Types of Financial Aid

ABOUT Types of Financial Aid

Grants do not have to be repaid. Federal Work-Study awards are earned during the period of enrollment. Most loans must be repaid in cash. You must be enrolled at least half time (6 hours) to receive a Federal Supplemental Educational Opportunity Grant, Federal Work Study, Federal Stafford Loan or Federal Parent (PLUS) Loan. Federal Pell Grants are available for less than full time students depending on need. HOPE Scholarships are available for one or more hours of enrollment. All student financial aid will be awarded based on anticipated full-time enrollment, unless otherwise noted on your Award Letter.


Direct Loans

Federal Direct and Federal Direct Plus Loans

Direct Subsidized Loan – Available to undergraduate students that demonstrate financial need. The U. S. Department of Education pays the interest on this loan (subsidized):

  • while you are in school at least half-time,
  • for the first six months after you leave school (referred to as a grace period), and
  • during a period of deferment (a postponement of loan payments)

Direct Unsubsidized Loan – Available to undergraduate students, but does not require financial need to be demonstrated for eligibility. The student is responsible for paying the interest on an unsubsidized loan during all periods. If you chose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principle amount of your loan).

What is the difference between a subsidized and an unsubsidized loan? 

Direct Plus Loan – Available to dependent undergraduate students but does not require financial need to be demonstrated for eligibility. The application can be submitted via www.studentloans.gov using the FAFSA credentials to access the application. The borrower must not have negative credit history and will be responsible for interest during all periods with payments starting immediately upon signing the MPN. The maximum amount is the cost of attendance minus any other financial aid a student receives. NOTE: All direct loans assess a loan fee where the amount of the fee varies depending on when the loan is disbursed. The unsubsidized and parent plus loans interest rate varies depending on the loan period of disbursement. For interest rates, loan fees charts, and the 150% Limit on Subsidized Loans please visit StudentAid.gov. For more information on the 150% Limit on Subsidized Loans, please visit the Subsidized Direct Loan information page on www.studentaid.gov and the explanation sheet from the Department of Education.

Federal Work Study

The FWS program provides on-campus jobs to undergraduate students with exceptional financial need giving priority to Pell receipt students to assist with educational expenses. At ABAC, participants in the program are paid bi-weekly at a rate of $7.25 per hour. The maximum hours per week are 15 and enrollment status must be at least 6 hours. The program encourages work related to your course of study.


Federal Pell Grant

A Federal Pell Grant, unlike a loan, does not have to be repaid. Federal Pell Grants are usually awarded only to undergraduate students who have not earned a bachelor’s or a professional degree. Eligibility is determined by the Department of Education using a standard formula established by Congress that is calculated by submission of the FAFSA application. Information provided on the FAFSA is evaluated to determine the Expected Family Contribution (EFC) number which determines the award amount for the aid year. Pell grant funds cannot be disbursed from more than one school at a time. Pell grant Lifetime eligibility is limited to 12 semesters or the first bachelor’s degree. Funds are prorated by enrollment status: Full Time equals 12 or more hours 100% ¾ Time equals 9 – 11 hours 75% ½ Time equals 6 – 8 hours 50% 5 hours and less equals 25%

Federal Supplemental Educational Opportunity Grant (FSEOG)

A Federal Supplemental Educational Opportunity Grant is awarded to undergraduate students who have exceptional financial need and who have not earned a bachelor’s or graduate degree. Funds depend on availability, and priority is given to Pell grant receipts.


Helping Outstanding Pupils Educationally (HOPE) Scholarship Program

The HOPE Scholarship is available to Georgia residents who have demonstrated academic achievement. The scholarship provides funds to assist students with the educational costs of attending a HOPE eligible postsecondary institution located in Georgia. For more information regarding general information, eligibility requirements, and the GSFAPP HOPE Scholarship application, please visit GAfutures.org. You can review the 2018-2019 HOPE Scholarship regulations at the Georgia Student Finance Commission (GSFC) Web site.


The Zell Miller Scholarship Program

To qualify for the Zell Miller Scholarship, students must graduate from an eligible high school with at least a 3.7 grade point average as calculated by GSFC and must have scored at least a 1200 on the math and reading portions of the SAT or a minimum composite score of 26 on the ACT in a single test administration prior to high school graduation, or be their high school Valedictorian or Salutatorian.