Types of Financial Aid

//Types of Financial Aid
Types of Financial Aid2017-11-06T14:50:48+00:00

Grants and Scholarships

  • Pell Grant – Title IV Federal need-based grant determined by the results of the FAFSA.
  • SEOG – Title IV Federal need-based grant determined by the results of the FAFSA.
  • Iraq/Afghanistan Service Grant Awards-Title IV Federal Financial Aid program for students whose parent or guardian died as a result of US military service in Iraq or Afghanistan  after September 11, 2001.  The student must be less than 24 years of age.
  • VTAG – (Virginia Tuition Assistance Grant)-Non-need based grant determined by VA residency.  A separate application is required. Deadline is July 31.  Funding is determined by the General Assembly and amounts reflected on your award letter are estimated and not guaranteed. Funding can change based on budgetary decisions made by the General Assembly of Virginia and enrollment projections of private institutions in Virginia..
  • FC Scholarship and FC Merit Grants – School funded scholarships and grants based on GPA and SAT scores.  They are renewable for up to 4 years assuming Satisfactory Academic Progress is maintained (Refer to the College Catalog).
  • Ferrum Grant – School funded need-based grant determined by the results of the FAFSA.  This award varies per year and during the course of the year; the grant name may be changed to reflect a named endowment.
  • Teach Grant – Title IV Federal grant for students who intend to teach in a low income school with a certain subject (such as special education, math, etc). More information on this grant is available online »  Failure to complete the requirements of this grant will result in the grant becoming a Federal Unsubsidized Stafford Loan with interest accruing from the date you received the grant.
  • Outside Scholarships – Students are encouraged to research other grants and scholarships available from all other Federal, State, and Private resources.  Private scholarship links are available under Scholarship Links on the Financial Aid Website.  Many states have their own state funded grant programs that students may be able to utilize for funding.  VSAC (Vermont) is a state with funding available for students.

Federal Work Study

  • Work Study – Title IV federal work program to assist students with payment of educational costs.  A separate application and tax forms are required.  Eligibility based on the results of the FAFSA.  Note:  Students are paid directly for work study hours earned and funds normally do not reduce the student account balance.

Student Loans

  • Federal Stafford Loan (Subsidized and Unsubsidized) – Title IV Student loan for students.  Interest for Stafford Loans is 4.45% for the 2017-2018 academic year.  Repayment begins 6 months after graduation or ceasing half-time enrollment.  Separate application(s)/processes are required.  Loan fees of up to 2% may be subtracted from the amount applied for.

Parent Loans

  • PLUS Loan – Title IV federal loan for parents of undergraduate students.  The interest rate for 2017-2018 is 7.00% fixed.  Loan fees of up to 5% will be subtracted from the amount applied for.  Separate applications and a credit check are required.

Alternative Loans

  • Alternative Loan – Student loans available and should be used as a last resort.  Interest rates and repayment benefits will vary depending on the loan chosen.


  • Students must maintain Satisfactory Academic progress are considered ineligible for all Title IV HEA aid programs (Pell Grant, TEACH Grant, IRAQ/Afghanistan Service Grant Awards, SEOG, Work Study, Perkins Loans, Stafford Loans, and PLUS Loans).  The College Catalog also discusses what steps a student may take to regain eligibility for Title IV aid should they not meet the criteria for Satisfactory Academic Progress.

What Happens After I Have Received My Award Letter?

  1. Make sure to return any requested documents to the Financial Aid Office as soon as possible for further processing of your financial aid award.  An award is not considered accepted and final until all documents have been received, verified, and processed.  Forms must be completed in their entirety, signed, and dated.
  2. All Virginia residents should complete the VTAG Application before July 31, 2018.  It must be received by the Financial Aid Office no later than July 31.
  3. Let the Financial Aid Office know of any additional scholarships, grants, or loans that you will receive to assist you with educational costs.  Receipt of these funds will affect your aid award.
  4. Students who wish to decline any portion of their aid award should contact the Financial Aid Office directly at (540) 365-4282.
  5. Students who have received work study as part of their award are required to apply for available positions online.  Appropriate tax forms will also need to be completed.  Students who have questions on applying for positions or forms associated with work study should contact the Human Resources Office at (540) 365-4596.

In Addition, For First Time Loan Borrowers:

Stafford Loan
1.   Students will need to complete the Stafford Loan Master Promissory Note and Entrance Counseling session online.  Students will need the FSA ID used to complete the FAFSA to complete the loan documents.

1.  Parents who wish to apply for the PLUS Loan should complete the Ferrum College PLUS Loan Request Form or a PLUS Loan Pre-Approval Online.
2.  Parents will also need to complete the PLUS Loan Master Promissory Note online.  The parents applying for the PLUS Loan will need their FSA ID used to complete the FAFSA.