There are three main categories of Financial Assistance: grants/scholarships that do not have to be repaid, loans that must be repaid, and earnings from work. Below is a list of common awards you may receive at Berea College.

Tuition Promise Scholarship – After all federal, state, institutional, and private grants/scholarships have been considered, a Berea Tuition Scholarship is awarded to cover the remaining cost of tuition. (Although some families and students may help pay for food, housing, and fees, this is not considered payment towards tuition. Therefore, the tuition tax credit cannot be claimed on federal income tax returns.)

Labor Grant – To assist with tuition, all students are awarded a Labor Grant (currently $9,000 per year).

Federal Supplemental Educational Opportunity Grant (FSEOG) – The FSEOG is a federal grant awarded to undergraduate students with exceptional need as determined by the FAFSA. The amount varies based on the availability of funds each academic year.

Pell Grant – Pell Grants are awarded to undergraduate students who have not yet earned a bachelor’s or professional degree. The Pell Grant is based on need as determined by the FAFSA. Awards for the 2023-2024 academic year range from $767 to $7,395.

Kentucky College Access Program (CAP) Grant – The CAP Grant is awarded to Pell-eligible Kentucky residents who attend public or private colleges or universities, proprietary schools, or technical colleges in Kentucky. The maximum award for the 2023-2024 academic year is $5,300. The FAFSA is required.

Kentucky Tuition Grant (KTG) – The KTG is awarded to Kentucky residents who demonstrate financial need and enroll fulltime at a private Kentucky college or university. The maximum KTG award is $3,300 for the 2023-2024 academic year. The FAFSA is required.

Kentucky Educational Excellence Scholarship (KEES) – KEES is awarded to Kentucky high school graduates based on their high school grade point average and test scores. Awards vary based on criteria determined by the Kentucky Higher Education Assistance Authority (see www.kheaa.com for complete information.) Students must maintain a minimum GPA and be on track to graduate to renew each year.

Berea College Loans – Students who need additional financial assistance to help with their term bills, medical, or dental expenses should stop by Student Financial Aid Services to complete an Additional Aid Application to determine eligibility for institutional loans.

Direct Loans –The Federal Direct Loan Program provides financial assistance through the U.S. Department of Education to expand higher education opportunities for undergraduate, graduate, and professional students attending postsecondary schools on at least a half-time basis. To inquire about the Federal Direct Loan program, please visit Student Financial Aid Services.

Federal Work Study – Students who qualify and demonstrate need as determined by the FAFSA will receive labor earnings through Federal Work-Study funds. Students are paid based on actual hours worked in their labor positions during the academic year.

Institutional Work Study – Students who do not qualify for Federal Work Study or do not demonstrate need will receive their labor earnings through institutional funds. Students are paid based on actual hours worked in their labor positions during the academic year.

VA Education Benefits– Please contact Danielle Robbins at robbinsd@berea.edu for additional information.

Additional Aid

Before applying for additional financial aid, you may want to consider the following options:

• Payroll Deduction – If you are unable to pay your account balance in full, you may authorize a payroll deduction. You might be able to pick up a secondary position or increase the hours of your primary labor position to help with your educational expenses. If you are in good academic standing and have financial need, you may qualify for a Labor Overload, which would allow you to work up to 20 hours a week.
• Payment Arrangement Form – Families may make arrangements to pay off the student account balance throughout the term by completing the Payment Arrangement Form. The student account balance has to be paid under $100 before a student can register for classes for an upcoming term. Student accounts must be paid in full by the end of the term.

If you and your family are unable to cover your educational costs, you may qualify for additional financial aid, typically loans. You can apply for additional financial aid with the Student Financial Aid Services office by this link – Additional Aid Application.

Additional Aid for Medical, Dental, and Optical Expenses

Institutional loans and/or grants may be available if these charges are not covered by insurance. Examples where aid might be offered would be for wisdom teeth extractions, one time optical exams, glasses or extended wear contacts, immunizations, and other medical expenses.

• Additional Aid Application
• Direct Loans Brochure
• Payment Arrangement Form
• Payroll Deduction Authorization Form

Graduate School Aid Applications

• Graduate School Aid Application
• Morrill Fund Application

Studentaid.gov
The new look for Federal Student Aid (FSA) – StudentAid.gov, the official federal student aid website. This website combines content and features from StudentLoans.gov, FAFSA.gov, fsaid.ed.gov, and nslds.ed.gov to enhance your experience.

Financial Aid Information Page
FinAid may be the most comprehensive annotated collection of information about student financial aid on the Web.

General Scholarship Search Tools
FastWeb, the Internet’s leading scholarship search service, helps students make the decisions that shape their lives: choosing a college, paying for college, and
finding jobs during and after college.

IRS Online
Forms/Questions & Answers concerning the Internal Revenue Service and federal taxes.

KHEAA
The Kentucky Higher Education Assistance Authority (KHEAA) is a public corporation and governmental agency of the Commonwealth established in 1966 to improve students’ access to higher education. KHEAA administers several financial aid programs and disseminates information about higher education opportunities.

Student Financial Literacy
Annuity.org has developed a student financial literacy tool that covers more broad financial topics as they apply to students. This page covers things like need vs. merit based scholarships, the intricacies of student loans, navigating your meal plan, planning for life after graduation, and more.

Academic Year–The enrollment period beginning on the first day of classes in the Fall Term and concluding on the last day of exams in the Spring Term.

Award Letter–The official document, issued by the Office of Student Financial Aid Services, which lists all of the financial aid awarded to the student.

Cost of Attendance–The total annual amount it should cost a student to attend school. The cost of attendance covers tuition, on-campus housing and meals (or a housing and food allowance for off-campus students), and an allowance for books and supplies, transportation, and miscellaneous expenses.

Default–The loan repayment status for individuals who do not repay their loans. Severe legal and financial repercussions are involved for borrowers who go into default, such as garnishment of wages, repayment of all principal demanded within a month’s time, and adverse credit ratings.

Deferment–An authorized period during which a borrower may postpone principal and interest payments. Deferments usually are granted for graduate studies, Peace Corps work, and a limited set of other situations. Contact your lender for details.

Eligibility–The determination of whether a student will receive a certain type of funding. This is usually dictated by a student’s Expected Family Contribution, however, some funds/sources use other criteria (such as geography, major, etc.).

Entrance Loan Counseling–A required informational session provided to first-time borrowers concerning their rights and responsibilities as borrowers of a federal loan. See www.studentaid.gov.

Exit Loan Counseling–A required informational session for students preparing to leave College before graduation, or who are withdrawing from College. Information about total indebtedness, repayment, and deferment is provided to the student at this session. See www.studentaid.gov.

Expected Family Contribution (EFC)–The federal government’s assessment of a family’s ability to contribute to the student’s education for a given academic year. This amount is determined from information provided on the FAFSA.

Financial Aid Package–The total financial aid a student receives. Federal, state and institutional aid—such as grants, scholarships, loans, and work-study—are combined in a “package” to help meet the student’s need.

First-Time Borrower–Any student who is borrowing through the Federal Direct Loan program for the first time. An entrance loan counseling session is required, and should be completed online at www.studentaid.gov.

Forbearance–An authorized period of time during which the lender agrees to temporarily postpone a borrower’s principal repayment obligation due to some hardship experienced by the borrower, such as unemployment. Interest continues to accrue and usually must be paid during the forbearance period. Forbearance may be granted at the lender’s discretion when a borrower is willing to repay a loan, but is unable to do so in a timely manner.

Free Application for Federal Student Aid (FAFSA)–The aid application all students must file to qualify for federal, state and Berea College’s need-based aid programs.

Gift Aid–Money that does not have to be repaid, such as grants or scholarships.

Loan–A type of funding involving an institution (bank, college, or organization) permitting an individual to borrow a sum of money with the understanding that the individual will repay the amount borrowed plus interest. Repayment is normally six months after graduation or after a student drops below one-half time status.

Need–Demonstrated eligibility for financial aid as determined by comparing a school’s Cost of Attendance (COA) with the Expected Family Contribution (EFC). Need = COA – EFC. Demonstrated need is a federal term and is the dollar figure that establishes the maximum amount of need-based financial aid that can be provided to a student from all sources.

Need-Based Financial Aid–Resources made available to a student based on demonstrated need.

Origination Fee–A charge for processing a Direct Loan to partially help offset administrative costs. It can be either a flat rate or a percentage of the amount borrowed.

Promissory Note/Master Promissory Note–A legally binding agreement stating the amount an individual borrows and the terms of the loan. The student promises to repay the principal with interest.

Repayment–The period when you are repaying the principal and interest of borrowed money. It usually begins after graduation and lasts for 10 years for students with federal educational loans.

Return to Title IV Refund–Federal and State aid is based on a student’s full-time attendance for a complete semester. Students who fail to complete the semester may have to have some Federal and State funds returned.

Scholarships–Funds provided based on a student’s ability, achievement, ethnicity, nationality, or involvement in certain activities. Scholarships do not have to be repaid and come from many sources. No athletic scholarships are awarded according to NCAA.

Subsidized Direct Loan–A need-based loan on which the interest is paid by the federal government during the in-school, grace, and deferment periods.

Term Bill–A student’s term bill consists of housing, meals, fees, books (if charged at the book store), and other miscellaneous expenses.

Tuition Promise Scholarship–Combines grant and scholarships that guarantees a student that they will not have to pay tuition from their personal income.

Unsubsidized Direct Loan–A non need-based loan on which the interest is not paid by the federal government. Borrowers are responsible for the interest on all unsubsidized loans from the date the loan is disbursed. Students may choose to pay the interest while they are in school or they may allow the interest to accrue and be capitalized on the principal when they begin repayment.

Yes. Berea College students are required to file a FAFSA for every year they are enrolled at Berea College. The FAFSA must be filed to determine what federal and state financial aid programs the student is eligible for. Each year the FAFSA is available to complete beginning October 1st. Students are expected to complete their FAFSA by October 31st, the priority filing date.

A SAR is a Student Aid Report, which is compiled from the information provided on the FAFSA by the student and/or parent(s) and sent to you by email or mail from Federal Student Aid. The SAR will contain your Expected Family Contribution. It is important to read all information on your SAR when you receive it, as it informs the student and/or parent(s) if the FAFSA has been rejected for reasons such as missing signature(s) or incomplete information. A rejected FAFSA can cause a delay in receiving all of the federal and state financial assistance for which you are eligible.

Many Berea College students are selected for FAFSA Verification each year by the federal processing center. If you are selected for this process, we will send you detailed information regarding what is needed.  See the Verification section of our website for more details.

There are questions on the FAFSA that determine a student’s dependency status. To be considered independent of parent(s) or guardian(s) by the federal government for financial aid purposes, a student would have to meet at least one of these qualifications:

• Born before January 1, 1999
• Have or will have a dependent child for  whom you will provide more than half of their support between July 1, 2022 and June 30, 2023
• Have dependents (other than children or spouse’s children) who live with you and you provide more than half of their support
• Be a Veteran of the U. S. Armed Forces
• Be serving on active duty in the U.S. Armed Forces
• Be married
• In legal guardianship as determined by a court in your state of legal residence
• Be an emancipated minor as determined by a court in your state of legal residence
• At any time since you turned 13:
  • both your parents were deceased
  • you were in foster care
  • you were a dependent or ward of the court
• At any time on or after July 1, 2022, you were determined to be an unaccompanied youth who was homeless or were self-supporting and at risk of being homeless by your high school or school district homeless liaison, the director of an emergency shelter or transitional housing program funded by the U.S. Dept. of Housing and Urban Development, or the director of a runaway or homeless youth basic center or transitional living program
• Please see FAFSA questions and explanation for further details on the above items

Your term bill for your housing, meals, and fees is going to vary each year. Many times that amount is going to increase. Here are a couple reasons why your term bill may be adjusted. Each year, you complete the Free Application for Federal Student Aid (FAFSA). This form calculates your Student Aid Index (SAI). Depending on what information is provided, such as income, family size, and assets, your SAI can change. If the SAI has increased, the amount of financial aid would decrease. Another reason why your term bill might increase is because, as you progress through your program at Berea, you are expected to earn more money, thereby decreasing other forms of financial assistance.

Outside Scholarships (including the Kentucky Educational Excellence Scholarship, or KEES) may be used in several ways:

1. 1. to reduce term bill costs for housing, meals, and fees
   2. to replace some Berea College term bill grants (E.G. Miscellaneous Endowed Grant)
   3. to replace a portion of the Tuition Promise Scholarship
   4. to assist with other educational costs (e.g. books, art supplies) per Berea College policies.

Due to federal guidelines, scholarships or grants cannot be used to replace the Student Aid Index (SAI) as determined by FAFSA.  Outside scholarships cannot replace expected summer savings from Berea College summer labor programs.

Grants and loans are available for students wishing to study abroad. The amount of grants and loans are dependent upon the program, status, and the Student Aid Index (SAI) of the student. Students are encouraged to talk with a financial aid counselor to see the amounts of aid available before committing to a program.

Students enrolled in classes may be eligible for some grants to offset their housing, meals, and fees costs.  Grants for the summer are based on the student’s enrollment and financial need.  Students are encouraged to save $1,000 throughout the summer to use for educational expenses for the upcoming school year.

Complete an Additional Financial Aid Application. Our staff will determine if you have eligibility for additional financial assistance, which could be grants or student loans. Please see Types of Financial Aid for a detailed list of various awards given.

Loan repayment starts six months after you have withdrawn or graduated from college. Depending on the type of loan, you will be notified by the appropriate agency collecting your payments. It is very important that you attend an Exit Interview before you leave campus so that your contact information is correct for future communication. If you only borrowed federal loans, you may complete an Exit Interview online.