Types of Aid
Students enrolled at the U.S. Merchant Marine Academy (USMMA) are eligible to apply for Federal Student Aid (FSA), also known as Title IV Financial Aid. While the Federal Government covers the cost of tuition, room and board, uniforms, and books, USMMA does not provide institutional aid. All students, regardless of income, are encouraged to apply for federal aid and outside scholarships to help cover their remaining Cost of Attendance. Please remember that filing an application and receiving an award letter does not obligate you to accept any loans.
Federal Pell Grants
A Federal Pell Grant is considered need-based "gift aid" that does not have to be repaid.
- Eligibility & Award Amounts: The amount of your award is based on the Student Aid Index (SAI) calculated on your Free Application for Federal Student Aid (FAFSA). For the 2024-2025 academic year, the maximum annual Federal Pell Grant award is $7,395.
- Tax Information: Pell Grants are not considered taxable income when filing your taxes.
Federal Direct Loans
Federal Direct Loans are funds that must be repaid. Like Pell Grants, these loans are not considered taxable income. There are several distinct advantages to utilizing a Federal Student Loan, including establishing a good credit history, competitive interest rates, and flexible repayment or deferment options.
Important Note for Minors: If you are under 18, you are still fully responsible for the repayment of your own student loans. Your parents are not required to cosign federal student loans, and the legal "defense of infancy" (which presumes minors cannot enter into contracts) does not apply to Federal Student Aid.
There are three types of Federal Direct Loans available:
Interest Rates and Fees (2026-2027)
For Subsidized and Unsubsidized Direct Loans with a first disbursement date between July 1, 2026, and June 30, 2027 the interest rate is fixed at 6.52%, compounded annually. Additionally, all Direct Loans are subject to a 1.057% origination fee, meaning the "net" amount deposited into your account may be slightly less than the gross amount borrowed.
Maximum Annual Award Amounts
Direct Loan award amounts are determined by your dependency status, year in school, Cost of Attendance, and financial need. In order to receive any Direct Loan disbursements, you must complete online Entrance Counseling and sign a binding Electronic Master Promissory Note (MPN).
| Year in School | Dependent Students | Independent Students |
| 1st Year | $5,500 (Max Subsidized: $3,500) | $9,500 (Max Subsidized: $3,500) |
| 2nd Year | $6,500 (Max Subsidized: $4,500) | $10,500 (Max Subsidized: $4,500) |
| 3rd and 4th Year | $7,500 (Max Subsidized: $5,500) | $12,500 (Max Subsidized: $5,500) |
Repayment and Loan Servicing
For both Subsidized and Unsubsidized Direct Loans, repayment and interest accrual (for subsidized loans) begins after a six-month grace period following your graduation, disenrollment, or separation from the institution.
When it is time to manage your loan, you will be contacted by a Loan Servicing Company. These companies are contracted by the Department of Education to act as the "bank" for your loan. The Department of Education selects these servicers at random; USMMA has no influence over which company is assigned to you. You will make your payments directly to this servicer and work with them if you ever need to apply for loan deferment, forbearance, or forgiveness.
Scholarships & Grants
Because USMMA does not offer institutional aid, Midshipmen are highly encouraged to apply for private scholarships and grants from outside sources. All outside awards are welcomed and can be used to help defray your Cost of Attendance.
Last updated: Thursday, November 5, 2026