Types of Funding
The Federal Pell Grant is considered to be “need-based” gift aid that does not have to be repaid. This grant is the foundation of many students’ financial aid packages. The maximum Pell Grant for the 2016-2017 academic year (July 1, 2016 to June 30, 2017) is $5,815. The actual amount of this award is determined by a standard formula and funding established by Congress. To apply, the student must complete a FAFSA.
Supplemental Educational Opportunity Grant (SEOG)
The Federal SEOG program provides up to $400 per academic year to students with exceptional need. Awards for this program are limited to the funds available. To apply, the student must complete a FAFSA.
Federal Direct Student Loan Program
Subsidized Loans: Subsidized Direct loans are low-interest loans where the federal government, on behalf of the student borrower, pays the interest on the loan while the student is enrolled at least half-time (six credit hours) and during the six month grace period after leaving college. This loan will have a fixed rate of 3.76% for the life of the loan for all loans disbursed after July 1, 2016.
Unsubsidized Loans: The unsubsidized Stafford program was established to allow students, regardless of income, to receive student loans. This loan is also a low-interest loan from the federal government available to MCC students who do not demonstrate any financial need for a subsidized loan. The key difference is the borrower is responsible for all interest that accrues during any enrollment, grace, or deferment period. This loan will have a fixed rate of 3.76% for the life of the loan for all loans disbursed after July 1, 2016.
Dependent students enrolled full time can borrow a maximum of $5,500 in subsidized/unsubsidized during their freshman year and $6,500 during their sophomore year (once they’ve earned 28 credits). If you are an independent student who is not required to provide parent information on the FAFSA, you may be eligible to borrow an additional $4,000 under the unsubsidized Stafford loan program.
Federal Parent PLUS Loan: This program is a loan made directly to the parents of dependent students to help pay college expenses. It provides a long-term loan from the federal government up to the student’s cost of attendance less any financial aid. The interest rate is fixed at 6.31% for all loans disbursed after July 1, 2016. Loan proceeds are distributed to MCC.
Private Student Loans: A variety of organizations provide private student loans. A simple web search for “Private Student Loans in Iowa” will give you an extensive list of those organizations.
The state of Iowa offers a variety of grants for eligible students. The Iowa College Student Aid Commission (ICSAC) administers these programs for the state of Iowa. The deadline for filing a FAFSA in order to be eligible for the state grants is generally July 1st of each year for the following award year. Follow the link to the ICSAC website, where you can find valuable information regarding these funding options.
These scholarships are funded by Marshalltown Community College, Iowa Valley Community College District, the Marshalltown Community College Foundation, or by local sponsoring organizations, businesses and individuals. Selection is based on criteria set forth by the donor or on the basis of financial need and/or academic ability. These scholarships will be applied to your student account.
There are many scholarships available in your communities and by private sources. Check with your high school guidance counselor for the scholarships available in your community. You can also enter national scholarship searches using a variety of free websites. These free services can provide scholarship information based on your interests, course of study, or other specific information that you provide. Be cautious of any scholarship or grant search that charges a fee for its services!