Federal Financial Aid

In addition to scholarships and grants offered by GMercyU, there are many federal financial aid opportunities for you to explore. Learn more about your options and obligations below.
For more information on how to apply for Federal Financial Aid, visit the Starting the Financial Aid Process page.
Posted Fall 2023:
On this Federal Student Aid (FSA) webpage, you can learn about student debt relief and the Saving on a Valuable Education (SAVE) Plan.

Gwynedd Mercy University is committed to providing students and their families with the best information and processing alternatives available regarding student borrowing. For more details on GMercyU’s Student Lending Code of Conduct, visit our policies page.

Federal Pell Grant

A Federal Pell Grant, unlike a loan, does not have to be repaid. In order to be considered, you must:

  • Be a U.S. Citizen or Eligible Non-Citizen
  • Have not earned a bachelor’s or a professional degree
  • Be enrolled for at least 3 credits in a degree-seeking undergraduate program

The amount of any other student aid for which you might qualify does not affect the amount of your Federal Pell Grant.

To apply for federal grants you must submit the Free Application for Federal Student Aid (FAFSA).

The Federal Supplemental Educational Opportunities Grant

If you are an undergraduate who demonstrates financial need and have been offered a Federal Pell Grant, you may be considered for a Federal Supplemental Educational Opportunity Grant (FSEOG).

GMercyU receives a certain amount of FSEOG funds each year; therefore, they are on a first come, first serve basis. Please get your FAFSA and GMercyU Financial Aid application in as early as possible to be considered for this additional funding. The FSEOG grant is different from the Pell Grant Program which provides funds to every eligible student.

Pennsylvania State Grant

If you are an undergraduate Pennsylvania Commonwealth resident pursuing your first bachelor's degree, the Commonwealth of Pennsylvania offers full-and-part-time grants through the Pennsylvania Higher Education Assistance Agency (PHEAA). When you complete your FAFSA, you will automatically be considered for the state grant.

In order to be considered for PHEAA, you must submit your FAFSA by their filing deadline of May 1.

To find out more information, visit www.pheaa.org.

*If you are an out-of-state student, check with your state grant agency regarding its policy on issuing state grants for out-of-state institutions.

The William D. Ford Federal Direct Loan Program is the largest federal student loan program. Under this program, the U.S. Department of Education is your lender. All U.S. citizens or eligible non-citizens enrolled at least half-time in a degree-seeking program are typically eligible to apply for these loan programs.

Federal Direct Subsidized Loan

If you are eligible and demonstrate financial need to help cover the costs of your education, you may take out a Direct Subsidized Loan. The federal government pays the interest on the loan during:

  • Your enrollment in GMercyU with at least 6 credits or more
  • A deferment, which is a temporary, authorized time when your payments may be postponed

The interest rate on Direct Subsidized Loan is a fixed 4.99% for loans first disbursed on or after July 1, 2022 to June 30, 2023.

Federal Direct Unsubsidized Loan

For Direct Unsubsidized Loans, you do not have to demonstrate financial need in order to be eligible but you need to be enrolled at least half-time. You are responsible for paying all interest on the loan beginning the day the loan is paid to you until the loan is repaid in full. You will be able to choose to pay the accumulated interest while you are in school, or have the interest added to the principal balance of the loan.

The interest rate on Direct Unsubsidized Loan is a fixed 4.99% for loans first disbursed on or after July 1, 2022 to June 30, 2023.

Note: If your loan interest is capitalized, it will increase the amount you will need to repay.

To apply for a Subsidized and/or an Unsubsidized student loan you will need to:

Note: You may be required to submit other documentation to the Financial Aid Office – The Financial Aid Office will notify you of any additional information that is needed.

Federal Direct PLUS Loan

The Direct PLUS loan enables your parent to borrow on your behalf if:

  • You're a dependent student
  • Enrolled in a degree granting undergraduate program
  • Enrolled at least half-time (6 credits)
  • Your FAFSA and financial aid application is submitted

Your parent will need to be determined to have a satisfactory credit history in order to be eligible.

The amount of the PLUS loan may not exceed cost of attendance minus any estimated financial aid you have or may receive during your period of enrollment.

The interest rate on Direct PLUS Loan is a fixed 6.84%. Interest begins to accrue and repayment may begin upon disbursement of the loan.

Your parent can apply online at www.studentloans.gov.

If your parent is denied a PLUS loan, you may be eligible to borrow additional funds from the Federal Direct Unsubsidized loan program. Freshman/sophomore students may borrow up to an additional $4,000 and junior/senior students may borrow up to an additional $5,000 in Federal Direct Unsubsidized Student Loans for the year.

Annual borrowing rates are as follows:

  • Freshmen: $5,500
  • Sophomores: $6,500
  • Juniors/Seniors: $7,500

Note: Independent students can borrow an additional $4,000 (freshmen and sophomores) or $5,000 (juniors or seniors) through the unsubsidized program.

Federal Nursing Loan

If you are a U.S. citizen or eligible non-citizen with financial need enrolled full-time in the undergraduate nursing program, you are eligible to apply for a Nursing Student Loan. Loans range in amounts from $500 to $5,500.

To apply, you will need to:

If you are approved to borrow from the nursing loan program you will be instructed on where to complete the necessary paperwork to secure the loan.

The interest rate on a Federal Nursing Loan is fixed at 5.0%. Interest begins to accrue upon disbursement of the loan; repayment begins after a 9 month grace period. Your grace period begins upon graduation, when you are enrolled less than half time, or if you change your major to something other than Nursing.

Federal Perkins Loans

The Federal Perkins Loan program has historically been open to full-time, undergraduate, degree-seeking students who are U.S. Citizens or eligible non-citizens for many years. Loans ranged in amounts from $500 to $5,000.

However, beginning in the 2015-2016 academic year, the government is starting to phase out the entire Perkins Loan program. Due to limited funding, and the fact that new borrowers would not be permitted to renew their loans beyond the 2015-2016 academic year, GMercyU is reserving all Perkins loan funds to returning students who have already borrowed from the Perkins loan program. Returning students who have filed their FAFSA may send an email to financialaid@gmercyu.edu requesting consideration for the Perkins Loan.

The interest rate on a Federal Perkins Loan is fixed at 5.0%. Interest begins to accrue upon disbursement of the loan; repayment begins after a 9 month grace period (grace period begins upon graduation or less than half time enrollment).

For more information on how to manage your Nursing and/or Perkins loan, visit GMercyU’s Bursar’s Office page.

Federal Work Study (FWS) is a federally supported employment program where students are offered jobs to help cover college expenses. Work-study is also an opportunity to gain relevant work experience to strengthen your resume and build your real-world skill set. If you are offered a federal work-study opportunity, it will be included in your Gwynedd Mercy University financial aid package.

If you are interested in participating in the work study program, please indicate so on your FAFSA. If you did not indicate your interest in Federal Work-Study on your FAFSA but are interested, please email financialaid@gmercyu.edu and someone will assist you.

Your Gwynedd Mercy University financial aid packet will have more details on the work-study positions available. You can also search open work-study positions online. Your packet will include the date that the application and interview process will begin.

Job placement is made on the basis of your qualifications, and we make every effort to connect you to a position related to your major. Jobs are provided on a first-come, first-serve basis, so it’s important to submit your application early.

If you have any questions about GMercyU’s Federal Work-Study Program, we’re happy to help. Please contact financialaid@gmercyu.edu.

Manage Your Work Study Job

Hours and compensation for your work-study position are managed online through the MyPaychex system. You can find more details here:

Regulations and Responsibilities (PDF)
Direct Deposit Application (PDF)

Want more information on how to manage your work study job? Visit the work study page on GMercyU’s portal.

Federal Direct Unsubsidized Loan

For Direct Unsubsidized Loans, you do not have to demonstrate financial need in order to be eligible. You are responsible for paying all interest on the loan beginning the day the loan is paid to you until the loan is repaid in full. You will be able to choose to pay the accumulated interest while you are in school, or have the interest added to the principal balance of the loan.

The interest rate on Direct Unsubsidized Loan is a fixed 5.84% for loans first disbursed on or after July 1, 2015 and prior to July 1, 2016.

Note: If your loan interest is capitalized, it will increase the amount you will need to repay.

To apply for a Subsidized and/or an Unsubsidized student loan you must:

  • Complete the FAFSA at https://studentaid.gov/h/apply-for-aid/fafsa
  • Submit your financial aid application to the Financial Aid Office
  • Complete Entrance Counseling and the Master Promissory Note at www.studentloans.gov (once completed this requirement is good for 10 years)

Note: You may be required to submit other documentation to the Financial Aid Office – The Financial Aid Office will notify you of any additional information that is needed.

Federal Direct Graduate PLUS Loan

If you need to borrow funds beyond the federal unsubsidized loan limit, you may apply for the Direct Graduate PLUS. This loan is offered to you if you meet all financial aid eligibility requirements, with our without financial need. Graduate students are eligible for up to $20,500 in unsubsidized loans only.

The interest rate on Direct PLUS Loan is a fixed 6.84%. Interest begins to accrue and repayment may begin upon disbursement of the loan. The U.S. Department of Education makes the Direct PLUS Loan.

You can apply online at https://studentaid.gov/.