Federal Programs
Federal funding for education consists of both loans and grants. This section is designed to help you become familiar with federal programs for student aid and assist you in understanding some of the terms and conditions of the Federal Stafford Loan. To qualify for the Stafford Loan, you must first complete the FAFSA application. Once your FAFSA has been processed and all necessary documentation has been collected, you will receive a financial aid award letter. The information is estimated and is subject to change based on your enrollment status.
Federal Pell Grants
The Federal Pell Grant is federal money that does not have to be repaid. Generally, Pell Grants are awarded only to undergraduate students-those who have not earned a bachelor's or graduate degree. In some limited cases, however, you might receive a Pell Grant if you are enrolled in a postbaccalaureate teacher certificate program.
Pell Grants are usually a foundation of federal student aid, to which aid from other federal and nonfederal sources might be added. If you are eligible for a Pell Grant, you will receive the full amount you qualify for.
Federal Supplemental Educational Opportunity Grant (FSEOG)
This grant is for undergraduates (with low Expected Family Contributions or EFCs). The amount of aid you receive depends on such factors as your financial need; the amount of other aid you will receive, and the availability of funds at your school. Unlike the Federal Pell Grant program which provides every eligible student with funds, each school participating in any of the campus-based programs receives a fixed amount each year from the federal government. When that money is exhausted, no further awards can be made from that program for that year.
College Federal Work-Study Program (CWSP)
CWSP is a federally funded campus-based program that allows students to earn money for educational costs through part-time employment. The program offers jobs on campus and with off-campus community service agencies. Students are paid on an hourly basis, and usually work 10–15 hours per week. To work in a CWSP position students must apply for financial aid by completing a Free Application for Federal Student Aid (FAFSA) and demonstrate financial need. Eligible students must use MyCCP to accept the Work-Study award in full or in part. Students can also express acceptance by writing to the Office of Financial Aid.
To assist students with locating a Work-Study job, students can view all open positions online at www.collegecentral.com/ccp.
Work-Study awards are subject to availability of funds and may be reduced or canceled.
Loans
To be eligible for federal loans, students must be enrolled for at least 6 credits and have completed an entrance interview and a Master Promissory Note (MPN). All new and returning students must complete the entrance interview and MPN online at www.studentloans.gov. Subsidized Direct Loans are based on need, while unsubsidized Direct Loans are not need-based. A student may receive a combination of both loans, but the annual aggregate loan limits listed below (by grade level) cannot be exceeded.
| Year | Dependent | Independent |
| Freshman (<30 Cr) | $5,500 of which no more than $3,500 may be subsidized |
$9,500 of which no more than $3,500 may be subsidized |
| Sophomore (30+ Cr) | $6,500 of which no more than $4,500 may be subsidized |
$10,500 of which no more than $4,500 may be subsidized |
First time borrowers at Community College of Philadelphia, please note that your loans will not be disbursed until 30 days after the start of the semester.
Subsidized Direct Loans
A need based loan on which the interest is paid by the government while you are in school at least half-time (6 credits) during the grace period and during periods of deferment.
Unsubsidized Direct Loans
You are responsible for paying the interest on an unsubsidized loan while you are in school, during the grace period, during deferment periods and during repayment. Interest can either be paid while you are attending school, or it can be postponed until graduation or withdrawal from school. If you have postponed paying interest, it will be capitalized once you enter repayment (for example, after your grace period). Both the subsidized and unsubsidized Stafford loans have a variable interest rate that adjusts every July 1.
Capitalizing Interest
The process in which the lender adds any unpaid interest on a loan to the principal balance, which increases the outstanding balance on which interest accrues (builds) daily.
Parent Loan for Undergraduate Students (PLUS)
A federal loan taken out by the parent, in the parent's name to cover the cost of education that is not covered by other aid. It has a variable interest rate that is adjusted every July. Parents PLUS loan borrowers cannot have an adverse credit history (a credit check will be done).
FFELP Stafford Loan Program
The Federal Family Education Loan Program (FFELP) also known as the Stafford Loan Program is no longer available.
For more information on loans, please refer to the Federal Student Aid publication on ‘Your Federal Student Loans’ available from the Office of Financial Aid or online at www.FederalStudentAid.ed.gov/pubs