Types of Aid

Types of Aid

Types of Aid

Federal Pell Grant

The federal Pell grant program is designed for students with documented financial need, as determined through the Free Application for Federal Student Aid (FAFSA). Pell Grant funding does not need to be repaid. The student must make satisfactory academic progress and meet the additional eligibility requirements outlined in the Eligibility Requirements section. Applicants with the equivalent of a bachelor’s degree from anywhere in the world are not eligible for this grant. The student’s enrollment status, (full-time, three-quarter time, or half-time) will have a proportional effect on the amount of money the student may receive.

Federal Supplemental Educational Opportunity Grant (FSEOG)

The program is designed for students showing exceptional need and Federal Pell Grant eligibility. This funding does not need to be repaid. Awards average $500, and funds are awarded to eligible students on a first-come, first-served basis until funds are exhausted. Applicants with an equivalent bachelor’s degree are not eligible for this grant.

State Grants

State grants are awarded based on financial need as determined by the results in the FAFSA. State grants provide financial aid that does not have to be repaid. Some grants require the student to maintain a certain grade point average (GPA) or take certain courses. Students are encouraged to apply by submitting their FAFSA by the priority deadline of March 15th.

  • Texas Educational Opportunity Grant (TEOG)
  • Texas Public Education Grant (TPEG)

Texas Educational Opportunity Grant (TEOG)

Program Purpose

The purpose of the TEOG Program is to provide funding that enables eligible students to attend two-year public institutions of higher education in Texas.

Application Process

Students apply for the TEOG when they complete and submit the Free Application for Federal Student Aid (FAFSA) or other application as required by the college’s financial aid office. Funding is limited, so students should submit their applications as soon as possible after January 1 of their senior year in high school. The financial aid office at each college and university will determine if TEOG is part of the aid package offered.

For additional information and requirements, visit www.collegeforalltexans.com

Hardship Appeal Policy

If a student fails the renewal requirements, they can submit a hardship appeal based on extenuating circumstances. The hardship appeal form is available in person at the Financial Aid Office.

Texas Public Education Grant (TPEG)

The Texas Public Education Grant is designed for students who may or may not be eligible for the federal Pell grant. Applicants must meet most of the same requirements for a Pell grant and must show some remaining unmet financial need. TPEG funds do not need to be repaid, and funds are awarded to eligible students on a first-come, first-served basis until funds are exhausted. Residents, nonresidents, and foreign students (undergraduates and graduates) are eligible for this grant. Applicants must attend a Texas public college or university.

Loans

Texas Southmost College loans are processed through the William D. Ford Federal Direct Loan Program, also known as Direct Loans. These low-interest loans are for undergraduate and graduate students and must be repaid. Loans are available to students and/or parents to help pay for educational expenses. They must be repaid after the student graduates or drops below half-time status. TSC offers three types of student loans:

  • Direct subsidized loans
  • Direct unsubsidized loans
  • Parent Loan Undergraduate Student (PLUS) loans

For additional information or to learn more about Student Loans, visit Subsidized and Unsubsidized Loans page or Plus Loans page.

Loan Interest Rates

Direct Loans have low-interest rates which are fixed for the life of the loan. The following rates are for loans borrowed after July 1, 2023, and before July 1, 2024. Interest rates are subject to change every July 1st. For updated interest rates, visit studentaid.gov.

  • Subsidized Loan – 5.50%
  • Unsubsidized Loan – 7.05%
  • Parent Loan (PLUS) – 8.05%

 Loan Fees

All Federal Direct Loans are assessed a loan fee by the federal government to help reduce the cost of making these low-interest loans. Loan fees are subject to change every October 1st. For updated loan fee rates, visit studentaid.gov. The fees are as follows:

  • Subsidized and unsubsidized loans – 1.057%
  • Parent PLUS Loans – 4.228%

 Direct Loan Limits

The amount a student can borrow during an academic year is based on several different factors including grade level, dependency status and federal loan limits. The following chart lists the maximum yearly loan limits for subsidized and unsubsidized loans:

Yearly Loan Limits

Dependent undergraduate students:

Base Loan Sub/Unsub

Additional Unsubsidized Amount

Total

First Year

$3,500

$2,000

$5,500

Second Year

$4,500

$2,000

$6,500

Independent undergraduate students (and dependent students whose parents cannot borrow a parent loan):

Base Loan Sub/Unsub

Additional Unsubsidized Amount

Total

First Year

$3,500

$6,000

$9,500

Second Year

$4,500

$6,000

$10,500

The Department of Education also sets aggregate, or total, loan limits that students cannot exceed. Students cannot borrow more than the following lifetime limits for subsidized and unsubsidized loans:

Types of Student

Maximum Amounts (subsidized and unsubsidized)

Dependent students

$31,000 – no more than $23,000 of this amount may be subsidized ($8,000 must be unsubsidized)

Independent students (and dependent students whose parents cannot borrow PLUS)

$57,500 – no more than $23,000 of this amount may be subsidized ($34,500 must be unsubsidized)

 Disbursement of Loan Funds

Before the institution can disburse the loan funds, students must accept their loan award (s) on TSC Self Service. Students who are first-time borrowers must also complete the online Entrance Counseling session and the Master Promissory Note. Loan funds will then be posted to the student’s TSC account at least ten days before classes begin. Students may use their loan funds to pay for tuition and fee costs. Any remaining balance (after tuition and fees have been paid) will be issued to the student. Students can receive their balance with BankMobile Disbursements, a technology solution, powered by BMTX, Inc. sent by the Financial Office. If a student applies for a loan after school has already begun, loan funds will be posted to the student’s account within ten business days of completing the three steps mentioned above. A refund will then be issued to the student by the Finance Office by direct deposit.

Loan Repayment and Forgiveness

Students are required to repay their loans, even if they do not complete their education, cannot find a job after graduation, leave school, or feel dissatisfied with the education they received. The responsibility of repaying student loans cannot be avoided. However, there are many helpful features during the repayment process that can help reduce or postpone payments for a period of time.  To learn more about loan repayment and loan forgiveness, please visit https://studentaid.gov/manage-loans/repayment/plans

 Exit Loan Counseling

Completing a loan exit counseling is a federal requirement that must be completed when the following occurs:

  • Graduation
  • Dropping below half-time status
  • Completely withdrawing
  • Non-enrollment
  • Transferring to another school

Student records will remain in a hold status until the exit requirement is completed. Students can complete exit counseling online by clicking on the following link: Student Loan Exit Counseling

Please be informed that upon borrowing students loans, the loan information will be submitted to the National Student Loan Data System (NSLDS), and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system.

Loans are available to students and/or parents to help pay for educational expenses. They must be repaid after the student graduates, drops below half-time status or leaves school. The Direct Loan program is operated by the Department of Education, which charges an origination fee for each loan disbursement.

In order to request a loan, students must first be awarded financial aid. Below are the steps on how to request a student loan at TSC.

Student Loan Instructions

Requesting Student Loan:

1.    Log in to TSC Online

2.    Under Financial Aid, click on Financial Aid Checklist

3.    Click on Financial Aid (top navigation drop-down menu) and select Request a New Loan

4.    Select the appropriate academic year

5.    Enter the Request Amount (you can add comments)

6.    Select the periods that you will be attending, review, and submit your request

 

Accept/Reject/Change the Loan Amount Award:

1.    Log in to TSC Online

2.    Under Financial Aid, click on Financial Aid Checklist

3.    Click on the drop-down menu and select the appropriate academic year

4.    Click on Review and Accept your Financial Aid Award Package

5.    Under your loans awarded (subsidized or unsubsidized), click the Accept or Decline

6.    Confirm your loan amounts and click accept

 

Complete Entrance Loan Counseling:

All students are required to complete entrance loan counseling. Please follow the steps below:

1.    Go to www.studentaid.gov and log in

2.    Click on Complete Aid Process located on the top navigation drop-down menu

3.    Select Complete Entrance Counseling

4.    Click Log in to Start based on your student type

5.    Login with your FSA ID Credentials

6.    Search the school by the name Texas Southmost College, click on Notify This School, and continue

Helpful Website/Phone Numbers
Direct Loan Website: www.studentloans.gov     Phone: 1-800-848-0979
FSA ID: www.fsaid.ed.gov
National Student Loan Database: www.NSLDS.ed.gov

 

Work-Study

Welcome to the work-study program at Texas Southmost College. The work-study program is another type of financial aid for undergraduate college students, which provides part-time employment to assist students with their educational cost and living expenses. Unlike other employment, TSC employers understand that the students’ education comes first. TSC will ensure that work-study duties do not interfere with class schedules and school performance.

Work-Study Handbook is available for students and supervisors to help clarify questions regarding the program.

Statement of Purpose

The mission of the Financial Aid Office at Texas Southmost College is to assist students in obtaining on-campus employment experience during their education at our institution. Work-study is a beneficial program that allows students to gain valuable skills, experiences, and networking opportunities that help prepare them for the job market after they graduate. This program helps students reduce the need for student loans, leaves students with less debt, and lets them explore careers.

Texas Southmost College offers two types of work-study programs, Federal Work-Study and State Work-Study. For these two programs student applicants must:

  • Submit a Free Application for Federal Student Aid (FAFSA) for each academic year in which the student wants to participate in the work-study program.
  • Be citizens or permanent residents of the U.S.
  • Have financial aid need, as defined by work-study program regulations
  • Maintain enrollment in at least six credit hours during fall/spring semesters and at least one credit hour during each summer session
  • Meet Satisfactory Academic Progress standards
  • State work-study applicants must be Texas residents to qualify for the Texas work-study program.

Federal and state work-study funding is limited and is awarded on a first-come, first-served basis until funds are exhausted. Once a student is placed in a job, students may work from 15 to 19 hours per week, depending on their CWS Referral form. TSC pays work-studies twice a month and at least at the level of the federal hourly minimum wage. All students considered for employment under the college work-study program are given an equal opportunity without discrimination on the basis of race, religion, color, natural origin, gender, age, or handicap.

Work-Study positions are available year round!

If interested in working on campus, submit the “Work-Study Employment Application”