Federal Aid

The Federal Pell Grant Program (Pell) provides need-based grants to students with exceptional financial need. Students cannot receive Pell funds from two schools for the same period of enrollment.

Eligibility
A student must meet all general eligibility criteria listed above. However, students cannot be considered for Pell if s/he:

• Is currently defaulted on a federal student loan;
• Owes money due to an overpayment of a federal student grant;
  Earned a bachelor’s degree;
• Meets the maximum lifetime eligibility units for Pell;

Award Determination
Pell is considered to be the first source of aid to the student. Pell amounts awarded are based on the Student Aid Index, Eligibility Criteria, IECC Cost of Attendance, Enrollment Intensity, and Length of Enrollment.

Disbursements
Prior to disbursing Pell, the institution will confirm that the scheduled disbursement will not cause the student to exceed lifetime eligibility units. Disbursements are made each semester approximately two weeks following mid-term and before sixty percent of the semester. Dates are determined by the Financial Aid Officers committee and published on the student’s award notice.

The Lifetime Eligibility Units (LEU) are earned based on the percentage of award disbursed to the student each term. Each semester’s full award is equivalent to approximately 50.000 units and is prorated with the student’s level of enrollment. Students may not receive more than 600.000 LEU which is equivalent to 12 full-time semesters.

The Federal Supplemental Educational Opportunity Grant (FSEOG) provides need-based grants to low-income, undergraduate students to assist with financing a higher education. FSEOG is a campus-based program, which means a limited allocation of funds is received from ED to support the program.

Eligibility
A student must meet all general eligibility criteria listed above. However, students cannot be considered for FSEOG if the student:

• Is currently defaulted on a federal student loan;
• Owes money due to an overpayment of a federal student grant;
• Earned a bachelor’s degree;
• Has met the maximum lifetime eligibility units for Pell;
• Has no unmet need following Pell and all other resources

Award Determination
Priority for FSEOG is given to students that are receiving a Pell grant, have unmet need, and the lowest SAI. Should funds remain after priority students have been considered, then awards will be made to Pell-eligible students with the next lowest SAI in order of lowest to highest. Any funds remaining after all Pell-eligible students have been awarded will be applied in the same manner as Pell-eligible students. FSEOG will be awarded until the program’s funds are depleted.

The annual maximum award for a student is $1,000 (or $500 per semester). Students with the lowest SAI are awarded on a first-come, first-serve basis with the goal of awarding 80% of funds awarded prior to the Fall disbursement, and the remaining 20% to be awarded by the Spring disbursement.

Disbursements
Disbursements are made each payment period - dates are determined by the Financial Aid Officers committee and published on the student’s award notice. Awards are then prorated based on a student’s level of enrollment at the time of disbursement. The day prior to the first published FSEOG disbursement date, enrollment is locked for all eligible students and a final review is done to ensure students are Pell eligible and that they are being disbursed aid based on the appropriate enrollment status. Students that are locked at an enrollment that is less-than-half-time will not receive a disbursement of FSEOG.

The Federal Work Study Program (FWS), much like FSEOG, provides a limited amount of campus-based funds for the institution to operate a part-time employment program to help students with need earn money to pay for educational expenses. Students are generally employed in approved positions on campus, but they may also be employed by a federal, state or local public agency with an approved agreement.

Eligibility
A student must meet all general eligibility criteria listed above. However, students cannot be considered for FWS if the student:

• Is currently defaulted on a federal student loan;
• Owes money due to an overpayment of a federal student grant;
• Has no remaining unmet need after Pell and all other resources.

Students must also complete the required employment paperwork for the Financial Office PRIOR to working or submitting hours for payment.

Award Determination/Selection Process
All students that are eligible will be considered for an FWS award. Because funds are limited, students should express interest in working in an FWS position by filling out a Work Study Application. 

Upon receipt of a student’s application, the institution will evaluate the student’s unmet need, class schedule, the available positions, and any other factors that might affect the hours a student could work each week to determine the appropriate award amount. At most, a student will be awarded for up to 20 hours per week during enrollment periods and 30 hour per week in eligible periods of non-enrollment.

The Financial Aid Office will work with the supervisors of the available position(s) to place a student for employment. The supervisor is responsible for making the final hiring decision. FWS awards made to non-employed students will be removed at the midpoint of the term. Awards may be added back when or if a student is able to be placed with a supervisor later on.

Disbursements
Before FWS disbursements can be made, a student must first complete a work study packet. FWS disbursements are made on a bi-weekly basis to students as work is performed. Students must complete a timesheet each week that is reviewed and signed by the appropriate supervisor. The hours documented on the timesheet(s) for the pay period are reviewed by the Office of Financial Aid and the Business Office at each campus before being reviewed by the payroll department. Hours worked on the timesheet(s) are multiplied by the current minimum wage to determine the gross pay for the student. The net pay is then deducted from the award amount each pay period to determine the remaining award amount. Students cannot be paid more than the amount of their award.

Disbursements must be made in the appropriate aid year. Disbursements for 2024-2025 will begin on July 1, 2024.

The William D. Ford Federal Direct Loan Program (Direct Loans) provides low-interest loans to assist students with financing a higher education. Loans are borrowed funds from the U.S. Department of Education that must be repaid with interest regardless of the completion of a student’s educational goal or a student securing a career in the field of study following graduation. IECC is able to provide three different types of loans.

Direct Subsidized Loans are available to undergraduate students with financial need. The amount a student can borrow is determined by the school and cannot exceed his/her unmet need. There is a maximum eligibility period for subsidized loans. Students may not receive a Direct Subsidized Loan for more than 150 percent of the published length of his/her current program. The Department of Education covers the interest while students are enrolled at least half-time, for the six months after they leave school or drop below half-time enrollment, and during a period of deferment. Repayment generally begins approximately six months after the student graduates, leaves school, or drops below half-time enrollment. The interest rate for loans disbursed on or after July 1, 2024 is 6.53% and is fixed for the life of the loan. Origination fee is1.057% - on or after October 1, 2020 (and through September 30, 2025) - paid to the Department of Education upon disbursement.

Direct Unsubsidized Loans are available to undergraduate students that may not have financial need as determined by the expected family contribution and cost of attendance. The amount a student can borrow is determined by the school based on the cost of attendance and any other financial aid and resources. The student is responsible for paying the interest during all periods. If the student chooses not to pay the interest while in school and during any non-payment periods (grace, deferment, or forbearance), the interest of the loan is capitalized, or added to the principle balance of the loan. Repayment begins approximately six months after the student graduates, leaves school, or drops below half-time enrollment. The interest rate for loans disbursed on or after July 1, 2024 is 6.53% and is fixed for the life of the loan. Origination fee is1.057% - on or after October 1, 2020 (and through September 30, 2025) - paid to the Department of Education upon disbursement.

Direct PLUS Loans are available to eligible parents of undergraduate students, as well as graduate and professional students. Parents must apply for the loan at studentloans.gov and should not have an adverse credit history. The amount a parent can borrow is the cost of attendance determined by IECC less any other financial aid and resources received by the student. Repayment begins right away. However, parents may have the option to defer payment until approximately six months after the student graduates, leaves school, or drops below half-time enrollment. The interest rate for loans disbursed on or after July 1, 2024 is 9.08% and is fixed for the life of the loan. Origination fee is 4.228% - on or after October 1, 2020 (and through September 30, 2025) - paid to the Department of Education upon disbursement.

Eligibility
To determine if a student is eligible for Direct Loans, the student must complete a Loan Request form by the deadline for the term. Parents must also complete a Loan Request form for PLUS loans.

• Deadline for the Fall semester is November 1.
• Deadline for the Spring semester is April 1.
• Deadline for the Summer semester is July 1.

A student must meet all general eligibility criteria listed above. However, students cannot be considered for Direct Loans if the student:

• Is currently defaulted on a federal student loan;
• Owes money due to an overpayment of a federal student grant;
• Meets the annual and/or aggregate loan limits;

In order to be disbursed loan funds, first-time borrowers must go to studentaid.gov and:

• Complete Entrance Counseling to ensure s/he understands their obligation to repay the loan;
• Complete the Master Promissory Note (MPN), agreeing to the terms of the loan.

Parents must go to studentaid.gov to complete the PLUS loan application for a review of their credit history.

Award Determination
Direct Loan amounts awarded are determined by the institution regardless of the way a student may split the amounts on the Loan Request form. IECC will use the student’s request as a guide to ensure the student receives the best and most appropriate award package.

The amount of loans awarded to a student will not exceed the annual or aggregate loan limits. The total annual combined student Direct Loan award for a dependent Freshman is $5,500 and for a dependent Sophomore is $6,500. The total annual combined Direct Loan award for independent students (and dependent students for those whose parents cannot get a PLUS loan) is $9,500 at the Freshman level and $10,500 at the Sophomore level.

Aggregate loan limits for dependent students are up to $23,000 subsidized, but not more than a combined total of $31,000. Aggregate loan limits for independent students (and dependent students for those whose parents cannot get a PLUS loan) are $23,000 subsidized, but not more than a combined total of $57,500.

Disbursements
At the time of disbursement, the institution confirms the student is still enrolled at least half-time, has met the entrance counseling requirement, and has a valid, linked MPN.

Loans are disbursed in two disbursements, generally one disbursement in the Fall semester and the second disbursement in the Spring semester. Single term loans will be disbursed in two payments. The second disbursement cannot be made until the student has reached the calendar midpoint. The first disbursement date for the Fall and Spring semester is at least 30 days following the first day of classes. Students that request a loan or complete loan requirements following the first disbursement date will be checked for eligibility, and funds will be disbursed at that time.

The amount applied to the student’s account is reduced by the amount of the origination fee. The net amount is applied to a student’s outstanding tuition, fees, and other applicable institutional charges.