Federal Grants and Loans
Students who complete the Free Application for Federal Student Aid (FAFSA) and enroll in an eligible degree or certificate program may qualify for several types of federal financial aid grants and loans. This includes grants that do not need to be repaid and student loans that must be repaid with interest.
This page provides an overview of the primary federal aid programs available to Massasoit students, including the Pell Grant, Supplemental Educational Opportunity Grant (FSEOG), and Federal Direct Loans.
Federal Grants
The Federal Pell Grant is a need-based federal grant awarded to undergraduate students who have not yet earned a bachelor’s, graduate, or professional degree. It is designed for students with exceptional financial need and does not need to be repaid.
How Eligibility is Determined
The Pell Grant amount is based on financial need, the number of credits taken each term, and whether the student qualifies for the maximum, minimum, or a Student Aid Index (SAI)–calculated award.
- Maximum Pell Grant: Some students automatically qualify for the full annual amount based on family income, household size, tax filing status, and state of residence. If a student qualifies under these rules, the SAI is not used.
- SAI-calculated Pell Grant: If a student does not qualify for the maximum, the Pell amount is calculated by subtracting the SAI (a number determined from the FAFSA) from the maximum award. The lower the SAI, the more Pell Grant the student may receive.
- Minimum Pell Grant: Even if the calculated Pell amount is low or the SAI is high, a student may still qualify for a small award under special federal rules.
Pell Grant Amounts for 2025–2026
- Maximum annual award: $7,395
- Minimum annual award: $740
These amounts are set by the federal government and are adjusted based on enrollment intensity (the number of credits taken).
How Enrollment Affects Pell Grant Amounts
The Pell Grant amount is prorated based on enrollment intensity. The fewer credits a student takes, the smaller the grant.
- 12 or more credits: 100%
- 11 credits: 92%
- 10 credits: 83%
- 9 credits: 75%
- 8 credits: 67%
- 7 credits: 58%
- 6 credits: 50%
- 5 credits: 42%
- 4 credits: 33%
- 3 credits: 25%
- 2 credits: 17%
- 1 credit: 8%
Other Important Notes
- Pell Grant funds may be received for up to the equivalent of 12 full-time semesters (approximately six years).
- A student cannot receive Pell Grant funds from more than one college at the same time.
- If eligible and meeting Satisfactory Academic Progress, a student may receive Pell Grant funds for all terms in the academic year, including the Summer Semester.
The Federal Supplemental Educational Opportunity Grant (FSEOG) is a campus-based federal grant awarded to undergraduate students with exceptional financial need. Unlike the Pell Grant, FSEOG funding is limited and awarded on a first-come, first-served basis. Priority is given to students who meet published application deadlines and have a Student Aid Index (SAI) of -1500.
How FSEOG Recipients Are Selected
Federal regulations require schools to prioritize students with the lowest SAIs who are also receiving a Federal Pell Grant during the award year. At Massasoit, FSEOG awards are made in the following order:
First Priority Group:
Students who:
- Meet the published priority application deadlines
- Have an SAI of -1500 on the FAFSA
- Are receiving a Federal Pell Grant in the Fall and/or Spring semesters
This applies to all students, regardless of program, dependency status, or enrollment status.
Second Priority Group:
If funds remain after awarding the first group, FSEOG may be awarded to:
- Students with an SAI of -1500 who did not meet the published priority deadlines but are receiving a Federal Pell Grant
Third Priority Group:
If funding is still available, additional awards may be made to:
- Pell-eligible students with the next lowest SAIs, regardless of whether they met the priority deadline
Federal Direct Loans
Federal Direct Loans are low-interest student loans offered by the U.S. Department of Education to help students pay for college. These loans must be repaid, but they offer flexible repayment options and borrower protections not typically available through private lenders.
To be eligible, a student must:
- Be enrolled in at least six eligible credits per semester
- Meet basic federal financial aid requirements
Loan types, annual limits, and repayment responsibilities vary based on the student’s financial need and enrollment level.
The videos below provide an overview of how federal student loans work and explain the options available to students.
Subsidized Loan (Need-Based)
- Interest rate (2025–2026): 6.39% fixed
- Origination fee: 1.057%
- The federal government pays the interest while you’re enrolled at least half-time, during your six-month grace period, and during approved deferments
Unsubsidized Loan (Non–Need-Based)
- Interest rate (2025–2026): 6.39% fixed
- Origination fee: 1.057%
- Interest begins accruing at disbursement; students may choose to pay it while in school or allow it to capitalize later.
Parent PLUS Loan
- Interest rate (2025–2026): 8.94% fixed
- Origination fee: 4.228%
- Available to the parent of a dependent undergraduate student
- Requires a credit check
- May borrow up to the student’s cost of attendance minus other aid
To be eligible, the borrower must:
- Be the student’s biological or adoptive parent, or the stepparent if married to the parent at the time of application
- Be a U.S. citizen or eligible noncitizen
- Pass a federal credit check (a limited or adverse credit history may result in denial or require additional steps)
- Not be in default on a federal student loan or owe a repayment on a federal grant
- Meet other general eligibility requirements for federal student aid
The student must also:
- Be considered dependent under FAFSA rules
- Be enrolled at least half-time in an eligible program
If a parent is denied due to adverse credit history, they may still qualify by:
- Obtaining an approved endorser (co-signer), or
- Documenting extenuating circumstances to the U.S. Department of Education
If the parent chooses not to pursue either option, the student may become eligible for up toan additional $4,000 in Unsubsidized Direct Loan funds for the academic year.
| Loan Type | Annual Limit | Lifetime Limit |
|---|---|---|
| Subsidized + Unsubsidized (Dependent) | $5,500 – $6,500* | $31,000 (up to $23,000 may be subsidized) |
| Subsidized + Unsubsidized (Inependent) | *$9,500 – $10,500 | $57,500 (up to $23,000 may be subsidized) |
*Actual annual limits depend on your grade level and financial need.
To receive a Federal Direct Subsidized or Unsubsidized Loan, a student must:
- Accept or request a loan by completing a Loan Acceptance Form
- Complete Entrance Counseling
- Sign a Master Promissory Note (MPN)
Once all required steps are complete, loan funds are disbursed directly to the student’s account after academic engagement in classes has been confirmed. For fall/spring loans, disbursement typically occurs once per semester. If the loan covers a single semester only, it will be disbursed in two equal installments. The student must still be enrolled in at least six credits at the time of the second disbursement to remain eligible.
To apply for a Parent PLUS Loan, the student must first complete the FAFSA. The parent borrower must then submit a PLUS Loan Application and authorize a credit check. These forms may be requested from the Financial Aid Office or Student Central.
For the 2024–2025 academic year, only 2.45% of students in aid-eligible programs at Massasoit borrowed federal student loans.
Federal student loan funds may only be used for education-related expenses, such as tuition, fees, books, supplies, housing, meals, transportation, and other costs associated with attending college.
Students are encouraged to:
- Borrow only what is needed
- Understand repayment options before graduation
- Track loan balances at studentaid.gov
To help students complete the loan process, short videos are provided below that walk through two key steps: completing Entrance Counseling and signing the Master Promissory Note (MPN). These videos explain what to expect and how to complete each requirement successfully.