Types of Financial Aid


South Baylo University participates in most federal and state grant, scholarship and loan programs that are available to students. The majority of these programs are limited to students who demonstrate financial need, as determined through the financial aid process.

Financial Aid Programs
Students attending SBU may be eligible to receive financial assistance from the following programs. Students must qualify for aid according to the criteria established for each program

    Federal Pell Grant

    Undergraduate only (see note 1 and 2 below)

    Federal Supplemental Opportunity Grants (FSEOG)

    Undergraduate only (see note 1 and 2 below)

    Federal Subsidized Loans

    Undergraduate only (see note 1 and 2 below)

    Federal Unsubsidized Loans


    Federal Work Student (FWS)


    Federal Graduate Plus Loan

    Graduate only

    Veteran’s Educational Benefits



    1. An undergraduate student is a student who has completed up to 119 quarter units including transfer credit units at SBU and has not received a Bachelor's or any other type of professional degree. Effective April 3, 2017, an undergraduate student is a student who has completed up to the cumulative 180 quarter edit units including credits earned at SBU without a Bachelor’s degree or any type of professional degree.
    2. Recalculation will be made at each term based on the Expected Family Contribution (EFC) and the following enrollment status.

      -Full-time student: 12 or more quarter units (100%)
      -Half-time student: 8-11 quarter units (50%)
      -Less than 8 units: Not eligible

Pell Grants
The eligibility for a Federal Pell Grant is determined by the U.S. Department of Education. The Department documents the student’s eligibility by the Expected Family Contribution (EFC) number reported on the Student Aid Report (SAR). The Pell Grant is adjusted according to the student's enrollment status (full-time, half-time). Grants, such as the Pell Grant, do not have to be repaid.

 Federal Supplemental Educational Opportunity Grant (FSEOG)
The Federal Supplemental Educational Opportunity Grant (FSEOG) program is a grant award made by the school to students who demonstrate exceptional financial need. Pell Grant recipients with the lowest Expected Family Contributions (EFCs) will be considered first for a FSEOG. Funds are limited so students are encouraged to apply for FSEOG early and provide all necessary documents in a timely manner. SBU will allocate funds, basis on the availability of funds, over the course of the year.

Direct Subsidized and Unsubsidized Loans

Direct Loans are made through the Department of Education. Students who are enrolled at least half time and who demonstrate financial need through the financial aid application process can have the interest paid (subsidized) on their direct loans by the federal government while they are in school.

Students who are at least half time but who do not demonstrate a financial need for a Stafford loan may still obtain a loan, however, interest will be unsubsidized, and interest will start to accrue while the student is in school.

SBU adheres to "Borrower-Based Academic Year" regulations in administering student loans.
The following outlines the rules and procedures on Direct Loan processing:

  • Students must file and/or update a FAFSA application for the applicable award year.
  • Students must complete the Master Promissory Note (MPN) and Entrance Counseling electronically through the www.studentloans.gov website.
  • The Financial Aid Officer determines the cost of attendance, expected family contribution, enrollment status, and satisfactory academic progress standards on whether or not the student is eligible for a Direct Stafford Loan and what amount they can borrow.
  • The Financial Aid Officer enters the loan information on EDEXPRESS.
  • Processing of the disbursement of loan funds will be initiated by the Financial Aid Officer upon completion and submission of the Financial Aid Attendance Verification form of the student to the Financial Aid Office. Once attendance is verified, the funds are applied to the eligible student account and a notice is sent to student informing of the loan disbursement.
  • Refund checks (if any), representing credit balance funds that are available after paying any student account charges for the current term, will be made for disbursement to the student not more than three (3) days from the time the amount was funded in the school’s FA account.
  • Students who are not making satisfactory progress or have withdrawn from classes prior to the loan disbursement date will have their loan cancelled.
  • Within 30 days of graduating, withdrawing, or failing to return to a subsequent quarter term, a student is notified via phone call and email that he/she must complete exit counseling online at www.studentloans.gov.   

Federal Work Study

FWS is a need based federal funded work award which allows recipients to work on-campus during the academic year and earn up to the amount of their award. Pay rates vary depending on the skill level required for the position. Student must be enrolled at least half time at the school to be eligible for Work-Study funds. It is the student's responsibility to locate a position on and off campus. Off-campus jobs may be available with non-profit organizations. On average, students work 14 hours per week but are not allowed to work more than 20 hours per week. Students may be allowed to work more than 20 hours per week when between terms or when school is not in session if funding is available. Work-study (FWS) students are not eligible for paid vacation, sick leave, holidays, or medical and dental insurance through their Work-Study job.

 Federal Graduate PLUS Loans
The Federal Graduate PLUS loan can be used to help bridge the gap between the financial aid package and the remaining cost of education for graduate and professional degree students. As part of the eligibility process students must complete the FAFSA application and must also apply for their annual loan eligibility under the Federal Stafford Loan program before applying for the Graduate PLUS loan. Requirements of the loan do require a credit check at the time of application and a determination that the applicant does not have an adverse credit history. Applicants with an adverse credit history may be eligible to receive an approval with a creditworthy endorser.
Interest begins to accrue from the date of disbursement and repayment begins within 60 days of the final disbursement of the loan. However, borrowers may receive forbearance on payments while enrolled at least half-time at the school. This loan has a standard repayment term of 10 years and does qualify for the Federal Consolidation Loan program.

Veterans Educational Benefits

Veteran benefits are administered through the U.S. Department of Veteran Affairs (VA).