A Guide to the Basics of Financial Aid

							A Guide to the Basics of Financial Aid
You’ve worked hard to submit the best application essays, kept your
grades up, and studied endlessly for college entrance exams. But
once you get admitted to the school of your dreams, you still have to
figure out how to pay for it!




Navigating the paperwork and policies of Financial Aid can be daunting. Here
are some pointers to get you started.

    • Become familiar with the financial aid programs and policies for all
      schools to which you are applying. Every school has different requirements.

    • Apply EARLY for financial aid. Plan to have all your paperwork
      submitted by mid-February.

    • Complete a FAFSA form (Free Application for Federal Student Aid)
      EVERY YEAR you are attending school. Financial aid is not
      automatically renewed from year to year. If you are beginning classes
      during the summer term, be sure to fill out TWO applications for FAFSA -
      one for the upcoming school year, and one for the current school year. The
      Federal Financial Aid calendar runs from Fall through Summer.

    • Retain financial aid and scholarship information for tax records.
      Remember that all financial aid disbursements (excluding any loan
      programs) above the cost of tuition, books, and fees may be subject to
      federal income tax.

    • Monitor your status to ensure you remain eligible for your financial aid
      package. There are requirements in place for enrollment and academic
      performance.

    • Be sure to keep your local and permanent addresses current with your
      school’s financial aid office.

    • NEVER use your financial aid for expenses unrelated to college
      attendance.
After you submit your FAFSA, you will receive a Financial Aid
offer from your school.


Your Financial Aid offer is based on a combination of the original information
you submitted on your FAFSA and your degree-seeking status and residency
status filed at your school. Your offer is developed according to federal, state
and institutional regulations to help meet your financial need for the upcoming
academic period(s). Your need is based on the cost of attendance at your school
minus your estimated family contribution as calculated by the Department of
Education.



There is no minimum number of classes. However, your original Financial Aid
offer is based on full time enrollment. If you enroll for less than full-time, your
disbursement may be reduced. And if you withdraw from or drop courses, your
aid may be adjusted and you may have to repay. Refer to “Don’t Lose It” on page
5 for more information about this.



Approximately 30% of FAFSA filers are selected for verification by the federal
processor each year. This means that you will need to submit your and your
parents’ tax documents and additional paperwork to ensure that the information
on your FAFSA can be verified. Funds will not be disbursed until all required
documents have been submitted and your school has verified your information
as correct. Your aid may be decreased or cancelled if verification cannot be
completed.
Your Financial Aid package may contain one or more of the
following types of aid:

  Scholarships - Awards based on grades and/or financial need. These do not
    need to be repaid.
  Grants - Awards based on financial need. These do not need to be repaid.
    Federal Work-Study Program - Based on financial need. Student jobs,
    hours and salary vary from school to school. Ask your Financial Aid Office
    for more information.
  Federal Need-Based and Non Need-Based Loans - Long term, low-interest
    loans guaranteed by the federal government. These must be repaid after you
    graduate, withdraw, or drop below half-time status.
  Private Education Loans - These loans are not federally guaranteed and
    applications must be submitted individually. Terms, rates, and restrictions
    vary from one lender to another.



Subsidized Federal Stafford Loans
  • Available for undergraduate, graduate, and professional students with proven
   financial need enrolled in at least six credit hours. Interest is paid by
   the government while the student is enrolled at least half-time, through
   a 6-month grace period immediately preceding repayment, and during
   authorized deferment.
  • Annual limits are $3,500 for Freshmen, $4,500 for Sophomores, $5,500 for
   Juniors/Seniors, and $8,500 for Graduate students.

Unsubsidized Federal Stafford Loans
  • Available for students enrolled in at least six credit hours who don’t qualify
   for the Subsidized Federal Stafford Loan awards. Students are responsible
   for their interest payments while in school.
  • Annual limits for dependent students are the same as the Subsidized Stafford
   Loan, minus any amount received under that program. (Independent students
   are eligible for an additional $4,000 for Freshmen/Sophomores, $5,000 for
   Juniors/Seniors, and $12,000 for Graduate students. All students who fill out
   the FAFSA are eligible for a $2,000 unsubsidized loan.)

Federal Parent PLUS Loans
  • Available for parents of dependent undergraduate students enrolled in at
   least six credit hours.
  • Annual limits are restricted to the full cost of education, minus other
   expected financial aid. Parent PLUS Loans are contingent upon credit
   approval, and they may be used to fulfill the Expected Family Contribution
   within the student’s Financial Aid package.



If you choose to accept any Federal Loan, you must sign a Master Promissory
Note. Once you have signed the MPN, it will be valid for 10 years from the date
it is signed, so future Stafford loans can be processed year to year, as long as you
stay with the same lender and the same school. If there are no disbursements
within the first 12 months that you sign the MPN, it will no longer be valid, and
you will be required to submit a new MPN to borrow again.



Most schools also allow opportunities for Financial Aid to be used for Study
Abroad programs. Talk to your school’s Financial Aid office for details on what
they offer.

If you are taking Summer classes, or if you are attending Spring semester but did
not attend during the Fall, you may be required to fill out additional paperwork
to ensure you get the Financial Aid you need. Talk to your school’s Financial
Aid office for details on what they require.
Once you receive and accept your Financial Aid package, it is
important to understand the rules you must follow to keep your aid.
Everything from enrollment to your grades could cause you to lose
your aid, and in some cases you may have to pay it back.




Awards can only be made for hours you are taking at the school you indicate on
your FAFSA in standard grade mode. This means that audit and other non-
credit grade modes are ineligible for aid. In general, undergraduate course loads
are considered full time when the student is enrolled in 12+ credit hours. 9-11
credit hours is considered 3/4 time, and 6-8 hours is considered half time.



The following aid programs are reduced when the student is enrolled less than
full-time. Some of your school’s specific grant programs may be reduced as well.
Check with your Financial Aid Office for specifics.

  • Federal Pell Grant - Follows a federal formula for reduction.
  • Federal SEOG, Florida Student Assistance Grant - Prorated to pay 75% of
   posted award for 9-11 credit hours; 50% for 6-8 hours; 0% for under 6 hours.
  • Florida Bright Futures - Based on the student’s tuition costs after the Add/
   Drop period. Amount is reduced or increased based on actual tuition costs.



If you are receiving Federal Financial Aid and withdraw (either officially or
unofficially) from ALL your classes before completing more than 60% of the
semester, you must repay any unearned amounts that were disbursed. If you have
completed more than 60% of the term, you are considered to have earned all of
your assistance.

  • Your withdrawal date is either the date you began your school’s official
   withdrawal process, or it is the date you stopped attending class (the last
   documented date of attendance).
  • If your grades were all “F’s,” and your professors indicate you did not attend
   more than 60% of the term, then you must pay back a portion of your aid. If
   your professors indicate you never attended class during the term, you must
   repay all of your aid.

If you drop classes or withdraw from your school after some (or all) of your aid
has been disbursed, you may have to repay what has been given to you. Before
you drop any classes or begin the withdrawal process, be sure to check with your
schools Financial Aid Office to see if there will be any penalty.



Every school is required to establish and apply standards of satisfactory
academic progress (SAP) that all students must meet to qualify and remain
eligible for student financial aid programs. Your academic history will be
reviewed at different times of the year, depending on your school’s
policies. Criteria for SAP is typically based on a
combination of:

  • Completion Rate - You
   must complete at least
   67% of the total number of
   credit hours in which you enroll each semester.
  • Grade Point Average - Minimum performance standards
   in your classes are required.
  • Maximum Time Frame - You are given a certain time
   frame in which you are expected to complete your degree.
   This is usually calculated as 150% of the total credit
   hours your degree program requires for graduation.

If you fail to meet your school’s SAP, consequences include
academic warning, probation, and suspension of financial
aid. Talk to your school’s Financial Aid Office for specific
details, and more information about the appeals process for
these consequences.
Important FAFSA Websites:
To forecast FAFSA eligibility: www.fafsa4caster.ed.gov

To apply for a FAFSA Pin: www.pin.ed.gov

To complete the FAFSA: www.fafsa.ed.gov