Description of Federal Aid Programs
GRANTS- gift awards which need not be repaid.
Federal Pell Grant
The Federal Pell Grant provides funds to eligible undergraduate students. All students applying for other forms of federal or state aid must apply for this grant. When it appears that the student is eligible, the Department of Education will include the Federal Pell Grant award in the financial aid package. OTC applies funds to the student account following verification of attendance in classes. The Cashiers Office sends an email to the student by the Cashiers Office if an overpayment results in a disbursement to the student’s Smartcard. This initially occurs by mid-semester.
Federal Supplemental Educational Opportunity Grant
The Department of Education awards Federal Supplemental Educational Opportunity Grants (FSEOG) to undergraduate Pell Grant recipients with exceptional need. It bases the grant on program funding and gives priority to students whose aid file was received by May 1. They may make subsequent awards available later in the year as funding permits. Attendance and payment procedures are the same as Federal Pell Grant.
This program is for students with an interest in working on campus part-time to earn money for educational expenses. Students earn the current prevailing minimum wage. OTC disburses payroll once each month by direct deposit on or around the 15th based on hours worked in previous month. There are limits to the amount of positions available. They also require that the student interviews with supervisor for position. OTC posts positions are online as early as two weeks prior to start of term at https://students.otc.edu/financialaid/federal-work-study/job-openings/
Federal Direct Loan – borrowed money which must be repaid.
Federal Direct Loan
The Federal Direct Loan Program is the only loan program at the college. Ozarks Technical Community College does not participate in the Federal PLUS Loan Program or any Alternative Loan Programs.
The Department of Education bases the Subsidized Federal Direct Loan on financial need. The government determines need by using a federal formula. Subsidization occurs when when the government pays the interest for you during the following periods:
- While enrolled in school at least half-time
- During the six month grace period after you stop attending school at least half-time
- During periods of authorized deferment
Unsubsidized Federal Direct Loan
The Department of Education does not subsidize Unsubsidized Federal Direct Loan. Therefore, the student is responsible for all interest which accrues during in-school, grace and deferment periods. You may choose to make interest payments while in school, or you may defer the interest until repayment when the bank will add the interest to your principal balance.
Student loans disburse in equal installments for the loan period (i.e. – once each semester during a school year or two equal disbursements for a single semester loan). The school will verify you are at least a half-time student, attending classes and making satisfactory academic progress before releasing the proceeds to you.
If the college receives loan proceeds, first disbursement will occur by mid-semester. Students must complete a Master Promissory Note (MPN) and loan counseling online with the Federal Direct Loan Program for loan proceeds to be sent to the college.
Disbursal of student loans occurs in two equal installments. Therefore, if your loan is for:
- Fall and spring (school year), you will receive one disbursement in the fall and one in the spring.
- Fall only OR spring only OR summer only, you will receive two disbursements; one with the first payment for the semester and one after the mid-point of the semester.
- In either of the above situations, a student must enroll in and attend at least 6 hours to be eligible for the disbursement (3 hours of enrollment and attendance for summer). If the student requires a second 8-week class to meet this requirement, the loan funds will not disburse until after the second 8-week class begins and attendance is valid.