Federal Grants and Loans

Please see the appropriate section for information regarding federal aid.

Students who register for a course that is not required for their program of study may experience an adjustment/reduction in financial aid. The university cannot award financial aid for classes that do not count toward a student's degree requirements; therefore, a student's net tuition expense could be higher.

Federal Pell Grant

The Federal Pell Grant is a federally funded entitlement program to assist qualified undergraduate students with exceptional financial need. Eligibility for these grants is determined by the U.S. Department of Education based on the information provided on the FAFSA. Pell recipients can attend at less-than-half-time status and remain eligible for a portion of their Pell Grant. Students with a previous bachelor’s degree are not eligible for a Federal Pell Grant.

The maximum, full-time Pell Grant award for the 2017–18 award year (July 1, 2017 to June 30, 2018) is $5,920. The maximum Pell Grant award can change each award year and depends on program funding. Further information may be obtained from the U.S. Department of Education.

The amount of Federal Pell Grant funds a student may receive over their lifetime is limited by law to be the equivalent of 6 years of Pell Grant funding. Since the maximum amount of Pell Grant funding the student can receive each year is equal to 100%, the 6-year equivalent is 600%.

Campus-based financial aid programs, including the Federal Supplemental Educational Opportunity Grant (SEOG), Federal Perkins Loan and Federal Work-Study programs, are administered by Johnson & Wales University. Students must annually apply for these programs through the filing of the FAFSA.

Federal Supplemental Educational Opportunity Grant (SEOG)

This federally funded program provides financial assistance to qualified undergraduate students who demonstrate exceptional financial need. The amount Johnson & Wales University awards ranges from $100 up to a maximum of approximately $250 per academic year and is based on financial need and the availability of funds. Students with a previous bachelor’s degree are not eligible for a Federal Supplemental Educational Opportunity Grant.

Federal Perkins Loan

This 5% interest-bearing loan is funded by the federal government and administered directly by the university. Master Promissory Notes for this loan are available. Perkins loans are awarded to qualified students with exceptional financial need. The amount a student will receive depends on financial need and the availability of funds.

Students must begin to repay this loan 9 months after they leave the university or drop below half-time status. The repayment of principal and interest may be extended over a 10-year period. The amount of each payment depends upon the amount of the student’s debt and the length of the student’s repayment period.

Federal Work-Study Program

Federal Work-Study is a federally funded program that provides part-time employment to undergraduate students with financial need. Positions are available throughout the university and with selected off-campus community service agencies.

Work-study gives students the opportunity to earn money to help pay for educational expenses. Students are paid an hourly rate for actual hours worked. The amount earned cannot exceed the total work-study award. Work-study funds are paid biweekly directly to the student; therefore, funds will not be applied to the student’s account unless arrangements are made with Student Academic & Financial Services.

William D. Ford Federal Direct Subsidized Loan

This loan program provides loans to undergraduate students who demonstrate financial need. First-time borrowers are required to complete a Master Promissory Note and an entrance interview. Both of these requirements can be completed online.

Students may borrow up to a maximum of $3,500 per academic year as freshmen for the first year of undergraduate study, $4,500 for the second year as sophomores, and $5,500 per year for the third and fourth years as juniors and seniors. The student must begin repayment 6 months after he/she leaves the university or drops below half-time status. The amount of the student’s monthly payment will be determined based upon the amount of student debt and the length of the repayment period. Please contact the Direct Lending Student Loan Support Center at 1-800-557-7394 for more information on repayment options. The average amount of loan debt for a student completing a four year degree at Johnson & Wales University for FY 2016 was $32,080.

For students who are first-time borrowers on or after July 1st, 2013, there is a limit on the maximum period of time (measured in academic years) during which they can receive Direct Subsidized loans. Students may not receive Direct Subsidized loans for more than 150% of the published length of their program, known as their "maximum eligibility period." For example, if a student is enrolled in a 4-year bachelor's degree program, the maximum period for which the student can receive Direct Subsidized loan is 6 years, or 150% of the program length. For more information, please contact the Financial Planning office. 

William D. Ford Federal Direct Unsubsidized Loan

Like the Direct Subsidized Loan program, this Direct Unsubsidized Loan program also offers loans to students. While most of the loan terms are the same as the subsidized loan program, there are some major differences:

  1. Students do not have to demonstrate financial need to receive a Direct Unsubsidized Loan.
  2. The federal government does not pay interest on the borrower’s behalf while the borrower is enrolled in school.

During that time, the student borrower can choose between making quarterly interest payments or “capitalizing” interest. “Capitalizing” interest means that the lender will add interest accrued to the principal balance. This will eliminate the need for interest payments while in school, but will result in a larger principal amount owed upon repayment.

William D. Ford Federal Direct Parent Loan Program for Undergraduate Students (PLUS)

The Direct PLUS Program provides loans to parents of dependent students to attend college. PLUS borrowers do not have to demonstrate need, but must not have an adverse credit history. All students must complete the Free Application for Federal Student Aid (FAFSA) if their parents plan to borrow a PLUS loan. The parent must also complete the Direct PLUS Master Promissory Note (MPN); an MPN can be completed online. In addition, the parent must indicate how much they want to borrow. Repayment of this loan will begin within 30 days of the time the loan is fully disbursed annually, or the borrower can contact the Department of Education to request a deferment. The borrowing limit is the total cost of attendance, minus any financial aid being received.

Increased Direct Unsubsidized Loan Limits for Independent Students and Dependent Students Whose Parents Don’t Qualify for a PLUS

There are higher additional unsubsidized annual loan limits for independent undergraduate students. These higher additional unsubsidized loan limits also apply to dependent undergraduate students whose parents are unable to borrow PLUS loans due to adverse credit or other documented exceptional circumstances.

  • $3,500 combined subsidized and/or unsubsidized plus $6,000 additional unsubsidized for independent first-year undergraduates
  • $4,500 combined subsidized and/or unsubsidized plus $6,000 additional unsubsidized for independent second-year undergraduates
  • $5,500 combined subsidized and/or unsubsidized plus $7,000 additional unsubsidized for independent third-, fourth- or fifth-year undergraduates

Subsidized and Unsubsidized Total

Dependent Undergraduates (Excluding Dependent Students Whose Parents Don’t Qualify for a PLUS)

Year Range
First Year; freshman$3,500–5,500
Second Year; sophomore$4,500–6,500
Third Year and Beyond; junior, senior$5,500–7,500

Independent Undergraduates and Dependent Students Whose Parents Don’t Qualify for a PLUS

Year Range
First Year; freshman$3,500–9,500
Second Year; sophomore$4,500–10,500
Third Year and Beyond; junior, senior$5,500–12,500

Note: All undergraduate annual loan amounts are subject to proration.

Please note that students/borrowers remain responsible for the repayment of educational loans that they borrow, even if they are not successful in completing the educational program and/or obtaining employment.

No student is required to apply for, or accept, any particular type of financial aid.

Johnson & Wales University participates in the William D. Ford Federal Direct Loan Program. All Direct Loans and parent PLUS Loans will be borrowed from the U.S. Department of Education.

Please note that the loan information described in this catalog is based upon the available information as of the date of the production of this catalog. Updated information regarding federal grants and loans may be obtained by visiting the U.S. Department of Education website.

Applications for these loans are available on the Direct Lending website.

Aid from these programs is awarded on the basis of financial need. In order to receive maximum consideration for financial assistance, it is recommended that the student apply as soon as possible after January 1. The award process for first-year students begins in March of each academic year. Renewal of financial aid is not automatic. Recipients are required to reapply each year by the announced deadline.

To be eligible for these programs, students must meet the following criteria:

For most programs, students must

  1. Demonstrate financial need;
  2. Maintain satisfactory academic progress (financial aid will be suspended until satisfactory academic progress is again achieved);
  3. Be enrolled in an eligible degree or certificate program;
  4. Be enrolled on at least a half-time (at least 6.0 quarter credit hours) basis (students enrolled on a less-than-full-time basis may have their financial aid reduced; some students enrolled on a less-than-half-time basis may qualify for a Federal Pell Grant);
  5. Be a U.S. citizen or eligible non-citizen;
  6. Not owe a refund on a Federal Student Aid Grant (e.g., Federal Pell Grant, etc), be in default on a Federal Student Aid loan (e.g., Federal Perkins, etc.); and
  7. Sign a Statement of Educational Purpose, a Statement of Registration Status and a Statement on Overpayments and Defaults

Students are eligible to receive financial aid as long as they maintain Satisfactory Academic Progress (SAP) as defined in the SAP section of the catalog and Student Handbook. Students who fail to maintain SAP will be notified by Student Academic & Financial Services. All financial aid will be suspended until satisfactory academic progress is again achieved.

Return of Title IV Funds (Federal Aid)

When a student withdraws (or becomes withdrawn) during a payment period or period of enrollment, the amount of student financial aid program assistance earned is determined by a specific formula. If the student receives (or the university receives on the student’s behalf) less assistance than the amount earned, the student may be able to receive those additional funds. Students who received more assistance than what they earned must return the excess funds.

The amount of federal assistance earned is determined on a pro-rata basis. That is, if a student completes 30% of the payment period or period of enrollment, the student earns 30% of the federal assistance the student was originally scheduled to receive. Once the student completes more than 60% of the payment period or period of enrollment, the student earns all scheduled federal assistance.

The student’s loan monies (subsidized, unsubsidized and PLUS) must be on record with the Department of Education before the student's last day of attendance in order for the money to be considered within the formula. If the student is eligible for a post-withdrawal disbursement, a written notice will be mailed requesting the consent of the borrower to post the funds to the student’s account. The amount of institutional assistance earned is based on the week that the student withdraws from the university and follows the percentage the university credits the student’s charges.

If a student receives excess funds that must be returned, Johnson & Wales University must return a portion of the excess, equal to the lesser of

  • the student’s institutional charges multiplied by the unearned percentage of the student’s funds
  • the entire amount of the excess funds

If the university is not required to return all excess funds, the student must return the remaining amount. Any loan funds that the student must return must be repaid by the student (or the student's parents for a PLUS Loan) in accordance with the terms of the promissory note.

If a student is responsible for returning grant funds, the student does not have to return the full amount. Students are not required to return 50% of the grant assistance received that is the student’s responsibility to pay. Any amount not returned is a grant overpayment and the student must make arrangements with the university or Department of Education to return the funds.

Federal regulations establish the following allocation for students who receive Title IV, HEA program funds:

A refund owed to a student who received funds under any Title IV, HEA program will be returned to the Title IV, HEA programs from which the student received aid in the following order until the amounts received by the student from these programs is eliminated: the Unsubsidized/Subsidized Direct Loan, Perkins Loan, Parent PLUS Loan, Pell Grant, FSEOG program, all other sources of aid, and the student.

Students who register for a course that is not required in their program of study may experience an adjustment/reduction in financial aid. The university cannot award financial aid for classes that do not count toward a student's degree requirements; therefore, a student's net tuition expense could be higher.

William D. Ford Federal Direct Unsubsidized Loan

This loan program offers low-interest loans to students who demonstrate little or no financial need. The federal government does not pay the interest on the borrower’s behalf while the borrower is enrolled in school. During that time, the student borrower can choose to make quarterly interest payments, or to “capitalize” interest. “Capitalizing” means the lender will add interest accrued to the principal balance. This will eliminate the need for interest payments while in school. A Master Promissory Note for these loans is located online. Loans made under federal loan programs are applied to the student's account with the university in equal disbursements per term based on the loan period and the student's entrance date.
 
Students should check with their financial planner to determine their maximum annual loan amount. Students must begin repayment 6 months after they leave college or drop below half-time status. The interest on the loan is not subsidized during the student’s 6-month grace period. The amount of the student’s monthly payment will be determined based upon the amount of the student’s debt and the length of the student’s repayment. The average amount of loan debt for a student completing a graduate degree at Johnson & Wales University for FY 2016 was $45,715.

Campus-based financial aid programs, including the Federal Perkins Loan and Federal Work-Study programs, are administered by Johnson & Wales University. Students must annually apply for these programs through the filing of the FAFSA.

Federal Work-Study Program

Federal Work-Study is a federally funded program that provides part-time employment to undergraduate students with financial need. Positions are available throughout the university and with selected off-campus community service agencies.

Work-study gives students the opportunity to earn money to help pay for educational expenses. Students are paid an hourly rate for actual hours worked. The amount earned cannot exceed the total work-study award. Work-study funds are paid biweekly directly to the student; therefore, funds will not be applied to the student’s account unless arrangements are made with Student Academic & Financial Services.

Return of Title IV Funds

Federal regulations establish the following allocation for students who receive Title IV, HEA program funds:

A refund owed to a student who received funds under any Title IV, HEA program will be returned to the Title IV, HEA programs from which the student received aid in the following order until the amounts received by the student from these programs are eliminated: the Federal Direct Unsubsidized Loan program, all other sources of aid, and the student.