Portland-State-University 2016-2017 Bulletin

Award sources

Comprehensive details on the federal aid programs are available in the Funding Education Beyond High School Guide, published annually by the U.S. Department of Education and also located online at www.studentaid.gov. Students and families can also find Financial Aid consumer information and guides at www.pdx.edu/finaid.

Educational grants

Federal Pell Grant

This federally funded grant program is designed to provide assistance to eligible undergraduate students. The federal government determines the amount of the grant with the University acting as the disbursing agent. Eligibility is based upon financial need as determined by the Estimated Family Contribution (EFC). Students have a lifetime limit of the equivalent of 6 years of full time enrollment for Pell Grant eligibility. Students apply for this grant by completing the FAFSA.

Federal Supplemental Educational Opportunity Grant

This is a limited federally funded grant program under which eligible applicants are selected for awards by Portland State University. Eligibility is based upon exceptional financial need and awards are limited to undergraduate students only. Students apply for this grant by completing the FAFSA.

Oregon Opportunity Grant (Oregon residents)

All Oregon resident undergraduate students applying for financial aid will be considered for the Oregon Opportunity Grant awarded by the Office of Student Access and Completion (formerly Oregon Student Assistance Commission). Awards are based upon financial need. Details about eligibility can be found at www.oregonstudentaid.gov. Awards are renewable for 12 terms provided satisfactory academic progress and financial need continue each academic year. Oregon students apply for this grant by completing the FAFSA.

The Teacher Education Assistance for College and Higher Education (TEACH) Grant Program

This grant provides up to $4,000 per year in grants for graduate and undergraduate students who intend to teach full-time as a highly qualified teacher in high-need subject areas for at least four years at schools that serve students from low-income families. Graduate students are eligible for $4,000 per year ($8,000 total). Undergraduate students may receive up to $16,000 for undergraduate study and/or up to $8,000 for graduate study. Part-time students are eligible, but the maximum grant will be reduced.

Important Notice: If a student fails to complete the four-year teaching obligation, they must repay the grant with interest under the federal Stafford Loan program. Students apply for this grant by completing the FAFSA.

Portland State University Tuition Grants and Scholarships

A variety of school funded programs that provide tuition assistance to eligible students. Students apply for these institutional programs by completing the FAFSA.

Athletic Grants-In-Aid and Scholarships

Athletic grants-in-aid and scholarships are administered by the institution’s financial aid and athletic departments. Each head coach is responsible for selecting recipients based upon eligibility and athletic ability. The National Collegiate Athletic Association sets forth the eligibility and financial aid requirements for Portland State University men’s and women’s athletic teams. Any prospective PSU student should contact the coach of the desired sport about availability of scholarships and the recruiting process. Each coach will then consider the prospective student’s athletic ability, eligibility, finances available, and the need of that particular sport. An athletic grant-in-aid request is then submitted to the director of Athletics for award to the prospective student.


Educational loans

Federal Direct Loan Programs

Portland State University participates in the federal Direct Loan programs. Under this program, funding for student loans is provided by the federal government through colleges rather than by banks. When loans are due, borrowers repay them directly to the federal government through a loan servicer which is assigned by the U.S. Department of Education to each borrower once the first disbursement of a loan is processed. Any subsequent loans are then serviced by the assigned loan servicer. Loans are available to students and parents of dependent students through the Direct Loan program. Undergraduate and post-baccalaureate students can borrow Federal Stafford loans; graduate students can borrow Federal Stafford loans and Graduate PLUS loans; and parents of dependent students can borrow a Parent PLUS loan. Graduate students and parents may apply for the Graduate PLUS or the Parent PLUS loan online at, www.studentloans.gov or by paper application by contacting the Office of Student Financial Aid and Scholarships.  

Students apply to participate in the Direct Stafford Loan program by first completing the FAFSA but, to complete the loan application, a student borrower must then accept the loan(s) as part of their financial aid award acceptance process, sign a Master Promissory Note or have previously signed a Master Promissory Note within the last 10 years and complete new borrower entrance counseling before they may receive the loan disbursement.

Parents apply to participate in the Direct PLUS Loan program by submitting a loan application online at www.studentloans.gov. The student must have completed a FAFSA for their parent borrower to participate in this loan program.

Federal Direct Subsidized Stafford Loan

Subsidized loan eligibility is based upon the demonstration of financial need and in conjunction with other sources of student assistance. The federal government pays the interest on this loan while the student is in school, enrolled at least half-time and, during the six month grace period directly after a student separates from school. For students who are new borrowers after July 1, 2013, interest is paid by the federal government up to 150 percent of the published length of the academic program. The student is responsible for all interest on the loan once repayment begins or after 150 percent of the published length of the academic program is exceeded.

The federal government has set loan annual limits: $3,500 for the first academic year of undergraduate study (up to 44 credits); $4,500 for the second academic year (45–89 credits); and $5,500 an academic year for the remaining years of undergraduate study. Not all students are eligible for the maximum loan amount. Graduate students are not eligible for Subsidized Stafford loans.

Student borrowers must be enrolled in good standing at least half-time and have been accepted for admission to a program leading to a degree or certificate. Once repayment begins, borrowers are charged a fixed interest rate. For current interest rates, visit the Department of Education’s website at https://studentaid.ed.gov/types/loans/interest-rates.

Students must complete a FAFSA each year to participate in this loan program.

Federal Direct Unsubsidized Stafford Loan

This program provides unsubsidized federal Direct loans to students who do not qualify, in whole or in part, for the subsidized Federal Direct Stafford Loan. All Graduate level Stafford loans are Unsubsidized. Unsubsidized loans are not eligible for the federal government payment of interest while the student is in school. The student may make interest-only payments while in school, or the interest will be added to the loan balance. The interest rate for the Federal Direct Unsubsidized Stafford Loan is fixed. For current interest rates, visit the Department of Education’s website at https://studentaid.ed.gov/types/loans/interest-rates.  The student is responsible for the interest that accrues while in school, during their six-month grace period, and any authorized deferment periods. The federal government has set loan limits: $2,000–$5,500 for the first academic year of undergraduate study (up to 44 credits); $2,000–$6,500 for the second academic year (45–89 credits); and $2,000–$7,500 an academic year for the remaining years of undergraduate study. Graduate and doctoral students may borrow up to $20,500 per year.

Lifetime (aggregate) Stafford Loan borrowing limits by academic program: A student may borrow up to an aggregate limit of:

$31,000 (only $23,000 may be subsidized) as a dependent undergraduate or post baccalaureate student.

$57,500 as an independent undergraduate or post baccalaureate student (only $23,000 of this amount may be subsidized).This aggregate amount includes all previous loans borrowed as a dependent Undergraduate student.

$138,500 as a graduate or professional student (only $65,500 of this may be subsidized). This aggregate amount includes all previous loans borrowed as an Undergraduate student.

Additional Federal Direct Unsubsidized Stafford Loan

Dependent undergraduate students whose parents are denied access to the Federal Direct Parent Loan for Undergraduate Students program may be eligible for additional Federal Direct Unsubsidized Stafford Loan funding. Students with fewer than 90 credits may borrow a maximum of $4,000 a year in additional funds above the maximum Federal Direct Stafford Loan annual limits (but may not exceed aggregate limits). Students who have earned 90 credits or more may borrow a maximum of an additional $5,000 per year (but may not exceed aggregate limits). Not all applicants will qualify for the maximums in additional funding. The Federal Direct Unsubsidized Stafford Loan may be used to replace expected family contribution, but total Direct loan (subsidized and unsubsidized) borrowing cannot exceed the cost of attendance.

Students must complete a FAFSA each year to participate in this loan program.

Federal Direct Parent PLUS Loan (PLUS)

This program provides loans to parents of dependent undergraduate students. Parents may borrow up to an annual amount that is equal to the cost of attendance minus any financial assistance the student receives during the periods of enrollment. The parent borrower may use the amount of the Federal Direct PLUS to replace the expected family contribution and cover unmet need for the loan period. The Federal Direct PLUS loan is limited to parents who do not have an adverse credit history or who have obtained an endorser who does not have an adverse credit history. A Direct loan program servicer, contracted by the federal government, performs the required credit check. The interest on the Federal Direct PLUS is fixed.  For current interest rates, visit the Department of Education’s website at https://studentaid.ed.gov/types/loans/interest-rates.

Parents interested in participating in the Federal Direct PLUS program can obtain application information from the Office of Student Financial Aid and Scholarships or apply online at www.studentloans.gov.

Students must complete a FAFSA each year for their parent to participate in this loan program.

Federal PLUS Loan for Graduate and Professional Students (Graduate PLUS)

This program is offered to credit qualified students with or without financial need, but the student must have financial aid eligibility. Like the Direct Stafford loans for students, the U.S. Department of Education is the lender of the Graduate PLUS loan. Repayment begins within sixty days after the Graduate PLUS loan is fully disbursed. However, students that meet deferment requirements may obtain an in-school deferment from the U.S. Department of Education. Interest begins to accrue at the time the first disbursement is made at a fixed rate.  For current interest rates, visit the Department of Education’s website at https://studentaid.ed.gov/types/loans/interest-rates.

Students must complete a FAFSA each year and first be considered for the federal Direct Stafford program to participate in this loan program.

Federal Perkins Loans

This federally funded loan program is available to undergraduate students who demonstrate exceptional financial need and who are enrolled at least half-time. The interest rate is fixed at five percent and repayment begins nine months after the student is no longer enrolled at least a half-time or graduates.

Students must complete a FAFSA each year to participate in this loan program.

Alternative (to the federal student loan programs) Loans

Privately funded education loans are not based on need, and no federal formula is applied to determine eligibility. However, the amount borrowed cannot exceed the cost of attendance minus other financial aid. Interest rates and repayment terms vary by lender, but are generally less favorable than those provided through the federal Direct lending program. Privately funded education loans are used to supplement the federal programs when the cost of attendance minus the maximum federal aid still leaves unmet need.  For information on alternative loans, visit the PSU website at www.pdx.edu/finaid/apply.

Loan Repayment

Repayment of Federal Direct Stafford Loans (subsidized and unsubsidized) begins after the grace period which is six months after the student separates from school. A student is considered to be separated from school when their enrollment drops below half-time or after graduation. Repayment of Federal PLUS loans begins within sixty days of the last disbursement. There are no penalties for making payments while in school or during the grace period.  Students or parents may make payments at any time directly to their loan servicer.

Entrance and Exit Counseling

First-time federal Direct Stafford and Graduate PLUS loan borrowers must complete student loan entrance counseling. This counseling session focuses on a borrower’s rights and responsibilities and provides information about responsible borrowing. Shortly before graduating or enrolling in less than half time credit hours at Portland State University, Stafford and Graduate PLUS loan borrowers must also complete student loan exit counseling. Both entrance and exit counseling is required of all borrowers and completed online at www.studentloans.gov.

Debt Management and Default Reduction

Portland State University is committed to helping students achieve sound financial planning and debt management. Information about loans, repayment options, and debt management strategies is available in the Office of Student Financial Aid and Scholarships. Website: www.pdx.edu/finaid.