Federal Student Employment & Loan Programs

Federal Work-Study (FW-S) Program

The Federal Work-Study (FW-S) program is funded by both the federal government and Clarkson College. The program provides on-campus employ­ment opportunities for undergraduate students with financial need. An eligible student will be awarded a dollar amount that may be earned each semester. The FW-S awards and amounts are determined by Clarkson College. A FW-S award is not a guarantee of employment. The student must be eligible for employment with The Nebraska Medical Center, which includes a successful interview, background check and drug screening. Employment is also contingent upon availability of job openings within the College. To view current Federal Work-Study job openings at Clarkson College, visit the Nebraska Medicine website.

Federal Direct Loans

Federal Direct Loans are federally funded, low interest rate loans that are available to both undergraduate and graduate students. A student’s eligibility for a Federal Direct Loan and the amount of the award is determined by Clarkson College based on Federal regulations. Several factors are used in the calculation of a student’s loan award, including the student’s grade level, cost of attendance, enrollment status, expected family contribution (EFC) and other financial aid awarded to the student. A student must file the FAFSA, complete a Master Promissory Note (MPN), complete loan entrance counseling and be enrolled at least half-time to receive a Federal Direct Loan award.

Federal Direct Loans are usually awarded for a two-semester loan period. The first disbursement will occur at the beginning of the first semester and the second will occur at beginning of the second semester.

The fixed interest rate on Federal Direct Loans is established through federal regulation and may change for new loans disbursed after July 1 of each year. The Department of Education charges an up-front loan origination fee on Direct Loans. See the Clarkson College website for current fee rates.

Repayment of Direct Loans (except for PLUS loans) begins six months after the student either graduates or ceases to be enrolled at least half-time. The maximum aggregate (life-time) loan amount a student may borrow under the Federal Direct Loan program is: $31,000 (no more than $23,000 of which can be subsidized) for a dependent, undergraduate student; $57,000 (no more than $23,000 of which can be subsidized) for an independent, undergraduate student; and $138,500 for a graduate student.

Subsidized Federal Direct Loans

The interest on a subsidized Federal Direct Loan will begin to accrue when the loan funds are disbursed to the student. However, that interest is paid by the federal government while the student is enrolled at least half-time.

Maximum annual subsidized Direct Loan limits are: $3,500 for first year undergraduate students; $4,500 for second year undergraduate students; and $5,500 for third and fourth year undergraduate students. A student’s grade level is determined by the student’s current academic status at Clarkson College.

Graduate students are not eligible for subsidized Direct Loans.

Unsubsidized Federal Direct Loans

Unsubsidized Federal Direct Loans are similar to the subsidized Federal Direct Loans except that the student is immediately responsible for payment of the interest on these loans. Students can make interest payments while in school, or the interest can be capitalized and added to the principal loan balance when the student graduates or ceases to be enrolled at least half-time.

Maximum annual unsubsidized Direct Loan limits are: $6,000 for first and second year undergraduate students; $7,000 for third and fourth year undergraduate students; and $20,500 for graduate students. A student’s grade level is determined by the student’s current academic status at Clarkson College.

Federal Direct Parent PLUS Loan

The Federal Direct Parent PLUS  Loan is a federally funded, low interest rate loan for parents of dependent, undergraduate students. A parent may borrow a Direct Parent PLUS, regardless of financial need, for each dependent, undergraduate student enrolled at least half-time (six credit hours per semester). Potential borrowers will have their credit reviewed by the U.S. Department of Education as part of the loan origination process. A parent may borrow up to the student’s estimated cost of attendance, less any financial assistance received by the student. The fixed interest rate on a Parent PLUS is established through Federal regulation and may change for new loans disbursed after July 1 of each year. Repayment of principal and interest usually begins 30-60 days after the loan has been fully disbursed. To apply for a Direct Parent PLUS loan, one parent of the student must complete a Master Promissory Note (MPN) on the Direct Loan website, StudentLoans.gov and a Direct PLUS Request form. A parent who applies for a Direct PLUS must be a parent whose information is provided on the student’s current academic year’s FAFSA. Completed forms must be returned to, the Student Financial Services department.

Federal Direct Graduate PLUS Loan

Federal Direct Graduate PLUS Loans are available to graduate students to help pay for educational expenses. A graduate student must be enrolled at least half-time (three credit hours) to borrow from this program. The student may borrow up to his or her estimated cost of attendance, less Federal Direct Stafford Loan amounts and/or other financial assistance received.

The fixed interest rate on a Graduate PLUS is established through Federal regulation and may change for new loans disbursed after July 1 of each year. Repayment usually begins 30-60 days after loan funds are fully disbursed. The borrower may receive a deferment while he or she is enrolled at least half-time at an eligible institution. Deferment requests must be made directly to the lending institution.

Federal Nursing Student Loans

The Federal Nursing Student Loan Program is a federally funded loan program, administered by Clarkson College. Loans are awarded to undergraduate and graduate nursing students and are based on the student’s financial need. The interest rate is fixed at five percent, which begins to accrue nine months after the student either graduates or ceases to be enrolled at least half-time. Award amounts are determined by Clarkson College. The maximum lifetime amount a student can borrow from the Federal Nursing Student Loan Program is $13,000.