Federal TEACH Grant Loan Forgiveness Program

Federal Teach Grant

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The Teacher Education Assistance for College and Higher Education (TEACH) Grant is available to students in a TEACH-eligible bachelor’s degree program who intend to teach in a public, or private elementary, or secondary school that serves students from low-income families.

However, because total financial aid must not exceed the cost of attendance, receiving a TEACH Grant may reduce the recipient’s eligibility for other sources of financial aid.  In other words, do not assume that you will automatically have a credit on your account.  Loans that have already been awarded may be replaced by the grant.

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TEACH Grant Eligibility

  • Be a U.S. citizen or eligible non-citizen.
  • Complete a FAFSA, although you do not have to demonstrate financial need to be eligible.
  • Have a cumulative GPA of at least 3.25 throughout your academic program, or demonstrate a score above the 75th percentile on a national standardized college admissions test (submit a paper copy of your test scores showing percentile ranking to the Financial Aid Office).
  • Be accepted into an eligible LSSU School of Education degree program.
  • Undergraduate students are eligible only if they are pursuing their first undergraduate degree.  Students pursuing a second undergraduate degree and teachers working on teacher certification are NOT eligible for the TEACH Grant.
  • Complete the LSSU TEACH Grant Application.
  • Sign an Agreement to Serve and complete counseling each year that you receive a grant.
  • Complete Entrance Counseling.

Teaching Obligation
Grant recipients agree to teach for at least four years within eight years of finishing their teacher preparation program and to teach high-need subjects in designated schools that serve low-income students (designated as Title I). If you do not complete the four years of qualified teaching service within eight years of graduation or fail to meet any other TEACH Grant requirements, the grant will convert into a Federal Direct Unsubsidized Stafford Loan, with interest accrued and capitalized from the date of the original disbursement.

For the purpose of the TEACH Grant program, a low-income school is a public or private elementary or secondary school that is listed in the annual directory of Designated Low-Income Schools for Teacher Cancellation Benefits.

Agreement to Serve
Each year you receive a TEACH Grant, you must sign a TEACH Grant Agreement to Serve (service agreement) and Promise to Pay, which is available electronically on the U.S. Department of Education web site.

The TEACH Grant Agreement to Serve specifies the conditions under which the grant will be awarded, the teaching service requirements, and includes an acknowledgment by you that you understand that if you do not meet the teaching service requirements you must repay the grant as a Federal Direct Unsubsidized Loan, with interest accrued from the date the grant funds were disbursed. Specifically, the TEACH Grant Agreement to Serve will provide that –

  • For each TEACH Grant-eligible program for which you received TEACH Grant funds, you must serve as a full-time teacher for a total of at least four academic years within eight calendar years after you completed or withdrew from the academic program for which you received the TEACH Grant.
  • You must perform the teaching service as a highly-qualified teacher at a low-income school. The term highly-qualified teacher is defined in section 9101(23) of the Elementary and Secondary Education Act of 1965 or in section 602(10) of the Individuals With Disabilities Education Act.
  • Your teaching service must be in a high-need field.
  • You must comply with any other requirements that the Department of Education determines to be necessary.
  • If you do not complete the required teaching service obligation, TEACH Grant funds you received will be converted to a Federal Direct Unsubsidized Stafford Loan that you must repay, with interest charged from the date of each TEACH Grant disbursement.  If the grant is converted to a loan, it cannot be converted back to a grant.

High Need Subject Areas

  • Bilingual education and English language acquisition
  • Foreign language
  • Mathematics
  • Reading Specialist
  • Science
  • Special education
  • Any other field that has been identified as high-need by the federal government, a state government, or a local education agency, and that is included in the annual Teacher Shortage Area Nationwide Listing (Nationwide List)

LSSU Eligible Degree Programs
Elementary Education

  • Elementary Education/Special Education
  • Elementary Education/Mathematics

Secondary Education:

  • Secondary Teaching/Integrated Science
  • Secondary Teaching/Social Science
  • Secondary Teaching/Mathematics

TEACH Grant Award Amounts and Enrollment Requirements
The amount of your TEACH grant will depend on your enrollment status.

Eligible full-time students may receive $4,000 per year in TEACH Grant funds, up to a maximum of $16,000 for undergraduate study.

The TEACH Grant program funding has been reduced by the Budget Control Act of 2011 (the sequestration law).

  • For any 2021-2022 TEACH Grant disbursed, the maximum award of $4,000 is reduced by 5.7% ($228), resulting in a maximum award of $3,772.
Maximum award is $4,000 per academic year Full-time 3/4-time Half-time Less than half-time
Undergraduate student

Per semester award (will be reduced by sequestration)

12 or more credits

$2,000

9-11 credits

$1,500

6-8 credits

$1,000

1-5 credits

$500

Links and Resources
Links and Resources

Exit Counseling
As with federal loans, federal regulations require that students who have received a TEACH Grant complete online exit counseling upon changing majors to something other than a eligible academic program, withdrawing from school, or graduating from their program of study.

The online TEACH Grant Exit Counseling session provides information about the terms and conditions of a TEACH Grant service agreement, as well as the rights and responsibilities that apply if your TEACH Grant is converted to a Direct Unsubsidized Loan.

T.E.A.C.H. Program for Early Education
For information about the T.E.A.C.H Program, follow this link: http://www.miaeyc.org/professional-development/t-e-a-c-h-scholarships/.  The Michigan Association for the Education of Young Children (MiAEYC) runs this program and it is not the same as the Teacher Education Assistance for College and Higher Education (TEACH) Grant Program.

Loans

Loans

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Federal Direct Subsidized/Unsubsidized Loan

Federal Direct Subsidized & Unsubsidized Loans

How do I apply?

Students must file a Free Application for Federal Student Aid (FAFSA) each year to qualify for a federal student loan. Qualified applicants must be a U.S. citizen or eligible alien. Lake Superior State University evaluates the FAFSA information and determines which types of loans you are eligible for and sends you an Official Offer of Award. First time borrowers will need to complete Entrance Counseling and sign a Master Promissory Note (MPN) prior to loan funds disbursing to their account. Once enrolled at LSSU, students must meet the Satisfactory Academic Progress (SAP) standards to be eligible for additional loans.

What is the difference between Subsidized and Unsubsidized Loans?

Subsidized (Sub.) Loan

The federal government does not charge interest on subsidized loans while a borrower is attending school at least half-time (6 or more credits), during the six-month grace period and during deferments (postponements of repayment). Financial need (determined from the FAFSA) must be shown to receive this type of loan.

Unsubsidized (Unsub.) Loan

For students without financial need, the Direct Loan Program offers Direct Unsubsidized Loans. Unlike the subsidized loan, the federal government charges interest on unsubsidized loans while borrowers are attending school, during the six-month grace period and during deferments. If borrowers do not wish to pay the interest while in school, the interest amounts will be capitalized (added) to the principal loan balance.

Interest Rates and Processing Fees for Subsidized and Unsubsidized Loans:

  • 5.50% fixed interest rate for undergraduate loans disbursed between July 1, 2022 and June 30, 2023
  • 1.057% loan origination fee will be deducted from each disbursement for loans first disbursed between October 1, 2023 and October 1, 2024.

Federal Direct Loan Program Limits:

Federal Direct Loan Program Limits
YEAR
DEPENDENT
UNDERGRADUATE
INDEPENDENT
UNDERGRADUATE*
Freshman
0-25 credits earned
$5,500
No more than $3,500 may be in subsidized loans.
$9,500
No more than $3,500 may be in subsidized loans.
Sophomore
26-55 credits earned
$6,500
No more than $4,500 may be in subsidized loans.
$10,500
No more than $4,500 may be in subsidized loans.
Junior/Senior
56+ credits earned
$7,500
No more than $5,500 may be in subsidized loans.
$12,500
No more than $5,500 may be in subsidized loans.
Aggregate Loan Limits(maximum lifetime eligibility) $31,000
No more than $23,000 may be in subsidized loans.
$57,500
No more than $23,000 may be in subsidized loans.

*The independent undergraduate loan limits also apply to dependent students whose parents are unable to borrow under the Parent PLUS loan program.

The Following are sample disclosure statements and borrower rights:

Federal Parent PLUS Loan

Federal Parent PLUS Loan

Parents and/or step-parents of undergraduate dependent students may utilize the Federal Direct Parent PLUS Loan to assist in paying the student’s educational expenses.  Parents may borrow up to the difference between the cost of education and other financial aid for which the student is eligible.  The maximum amount available for the year is shown on the student’s Official Offer of Award as the “Maximum Parent PLUS or Alternative Loan” option.

Interest Rate and Processing Fees:

  • 8.05% fixed interest rate for loans disbursed between July 1, 2023 and June 30, 2024
  • 4.228% loan origination fee will be deducted for loans first disbursed between October 1, 2022 and October 1, 2023.

Applying for the Federal Direct Parent PLUS Loan:

There are two ways to apply:

Please DO NOT complete both an online application and a paper application.  Choose only one method.

Steps to complete the online PLUS application:

  • The parent borrower must sign in to https://studentloans.gov/myDirectLoan/index.action with their FSA ID.
  • Once signed in, select Request Direct PLUS Loan.
  • Select Parent PLUS for the loan type.
  • Fully complete the application and submit it.  Make sure to select the correct aid year. 
  • Once submitted, you will receive notification immediately of your approval or denial.
  • Next, complete the Parent PLUS Master Promissory Note (MPN) at the same website, https://studentloans.gov/myDirectLoan/index.action.  Make sure to complete all 4 steps and receive notice that your MPN is successfully submitted.  Print a copy of the MPN for your records.

Both application methods will generate a credit check on the parent who is applying for the loan. The credit check is valid for 180 days.

If your parent’s application is denied due to adverse credit history, contact the LSSU Financial Aid Office to discuss your options.  Beginning March 29, 2015, PLUS loan counseling will be required if you are determined to have adverse credit history, but qualify for a PLUS loan by documenting extenuating circumstances or obtaining an endorser.  This can be completed at https://studentloans.gov/myDirectLoan/index.action.

Please note: PLUS Loan applications must be completed every year as part of the Federal Student Aid Application process.

Disbursement

The approved loan (less fees) will disburse to the student’s account after all steps are completed. Please allow 10 days for processing. If the approved loan is for the full academic year, it will be divided in half, with 50% of the loan disbursing in the fall and 50% in January.

Deferment and Repayment

Repayment begins on the PLUS loan immediately after the loan is fully disbursed.  Parent borrowers may contact their loan servicer to request a deferment while the dependent student is enrolled at least half time and for an additional six months after the student ceases to be enrolled at least half time. Parent borrowers can also select the deferment option during the on-line application; however, this may not automatically defer the payments.

Disclosure Statements

Sample disclosures for PLUS loans:

Federal Nursing Loan

Federal Nursing Loan

The Nursing Education Loan Program provides loans of up to $5,000 a year for students working towards a degree in the nursing program.

Eligibility requirements include, but are not limited to;

  • United States citizenship,
  • Enrollment status of at least half time (6 or more credits),
  • Demonstrated financial need.

ATTN:  Nursing Students
Apply for repayment assistance with the Department of Health and Human Services by clicking here.

Private/Alternative Loan

Alternative Loans

Alternative loans are private, credit-based education loans. Students can borrow up to their Cost of Attendance (COA) less any other aid they receive. It is strongly encouraged that students complete the FAFSA to utilize their maximum federal aid eligibility first. The maximum amount that you could borrow is listed as the “Parent PLUS or Alternative Loan” option on your Official Offer of Award, assuming that you will utilize your federal loans first.  Borrowing can be costly and we encourage students to exhaust all other options before applying for an alternative loan.

Consider some of these questions when researching alternative loans:

  1. Do I want a fixed or variable interest rate?
  2. When do I have to start paying back the loan? And for how many years?
  3. Are there any loan fees?
  4. What are the co-signer requirements?
  5. Can I borrow even if I’m not a full-time student?
  6. What are the borrower benefits?
  7. Can the loan cover a past due balance?

Compare Lenders

For your convenience, we have provided a list for you to compare and contrast different lenders. ELM Select is a third party site that provides a neutral comprehensive list of private education loan lenders that LSSU students have borrowed from within the past three years, listed in random order. LSSU does not endorse, recommend, or promote any of the listed lenders. You are not obligated to borrow only from the lenders listed. LSSU will process alternative loans from lenders who are not listed, but remember that each lender has certain loan eligibility requirements that if not met by the student, may not allow us to process the loan request.

Loan Periods

When completing an application for an alternative loan, the lender will ask that you select the loan period most applicable for the semester(s) you wish to borrow. Select the loan period that most closely matches one of the loan periods indicated below.

Loan periods for LSSU are:
Fall Only: August – December
Fall & Spring: August – May
Spring Only: January – May
Summer Only: May-Aug (Use the entire summer semester period even if you are only attending a 6-week session.)

I applied and have been approved. What happens next?

Once you have submitted your application to the lender and completed any additional steps, the lender will send your loan request to the school. We review your loan request to make sure it fits within your cost of attendance budget. If the amount you requested is more than what your budget will allow, we will reduce your loan to an amount that will fit within your budget. The loan request is processed by our school and sent back to the lender. The lender will then send the borrower a final loan disclosure, giving you a three day cancellation period. Most lenders will send the loan funds to LSSU electronically. The funds are applied directly to your account. Any excess amount remaining after the funds have been applied will be refunded to you. The total processing time from the time you apply for a loan to the time the funds are sent to the school can range from 2-4 weeks.

Sample forms that lenders may ask you to complete during the application process:

Helpful tips:

  • Borrow only what you need! Borrowing can be costly so check out the Loan/Cost Estimator Tool to estimate how much is really needed.
  • Do your research! Look at each lender thoroughly to determine which loan will best suit your needs.
  • Apply with more than one lender. This helps you determine which lender has the most favorable interest rate. If you apply for more than one, make sure you do so in a short period of time (such as one week) in order to prevent several hits to your (and/or your co-signer’s) credit score.

Disclosures:

  • LSSU strongly encourages students to maximize all of their federal aid eligibility before requesting private education loans.
  • LSSU is not affiliated with any private student loan lenders.
  • LSSU provides a list of private student loan lenders (through a third party) without prejudice for the purpose to assist students and does not endorse, promote or recommend any one lender over another.
  • The listed lenders are those who LSSU students have borrowed from within the past 3 years. (With the exception of three lenders whose information is not available on ELM Select. Those lenders are: H.P.C. Credit Union, Northland Area Federal Credit Union and Pentagon Federal Credit Union.)
  • Lenders do not pay a fee to be included on this list.
  • Students are not obligated to borrow only from the lenders that are listed.
  • The maximum amount that a student can borrow is listed as the “Parent PLUS or Alternative Loan” option on their Official Offer of Award, assuming that they will utilize their federal student loans first.

Canadian Student Loan
Canadian students who need help paying for a college or university education may apply for aid through the Ontario Student Assistance Program (OSAP). OSAP offers a mixture of grants and loans.

To be considered for OSAP, you must meet the following requirements (additional qualifications may by required):

  • Be a Canadian citizen, Permanent Resident or Protected Person;
  • Meet Ontario residency requirements;
  • Be enrolled in an approved post secondary institution taking an approved program;
  • Be taking at least 60% of a full course load, or 40% if you have a permanent disability.

Students who complete an OSAP application may be eligible for the Canada-Ontario Integrated Student Loan (COISL). The loan is funded by both the Government of Ontario and the Government of Canada.  The loan is issued through the National Student Loans Service Centre (NSLSC).

For more information, visit the OSAP web site at: www.osap.gov.on.ca.

Another loan option for Canadian students is available through Global Education Management Services (GEMS). Visit www.myglobaled.com for loan features, program requirements and how to apply.

Grants

Grants

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Federal Pell Grant
All students filing the FAFSA are automatically reviewed for Pell Grant eligibility. Pell Grants provide assistance to which other forms of aid may be added.

Pell Grant amounts vary according to the year and number of credits enrolled in each semester.

To be eligible for a Pell Grant, students must:

  1. Be determined to have financial need.
  2. Be undergraduates accepted for admission and enrolled in eligible programs and meet satisfactory academic progress standards.
  3. Be U.S. citizens or permanent residents or qualified Jay Treaty students.
  4. Not be in default on a Federal Direct Stafford or Perkins Loan, and not owe a refund for a Pell Grant or other federal aid.
  5. Not be disqualified due to prior drug offense convictions.

There is a limit to the total amount of Federal Pell Grant that a student may receive in their lifetime, which is the equivalent to 6 school years.

Although awards are made through the University, the U.S. Department of Education determines eligibility. The University Financial Aid Office uses a standard procedure established by the Department of Education to calculate the award.

To apply, complete the Free Application for Federal Student Aid (FAFSA). Forms are available at high schools, colleges and financial aid offices or online at https://fafsa.gov/

Federal Supplemental Educational Opportunity Grant (SEOG)
The Higher Education Act of 1965 created this program of financial assistance to help college students with the greatest financial need. Supplemental Educational Opportunity Grants may be used to meet all or part of student financial need (up to $1000 in any one year).

Financial need is the primary consideration in the selection of grant recipients. Priority is given to the neediest Pell Grant recipients. Recipients are selected from those applying for all forms of financial aid by using the FAFSA.

FSEOG is a priority fund that is distributed first to students who file their FAFSA by March 1st.
Recipients of this award must reapply each year and maintain the regular satisfactory academic progress standards to be considered for a renewal award.

Federal Occupationsl Education Program (OCED)
The Perkins Grant Program provides OCED funding for students with demonstrated financial need, as determined by filing the Free Application for Federal Student Aid (FAFSA), and who are enrolled in certain Associate’s degree programs. Students who qualify for the Federal Pell Grant and have earned less than 72 credits will automatically be considered if enrolled in one of the following Associate’s degrees:

  • Criminal Justice – Corrections
  • Criminal Justice – Law Enforcement
  • Early Childhood Education
  • Fire Science
  • Health Care Provider
  • Manufacturing Engineering Technology
  • Natural Resource Technology
  • Small Business Administration
  • Substance Abuse Prevention and Treatment
  • Technical Accounting

This grant provides supplemental funding for qualified students and may be pro-rated for less than full-time attendance.

Bureau of Indian Affairs Scholarship Grant
Members or those eligible for membership in a federally recognized tribe showing need, may apply for Bureau of Indian Affairs Scholarship Grants by contacting their tribal education office for an application. It is possible to receive up to full university expenses per year in scholarship grants if financial need is demonstrated.

All applicants must complete a Free Application for Federal Student Aid (FAFSA).

Bureau of Indian Affairs Vocational Training Assistance
Native students enrolled in certificate or associate degree programs are eligible for assistance to pay for tuition, books and living expenses. You must be a member or eligible for membership in a federally recognized tribe.

Awards are based on financial need. Applicants must complete a Free Application for Federal Student Aid (FAFSA). Applications may be obtained by contacting the Tribal Education Office.

Tuition Incentive Program (TIP)
The Tuition Incentive (TIP) encourages eligible students to complete high school by providing tuition assistance for the first two years of college and beyond. To meet the financial eligibility requirement, a student must have (or have had) Medicaid coverage for 24 months within a 36-consecutive-month period as identified by the Michigan Department of Human Services (DHS), and have applied to use the TIP program before high school or GED completion.

Eligible students must be enrolled for a minimum of 6 credits each semester to receive the fund.

TIP provides assistance in two phases:

Phase I covers tuition and mandatory fee charges for eligible students enrolled in a credit-based Associate degree or Certificate program at a participating Michigan community college, public university, degree-granting independent college, federal tribally-controlled college, or Focus: HOPE.

Phase II provides a maximum of $2,000 total tuition assistance for credits earned in a four-year program at an in-state, degree-granting college or university.

For more information on the TIP program, go to www.michigan.gov/mistudentaid/ or contact the Michigan Office of Scholarships and Grants at [email protected] or 1-888-447-2687 BEFORE YOU GRADUATE HIGH SCHOOL if you think you may be eligible.

Awards are subject to legislative changes.

Types of Aid

Types of Financial Aid

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Grants

Scholarships

Loans

Student Employment

Other Aid Sources