Federal Financial Aid

In order to obtain aid from the federal government, students must complete the Federal Application for Student Aid (FAFSA). The funding for this type of aid is awarded by the US Department of Education. As long as the academic credit you will earn abroad is pre-approved by your home or USAC Member University, federal aid is allowed to be used toward your study abroad program.

Grants and Loans

Typically, federal financial aid comes in the forms of grants or loans including:

Pell Grant
This is a need-based grant determined by the family annual income and is only awarded to undergraduates who are working on their first bachelor’s degree. The award does not need to be repaid. 

Stafford Loan
This is also known as a Federal Family Education Loan or a Direct Loan and is the Department of Education’s major source of self-help aid. Repayment does not begin until 6 months after the student graduates or stops attending a university.

Subsidized Stafford Loan
This is need-based and the federal government pays the interest to the lender while you are enrolled in school.

Unsubsidized Stafford Loan
This has no interest subsidy and the interest accrues from the date of disbursement. Typically, the interest rate is very low.

Parent PLUS Loan
This loan is provided by the Department of Education as a way for parents or legal guardians to supplement the government funding that their children receive. It is need-based and the parent’s credit report affects the approval of the loan. Repayment begins immediately on this loan unless the parent is a degree-seeking student.

Perkins Loan
The Perkins Loan is a need-based, long-term, low interest loan awarded via the FAFSA.

Eligibility

To be eligible for federal financial aid, you must be accepted to an eligible Title IV institution as a degree or certificate student—either at your home university or USAC Member University. You must also:

  • Be a citizen of the United States
  • Demonstrate financial “need” (with the exception of some loan programs)
  • Have a high school diploma
  • Have a valid social security number
  • Be registered with Selective Service, if required
  • Use student aid only for educational purposes
  • Not owe a refund on a federal grant or be in default on any federal education loan

Applying for Federal Financial Aid

To apply you should complete the following steps:

  • Communicate with your home university’s financial aid office and follow their procedures.
  • Fill out the free FAFSA application with the Title IV code of your home university or USAC Member University, depending upon from whom you are applying for the federal aid.
  • Get a consortium/interinstitutional agreement from your home university study abroad office or financial aid office, complete the student section, and send it to the USAC Central Office (either by your home university Financial Aid Office or you).
  • Utilize the program budget sheet available to you on your USAC Student Gateway account for financial aid budgeting purposes. This budget sheet may assist you in obtaining additional funds to support your study abroad.
  • The university granting your financial aid (either your home university or USAC Member University) will use the information they receive from the FAFSA to prepare your financial aid award. They will send you an award letter summarizing the types of awards and aid available to you. If you want to accept all or partial funding offered to you, you must complete and return the documentation to the financial aid office quickly in order for them to process your aid promptly.
  • Send a copy of your financial aid acceptance letter to the USAC Central Office to defer your final USAC payment due date to the date your aid will be disbursed. If your home university will be paying your study abroad fees to USAC on your behalf, you won’t need to send us the financial aid award letter. However, you should check with both your home study abroad office and your home financial office to insure they have all the paperwork they need from you.