Federal Aid

The Federal Pell Grant is a need-based grant awarded to undergraduate students pursuing their first baccalaureate degree only. Eligibility is based on federal methodology and Pell lifetime eligibility usage limits. The award amounts for the 2026-2027 academic year range from $740 to $7,395, are subject to Congressional appropriations and will be reduced for students who enroll as less than full-time students each semester. If your award letter shows an “estimated” Pell Grant, it means your final official FAFSA has not been received by our office.

A student’s initial Pell Grant award anticipates full-time enrollment. Per federal regulation, the enrollment status at the time of the Pell Recalculation Date (PRD) will determine what percentage of the Pell award is applied to the student’s account. Any student falling below full-time enrollment will have their aid adjusted appropriately. Mercer strongly encourages students to finalize their course schedule BEFORE the PRD and avoid making schedule changes affecting enrollment status until AFTER the PRD.

Federal regulation also requires students to begin attendance in all coursework included in Pell enrollment status. Students who fail to begin attendance in all courses included in the enrollment status calculation will have their Pell Grant adjusted and will be responsible for repaying the University for any excess Pell funds received.

Enrollment Intensity

Beginning with the 2024-25 award year, Federal Pell Grant eligibility is based on a student’s enrollment intensity rather than traditional enrollment status categories. Enrollment intensity measures the percentage of full-time enrollment at which a student is enrolled and is used to determine the amount of Pell Grant funds a student may receive.

For Title IV federal financial aid purposes, Mercer University defines full-time enrollment in standard term programs as 12 credit hours per semester. Enrollment intensity is calculated by dividing the number of credit hours in which a student is enrolled by 12 and expressing the result as a percentage.

Students enrolled in fewer than 12 credit hours may still be eligible for a Pell Grant; however, their Pell Grant amount will be adjusted based on their enrollment intensity. Generally, students who enroll in more credit hours receive a larger percentage of their scheduled Pell Grant award.

Students should be aware that adding or dropping courses may affect their enrollment intensity and could result in changes to their Pell Grant eligibility and award amount.

Note: Enrollment intensity cannot exceed 100% for purposes of Pell Grant proration.

The Federal Supplemental Educational Opportunity Grant is a need-based grant awarded to qualified undergraduate students pursuing their first baccalaureate degree only. Eligibility is based on the availability of funds and the federal methodology using the information you and your parent(s) provided on the FAFSA. Priority is given to students who have are Pell-eligible and who meet priority filing deadlines.

The Teacher Education Assistance for College and Higher Education (TEACH) Grant Program provides grants of up to $4000 per year to students who intend to teach in a high-need field at a public or private elementary or secondary school that serves students from low-income families. Find more information about the TEACH Grant at Mercer.

In exchange for receiving a TEACH Grant, you must agree to serve as a full-time teacher in a high-need field in a public or private elementary or secondary school that serves low-income students.  As a recipient of a TEACH Grant, you must teach for at least four academic years within eight calendar years of completing the program of study for which you received a TEACH Grant.  IMPORTANT: If you fail to complete this service obligation, all amounts of TEACH Grants that you received will be converted to a Federal Direct Unsubsidized Loan.  You must then repay this loan to the U.S. Department of Education (ED).  You will be charged interest from the day the grant was disbursed.

Applications for the TEACH grant must be completed in Mercer Student Forms and are subject to review by the Office of Student Financial Planning.

Federal Direct Loans are low-interest (variable rate) loans awarded by the school and provided by the federal government. The interest rate is adjusted each July 1.  These loans may be either subsidized or unsubsidized. You can view interest rates online at studentaid.gov.

Interest rates for loans first disbursed on or after July 1, 2026 through June 30, 2027

Direct Subsidized and Direct Unsubsidized Loans – Undergraduate Students – 6.52%

Direct Unsubsidized Loans – Graduate Students – 8.07%

Direct PLUS Loans – Parents and Graduate or Professional Students – 9.07%

Sample Federal Direct Loan Disclosure Statement

Federal Direct Loan amounts are based on the cost of attendance at a particular school and the student’s grade level.

Dependent students may borrow the following amounts:

$3,500/year for 1st-year undergraduates subsidized and $2,000/year unsubsidized.
$4,500/year for 2nd-year undergraduates subsidized and $2,000/year unsubsidized.
$5,500/year for 3rd or 4th-year undergraduates subsidized and $2,000/year unsubsidized.

The aggregate loan limit that an undergraduate dependent student can borrow is $31,000.

Independent students may borrow the following amounts:
$9,500/year for 1st-year undergraduates (at least $6,000 must be unsubsidized).
$10,500/year for 2nd-year undergraduates (at least $6,000 must be unsubsidized).
$12,500/year for 3rd or 4th-year undergraduates (at least $5,000 must be unsubsidized).
$20,500/year for graduate students (unsubsidized only).
$50,000/year for professional students (unsubsidized only).

The aggregate loan limit that an undergraduate independent student can borrow is $57,500.
The aggregate loan limit that an graduate student can borrow is $100,000.
The aggregate loan limit that an professional student can borrow is $200,000.

The lifetime aggregate loan limit a student can borrow is $257,500. This includes all federal student loans borrowed without regard for repayment, discharge, or forgiveness.

The amounts listed above are maximums. Remember, a student may not borrow more than their program’s Total Cost of Attendance minus other financial aid and/or scholarships.

Subsidized Federal Direct Loan

Subsidized Federal Direct Loans are awarded to undergraduate students ONLY. Subsidized Federal Direct Loans are need-based loans. A student must be enrolled at least half-time (6 credit hours for undergraduate students) to be eligible to receive a Subsidized Federal Direct Loan.

The interest on this loan is paid by the federal government while the student is enrolled in school and during the first 6 months following withdrawal or graduation from school. Interest starts accruing anytime that your enrollment status drops below half-time. The six months following departure from school is a grace period. A student is only given one grace period. After this period, the student must begin repayment of the loan.

Graduate students are NOT eligible for subsidized loans.

Unsubsidized Federal Direct Loan

Unsubsidized Federal Direct Loans are non-need-based loans. Interest is charged from the time the loan is disbursed until the loan is paid in full. The student can choose to pay the interest while enrolled or allow it to accrue. If the interest is allowed to accrue, it will be added to the principal amount of the loan, thereby increasing the amount of money the student is required to repay.  The student must be enrolled on a half-time basis (6 credit hours for undergraduates & 5 credit hours for graduates/professionals) to be eligible and to receive the award.

Schedule of Reductions for Annual Loan Limits

Beginning July 1, 2026, students enrolled less than full-time will have their annual loan eligibility reduced based on the federal Schedule of Reduction tied to enrollment intensity. Students must be enrolled at least half-time to receive federal student loans.

To receive a Federal Direct PLUS Loan, you must:

• Before July 1, 2026 – Be a graduate or professional degree student enrolled at least half-time at an eligible school in a program leading to a degree/certificate, OR
• Be the parent (biological, adoptive, or in some cases stepparent) of a dependent undergraduate student enrolled at least half-time at a participating school;
  • If you are the biological parent of the student but you are not listed on the student’s FAFSA, you will need to complete a Parent PLUS Loan Attestation Form with your PLUS application.
• Not have an adverse credit history; AND
• Meet the general eligibility requirements for federal student aid.  If you are borrowing on behalf of your child, your child must also meet these requirements.
• Beginning July 1, 2026, the Annual Limit for a Direct Parent PLUS loan is $20,000 per student.
• Beginning July 1, 2026, the Lifetime Aggregate Limit for the Direct Parent PLUS loan is $65,000 per student.

Repayment for Federal Direct PLUS loans generally begins within 60 days of the loan’s disbursement. The interest rate is currently 9.07% (for PLUS loans disbursed 7/1/2026 through 6/30/2027).

In addition to the FAFSA, borrowers must complete a separate PLUS loan application each year. The maximum amount which can be borrowed each year is equal to the Cost of Attendance for the enrolled program of study, minus any other financial aid the student is receiving.

If the loan is denied due to an adverse credit history, the borrower will be notified by the Direct Loan Servicing Center.

Adverse credit history is defined by the Department of Education to be the following:

Applicant found to have adverse credit conditions such as bankruptcy, foreclosure, tax lien, or a default determination, etc.

OR

The applicant has one or more debts that are 90 or more days delinquent, in collection, or have been charged off during the two years preceding the date of the applicant’s credit report and the total combined outstanding balance of those debts is greater than $2,085.

If you have received an adverse credit decision, you may still be eligible to receive a Direct Plus loan. To become eligible, you may take one of the following actions:

1. Obtain an endorser and complete Plus Credit Counseling.

An endorser is someone who does not have an adverse credit history and agrees to repay the loan if you do not repay it.
If you are a parent borrower, the endorser may not be the student on whose behalf you are requesting the Direct Plus loan.

2. Document to the satisfaction of the U.S. Department of Education that:

• The information causing the adverse credit decision is incorrect, OR
• There are extenuating circumstances relating to the adverse credit history (NOTE: Endorsers are not eligible for this option), AND
• Complete Plus Credit Counseling. If the applicant completes the Plus Credit Counseling more than 30 days prior to the credit check, Plus Credit Counseling will need to be completed again.

For Parent PLUS loans, the student is not eligible to endorse the PLUS Loan. If the parent does not wish to pursue the PLUS Loan further, the student may be eligible to receive additional Federal Direct Unsubsidized Loans. Please contact the Office of Student Financial Planning for additional information.