1998-99 and Borrower-Based 1999 WESTERN SEMINARY-SEATTLE LOAN by leader6

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									2009-2010 and Borrower-Based 2010 WESTERN SEMINARY-SYSTEMWIDE LOAN INSTRUCTIONS
Use these instructions for 2009-2010 loans beginning Fall 2009, Spring 2010 or Summer 2010
Financial Aid including many links is on our website: http://www.westernseminary.edu

What is a Federal Stafford Loan?
Federal Stafford Loans are interest loans obtained through a lender of the student’s choice. Repayment will begin six
months after the student is no longer enrolled on at least a half-time basis. The lender and/or guarantor may deduct up to
a 3% origination fee from the total loan amount at the time the loan is disbursed.

There are two types of Stafford loans: subsidized and unsubsidized. Both types must be paid back by the student.
1. Subsidized: a “subsidized” Stafford Loan is given to a student who has been assessed to have “need” (based on an
assessment of a family’s financial situation). The federal government pays the interest while the student is enrolled at
least half-time, during the six month “grace period” after leaving school, and during any authorized deferment periods.
 2. Unsubsidized: with an “unsubsidized” Stafford Loan, the student is solely responsible for the interest from the date of
disbursement. The interest can be deferred and capitalized (added on to the principal) while the student is in school in
most cases. An unsubsidized loan is not based on financial need.

How much can I borrow?
Depending on financial need, graduate students may obtain up to $8,500 per academic year for a subsidized loan.
Amounts beyond need will be unsubsidized. One cannot, however, borrow more than the cost of education at the
Seminary minus any other financial aid you receive. The cost of education includes tuition, fees, books and supplies,
room and board, and a reasonable amount for personal expenses and transportation. Western Seminary recommends that
students limit their borrowing to $13,333 in any 12-month period and total graduate/undergraduate borrowing to $40,000
at time of repayment. This applies to subsidized, unsubsidized Stafford loans, consolidated and Perkins loans. These
recommended loan limits are based on the expected income of a Western Seminary graduate. A Committee (composed of
the Financial Aid Director (chair), the Dean of Men, and the Business Manager) has been formed to act upon appeals for
borrowing beyond these recommended limits. It should be noted that the Seminary’s intention is not to exclude students
from seminary, but rather to take seriously the responsible handling of one’s finances as a matter of biblical mandate and
personal integrity, the possible limitations on a student’s availability for vocational ministry as a result of high debt, and
the impact of higher default rates on the seminary’s participation in federal financial aid programs. Western Seminary is
required by federal regulations and ATS to counsel students regarding their loan debt.

Who is eligible?
To be eligible, a student must be enrolled at least half-time (4 hours) and making satisfactory academic progress in a
degree program. You must maintain continuous half-time or greater enrollment throughout the loan period in order to
receive loan proceeds. Our policy requires a loan recipient to complete 18 hours and three terms before applying for a
subsequent loan. Stafford loan recipients must maintain a cumulative and major gpa as listed below. Only credits
applicable to the student’s degree program shall be counted. The following will not be considered as credits successfully
completed: Failing, Incomplete, Enrichment, Audit, Withdrawal. (Non-degree students are not eligible for loans.)
Degree           Semester        Major Cumulative           Degree          Semester        Major Cumulative
M.Div,Dip Div 2.0                2.0      2.0               Th.M., DMiss. 3.0               3.0     3.0
M.A.             2.5             3.0      2.5               30 Hr.Diploma 2.5               2.5     2.5

Students can register for only one video course at a time. Advise the Division of External Studies staff that you are a loan
student and be prepared to complete all video coursework within the 15-week academic semester. If you are on academic
probation, your loan will be impacted… please see Frequently Asked Questions for the policy.

When should I apply?
To ensure your loan funds arrive in time for the first week of classes, you should begin the process two to three months
prior to the beginning of the term. The entire Stafford loan application process usually takes 6-8 weeks. We recommend
you submit your FAFSA on the web as soon as possible once you have filed your 2008 tax returns. Paperwork is
considered complete when we have a correct Student Aid Report (SAR), a completed Seminary Loan Application,
evidence of on-line entrance counseling for first-time borrowers, and a serial Master Promissory Note has been filed with
the lender (as well as the verification process, if applicable).
When should ALL paperwork be completed in order to have the loan check on time? If you are borrowing for

Loans beginning Fall 2009: July 1, 2009
Loans beginning Spring 2010: November 2, 2009
Loans beginning Summer 2010: March 1, 2010

How do I apply?

1.      File a 2009-2010 Free Application for Federal Student Aid (FAFSA) at http://www.fafsa.ed.gov. The Title IV
School Code for Western Seminary is G07178 (that is a zero, not an O). (NOTE for Sacramento/San Jose students:
Please use this code number, not the one for the Sacramento or “Bay Area” campus on the FAFSA website) All
graduate-level students are INDEPENDENT; therefore, no parent information is necessary on your FAFSA. From two to
four weeks after you file the FAFSA, you will receive a Student Aid Report (SAR). Check it over carefully. Read the
comments. Read the loan history if you have had previous loans. See if corrections are necessary (the Seminary
financial aid office can electronically process corrections for you). If your SAR indicates you are chosen for
“verification” by the Department of Education, you will be requested to complete a verification worksheet and provide the
Seminary Financial Aid Office with a signed and dated photocopy of your 2008 federal income tax forms (form 1040) to
compare with the information on your SAR.

2.      Complete the Western Seminary Stafford Loan Application and mail it to the Financial Aid Office.

3.      First time borrowers must do on-line entrance counseling available at
http://www.bankofamerica.com/studentbanking/. (It does not matter whether you borrow from Bank of America or
not). We will be notified electronically that you have completed your counseling.

4.        First time borrowers must sign a Master Promissory Note (MPN). Western will electronically certify
(request) a loan from your preferred lender, which will prompt your lender to send you an MPN. Sign it quickly and send
it back to the lender. If you do not return it to the lender, your loan will not be issued. Generally Western students will
sign a MPN once. Then, additional Stafford loans can be obtained from the same lender without submitting another
MPN. When Western electronically certifies your loan, Western will send you an award letter indicating periods of loan,
amount of loan we have certified, the disbursement dates, etc.

Lender Information
You have the right and the ability to select the lender of your choice and are not required to use any lender listed in any
information provided by the seminary. We recommend you stay with your current student loan lender. All lenders charge
the same interest while you are in school; however, lenders offer different "repayment benefits" as enticements to use that
lender. You can find out information about repayment benefits by looking on the websites of the various lenders (look
under ‘Student loans’).

How will the funds be disbursed?
Checks will normally arrive at the campus cashier’s office on the first day of each term of the loan, except for summer
term. Because of the different beginning dates of summer courses, summer checks will be distributed when you start your
fourth hour. (If a loan is for one term only, there must be two disbursements, by regulation. One disbursement will be at
the beginning of the term and the second disbursement will be half-way through the term.) Factors that can hold up
disbursement of a loan check: Portland Records Office cannot verify registration at the time the loan check was being
processed for disbursement; student registered for less than half-time; student’s gpa has dropped below eligibility;
registration is rejected by the Portland business office due to an outstanding student account balance; student has not
completed entrance counseling.

Who should I contact if I have questions:
The Seminary Financial Aid Office is located in Portland, Oregon. Please call the Financial Aid Director if you have any
questions or if you wish to check on the status of your loan application. Western Seminary Financial Aid Office, 5511
S.E. Hawthorne Blvd., Portland, OR 97215, (503) 517-1818 or 1-877-517-1800 or schedule a visit with the Financial Aid
Director. Fax (503) 517-1801.                                             Pp 0910loaninstructions.doc 3/6/2009

								
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