Award Information
Federal and State Grants
Oklahoma Tuition Aid Grant (OTAG)
This grant is awards up to $1,300 per year to eligible students. This grant is awarded based on financial need to residents of the state of Oklahoma, who are attending colleges or universities within the state. To be eligible, it is important to file the Free Application for Federal Aid by April 30, but OKWU recommends filing by March 30. Grant eligibility and policy is determined by a state agency and not by the institution.
Pell Grant
Amount: This federal grant is award to students who demonstrate financial need and qualify for the grant by filing the FAFSA. The Pell Grant awards $400-$4,000 annually to eligible students.
Student Loans
Stafford Loan: Subsidized and Unsubsidized
This student loan is awarded based on the budgeted annual cost of attending OKWU and the information obtained from the FAFSA. There are strict guidelines and limits to what a student can borrow annually under the Stafford Loan program. The grade level loan limits are listed below.
A Subsidized Stafford Loan is a need based loan that is awarded to students who have financial need based on the information submitted on the FAFSA. The interest on Subsidized Stafford Loans is paid by the Federal government while the student is in school at least half-time, as well as during the six month grace period after a student leaves school.
Conversely, the interest on Unsubsidized Stafford Loans does accrue while the student is in school. The borrower has the option to pay the interest while in school; if not paid, it will be capitalized (added) into the principal.
OKWU tries to encourage students to pay the interest on Unsubsidized Stafford Loans while in school. It helps prevent students from eventually being charged interest on interest and greatly reduces the amount of interest the borrower will be responsible for paying in the end.
One feature that both Subsidized and Unsubsidized Stafford Loans have is that there are no payments required on the actual loan until six months after the student leaves school or drops below half-time (as long as your grace period hasn’t elapsed previously). This grace period allows for students to get settled after leaving school before being required to make payments. The interest rate on Stafford loans is a very favorable rate as well. It is a variable annual rate set every July 1, which also has a cap set of 8.25%. This means that down the road, no matter what happens to interest rates, the Stafford loan interest rates will never go above that 8.25%. Contact the Financial Aid Office for information on the current year’s rate.
Annual Loan Limits
Grade Level/Maxium Award
0-29 hours/$2,625
30-59 hours/$3,500
60 or more hours/$5,500
Independent students may borrow additional Unsubsidized Stafford loans, due to their ineligibility for the PLUS loan: Grade Level/Additional Eligibility/Total Annual Maximum
0-29 hours/$4,000/$6,625
30-59 hours/$4,000/$7,500
60 or more hours/$5,000/$10,500
Tax Saving Tips
Hope Scholarship Tax Credit
This is not a traditional scholarship, but a tax credit of up to $1,500 annually (100% of the first $1,000 and 50% of the second $1,000) of qualified tuition and related expenses. This can be utilized in the first two years of qualifying postsecondary education. The credit amount is gradually reduced for families with incomes between $40,000 and $50,000 if single, or $80,000 and $100,000 if married.
Effective as of 01/01/2002, a parent is allowed to make tax-free rollovers from one 529 Plan (Qualified State Tuition Plans) to another as often as once every twelve months with no need to change beneficiaries. 529 plans also allow eligible taxpayers to claim the Hope Scholarship in the same year that the tax-free withdrawals for college expenses are made from a 529 Plan, as long as they are not paying for the same expenses.
Lifetime Learning Credit
For 2003 and beyond, this tax credit is equal to 20% of the first $10,000 of qualifying tuition and related expenses paid by the taxpayer during the calendar year. The Lifetime Learning Credit was designed to aid students in acquiring or improving job skills. This is generally the tax credit used in the last two or three years of an undergraduate student?s experience. The credit amount is gradually reduced for families with incomes between $40,000 and $50,000 if single, or $80,000 and $100,000 if married.
Effective as of 01/01/2002, a parent is allowed to make tax-free rollovers from one 529 Plan (Qualified State Tuition Plans) to another as often as once every twelve months with no need to change beneficiaries. 529 plans also allow eligible taxpayers to claim the Hope Scholarship in the same year that the tax-free withdrawals for college expenses are made from a 529 Plan, as long as they are not paying for the same expenses.