Direct Unsubsidized Loans
As a Title IV-approved graduate institution, PSR is pleased to offer direct unsubsidized loans to its students in order to assist with the help them meet the costs of their education.
When a student applies for aid, eligibility to receive a direct loan is automatically considered by the financial aid office upon processing a financial aid application, and should the applicant meet federal eligibility for the loan, it will be awarded to the student as part of their aid package to accept or decline as the student sees fit.
Because direct unsubsidized loans are not awarded based on a student’s financial need, up to $20,500 a year can be awarded, so long as the student has not received other aid in excess of their Cost of Attendance for the year.
Disbursements of direct loans are made in the amount of $10,250 in the fall and $10,250 in the spring, minus the “origination fee” set by the federal government each year, although students are welcome to request alternate disbursements should the need arise.
In order to remain eligible to receive direct loans, students must apply for aid each year via the FAFSA, must be enrolled at least half time at PSR, must not have received aid in excess of their Cost of Attendance, and must be meeting Satisfactory Academic Progress in their program.
The Federal Work-Study Program was established to promote part-time employment for students who are in need of earnings to finance the cost of their education. Students may work up to a recommended limit of 20 hours per week while school is in session.
When a student applies for aid, should the applicant have expressed interest in Federal Work-Study on their FAFSA, eligibility to receive Federal Work-Study will be considered by the financial aid office upon processing a financial aid application. Should the applicant meet federal eligibility for it, it will be awarded to the student as part of their aid package to accept or decline as the student sees fit.
Unlike direct unsubsidized loans, Federal Work-Study is need-based, and in order for it to be awarded, a financial aid applicant must have what the federal government classifies as “financial need”. A student has financial need if their Estimated Family Contribution (EFC) that is calculated from their FAFSA and other sources of aid do not exceed their Cost of Attendance. Award amounts may vary depending on the student’s unmet financial need, but are typically awarded in the amount of $3,000 each year.
After the student secures a Federal Work-Study eligible position, funds are disbursed via the student’s paycheck (twice a month) in the amount of up to 75% of the student’s wages (or 100% if the student is employed as a PSR-sponsored reading tutor for children).
Students remain eligible for Federal Work-Study so long as they fill out a FAFSA each year, have not exceeded their award for the academic year, and are meeting Satisfactory Academic Progress in their program.
Student Loans and Seminary Costs: How to Keep from Mortgaging your Future
video by Auburn Seminary (2012)
A Call to Action: Lifting the Burden: How Theological Schools Can Help Students Manage Educational Debt
booklet by Auburn Seminary (2014)