Financial Aid Award Types

Students enrolled at the U.S. Merchant Marine Academy (USMMA) are eligible to apply for Federal Student Aid (FSA), which is also known as Title IV Financial Aid.  Students are also encouraged to apply for other grants and scholarships.

Federal Pell Grant

To be eligible for a Federal Pell Grant, a student must file a FAFSA and demonstrate financial need. A Pell Grant is considered gift aid and does not have to be repaid. The amount of the award is based on the Expected Family Contribution (EFC) calculated on the FAFSA (see Step #1 of the Apply for Aid tab for further details).  For 2024-2025, the Federal Pell Grant annual award up to $7,395.  Additional information on Federal Pell Grants is available at https://studentaid.gov/understand-aid/types/grants/pell.

Federal Direct Loans

The Federal Direct Loan is a loan, and the funds received must be repaid. As of the 2024-2025 Academic Year, the projected interest rate is fixed at 6.53%, compounded annually.  This rate is in effect for loans with a first disbursement date on or after 7/1/2024 and before 7/1/2025.

In addition, all Direct Loans are subject to an origination fee of 1.057%, which is immediately deducted from the loan upon disbursement. Therefore, the “net” amount disbursed may be less than the gross amount borrowed.  This rate is in effect for loans with a first disbursement date on or after 10/1/2023 and before 10/1/2024.

There are two types of Federal Direct Loans for Undergraduates:

• Subsidized Direct Loans are available to eligible undergraduate students with financial need. The U.S. Department of Education pays the interest while the student is enrolled at USMMA. Repayment and interest accrual begins six months following graduation or separation from the institution. If a Direct Subsidized Loan is paid in full within the six months following graduation or separation from the institution, no interest is charged.

• Unsubsidized Direct Loans are available to eligible undergraduate students, regardless of the Student Aid Index (SAI) and financial need. Interest accrual begins at disbursement, but payments are deferred for six months after graduation or separation from the institution.

Subsidized and Unsubsidized Direct Loan award amounts are determined by the student’s dependency status, year in college, cost of attendance, and in the case of Subsidized Direct Loans, financial need.  In order to receive Direct Loan disbursements, a student must complete Entrance Counseling and sign an electronic Master Promissory Note with the U.S. Department of Education. Additional information about Direct Loans is available at https://studentaid.gov/understand-aid/types/loans.

Direct PLUS Loans are also available to parents of eligible dependent undergraduate students, but are contingent on credit approval. The origination fee for a Direct PLUS Loan is currently 4.228% with an interest rate of 9.08%.  Additional information on Direct PLUS Loans for parents is available at https://studentaid.gov/understand-aid/types/loans/plus/parent.

Scholarships and Grants

USMMA does not provide institutional aid since the Federal Government covers the cost of tuition, room and board, uniforms, and books.  However, Midshipmen are encouraged to apply for private scholarships and grants from all other sources.  Please see the “Scholarships” page for further details.