Types of Financial Aid
Types of Financial Aid
- Federal loans
- Private loans
- Employer tuition reimbursement
- Military benefits
- Outside scholarships
- Departmental scholarships
- Foundation Scholarships
Types of Financial Aid
Grants are a type of financial support that do not need to be repaid. Many grants are based on financial need alone, however, some grants also take academic performance, academic degree program and/or residence status into consideration.
To determine your eligibility for federal grants please complete your FAFSA as soon as possible.
Grants are available at the federal and state level.
Federal student loans are loans made or guaranteed by the U.S. Department of Education.
Federal student loans include benefits not typically offered with private loans, such as fixed interest rates and income-driven repayment plans. In addition, federal loans will not have to be repaid until a student graduates, leaves school or changes enrollment status to less than half-time.
All federal loans are processed through the William D. Ford Federal Direct Lending Program. There are two federal educational loan options:
- Direct (subsidized and unsubsidized)
- Direct PLUS and Graduate PLUS
Any student who has not borrowed with the U.S. Department of Education will need to complete Entrance Counseling and an electronic Master Promissory Note (E-MPN) at www.studentloans.gov.
In order to sign in and complete these requirements a student must create and use an FSA ID. The Financial Awareness Counseling listed under "Tools and Resources" on www.studentloans.gov cannot be substituted as the required direct loan entrance counseling.
All federal student loan borrowers will receive a confirmation email from the U.S. Department of Education once they have successfully completed the E-MPN. The requirements will be shown as complete on ASIST 48 hours after completing entrance counseling.
As of March 29, 2015, if a borrower has been approved for a direct parent PLUS or direct graduate PLUS loan by means of obtaining a qualified endorser or documenting to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to the borrower’s adverse credit, the borrower must complete the new direct PLUS loan counseling requirement at www.studentloans.gov.
Private student loans are not funded or subsidized by the federal government; instead, they are funded by banks, credit unions, or other types of lenders.
The bank or lender – not the federal government – sets interest rates, loan limits, terms, and conditions of private student loans. Your ability to qualify for and borrow a private student loan may be based on numerous factors that can include your credit history, whether or not you choose to have a co-signer, your co-signer’s credit history, your choice of school, and your course of study. These loans do not offer the flexible repayment terms or borrower protections featured by federal student loans.
While private student loans are all structured differently, in general they include:
- Payment plans that can begin while you are still in school
- Fewer options to reduce or postpone payments
- Variable interest rates that can rise when interest rates rise during the life of the loan (potentially causing your payment to increase)
Employer tuition reimbursement includes a variety of employer-sponsored programs to help employees pay for college. In many cases the funds received from these programs will be excluded from income and are tax-free.
Employee tuition reimbursement programs are typically governed by an employer’s human resources department. Employers may provide up to $5,250 per year in employer education assistance benefits for undergraduate or graduate courses.
Your employer may require you to attain a particular grade or to complete a program in order to obtain reimbursement. The employer may also require that you remain employed for a period of time after completing the course of study. Finally, your employer may require you to provide receipts or other substantiation of the educational expenses.
To learn if your employer offers a tuition assistance program, contact your human resources department.
These scholarships are awarded by an organization other than the government or university. They are available from a number of groups, organizations and entities nationwide. These scholarships can be general in nature or very specialized and tied to the type of work you would be doing after graduation.
If you receive an outside scholarship, you must notify your financial aid officer so the award can be properly reported as part of your total aid package. Failure to report awards can result in the award not being accepted or a portion of the funds having to be repaid due to overpayment.
Outside scholarship opportunities can be found from a number of reliable online sources, including but not limited to:
Please note: EKU has no control over the awarding or administration of outside scholarships.
Departmental scholarships are awarded by specific EKU departments. The types, size and criteria for these scholarships will vary by department.
If you receive a departmental scholarship, you must notify your financial aid officer so the award can be properly reported as part of your total aid package. Failure to report awards can result in the award not being accepted or a portion of the funds having to be repaid due to overpayment.
EKU is fortunate to have hundreds of generous individuals and organizations that have donated scholarship money for current EKU students from a variety of backgrounds, situations and interests. These are referred to as EKU Foundation Scholarships. Due to the number of these scholarships and the varying criteria for them, EKU has developed a single Foundation Scholarship application.
After completing the application, you will be considered for any foundation scholarship for which you are eligible. Criteria for these scholarships varies and can include academics, major, interests, place of residence, and more.
EKU Foundation Scholarship application for the 2016-17 academic year can be found below.
The application must be accompanied by TWO letters of recommendation and an essay on the topic of your choice in order to be considered complete. The two letters of recommendation need to be on official letterhead and signed.
The deadline for complete applications is April 15. In order to receive full consideration, your application, two letters of recommendation, and essay must be received by this date.
The application, and additional documents may be mailed, faxed or brought into the EKU Scholarship Office.
EKU Scholarship Office
521 Lancaster Ave
CPO Box 56, Whitlock, Room 129
Richmond, KY 40475-3102
Phone: (859) 622-8032
Fax (859) 622-8479