Program Descriptions

Campus Based Aid

Towson University receives a limited amount of money each year for the federally funded campus-based programs.  In addition, Towson University makes funds available each year for the need-based Institutional Grant Program.

Campus based funds go to the earliest completed applications from eligible students whose applications demonstrate the greatest need. The Financial Aid Office processes applications in the order of EFC, starting with the lowest EFC and continuing through the highest EFC.  Students whose applications have the lowest EFC's may receive aid from the programs requiring exceptional need.

The Federal Supplemental Educational Opportunity Grant Program (FSEOG)

This Federal Title IV grant  is for exceptionally needy students pursuing a first bachelor's degree.  Towson University may offer you up to $4000* to an eligible applicant.

*Annual grant maximums are subject to change.

The Federal Perkins Loan Program

Towson University may offer Perkins Loans to first and second bachelor's degree candidates, or graduate students.  The university offers loans from this program first to students with exceptional financial need.

This Federal Title IV loan has an annual interest rate of 5 percent.  Interest does not begin to accrue, and no payment of principal is due, until nine months after the borrower leaves school or drops below half time enrollment. 

*The limit is $8,000 for students who have not reached junior standing.

New borrowers at Towson University must complete an on-line entrance loan counseling session, and all borrowers who graduate or leave school must complete an exit loan counseling session.

For additional information on the Federal Perkins Loan program, select from the following topics:

• Cost of Borrowing
• Repayment
• Deferments and Cancellations
• Forbearance

The Federal Work Study (FWS) Program

The university can offer aid from the Federal Work-Study Program to first and second bachelor's degree or graduate students.  This program can give you the opportunity to earn money by working part-time during the school year (up to 20 hours per week) and possibly full-time during the summer months and school breaks.

Students can work part time during the school year (up to 20 hours per week) or full time during the summer months and school breaks. The salary for on-campus employment ranges from minimum wage to $6.50 per hour, depending on the type of work involved.  Most jobs start at minimum wage.

Jobs are available on and off campus.  The university encourages students to consider off campus jobs in community service organizations.  Towson University's Career Center (located at 7800 York Road) maintains a list of available Work-Study jobs.

If you accept FWS as part of your aid package, please remember that you cannot earn more than the total eligibility shown on your Financial Aid Notification. If you don not find an FWS job by the third week of the fall term, your FWS eligibility will be canceled.  If you do not earn the fall term portion of your eligibility, it will be reduced to the amount of your actual earnings for that term. 

Unlike grants and loans, your FWS eligibility does not defer payments of tuition and fees and other university charges.  Instead, you receive biweekly paychecks as you work.  You can use your earnings towards day-to-day educational and living expenses, or you can save your earnings made during the fall semester toward tuition and fee expenses for the spring semester.

• FWS Advantages
• FWS Job Opportunities

The Institutional Grant Program

Towson University may offer up to $4,000* from this university grants program to students who are first bachelor's degree candidates and have financial need.  Funding is extremely limited in this program and only the earliest and neediest applicants receive grants

*Annual grant maximums are subject to change.

Federal Direct Aid

Unlike the campus based aid programs, Towson University does not "run out" of funds in the direct aid programs.   However, the U.S. Department of Education limits the annual amounts per student from each direct aid program.   Direct aid programs include:

The Federal Pell Grant

These Federal Title IV grants are for first undergraduate bachelor's degree candidates who have exceptional financial need.  Grants may range from $400 to $4,050 per year.

The Federal Direct Student Loan Program

Federal Direct loans are long-term, low interest loans from the U.S. Department of Education.  These are the largest federal aid programs, and the programs from which you are most likely to be offered aid. The interest rate is 6.8 percent for all loans made on or after July 1, 2006.

The Federal Direct Students Loan Program offers two types of loans to students: subsidized and unsubsidized.  There are more similarities than differences between the two programs.  The primary difference is the point at which interest begins to accrue:

•  Subsidized loan interest begins to accrue at the end of a six month grace period that begins when the student borrower graduates, ceases to be enrolled, or drops below half-time enrollment (six credits).
• Unsubsidized loan interest begins to accrue at the time of disbursement.  Borrowers can pay the accumulating interest while in school or may capitalize the interest.

A student who has financial need will receive a subsidized loan, or a combination of a subsidized loan and unsubsidized loan.  For example, a freshman with a subsidized loan for $625 may also receive an offer of an unsubsidized loan for $2,000 to meet the annual maximum for that grade level.

Students who have no need will receive only unsubsidized loans.

Students who meet the Federal Title IV definition of independent student may receive an additional amount of unsubsidized loan.  Independent  freshmen and sophomores may receive an additional $4,000.  Juniors or seniors may borrow up to an additional $5,000.

For more information on the Federal Direct Student Loan Program, select from the following topics:

• Annual Loan Maximums
• Cost of Borrowing
• Repayment
• Repayment Options
• Loan Consolidation
• Deferments
• Forbearance

The Federal Direct Parent's Loan For Undergraduate Students (PLUS) Program

A Direct PLUS Loan enables parents to borrow for their dependent children.  Parents can borrow up to the cost of education minus all other aid received.  Interest on loans for which the first disbursement is made on or after July 1, 2006 is a fixed 7.9 percent rate. 

Students for whom parents borrow Federal Direct PLUS loans do not have to demonstrate financial need.  However, the U.S. Department of Education approves a loan from this Federal Title IV program only after an evaluation of the parent borrower's credit history.  The U.S. Department of Education is the lender.

 To e-mail the Financial Aid Office,  please click here