Federal Assistance Programs

Federal Pell Grants
The Pell Grant is the largest need-based federal grant program, serving nearly 3,000,000 students a year. Pell Grants are available only to undergraduate students. These grants ranged from $400 to $4,050 for the 2006-2007 academic year, depending on the need of the applicant. Regularly enrolled students who are U.S. citizens, permanent residents, or eligible noncitizens who have demonstrated financial need and who have complied with Selective Service registration requirements are eligible to apply for a Pell Grant. Pell Grant is an entitlement program, meaning all students who are eligible will receive awards. While the award is actually paid to the student through the school, the student's eligibility and award amount are determined by the Department of Education. A student will automatically be considered for a Pell Grant when the Free Application for Federal Student Aid (FAFSA) is submitted each year.

Federal Supplemental Educational Opportunity Grants
The Supplemental Educational Opportunity Grant is one of the three federal campus-based programs in which funds are allocated to colleges. Grants are awarded on the basis of the student’s need and the amount of funds available. Eligible undergraduate students must be U.S. citizens or permanent residents who do not hold a baccalaureate degree and who demonstrate exceptional financial need, comply with Selective Service registration requirements, and maintain satisfactory college academic performance. Students apply for this grant each year by submitting the FASFA.

Federal College Work Study
This program is designed to promote the part-time employment of students. The regulations provide that the federal government will pay 75 percent of the wages of eligible students while the University (or participating nonprofit agencies) pays the remaining 25 percent. A student will be considered for work study when the FAFSA and University of Indianapolis application is received. Eligible students should contact the University's Center for Career Services for job referral.

Federal Perkins Loans
This program was established to provide long-term, low-interest loans to students who demonstrate need for such assistance. Loan repayment begins nine months after the student ceases half-time enrollment, and no interest accrues until that time. The interest rate is five percent per year. To be eligible for the Perkins loan, the student must be a U.S. citizen, permanent resident, or eligible noncitizen enrolled as at least a half-time student; complete the registration requirements of Selective Service; and show exceptional financial need. The student may apply for this loan each year by submitting the FASFA.

Federal Stafford Student Loans
The Stafford Student Loan Program makes low-interest loans available to students who are enrolled at least half-time (6 hours per semester for undergraduate students, 4.5 hours for graduate students). To be eligible for the federally subsidized loan, the student must show financial need unmet by other sources. This loan provides a fixed interest rate of 6.8%. Repayment begins six months after the student ceases half-time enrollment, and no interest accrues until that time. Unsubsidized Federal Stafford Loans also are available to students without regard to financial need. Loan limits and interest rates are the same as those in the subsidized program. Repayment of the principal begins six months after the student ceases half-time enrollment, but interest begins to accrue immediately.

Federal Academic Competitiveness Grants
The Academic Competitiveness Grants are available to undergraduate students who are U.S. citizens and Federal Pell Grant recipients. Students must be enrolled full-time, be in their first or second year of their academic program, and complete a rigorous secondary school program to be eligible. The grant amount is $750 for first-year students and $1,300 for second-year students. Students must complete the Free Application for Federal Student Aid (FAFSA) to apply for this grant. Second-year ACG recipients also must have a 3.0 or higher cumulative grade point average.

Federal Plus Loans
Through participating lenders, parents of dependent students and graduate students may borrow up to the cost of education minus other aid. The Plus loans are subject to a fixed interest rate of 8.5%. Repayment begins within 60 days of the final disbursement each year. Graduate students may defer repayment of the Plus Loan until after graduation or nonenrollment. You may access an online application at http://financialaid.uindy.edu. The application procedure is the same as that of the Federal Stafford Loan Program. Plus Loans may be denied as a result of adverse credit history. In the event that a Plus Loan is denied for a parent of a dependent student, the dependent student is permitted to apply for an appropriate amount under the Unsubsidized Stafford Loan.

Federal Science and Mathematics Access to Retain Talent (National SMART)
The National SMART grants are available for students who are U.S. citizens and Pell Grant recipients. Students must be enrolled full-time, be majoring in an eligible major (majors determined by the U.S. Department of Education), be in their third or fourth academic year of an eligible program, and have a cumulative grade point average of 3.0 or higher. The grant is $4,000 per academic year. Students should complete the FAFSA to apply for the SMART grant.