seek advice from their academic advisor and financial aid counselor to make the best academic and financial decisions.
The maximum lifetime eligibility usage percentage for the Pell Grant program is 600%. Students can review their Pell Grant lifetime eligibility usage percentage by talking with their school’s financial aid counselor or by logging on to www.studentaid.gov. It’s important to note that recent Pell Grant disbursements may not reflect the most accurate percentage figure, as there is a time lag in updating this information after a school conducts a disbursement.
Figure 3: A www.studentaid.gov screenshot of what a Pell Grant student will see when reviewing their federal Pell Grant usage.
If you’re a student with a high lifetime eligibility usage percentage, there are a few things you need to consider before running out of Pell Grant eligibility. First, speak to your academic advisor about how many classes you must complete to earn your associate’s or baccalaureate degree. There’s sometimes a distinct possibility of completing your degree on time that does not squander the remainder of your Pell Grant eligibility. Suppose it’s unlikely that you will complete your degree program before your Pell Grant eligibility depletes. In that case, you must speak to the Financial Aid Office about other financial aid options, such as state grants, external scholarships, or loans.
Second, transfer students applying to a college or university should ensure that most of their transfer credits can transfer into their degree program. The more transfer credits you can bring in, the fewer semesters it’ll take to complete a degree program, which can prevent full depletion of your Pell Grant eligibility before obtaining a credential.
Finally, a few scenarios exist where a student no longer qualifies for a Pell Grant award. The two biggest scenarios are 600% Pell Grant usage and completing a baccalaureate degree. Students typically cannot receive a Pell Grant award for more than one baccalaureate degree. Even if you have some eligibility remaining after completing your undergraduate degree program, it is improbable that you will receive a Pell Grant for subsequent undergraduate degree programs.
As scary and anxiety-inducing as this can all sound, the good news is the Financial Aid Office actively monitors students’ records to determine when a student is nearing their maximum eligibility for a Pell Grant award. Working together, the Financial Aid Office and a student can chart a viable path for degree completion, regardless of where you stand with your Pell Grant lifetime eligibility percentage.
By Eric Johnson
It’s the time of year when students eagerly await financial aid disbursements to their accounts. While it’s exciting to receive a refund from your federal student loan to cover indirect educational expenses, it’s crucial to remember the potential negative consequences of loan refunds on your future financial situation.
Students who have credit on their account from financial aid awards may receive a refund check from the Business within two weeks after a scheduled disbursement date. Most commonly, refunds result from large federal student loans or private loans. One of the more common reasons a student requires a refund is to pay for indirect educational expenses during their studies. Some students may reduce their work hours or eliminate working altogether to better focus on their educational studies. Other students may require a refund to cover other expenses, such as an off-campus apartment or rental property. Whatever the case may be, it’s critical that students who are receiving a refund from loans remember the following:
Not only are you receiving a loan that requires repayment of the principal, but you are also accruing interest. Subsidized loans do not accrue interest during a student’s enrollment period or eligible deferrals. However, subsidized loans will begin to accrue interest when federal student loan repayment begins. Private student loans often have higher interest rates than their federal counterparts. The associated interest rates and the large principal balances can quickly turn the positive memories of loan refunds into a negative experience.
The Financial Aid Office cannot deter you completely from receiving a loan refund. Students may receive a loan refund that covers their cost of attendance budget, which is the total amount it will cost you to go to school-usually expressed as a yearly figure. Wisdom dictates that you should try to borrow only what you need for school. Even if you still have room in your cost of attendance budget for a larger refund amount, think critically about what you need (and what you can forego in the interim as a luxury item).
When it comes to constructing a financial aid package, there are numerous alternatives to federal student loans. You might qualify for federal work study, which allows you to work on or off campus for a college or university while earning wages. These wages can help cover indirect expenses you may incur as a student. Other options include state grants, part-time work, or adjusting your enrollment to balance full-time employment with part-time school. Exploring these alternatives can make you feel more in control of your financial situation.
While a loan refund can be a sensible option, especially for students with limited funding options during the academic year, it’s crucial to follow the tips outlined above to avoid excessive loan refunds that may hinder your future financial stability. If you’re unsure about the right loan refund amount, don’t hesitate to consult a Financial Aid Counselor who can provide detailed advice and review your options.
Very few acronyms in financial aid strike more fear than this one: SAP. SAP, also known as Satisfactory Academic Progress, is an academic standard that each institution that participates in the federal student aid program must establish for its student populations to meet eligibility for federal, state, and institutional financial aid sources.
At Goldey-Beacom College, undergraduate students must generally attain a C or better average (i.e., a 2.0 cumulative grade point average) and complete a minimum of 75% of the courses attempted and earned. Graduate students must generally attain a B or better average (i.e., a 3.0 cumulative grade point average) and complete a minimum of 75% of the courses attempted and earned.
The cumulative grade point average is straightforward to find on an academic transcript. The second part of the SAP equation, 75% completion of attempted credits, is a tad trickier for students to understand. Below are two examples of a student meeting the completion percentage and a student who is not meeting the completion percentage component of the SAP policy at Goldey-Beacom College:
Student A
Student B
Figure 1: Two charts depicting pacing and the SAP standing for two respective students.
As you can see from the second chart, student B is deficient in earned credits and does not pass the SAP test that the Financial Aid Office performs annually. Earned credits deficiency can occur when a student withdraws officially or unofficially from a course. While withdrawals have benefits, such as no negative impact on the quality points in the cumulative grade point average portion of your academic transcript, they can create havoc in the number of earned credits completed. When considering a withdrawal from a course, it’s crucial for a student to seek guidance from their academic advisor and financial aid counselor. Their expertise will help you fully understand the repercussions of your decision and navigate the process with confidence.
Students can take several steps to recover from a low cumulative grade point average. One effective strategy is to repeat failed courses in future semesters, which can quickly boost your grade point average. If your academic performance is suffering from multiple low passing grades, such as Cs or Ds, it may be beneficial to reach out to the Academic Excellence Center (AEC). The AEC offers peer tutoring options in courses that students find most challenging, providing a valuable resource for improving academic performance. Additionally, reducing outside commitments, such as a busy social life or excessive work hours, can help establish healthy study habits. These habits can lead to better retention of course material, potentially resulting in improved academic performance on course assignments and assessments.
Students who are not meeting the pacing requirements for their degree program should consider repeating classes they previously withdrew from. This strategy can help recover deficiencies in the earned credit hours category of an academic transcript. Equally important is the need to maintain a balanced academic schedule. Overloading yourself with too many courses can lead to academic stress and potentially result in future course withdrawals or failures. Therefore, it’s crucial to plan your academic schedule carefully to avoid overwhelming yourself.
When a student is not meeting the SAP requirements at the College, the Financial Aid Office typically gives the student a one-semester grace period to improve their academic performance. Students must heed the advice in this column to avoid losing eligibility for federal student aid altogether. Don’t let the acronym SAP scare you away from a successful college career; likewise, don’t squander your probationary period, as that can create the anxiety that SAP stokes in students’ minds.
Are you a new Goldey-Beacom College student planning to use federal student loans? If yes, please complete Entrance Counseling (EC) and the Master Promissory Note (MPN) on www.studentaid.gov.
Entrance Counseling (EC) and the Master Promissory Note (MPN) are federal student aid requirements for all loan borrowers. These are not just formalities, but important tools to ensure you understand your loan’s terms, conditions, rights, and responsibilities. The EC will teach you about what a loan is, how interest works, your options for repayment, and how to avoid delinquency and default. The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s).
The Financial Aid Office is here to support you. We typically receive electronic notification within 24 hours after you complete these loan requirements. If you need assistance, don’t hesitate to contact us during reasonable business hours. We’re here to help you through this process.
These loan requirements are the same for graduate students who did not use federal student loans during their undergraduate studies and are using loans for the first time at the graduate level. So, whether you are a first-time undergraduate student, a transfer student receiving loans for the first time, or a graduate student, now is the time to complete the loan requirements before next month’s financial aid disbursement. Failure to do so will result in removing your federal student loans, which can create unnecessary panic. We want to avoid this, so please, take the time to complete these requirements now.
Figure 1: A screenshot of www.studentaid.gov, highlighting the portion of the website where students can complete the EC and the MPN loan requirements.
Mistakes happen. Trust me, I make plenty of them each day. And you’re not alone. Many students make erroneous typos on the FAFSA form, which can create a heightened sense of anxiety, as it may delay your ability to receive financial aid funding on time. The good news is that you can conveniently correct these common mistakes on your FAFSA on www.studentaid.gov.
When correcting your FAFSA form, it’s crucial to select the correct one. Depending on the time of year, you may have two FAFSA forms available for corrections. Choosing the wrong one can generate additional unneeded headaches. So, be sure to select the right FAFSA form to avoid any unnecessary complications.
After selecting the correct FAFSA form, make corrections to find the applicable sections of the FAFSA form you want to correct. The most common FAFSA form mistakes include erroneous typos for date of birth or social security number, incorrect financial information, and not selecting the right schools to send your FAFSA results. After making the necessary edits, you must review them, sign, and submit the FAFSA form. It may take up to three business days for the college or university to receive your revised FAFSA results. In addition, you’ll be unable to make any further edits to the FAFSA form until the FAFSA Processing System (FPS) processes the edits.
If your FAFSA form requires extensive corrections or you are uncertain what to fix, please get in touch with a financial aid counselor in the Financial Aid Office. Remember, you’re not alone in this. An experienced financial aid administrator can diagnose your FAFSA woes and guide you in the following steps. The Financial Aid Office offers a mixture of in-person and virtual appointments to assist you with making the necessary edits to the FAFSA form.
So, if you’ve been dithering to make corrections to the FAFSA form, or never knew how to do it, you should feel more comfortable moving forward on your next steps when this issue arises. The new FAFSA process has dramatically reduced the odds of making an error on the form. But even if you do make a mistake, remember, it’s correctable. So, don’t be too hard on yourself. We’re here to help you through it.
Substantial changes are coming to the federal student aid PLUS Loan programs because of the reconciliation bill passed by Congress in July. The PLUS Loan programs comprise of undergraduate Parent PLUS Loans and PLUS Loans for graduate students. Here’s what you need to know about the immense changes that will begin to occur in the 2026-27 academic year:
Perhaps one of the largest changes because of the reconciliation bill was the demise of the Graduate PLUS Loan program. The Graduate PLUS Loan program was originally devised as a tool for graduate students to borrow extra funds outside of their $20,500 annual unsubsidized loan aggregate amount. Graduate students who had exhausted their federal student loan eligibility ($138,500) could also tap into this program. With the elimination of this program, graduate students who rely on it should seriously review their other funding options with a financial aid counselor. Private loans may become necessary for graduate students who need the extra funds to accelerate their degree completion. The College also offers interest-free payment plans for graduate students who have a minimal balance after an unsubsidized loan.
Undergraduate students whose parents use a PLUS Loan to finance their education should carefully review the second bullet point. The federal government is now capping the annual amount a parent may borrow per dependent student. Previously, a parent could borrow up to the student’s cost of attendance budget after financial aid awards. Now, there’s a hard cap of $20,000 per year. If your parents borrow more than amount currently, it may be time to review your financial aid options well in advance of the next academic year. There’s also a lifetime aggregate limit per dependent student. Previously, the Parent PLUS Loan program had an unlimited lifetime limit. Now, it’s $65,000, which equates to approximately four years or less of assistance.
These changes are substantial and will require undergraduate and graduate students to prepare even earlier for the 2026-27 academic year. Graduate students should inquire with the Business Office about interest-free payment plans. Graduate students may also need to speak with a financial aid counselor about private student loan options.
While the picture is dreary at the graduate level, it is not as dire at the undergraduate level. Undergraduate students who rely on the Parent PLUS Loan program still have access to it—albeit at capped loan amounts. The same interest-free payment option to graduate students is also available to undergraduate students. A key component in this immense change is understanding that there’s an aggregate limit to the Parent PLUS Loan program that did not exist before. Students will need to carefully navigate their academic programs to avoid throwing away this funding option before degree completion. Very rarely does the federal student aid program see significant changes like this one. It should behoove you to start thinking about the big picture now before next summer arrives.
Pursuing a second bachelor’s degree is often a dream for many students. And while that dream has many benefits, including the opportunity to further your knowledge and skills, there are several costs to consider when seeking a second degree. Remember, the value of a second degree is not just in the credential itself, but in the personal and professional growth it can bring.
Additional tuition costs are the most significant source of frustration for students pursuing a second degree. After paying four years of tuition, the thought of fathoming an extra year or two additional tuition costs is enough to send shudders down anyone’s spine. Fortunately, most students enrolling in a second bachelor’s degree have completed enough of the general education requirements to avoid repeating unnecessary courses. Verifying the number of courses needed to earn a second degree is essential to understanding your total tuition costs for the second credential. Chatting with an academic advisor or consulting a degree audit worksheet can simplify this process.
Financial aid funding becomes more restricted after a student completes their bachelor’s degree. Most colleges do not offer institutional aid for students pursuing a second degree after completing their first one. However, chatting with the financial aid office about any institutional aid you may qualify for is still helpful, even after exhausting your initial financial aid package.
The federal government severely restricts financial aid to only federal student loans and work study. Students with a second degree are still subject to aggregate loan limits. For the most part, a student pursuing a second bachelor’s degree cannot receive a Pell Grant award. If you are interested in working, federal work study positions may be available to defray your educational expenses.
At this stage, some students may need to consider private loans to achieve their aim of a second degree. Private loans tend to have higher interest rates than federal student loans, so reviewing the private loan servicer’s covenant terms is crucial. When in doubt about a private student, a financial aid counselor can walk you through your options and explain the most sensible option given your situation.
Another sensible route is pursuing a certificate credential, which may have lower tuition costs than a full-fledged second degree. Employers are increasingly valuing certificates, especially for upskilling purposes. If you intend to upskill with a second degree, then a certificate program is a wise credential to pursue. Likewise, a graduate degree, although more expensive and even more restricted in financial aid funding, may make more sense from a return on investment perspective than a second bachelor’s degree.
When reviewing your options for a second degree, consider your objectives (upskilling, passion, etc.) and see what financial aid options are available for that second degree. If the financial aid package is insufficient for a second degree, then a certificate program or graduate degree may be more sensible. Whatever you decide, always remember that you’re not alone on this journey. Your academic advisor and financial aid counselor are there to guide and support you through the educational and financial aid components of a second degree.
Have a comment or thought for one of this month’s articles? Send an email to [email protected]. Emails must include the person’s name. Responses are subject to editing.
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