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11 Financial Aid Eligibility and Availability Federal Pell Grants Federal Family Education Loans - Student Loans Federal Policy on Return of Title IV Student Aid |
| Financial Aid Eligibility and Availability Grants and Loans One of the most important investments of time and money that you can ever make is in obtaining a skill, a vocation or trade or career. Many persons fear they cannot afford the tuition, books and other necessary expenses of further education.Before you decide you can't afford it; think again, can you afford not to prepare yourself for increased competition and the higher pay normally afforded the well educated and well trained? Your education is an investment which will repay you over and over. Consider these facts and learn more about how you may receive assistance to finance your education. With a goal this important you'll want the facts on financial assistance. Please review the following to see how you may manage costs in your career training. And, please remember . . . You don't have to be disadvantaged to receive financial assistance. Whether a student is eligible for assistance, and how much, is determined by the need of the particular student. Each case is different. The school makes an evaluation of the individual, privately and impartially. The programs described have their guidelines set by the U.S. Department of Education. Read up on the programs, talk them over with your parents, family or friends and decide whether you may meet the eligibility requirements-then talk with the school representative about it. The Federal financial aid programs which the school makes available are the Federal Family Education Loan Program and the Federal Pell Grant. The philosophy of the school is to help every eligible student receive aid through the Federal Pell Grant. When the Grant does not cover all the expenses of the student-or a Grant has not been received- the family is then encouraged to cover the tuition through payments. However many students are unable to finance post-secondary education without at least some assistance. In these cases the school will apply its efforts within federal guidelines to obtain access for the student to the Federal Family Education Loan Programs. Federal Pell Grants The Federal Pell Grant program is funded through appropriations to the U.S. Department of Education from the U.S. Congress. New appropriations are made each year, and the amounts of student awards may change from year to year. Federal Pell Grant Program Guidelines Through the Grant program outright grants are made to eligible students. Grants of up to $4,050 are authorized during 2006-2007 and possibly higher in future years, subject to the availability of funds in the given year. The grant must be used at an approved school and the amount of the grant can be calculated by the school's financial aid advisor, after you have completed the Free Application for Federal Student Aid (FAFSA). Eligibility Eligibility is sought using the Free Federal Application. Once you have completed the form it may be mailed to the Federal processor or may be electronically sent by the school via computer transmission, or you may apply via the internet. See addresses on the FAFSA. Generally speaking, eligibility for the Pell Grant requires: (1) U.S. Citizenship or permanent residence, (2) attendance at an approved school, and (3) family income which represents low to middle income or less. Students from families with higher income should speak with the financial aid officer at the school since it may be possible to receive a grant due to consideration of family size, more than one in post-secondary school, emergency expenditures or other factors. You must also (4) be in an approved program of study lasting a minimum of 600 clock hours, 16 semester credit hours or 24 quarter credit hours . How Awards Are Determined First you will file the application, as instructed by the administrator at this school. These applications are available at the school, and may be filed at no cost to you. It is important to complete this form accurately and submit it as far as possible in advance of the date you plan to enter school. If you wish to file for a Federal Pell Grant, phone or write the financial aid officer of this school. The student is responsible for conveying the Student Aid Report (SAR) to the school unless it is sent to the school by computer, so that the amount of the award may be determined. The U.S. Department of Education provides the school a Payment Schedule which states the amount of the Federal Pell Grant Award based on the Expected Family Contribution and the school's Cost of Education Budget. How The Money Is Received Federal Pell Grants Awards ( funds ) are paid or credited to the student in not less than two disbursements. The student may receive the Award in two payments, one at the beginning of school, and the second after one-half of the academic year or required hours in the program have been completed. Disbursements are also made by school term and may be received through several payments. It is important to understand that PELL grant awards are received and credited to a studen's account before the student has actually earned those funds according to U.S. Dept. Of Ed. Title IV rules. These rules require that a student substantially complete a minimum number of hours before the award is earned. Therefore, if a student discontinues enrollment prior to completing the program for any reason, the School may be required to return some or all of the award to the U.S. Dept. of Education. The student would then become liable to the School for any outstanding balance. The Student's Responsibility The chief responsibility of the student is to maintain acceptable attendance, diligently work toward his or her educational goal, and remain in good standing at the school. The student must also sign a Statement of Educational Purpose and a Certification Statement on Refunds and Defaults, both of which appear on the Federal application (FAFSA). How About Repayment? No repayment is asked. |
Federal Family Education Loans Federal Family Education Loans are available to students attending this school. These loans include the federal Stafford Loans, interest subsidized and unsubsidized and Federal Parent Loans (FPLUS) for attendance in undergraduate programs. These loans are guaranteed by state and private nonprofit groups called guaranty agencies. Student Loan Program Guidelines Through these loan programs, loans are usually made available by a local bank, national bank, savings and loan or credit union. The lender approves the loan, withholds a small fee to cover a portion of the first year's interest, and makes the loan to the student to use for educational purposes. Fees may vary from state to state and average about 4%. No repayment of the loan is due while the student remains in school on at least a halftime basis and is making acceptable progress. When the student leaves school-either through graduation or withdrawal-there is a six month grace period before the individual must begin payment on the principal and remaining interest. Starting on the first day after the grace period expires, repayment must be made to the lender at a minimum rate of $50 per month. The interest rate is 4% to 6%, dependent on the financial market place and the Federal Treasury Bill rates. Interest rates may not exceed 8.25%. Eligibility and Alternatives To be eligible for a subsidized (your interest is paid by the U.S. Dept. of Education) Federal Stafford Loan of up to $2,625 per school year, the student's financial need must be evaluated. You must apply for a Federal Pell Grant and submit an institutional Student information Report (ISIR) for the school to evaluate your need. If your program is less than 30 weeks, one academic year, loan amounts may be reduced. The school advisor will tell you of these limits. You may be required to verify your family situation. Students who do not qualify for a Subsidized Federal Stafford Loan, or need funds beyond the $2,625, should speak to our financial aid officer about an Unsubsidized Stafford Loan or Federal Parent Loan (FPLUS). These loans may be at a higher interest rate and may require that you or your parents have a good credit rating. Some lenders may defer repayment on the Federal Unsubsidized loans until you leave school. Stafford Unsubsidized loans may be made in amounts up to $4,000 per school year, while FPLUS loans may be in larger amounts according to parental need and capability to repay. Special Circumstances Students in their second year of school may be eligible for a subsidized loan of up to $3,500 and unsubsidized loan of $4,000. Students attending programs of less than a full academic year may have loan amounts reduced to $1,750 for programs two-thirds of an academic year and $875 for programs one-third of an academic year. Second year loans may also be reduced in a similar manner. Please see the school's Financial Aid Advisor for additional information on these special circumstances. How To Apply For A Loan First be accepted by the school. The school or the lending institution is then permitted to supply you with a loan application The school financial aid officer can provide you with further necessary instruction. Once your application has been completed and the appropriate loan applied for, the school will verify your acceptance and you're on your way. As a part of the application you will be expected to sign a statement that your loan will be used only for educational purposes and also that you are not in default on any student loan or do not owe a repayment on any other Federal financial aid. This will be done as you complete a Free Application for Federal Student Assistance, and receive an SAR or electronic ISIR. If the student is unable to locate a lender, the school may be of assistance. The final application is then taken, or sent, to the lender for processing. Your application is sent by the lender to receive guaranty and final approval. How The Money Is Received Federal Loan applications include the promissory note and your loan will be disbursed and mailed to the school in your name. In an effort to prevent students from defaulting on their loans, the U.S. Congress has required that loans to first time borrowers may not be disbursed until students have been in school for at least thirty days. After that, you will receive the first one-half of the loan. Then at the halfway point in your program you will receive the second payment. Students in short programs usually receive one payment. It is important to understand that student loan funds are received and credited to a studen's account before the student has actually earned those funds according to U.S. Dept. Of Ed. Title IV rules. These rules require that a student substantially complete a minimum number of hours before the funds are earned. Therefore, if a student discontinues enrollment prior to completing the program for any reason, the School may be required to return some or all of the funds to the lender. The student would then become liable to the School for any outstanding balance. The Student's Responsibility Having received the loan, your chief responsibilities are to make the most of your education, be in good standing, then, repay the loan. Should your situation change in any way it is your responsibility to inform the lending institution. This means that if you marry, or move, or withdraw from school, or graduate, it is your responsibility to notify the lender. When you immediately notify the lender of your change in status, you will know what to expect and thus protect yourself from future problems. When you leave school you should make sure you understand the repayment arrangements. Make your payments on time. And if possible, try to make "advance payments" along with the required ones. Budget yourself to meet payment dates and to repay the loan as quickly as you can: by making larger payments, you will pay a smaller total interest. Efficient repayment of your loan can establish a solid basis for your future credit rating. Failure to repay the loan could be a "dark blot" on your credit rating that would pursue you lifelong. Always remember that a poor credit standing, in this day of computerized information, will follow you wherever you go. How Does Repayment Operate Repayment of the Federal Stafford Loan begins six months after you leave school, and both principal and interest are together repaid at a minimum rate of $50 per month. What would be some typical schedules for repayment of a loan plus simple interest at eight percent a year? Someone borrowing $1,000 might repay $51.19 a month for 21 mos., or $1,074.99. A borrower of $1,500 might repay $55.33 a month for 30 mos., or $1,659.90 total. A borrower of $2,000 might repay $51.59 for 45 mos., or $2,321.55 in all. Someone who takes a $2,500 loan and repays $50.69 per month over 60 mos., will repay $3,041.40 in all. The borrower of $3,000 who pays $52.60 for each of 72 mos., will repay a total of $3,787.20. In most circumstances interest paid on your student loan is tax deductible. Important Final Information Before you receive your loan, our financial aid officer will provide you an entrance interview and review loan details. As you leave school you will receive an exit interview to assist in your understanding of your rights and responsibilities. Receiving a student loan is a large responsibility and we want to be sure that you understand these rights and responsibilities. And most of all, that you understand that you must repay the loan. |
| Federal Policy on Return of Title IV Student Aid The law tells a school how to calculate the amount of Federal Student Aid (FSA) you earn if you withdraw from school. That means the financial aid office at Phillips Hairstyling Institute is required by federal statute to recalculate federal financial aid eligibility for you if you withdraw, drop out, or are dismissed prior to completing 60% of a payment period or other period of enrollment. (Although the law does allow for a leave of absence to be taken without requiring that your aid be recalculated, if you take a leave of absence that does not meet certain criteria you might also be subject to a reduction in your aid.) The Federal Student Aid Programs which are covered by this law are: Federal Pell Grants, Stafford Loans, PLUS Loans, Federal Supplemental Educational Opportunity Grants (FSEO's) Federal Perkins Loans and in some cases, certain state grant aid. If you leave the institution prior to completing 60% of a payment period or period of enrollment, the schoo's financial aid office recalculates your eligibility for Title IV funds. Recalculation is based on something called ?the percentage of earned aid that has been earned? using the Federal Return of Title IV funds formula. This formula basically calls for a proration of your aid based on the time you attended school. In this formula (for credit hour schools), the percentage of the payment period or period of enrollment completed is equal to the number of days completed (up to the withdrawal date) divided by the total days in the payment period or period of enrollment. (Any break of five days or more is not counted as part of the days in the term.) For clock hours schools, the clock hours completed (or scheduled to be completed if you have completed 70% or more of what you were scheduled to complete) is divided by the clock hours in the payment period or period of enrollment. This percentage of the payment period or period of enrollment completed is equal to the percentage of aid that has been earned. If you earned less aid than the aid that was disbursed to you, your institution would be required to return a portion of the funds to the Federal government. The portion of funds the institution would be required to return is equal to the lesser of 1) your institutional charges multiplied by the unearned percentage of your funds, or 2) the entire amount of the unearned funds. I's important to understand something here, though. Phillips Hairstyling Institute may end up charging you for any FSA program funds it was required to return, if the return of those funds causes you to owe the school money to cover charges that were formerly covered (paid for) by the Title IV Funds. In other words, if the school is required to return less than 100% of the unearned funds to the government (based on the above noted rule), YOU will be required to return the balance of those unearned funds. However to the extent that you have any outstanding Title IV loan balances, you may return any amounts you are required to return in accordance with the conditions of your promissory note. That is, you can make monthly payments on those loan balances in the same way you would have done, if you had not withdrawn early from school. If you earned more aid then was the aid that was disbursed, your institution may owe you a post-withdrawal disbursement. But if that post-withdrawal disbursement consists of a loan, you can decline those loan funds if you do not wish to incur additional debt. (And it may be in your best interest to do so.) There are some FSA funds that you might be scheduled to receive that you cannot earn because of eligibility requirements. For instance if you are a first-time, first year undergraduate student and you have not completed the first 30 days of your program (before you withdraw) you will not earn any of the FFEL or Direct Loan funds, you would have received if you had remained in school past your 30th day. Also keep in mind that the requirements for FSA program funds (when you withdraw) are separate from any refund policy which your school or the state may have. If you do't know what the school or stat's refund policy is ask for a copy at the financial aid office. The financial aid office can also answer any questions you have and provide you with requirements and procedures for officially withdrawing from school. If the school has to return some of the aid, it will return money first to your loan programs to pay down your student debt. |
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Phillips Hairstyling Institute 709 E. Genesee Street Syracuse, New York 13210 315.422.9656 |