The law requires financial aid administrators to determine whether a student is eligible for Federal Pell Grant funds prior to awarding federal loan programs, thereby reducing the student’s need for borrowing. Federal Pell Grant eligibility is determined before originating a subsidized or unsubsidized Federal Direct Loan for the student. In addition, an unsubsidized Direct Loan is not originated without first determining the financial need for a subsidized Federal Direct Loan. However, if the amount of the subsidized Federal Direct Loan is $200 or less and that amount can be included as part of an unsubsidized Federal Direct Loan, MIAT is not required to originate a separate subsidized Federal Direct Loan.
For a dependent student, MIAT cannot originate a PLUS and disburse PLUS funds without first determining the Federal Pell Grant and subsidized Federal Direct Loan eligibility for the student.
Prior to students receiving private non-federal loans, MIAT requires the exhaustion of all less expensive federal aid eligibility available to the student, to assist in encouraging wise debt management. In no case will a combination of federal, state and private aid be permitted to exceed the student’s cost of attendance as determined by MIAT College of Technology.
Federal grants and loans are processed in academic year increments, which for the purposes of federal aid is defined as a minimum of 24 credits and 30 weeks of instructional time. An academic year is divided into two payment periods during which financial aid funds are ordinarily disbursed. A student is generally eligible to receive funds shortly after attendance has begun during the first payment period at the beginning of the academic year and during the second payment period after the midpoint of the academic year. An estimated disbursement schedule is provided in an award notification. To meet eligibility standards for second and subsequent federal aid disbursements, the student must successfully complete both the credits attempted and the instructional weeks in the first payment period of the academic year as well as maintain satisfactory academic progress (SAP) according to MIAT policy. Leaves of absence as well as course failures may delay the timing of scheduled disbursements.