Are you looking into student loans, grants or work study opportunities? Here’s the info you need to know about Title IV funding.
Title IV funds are those authorized under Title IV of the Higher Education Act. They’re a major source of federal aid for students who need financial help to meet their educational goals. It’s important to understand the different types of funding as well as the responsibilities associated with them. You’ll find more information on the U.S. Department of Education Federal Student Aid site, but we’ve provided a handy breakdown of the key types of funding for you.
What Programs Fall Under Title IV?
Federal student loans must be repaid to the lender, which is the federal government. Not sure what this means? This list of student loan terminology should help:
- Direct Loans: These Title IV funds come from the federal government. These can be subsidized or unsubsidized. See the definitions of subsidized and unsubsidized below.
- Federal Family Education Loans (FFEL): FFEL funds are from a private lender such as a bank. They can be both subsidized and unsubsidized.
- PLUS Loans: PLUS loans are for parents of dependent students who are enrolled at least half-time. They are available to parents of both graduate and undergraduate students.
- Subsidized: Subsidized loans are need-based loans, and the government covers the interest while you’re enrolled half-time or more. Your interest is also covered during your six-month grace period or throughout authorized deferments.
- Unsubsidized: Unsubsidized loans are not need-based loans, and you’re responsible for the interest throughout the lifetime of the loan.
Federal grants, unlike student loans, do not have to be repaid. There are two types of grants that fall under Title IV funding:
- Federal Pell Grant: Pell Grants are typically awarded to undergraduates, though in rare cases, students enrolled in post-baccalaureate teacher certification programs are eligible.
- Federal Supplemental Educational Opportunity Grant (FSEOG): This grant is for undergraduate students who demonstrate exceptional financial need. Pell Grant recipients are given priority.
Federal work-study jobs are available to students who demonstrate financial need. They can be full- or part-time and are available to graduate and undergraduate students.
Still Have Questions?
Figuring out the specifics of each Title IV program can be confusing. If you have a question about Title IV funding and your financial aid, stop by the Office of Student Financial Planning for help and information.