Student Financial Aid Programs
The following student financial aid programs that are authorized under Title IV of the Higher Education Act of 1965, as amended, include provisions for discharge of an individual’s obligation to repay a loan or complete a service obligation due to total and permanent disability (TPD):
Financial Assistance Programs
Perkins Loans are low-interest, long-term loans made through the school’s financial aid office to help economically disadvantaged undergraduate and graduate students pay postsecondary education costs.
- Federal Family Education Loan (FFEL) Program
The FFEL Program provided loans to undergraduate and graduate students and to parents of dependent undergraduate students. Private lenders provided these loans. The Federal Government guarantees the loan through guaranty agencies.
The types of loans included under the FFEL program are Subsidized and Unsubsidized Federal Stafford, Federal PLUS Loans, and Federal Consolidation Loans.
Note: Effective July 1, 2010, no new FFEL Program loans may be made, as provided in the Health Care and Education Reconciliation Act (HCERA) of 2010. Therefore, beginning July 1, 2010, all new subsidized and unsubsidized Stafford Loans, PLUS loans, and consolidation loans can only be made under the William D. Ford Federal Direct Loan (Direct Loan) Program. For more information about recent changes to Federal student aid provisions in HCERA, please review the Dear Colleague Letter (GEN-10-05) on this subject.
- William D. Ford Federal Direct Loan (Direct Loan) Program
The Direct Loan Program provides loans to undergraduate and graduate students and to parents of dependent undergraduate students. The Federal Government funds these loans directly through participating schools.
The types of loans included under the Direct Loan program are Subsidized and Unsubsidized Stafford Loans (known in the Direct Loan Program as Direct Subsidized Loans and Direct Unsubsidized Loans), Direct PLUS Loans, and Direct Consolidation Loans.
Teacher Education Assistance for College and Higher Education (TEACH) Grant Program
The TEACH Grant Program provides grants of up to $4,000 per year to students who sign an agreement to teach for four years in a high-need field at a low-income public or private elementary or secondary school. If a grant recipient does not complete the teaching service obligation, any TEACH Grant funds the individual received are converted to a Direct Unsubsidized Loan that must be repaid.