Are you looking into student loans, grants or work study opportunities? The information you need to know about Title IV funding can be found below.
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 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.
- PLUS Loans: PLUS loans are for parents of dependent, undergraduate students who are enrolled at least half-time. They are also available to graduate/professional students.
- Subsidized: Subsidized loans are need-based loans, which do not accrue interest while you’re enrolled half-time or more. Also, interest does not accrue during your six-month grace period or throughout authorized deferments.
- Unsubsidized: Unsubsidized loans are not need-based loans, and interest accrues throughout the lifetime of the loan.
Federal grants, unlike student loans, do not have to be repaid. The following types of grants fall under Title IV funding:
- Federal Pell Grant: Pell Grants are awarded to undergraduates and award amounts are determined annually based on completion of the FAFSA.
- 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. Work-study positions are available to graduate and undergraduate students.