McDaniel offers need-based financial aid and merit-based academic scholarships. Need-based aid depends on a family's financial resources. For most students, it is normal to apply for both and many receive a financial aid award that includes both types of assistance. It is only at the point that you have been admitted and applied for aid that you will have a specific financial aid offer in your hands that recognizes your achievement and your family financial situation. Then you’ll see just how possible McDaniel can be.
Financial Aid Programs
McDaniel College Grants
A substantial number of grants ranging from $2,000 to $27,000 are awarded to students based on financial need as determined by federal law and institutional polices. Award amounts are determined after all other merit and need-based awards are taken into account.
Family Tuition Reduction Grants
Families with more than one immediate family member at the College are offered a tuition reduction grant. The $2,000 grant is generally applied to the second member’s financial aid award and bill. The grant is renewed as long as there are two family members enrolled full time in the undergraduate program. If more than two members attend the College simultaneously, the additional person will also receive the grant.
For students not eligible for Federal Work Study, there are a limited number of Campus Employment positions available. Pay rates start at the Maryland State minimum wage, and students work an average of 10 hours a week. Students submit timesheets at the end of the month and are paid on the 10th of the following month.
Federal Pell Grants
These awards are funded directly by the U.S. Department of Education using a standard formula. Award amounts range from $976 to $5,550. These grants are generally awarded to students from low income families.
Federal Supplemental Education Opportunity Grants (SEOG)
These awards are also funded by the U.S. Department of Education, but the amount of the award is determined by the school. Amounts range from $500 to $2,000. First priority is given to Federal Pell Grant recipients.
Teacher Education Assistance for College and Higher Education (TEACH) Grant Program
This program provides grants up to $4,000 per year for undergraduate and graduate students who promise to teach in a low income school in a high needs field for four years. Students who fail to meet the teaching requirements must repay the grants with interest. More information is available here.
Students are eligible to earn up to the amount awarded through a Federal Work-Study job, subject to the availability of positions. Most jobs are located on campus; The Community Federal Work Study Program positions are generally within walking distance of the campus. Pay rates start at Maryland State minimum wage, and students work an average of 10 hours a week. This award is not credited to students’ bills; students are paid directly for hours worked. Most students use these funds for indirect costs or "pocket-money." Students submit timesheets at the end of the month and are paid on the 10th of the following month. A listing of current Community Federal Work Study Program positions is available here.
Federal Perkins Loan
Freshmen and sophomores with exceptional financial need are awarded Federal Perkins Loans. The interest rate is a fixed 5% and repayment begins 9 months after students graduate or drop below half-enrollment. Borrowers have up to 10 years to repay. Because this loan is administered by McDaniel College, no separate application is needed; however students must sign a promissory note online before the loan is credited to their student account. The Bursar's Office notifies students how to sign the promissory note.
Students must complete online Entrance Counseling before the first loan can be disbursed and online Exit Counseling before they graduate. These counseling sessions review students' rights and responsibilities when they borrow under this loan program.
Federal Direct Loan Program (Subsidized)
Federal Direct Loan Program Allows students who demonstrate federal financial need and who are enrolled for at least six credits each term to borrow up to $3,500 for the first year of undergraduate study, $4,500 for the second year, and $5,500 per year for subsequent undergraduate study. The interest rate for the 2012-2013 acaedmic year is 3.4% Interest that accrues while the student is in school is paid for by the federal government (that is why it’s called “subsidized”). Repayment begins on subsidized Direct Loans when the student ceases to be enrolled at least half-time. New borrowers must complete an online Federal Direct Loan Master Promissory Note and complete online Entrance Counseling to borrow funds through this program.
Click here to visit the Federal Direct Loan Program Web site.
Federal Direct Loan Program (Unsubsidized)
Allows all students regardless of federal financial need and who are enrolled for at least six credits per term to borrow up to $5,500 for the first year of undergraduate study, $6,500 for the second year, and $7,500 per year for subsequent undergraduate study less the amount of any subsidized Direct Loan received by the student. New borrowers must complete an online Federal Direct Loan Master Promissory Note and complete online Entrance Counseling to borrow funds through this program. The interest rate is fixed at 6.8%; interest begins to accrue immediately after the loan is disbursed (that is why it's called "unsubsidized").
Independent students may borrow up to an additional $6,000 per year for the first and second years of undergraduate study and up to an additional $7,000 per year for subsequent undergraduate study through the unsubsidized Direct Loan Program. Dependent students may borrow up to the same additional amounts through this program but only if the student's parent is denied eligibility to borrow funds through the Federal PLUS Loan Program.
Click here to visit the Federal Direct Loan Program Web site.
Federal Direct Parent Loans for Undergraduate Students (PLUS)
The Federal Direct PLUS Loan Program allows parents of undergraduate students to borrow up to the full cost of attendance minus other financial aid. Eligibility is based on a satisfactory credit check. The interest rate is fixed at 7.9 percent and there is a loan origination fee of 4.0 percent deducted from each disbursement. Therefore, the net disbursement amount equals 96 percent of each disbursement of the loan. Interest accrual begins on the date of the first disbursement. Deferment can be requested during the student’s enrollment. For many parents interest paid on PLUS Loans is tax deductible. For more information on education tax benefits, see the Internal Revenue Service's Publication 970, "Tax Benefits for Education," available online at http://www.irs.gov/formspubs/index.html.
Maximum Loan Amount
PLUS Loans may cover the full cost of attendance minus other financial aid. The cost of attendance includes tuition, room and board, as well as standard allowances for books and supplies, transportation, and personal expenses. Determine how much you wish to borrow for a full academic year. The total loan amount will be split evenly for the fall and spring semesters.
**New Parent PLUS Loan Borrower: Begin loan process at www.studentloans.gov. The PLUS Loan application process involves two steps, (a ) Request a Direct PLUS Loan and (b) completing the Federal Direct PLUS Loan Master Promissory Note (MPN).
Request a Direct PLUS Loan will run a credit check by the Department of Education. The credit check is reviewed for adverse credit history. It is not a debt – income ratio review. On this screen the parent may request a dollar amount or authorizing the maximum loan available.
If your loan application is not approved, you will be contacted by the Federal Servicer (in writing) and given the option of appealing the credit decision or resubmitting the application with a credit-worthy endorser. Questions concerning your credit decision should be directed to the Federal Servicer’s Applicant Service at 800-557-7394. If you do not wish to pursue either of these options, your son or daughter may apply for an unsubsidized Federal Direct Loan by contacting the Financial Aid Office at 410-857-2233 or email email@example.com.
- Federal PLUS Loan Master Promissory Note. The PLUS Loan MPN allows parents to borrow for multiple years (up to 10 years) under one note for each child enrolled in college provided you do not require an endorser. Complete the MPN online at http://www.studentloans.gov/.
You must have a Department of Education issued Personal Identification Number (PIN) before completing and signing the electronic MPN. If you do not have a Federal PIN, or have lost your PIN, you may obtain one at the Federal PIN Website, http://www.pin.ed.gov/.
McDaniel College will be notified electronically that you have completed your MPN.
Parent PLUS for Returning Students: A new MPN is not required unless you used an endorser previously. Complete the Parent Loan Request Form indicating the dollar amount you wish to borrow. The form is due on July 1st and is normally completed with a yearly amount.For information about repaying your PLUS Loan, please visit the Federal Direct Loan Servicing Center’s website at http://www.studentloans.gov/.
Code of Conduct for Educational Loans
McDaniel College has always been committed to the highest standards of professional conduct and ethical behavior. We recognize that ensuring the integrity of the student financial aid process is critical to providing fair and affordable access to higher education. With the Reauthorization of the Higher Education Act of 1965, Congress has required that all colleges post a Code of Conduct relating to financial aid, private lending and student choice. Accordingly, the staff in the Office of Financial Aid herein confirms that we adhere to the following sound practices.
I. College employees do not receive any personal benefits from Lending Institutions
No member of the Office of Financial Aid staff will accept anything of more than nominal value on his or her behalf or on behalf of another person or entity from any Lending Institution. For example, cash, stocks, gifts, entertainment, expense-paid trips, etc. will never be accepted from a Lending Institution. Likewise, an individual will never accept payment or reimbursement from a Lending Institution for lodging, meals or travel to conferences or training seminars.
II. The College does not provide any advantage to a Lending Institution
The staff in the Office of Financial Aid does not accept anything of value from any Lending Institution in exchange for any advantage or consideration provided to the Lending Institution related to its student loan activities, including but not limited to revenue-sharing, printing costs or below-cost computer hardware or software. Likewise, the College does not allow any Lending Institution to staff the Office of Financial Aid
III. The College makes appropriate use of any Preferred Lender Lists
The selection of Lending Institutions for inclusion on the private/alternative loans Preferred Lender List is based solely on the best interests of college students and their parents without regard to the financial interests of the College. We abide by the following:
- Students and their parents are free to select the Lending Institution of their choice for private/alternative loans and will suffer no penalty imposed by the College from using a Lending Institution that is not a “Preferred Lender.”
- Students and their parents are not required to use any of the College private/alternative loan “Preferred Lenders” and may borrow through any lender or guarantor they choose.
- The College does not assign a borrower’s loan to a particular lender and will certify all loans based on a borrower’s selection of a lender.
IV. College employees do not serve on lender advisory boards for remuneration
No officer, trustee or employee of the College who makes financial aid decisions for the College or who is employed in, supervises or otherwise has responsibility or authority over the Office of Financial Aid office will receive any remuneration for serving as a member or participant on a student loan advisory board of a Lending Institution, or receive any reimbursement of expenses for such service.
State Scholarships and Grants
Maryland State Scholarships
The Maryland Higher Education Commission’s Office of Student Financial Aid administers many merit-based scholarships for Maryland residents attending the College. They are:
- Maryland State Delegate Scholarship
- Maryland State Senatorial Scholarship
- Maryland State Distinguished Scholarship
- Maryland Edward S. Conroy Scholarship
- Maryland Gear-Up Scholarship
- Distinguished Scholar Community College Transfer Program
- Veterans of Afghanistan and Iraq Conflict Scholarship
Maryland State Grants
The Maryland Higher Education Commission’s Office of Student Financial Aid administers three need-based grants for Maryland residents attending the College. State awards from these categories will reduce a student’s need based McDaniel Grant. They are:
- The Howard P. Rawlings Educational Assistance Grant
- The Howard P. Rawlings Guaranteed Access Grant
- Workforce Shortage Student Assistance Grants
Students are strongly urged to apply well before the deadline. Students who apply late are generally not funded.
Army ROTC Scholarships
The Army Reserve Officers’ Training Corps program at the College offers Full tuition to qualified applicants. Army ROTC scholarships are awarded by a national board based on academic merit and leadership potential. The scholarship amount includes textbooks and $150 per month for up to ten months of each academic year. McDaniel College awards ROTC scholarship recipients with room and partial board grants which, when combined with the ROTC funds, cover the total cost of education. These awards are renewable annually, contingent on the student maintaining a minimum 2.50 cumulative grade point average. Four-year scholarship applications must be submitted by November 1 of the year prior to college entry. Information and applications may be obtained from high school guidance offices, or the Military Science Department at the College.
Students eligible for 100% of Post-9/11 Veterans Educational Assistance are eligible for the Yellow Ribbon program. The combination of the VA Educational benefits and the Yellow Ribbon program will cover a full time student's tuition charges. More information can be found at http://www.gibill.va.gov/.
Private Student Loans
Private student loans are made by private lenders to students and most require a credit worthy cosigners. These loans may be more expensive than Federal Direct PLUS loans and students should first maximize any eligibility under the Federal loan programs. Private loan fees and interest rates vary among lenders. All lenders will review the borrower's and cosigner’s credit history.
The Federal Reserve and Department of Education have recently implemented new rules and regulations that impact student borrowers who use private educational loans. Students should allow at least two weeks for the total processing of a private loan and follow their lenders instructions carefully to avoid delays.
There are many reputable private education loan companies. The following lender tools are good places to start the search. Many students start by using the Great Lakes loan selection tool FASTChoice or the Maryland Student Loan Marketplace . These private loan comparison tools empower you to take control of the process and make an informed decision in selecting the best private loan for your individual situation.
FASTChoice, powered by Great Lakes loan guarantor and processer, provides general eligibility requirements, interest rates, loan limits, and borrower benefits on specific lenders.
When using the Maryland Student Loan Marketplace, borrowers are able to instantly and accurately compare actual rates and terms from multiple private loan lenders side by side. The Marketplace displays products from local and national lenders complete with detailed listings of APRs, interest rates, total cost, monthly payments, borrower benefits, fees, and repayment options.
In the current economic and credit market difficulties, private educational loan companies are in a state of change. Make sure to check all lenders' websites for the most current information regarding credit criteria and interest rates.
Private Loan Disclosures by Lenders: