Understanding Aid Awards

The Four Types of Aid


A grant is a gift. You do not have to repay it. You must file an application for financial aid so that the amount of the grant award can be determined. Grants can come from the college, the state, or the federal government. These awards are based on need and are awarded for one year at a time. For information on specific grant programs, view the following descriptions below: Pell Grant, KHEAA State Grant, Centre Endowment Grant, and SEO Grant.


Student loan programs offer low interest rates. Most loans offer delayed repayment, which means that you do not begin loan payments until after you graduate. The Student Financial Planning Office must certify each student loan application. This will assist you in determining the amount to borrow. For information on specific loan programs, view the following descriptions: Perkins Loan, Stafford Loan, PLUS Loan, and Other Loan Options.


The work-study program allows you to work on campus to earn money to help pay for college. You are paid for hours worked, and you gain valuable practical experience. Your hours are arranged around your class schedule. You must be eligible for financial aid to qualify for work-study. For more information, click here.


Scholarships are gifts that are based upon talent or “merit” (academic achievement, extracurricular activities, and leadership). Scholarships are renewable for four years and carry an obligation to perform at a certain level of achievement. For information on specific scholarships, view the following descriptions: KEES Scholarship, Merit Scholarships, and Outside Scholarships.

Other financing options include the Tuition Pay Plan.


Descriptions of Aid

Centre Endowment Grant

Administered and awarded by the College and funded by Centre's endowment, alumni gifts, and other income. See the Centre College Catalog for a full listing.

Federal Work-Study

Employment placement of up to 12 hours per week in campus locations such as the library, athletics facilities, and offices.

KEES Scholarship

For Kentucky high school graduates. The amount you earn is based on your high school GPA and ACT score. The amount listed on your financial aid award is a Centre College estimate; we will revise your award in September once we have your official KEES award amount. Check your estimated KEES award online by visiting the KHEAA web site.

KHEAA State Grant

For Kentucky residents attending Kentucky colleges. Based on demonstrated financial need. Recipients should receive a grant confirmation notice from KHEAA by June. Recipients must take a minimum of 12 hours per billing period to receive a state grant.

Merit Scholarships

You may apply for a merit scholarship regardless of financial need. The scholarships vary in value and applications must be completed by February 1. For more information, visit the Merit Scholarship page.

Other Loan Options

Before considering an alternative/private loan, make sure to determine your eligibility for Federal Direct Stafford loans and Federal Direct PLUS Loans. Click here to see a historical listing of alternative loan lenders that Centre College students have used over the last four years. Centre College does not rank, recommend, promote, or endorse any of these lenders. The student is free to choose any lender.

Outside Scholarships

All scholarships from agencies other than Centre must be reported to the Student Financial Planning Office. (Aid adjustments may have to be made.) Scholarships of $1000 or less normally require no change to the Centre grant. Scholarships of $1000 or more may reduce the Centre grant.

Pell Grant

A federally-funded program. You are automatically considered for the grant when you submit the FAFSA. Recipients must take a minimum of 12 hours per billing period to receive a maximum Pell Grant.

Perkins Loan

A federal loan program, administered by Centre which requires no additional application. Interest is 5%, and payments begin 9 months after termination of enrollment. Ten year repayment, with deferments available for graduate or professional school.


The Federal Direct Parent Loan for Undergraduate Students (PLUS) is limited to parent borrowers and can be obtained from the government. To apply for a PLUS Loan, go to www.StudentLoans.gov. The PLUS Loan has a fixed interest rate capped at 7.9%. Repayment begins within 60 days after the loan is disbursed and can extend over 10 years.

SEO Grant

A federal grant program administered through Centre. Requires no additional application. Eligibility is determined from an analysis of your FAFSA data.

Stafford Loan

Beginning July 2010, all Stafford loan dollars will come from the federal government through the William D. Form Federal Direct Loan Program. Each new borrower is required to complete a Master Promissory Note (MPN). Eligible students can borrow up to $3,500 for the first year and up to $5,500 per year after completing two years of college. In 2008, Congress made available to each student an additional $2,000 supplemental unsubsidized Stafford Loan. Repayment begins 6 months after termination of enrollment.

  • Subsidized loans are need-based, and the interest that accrues on a subsidized loan is paid (or subsidized) by the government while the student is enrolled at least 1/2 time. For the 2013-2014 academic year, the interest rate is fixed at 3.86%.

    A new federal regulation places a limit on Direct Subsidized Loan eligibility for first time borrowers on or after July 1, 2013.  There is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans.  In general, you many not receive Direct Subsidized Loans for more than 150% of the published length of your program.  Here at Centre College, you would have six years of eligibility to receive Direct Subsidized Stafford Loans.  If you exceed the six years and are still in the program, you would no longer be eligible for Subsidized Loans and the government would stop paying the interest on the Subsidized Loans you received previously.

  • Unsubsidized loans have the same limits as Subsidized Stafford Loans. However, the student is responsible for the interest that accrues while enrolled. The interest rate is fixed at 3.86%. It is possible for a student to have a subsidized and unsubsidized loan during the same school year. Even students who do not qualify for other need-based aid can borrow an Unsubsidized Stafford Loan.

Tuition Pay Plan

Payment for tuition, room, and board may be made in ten equal installments, beginning in June. There is a $55 annual fee to enroll in the plan; however, no interest is charged on your monthly balance. For more information about Tuition Pay, visit their web site.

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