2011-12 Federal Aid Program Descriptions
Description of Federal Aid Programs in Your Financial Aid Package
Grants-gift awards that need not be repaid
Federal Pell Grant
The Federal Pell Grant provides funds to eligible undergraduate students. All students applying for other forms of federal or state aid must apply for this grant. When it appears that the student is eligible, a Federal Pell Grant award will be included in the financial aid package. Funds are applied to the student account following verification of attendance in classes. An email is sent to the student by the Cashiers Office if an overpayment results in a disbursement to the student's Smartcard. This initially occurs by mid-semester.
Federal Supplemental Educational Opportunity Grant (FSEOG)
Federal Supplemental Educational Opportunity Grants (FSEOG) are awarded to undergraduate Pell Grant recipients with exceptional need. Grant amounts are based on program funding and priority is given to students whose aid file was received by May 1. Subsequent awards may be available later in the year as funding permits. Attendance and payment procedures are same as Federal Pell Grant.
Federal Work-Study (FWSP)
Program for students who are interested in working on campus part-time to earn money for educational expenses. Rate of pay for 2010-11 is $7.25 per hour and payroll is done once each month by direct deposit on or around the 15th based on hours worked in previous month. Positions are limited and require the student to interview with supervisor for position. Positions are posted online as early as two weeks prior to start of term at http://www.otc.edu/employment/workstudyopenings.php
Federal Direct Loan - borrowed money that must be repaid.
The Federal Direct Loan Program is the only loan program at the college. Ozarks Technical Community College does not participate in the Federal PLUS Loan Program or any Alternative Loan Programs.
The Subsidized Federal Direct Loan is based on financial need, which is determined by using a federal formula. A loan is subsidized when the government pays the interest for you during the following periods:
- while you are enrolled in school at least half-time
- during the six month grace period after you stop attending school at least half-time
- during periods of authorized deferment
The Unsubsidized Federal Direct Loan is not subsidized by the government; the student is responsible for all interest which accrues during in-school, grace, and deferment periods. You may choose to make interest payments while in school or you may defer the interest until repayment when the interest will be added (capitalized) to your principal balance.
Student loans are required to disburse in equal installments for the loan period (i.e. - once each semester during a school year or two equal disbursements for a single semester loan). The school will verify you are still enrolled at least half-time, attending classes and making satisfactory academic progress before releasing the proceeds to you.
First disbursement occurs by mid-semester if loan proceeds have been received by the college. Students must have completed a Master Promissory Note (MPN) and loan counseling online with the Federal Direct Loan Program for loan proceeds to be sent to the College.
Student loans are required to be disbursed in two equal installments. Therefore, if your loan is for:
- fall and spring (school year), you will receive one disbursement in the fall and one in the spring
- fall only OR spring only OR summer only, you will receive two disbursements; one with the first payment for the semester and one after the mid-point of the semester.
- In either of the above situations, a student must be enrolled and attending at least 6 hours to be eligible for the disbursement (3 hours of enrollment and attendance for summer). If a second 8-week class is required to meet this requirement, the loan funds will not disburse until after the second 8-week class has started and attendance is valid.