Types of Financial Aid

Financial aid is any form of assistance that a student receives to help finance the cost of his/ her education. Assistance often comes in the form of grants, scholarships, and loans. Financial aid is divided into two categories: need-based and merit-based. Chester College offers both merit and need-based financial aid opportunities to its students. Please click on any of the links below to learn more about that type of financial aid.

Federal Pell Grant and SEOG
The Federal Pell and Supplemental Educational Opportunity Grants are need-based grants offered by the Federal government. Undergraduate students with the greatest need are awarded these grants and they do not have to be repaid. Students may apply for these by submitting a Free Application For Federal Student Aid (FAFSA).

[ top of page ]

Federal Stafford Loans
A Stafford Loan is a government guaranteed loan that allows students to borrow money to help pay education-related expenses. This loan is deferrable while the student is enrolled in school at least half-time. Each year students may borrow up to the maximum limit set by the Federal government. However, Stafford Loan funds received by the student must be repaid. A student must complete a FAFSA and a Master Promissory Note to apply for a Stafford Loan. First time borrowers are also required to complete a Financial Aid Entrance Counseling Session that advises them of their rights and responsibilities.

Undergraduate students with financial need are eligible to receive a Subsidized Stafford Loan. With this type of Stafford Loan, the government subsidizes the interest on the loan. This means that the interest is paid by the government while the student is in school. Independent students, dependent students who did not qualify for the Subsidized Stafford Loan, and/ or dependent students whose parents were denied for the parent PLUS loan are eligible to receive an Unsubsidized Stafford Loan. Student borrowers are responsible for paying the interest that accrues on the Unsubsidized Stafford Loan while they are in school. However, they do have the option of deferring payment of the interest until the loan enters repayment.

[ top of page ]

financial aid art school

Federal Parent PLUS Loan
A parent PLUS Loan is a government guaranteed loan offered to parents of undergraduate dependent students. Parents may borrow up to the cost of attendance less all other financial aid received. Because this is a government guaranteed loan, there is a cap on the interest rate. While the interest rate is capped at 9%, it is variable. For the 2004-05 academic year the rate is 4.17%. This loan enters repayment thirty to forty-five days after the final disbursement. Typically, this means payment will be due in February or March. Some lenders may offer deferment of payment, but this is typically in cases of special circumstances.

[ top of page ]

Alternative Education Loans
Private loans, or alternative education loans, are offered to students as another means of financing their education. These loans are credit based and most will require a student to have a co-borrower. Although, some alternative loans do feature a co-borrower release clause in the loan terms. Loan limits are set by the lender, as are the interest rate and fees. Typically, these loans are deferrable and have repayment options similar to the Stafford Loan. Interest will accrue on these loans while a student is in school and the student is responsible for paying the accrued interest.

[ top of page ]

Federal College Work Study
The Federal College Work Study program allows students with great financial need to earn money to help them pursue their studies. Funds from this program are awarded to students eligible for Title IV aid and who have financial need. The main advantage of this program is that the money earned through it is not counted as a financial resource when a student applies for future financial aid. Money earned through this program does not have to be repaid. Students with an accepted Federal work study award will receive a packet in the mail prior to the start of school regarding job opportunities and other program guidelines. Students are responsible for earning their full award and managing their hours accordingly. Acceptance of a Federal work study award does not guarantee that a student will earn his/her full award or that s/he will find on-campus employment. The Financial Aid Office does offer assistance to students looking for employment.

[ top of page ]

State Grants
The majority of States offer need-based grant programs. Students interested in applying for this type of grant must submit a FAFSA by their State's deadline. Eligibility and amount awarded for one of these grants is determined by guidelines set by each State. For residents of New Hampshire, Maine, Massachusetts, and New York the FAFSA must be received by the Federal processor by May 1st.

[ top of page ]

Other Sources of Aid
All students are encouraged to actively seek and apply for other sources of financial aid for which they are eligible. There are many community, private, corporate, and public organizations that offer scholarship and aid programs. Good sources of information include the high school guidance office, the public library, employers, and/or the internet. Students may explore opportunities at the local chamber of commerce and/or rotary club.

[ top of page ]

Graphic Design Online Sources

design schools