colorado mountain college FINANCIAL AID GUIDE

					                   200 - 20









2010-2011
    colorado mountain college
         FINANCIAL AID GUIDE
        applying for financial aid & the need analysis process
                    	
                    4
                    1        Complete FAFSA on the Web
                             as soon after January 1 as possible. The priority date for applying for
                                                                                                                Need analysis determines your
                                                                                                                eligibility for financial aid. You must
                             financial assistance for the 2010 - 2011 academic year is march 31, 2010.          submit this form to be considered for
                             a Personal Identification Number (PIN) will be issued to you when                  most state-funded aid.
                             you complete the FaFSa and will serve as your signature. If you are a                 If you are an undergraduate,
                             dependent, your parent will also be assigned a PIN.                                federal law requires that your eligibility

                    	
                    4
                    2        Check with CMC
                             to determine whether there are any other forms you should complete.
                                                                                                                or ineligibility for a Pell Grant be
                                                                                                                determined before you can be considered
                                                                                                                for a loan.


caution: Some       	
                    4
                    1
                    3        Within 5 to 7 days
                             the Department of Education will send to you a Student aid report (Sar),
                                                                                                                ImPorTaNT: Complete all other
                                                                                                                financial aid application forms that your
information in
                             which includes your Expected Family Contribution. If you provide your              college may require.
this guide may               email address, you’ll receive an email with a link to your online Sar.
change as the
u.S. dept. of
education           4
                    	
                    4        Your financial aid office
                             will use the information received from the processing agent to construct
                                                                                                                              To prevent delays in processing
                                                                                                                          your application, promptly provide
continues to                 your Financial aid Package. This package will be explained in the award                       any information or verification of
issue new                    Letter you receive.                                                                          income and expense data that your
regulations in
200 - 20.
Stay in contact
                    	
                    4
                    5        You must respond to the Award Letter
                             immediately to notify CmC (through web advisor) that you accept all, part,
                                                                                                                             financial aid office may request.



with the office              or none of the Financial aid Package offered.
of Financial aid.
                    	
                    4
                    6        If scholarships and grants
                             are not sufficient to cover your expenses, a loan may fill your remaining
                                                                                                                Sometimes the application process
                                                                                                                does not reflect a family’s real situa-
                                                                                                                tion –– due to special circumstances
                             financial need. If you indicated on the FaFSa that you would accept a loan,        such as death, divorce or separa-
                             the Federal Loan amount for which you are eligible will be included as part        tion, disability, loss of employment,
                             of your Financial aid Package.                                                     natural disasters, etc. In such a case,
                                                                                                                CMC’s financial aid officer may use
                             In addition, you may use Federal Unsubsidized or PLUS Loans for                    his/her “professional judgment” so
                             part or all of your Expected Family Contribution.                                  that the student’s aid package will
                                                                                                                reflect the family’s real situation.


2

        What information is requested from you and your parents?
                          Sometimes students and parents are surprised                               from your tax return.)
                    or dismayed when they are asked to furnish personal                         4    your parents’ federal income tax return
                    financial information to obtain financial aid. Please                            (if you are a dependent student)
                    understand that most or all of the data is sought from                      4    your untaxed income records (Social Security,
                                                                                                     Temporary Assistance to Needy Families (TANF),
                    you to meet requirements of the federal government and                           welfare benefits, veterans’ benefits)
                    to insure that the financial aid programs are administered                  4    current bank statements
                    fairly to all students. The federal need analysis formula                   4    current information about any business or
                    utilizes information about your family’s income, assets,                         investment mortgages, and farm, business, stock,
                    benefits, and exemptions to determine how much                                   bond, and other investment records
                    (if any) discretionary income the family should                             4    your alien registration number or permanent
                    contribute to educational expenses.                                              resident card, if you are not a U.S. citizen

                    In order to fill out the FAFSA, you will need:                               Every year the U.S. Department of Education pulls
                         4    your Social Security Number                                  a certain percentage of applications for a verification
                         4    your driver’s license                                        process. If you are selected for verification, you will be
                         4    W-2 forms or other records of money earned                   required to furnish documentation for the information
                         4    your federal income tax return (If you haven’t yet           you entered on the FaFSa. Be sure to keep copies of all
                              filed your taxes, you may estimate amounts, but you must     forms, tax returns, etc, that you used as references when
                              correct any discrepancies once you have definitive numbers   filling out your application.
                               Paying for your college education                                                             Based on income, assets,
                                                                                                                             expenses, size of family, age
                                                                                FamilY contriBution                          of parents, number of
                              coSt oF attendance                                Financial aid PacKage                        working parents, number
                              Tuition & Fees                                                                                 of students in college,

                                                                            }
                                                                     Paid       Pell Grant
                              room & Board                                      State aid                                    extraordinary circumstances.
                              Books & Supplies                        for       SEoG
                              Transportation                          BY        academic Competitiveness Grant
                                                                                                                               a combination of these
                                                                                Work Study
                              Personal & misc.                                  Direct Stafford Loans                          will make up your financial
                                                                                National Science & mathematics                 aid package.
                             NoTE: Because the cost of                           access to retain Talent (SmarT) Grant
                                                                                Private Scholarships etc.
                             attendance varies for each school,
                             your financial need can differ,
                                                                                 Supplemented, if necessary, by Federal Unsubsidized
                             depending on the college you attend.
                                                                                 Loans or PLUS Loans.



    important terms
                      Need Analysis a FaFSa is completed by the student (and                      It may be possible to borrow an Unsubsidized Stafford or
                      parents). It is used to determine how much they are expected to         PLUS Loan to assist in meeting this contribution.
                      contribute towards the cost of education. This form is analyzed
                                                                                              Financial Aid Award Package an offer to the student
                      and the results are sent to you and the school you indicate.
                                                                                              from the school’s financial aid office. It contains various types of
                      This form must be completed in order to receive most types of
                                                                                              aid to pay for the cost of education.
                      financial aid.
                                                                                              Grant a type of financial aid that does not have to be repaid.
                      Student Aid Report The results of a need analysis which
                      are used in calculating the types and amounts of aid.                   Scholarship a type of financial assistance which does
                                                                                              not have to be repaid. Funds are provided by a variety of
                      Cost of Education also referred to as Cost of attendance.               civic organizations, professional groups, etc. and by colleges.
                      This is the total amount it will cost a student to go to school. It
                                                                                              Scholarships are based on academic excellence, personal skills,
                      usually is expressed as a total for a nine-month academic year.
                                                                                              family affiliations, athletic ability, etc.
                      Expected Family Contribution (EFC) The amount of                        Federal Student/Parent Loans Funds lent under these
                      money the parents and the student combined are expected to
                                                                                              programs are provided by banks and other lenders guaranteed
                      contribute toward the cost of education during a school year.
                                                                                              by the state agencies and reinsured by the federal government.
                      The federal government believes that the student and family are
                                                                                              There are three types: Federal Direct Stafford Loans
                     primarily responsible for financing the student’s education.
                                                                                              (subsidized), Federal Direct Stafford Loans (unsubsidized) and
                            The family contribution might be made in the form of              Federal Direct PLUS Loans (for parents).
                      clothing, money for miscellaneous expenses or weekend trips
                                                                                              Alternative Loan a private, credit-based loan designed to
                      home, or help with tuition payments and other costs.
                                                                                              assist with funding needs that Federal loans don’t cover.



    colorado mountain college costs
                            The student expense budget reflects a reasonable cost of                Tuition and Fees: average charges for basic
                      attendance at CmC for an academic year (nine months). If                instructional costs and mandatory fees. actual fees paid may
                      attendance is less than or greater than nine months, the budget
                      components will be prorated accordingly. actual expenses may            vary based on the number of credits and or types of classes
                      vary depending on your living arrangements, priorities and              carried each semester.
                      personal obligations.                                                         Living Expenses: an average amount for housing
                                                                                              and food charges, medical, laundry, toiletries, clothing, local
      average cost of attendance*
                                                                                              transportation, entertainment, etc. for students living on or off
      2009-0 academic Year (9 months)                                                        campus.
                                                Non-        Living w/
      Budget Category          resident      resident          Parent                                Books and Supplies: an average amount expended
      Tuition and Fees*          2,420         7,220            1,520                         for books and supplies.
      Living Expenses            8,700         8,700            5,200
      Books and Supplies         1,200         1,200            1,200                               Transportation a modest allowance for non-local
      Transportation              1200          1200             1200                         transportation, such as trips from campus to home.
      Insurance                    900           900              900
      Total Estimated Cost       14,420       19,220          10,020
                                                                                                  Personal Computer: if student can provide
                                                                                              documented cost it can be included in expense budget.
    * These costs are for the 2009-10 academic year. Cost for 2010-2011
      may increase. These costs are based on full-time enrollment.
       dependency Status
                                  The maximum amount you may borrow in Stafford Loans                                           4Will be working on a master’s or doctorate program
                            depends on whether you are an independent student or depen-                                         4Have dependents (other than children or a spouse) who
                            dent student, as well as your academic year in school.                                               live with you and you provide more than half of their
                                                                                                                                 support
                            You’re automatically considered                                                                     4are currently or have been in legal guardianship
                            indePendent if you…                                                                                 4are homeless or at risk of being homeless
                                   4Were born before January 1. 1987
                                   4are serving on active duty in the U.S.armed Forces                                        The range of personal situations is extensive. If you feel
                                   4Since turning 13, both parents are deceased                                         your dependency status is not accurately reflected by these
                                   4are a dependent or ward of the court since turning are 13                           definitions, discuss your personal situation with the financial
                                   4are married                                                                         aid office. If your dependency status changes at any time during
                                   4are a veteran of the U.S. armed Forces                                              the year, you must notify the financial aid office immediately.
                                   4Were in foster care since turning age 13                                            Independent students do not include their parents’ financial
                                   4are currently or have been an emancipated minor                                     information on the FaFSa.
                                   4Have children and provide more than half of
                                    their support


       estimating expected Family contribution
       and eligibility for student aid
                                  The Department of Education uses information from                                     kinds of aid, such as grants, loans, and work-study. When the
Scholarships                your FaFSa to perform a need analysis and determine your                                    time comes to fill out the FaFSa, you can use your answers on
offered through             Expected Family Contribution (EFC). Your school then                                        the FaFSa4caster to prefill many of the FaFSa questions.
                            subtracts the EFC from their Cost of attendance (Coa) to                                           You may also want to check out Finaid: The
cmc are linked
                            calculate the amount of need-based financial aid you are eligible                           SmartStudent Guide to Financial aid (www.finaid.org), which
from the online
                            to receive.                                                                                 provides an Expected Family Contribution Calculator
catalog:                          Each school to which you apply will assemble a financial                              (www.finaid.org/calculators/finaidestimate.phtml). The website
                            aid package and send you an award letter outlining the types                                offers a detailed analysis calculator, as well as a Quick EFC
                            and amounts of aid available to you. You may accept all, part,                              Calculator.
                            or none of a school’s financial aid package.                                                       other kinds of aid, such as scholarships and grants, may
                                  To get an early estimate of your EFC and aid eligibility                              be given by schools, organizations, companies, etc. Some grants
                            prior to the official need analysis process, take advantage                                 are based on need, while others are based on academic
                            of the Department of Education’s FaFSa4caster at                                            or athletic ability, career interests, religious affiliation,
                           www.federalstudentaid.ed.gov. Using information you                                         membership, location, employment, etc. Investigate these
                            provide about the type of school you plan to attend,                                        opportunities at your school, library, or on the internet at
                            FaFSa4caster can even estimate award amounts for specific                                   Finaid (www.finaid.org).


        Federal Financial Aid Eligibility Requirements
                                                                                                                                                                       UnSubsidized
                                                                                                                                                          Subsidized
                                                                                                                                                Perkins
                                                                                                                                  SMART
                                                                                                                FSEOG




                                                                                                                                                                                      PLUS
                                                                                                                                          FWS
                                                                                                                          ACG
                                                                                                        Pell




        Eligibility
        Demonstrate financial need                                                                        •       •        •        •      •       •           •
        High school diploma or GED certificate or pass a test                                             •       •        •        •      •       •           •             •          •
        approved by the U.S. Department of State
        Enrolled/accepted at an eligible school                                                           •       •        •        •      •       •           •             •          •
        Enrolled/accepted in an eligible degree or certificate program                                    •       •        •        •      •       •           •             •          •
        U.S. citizen or eligible non-citizen                                                              •       •        •        •      •       •           •             •        •a
        Valid Social Security number                                                                      •       •        •        •      •       •           •             •        •a
        Make satisfactory academic progress, as determined by the school                                  •       •        •        •      •       •           •             •          •
        Sign statement of educational purpose (on FAFSA)                                                  •       •        •        •      •       •           •             •          •
        Sign statement that you are not in default on a federal student loan                              •       •        •        •      •       •           •             •        •a
        and do not owe money back on a federal student grant (on FAFSA)
        Registered with the Selective Service, if required                                                •       •        •        •      •       •           •             •          •
        Not convicted of possessing/selling drugs while receiving federal financial aid                   •       •        •        •      •       •           •             •          •
        a) Both the parent borrower and the student on whose behalf he/she is borrowing must meet eligibility requirements.
    Federal direct Student loans
                Direct Loans (DL) are low-interest loans for students and      accepting a loan
          parents to help pay for the cost of a student’s education after             CmC will notify you of the loan amounts n an “e-award
          high school. The lender is the U.S. Department of Education          letter” that lists all of your proposed financial aid awards (your
          (the Department) rather than a bank or other financial institu-      award package). You will be directed to Webadvisor to accept
          tion.                                                                your awards.
          With direct loans, you                                                     You should evaluate the aid offer carefully. In the case of
                                                                               loans, keep in mind that whatever amount you borrow must be
               4Borrow directly from the federal government and have           paid back with interest. If your living expenses are not as high
                a single contact-the Direct Loan Servicing Center—for          as the standard allowance projected by your school, you may
                everything related to the repayment of your loans, even        not have to borrow as much as the amount in the award letter.
                if you receive Direct Loans at different schools.              You have the right to decline the loan or to request a lower loan
               4Have online access to your Direct Loan account                 amount.
                information 24 hours a day, 7 days a week at Direct            interest rates
                Loans on the Web at: www.dl.ed.gov.
                                                                                    4Direct Subsidized Loans for undergraduates with a first
               4Can choose from several repayment plans that are                     disbursement date between July 1, 2010, and June 30,
                designed to meet the needs of almost any borrower, and               2011: 4.5%
                you can switch repayment plans if your needs change.
                                                                                    4Direct Unsubsidized Loans for all students: 6.8%
          applying for direct loans                                                 4Direct PLUS Loans: 7.9%
          applying for aid
                 as with all federal student aid, you apply for Direct Loans   entrance counseling
          by filling out the Free application for Federal Student aid                 Except for parent Direct PLUS Loan borrowers, if you
          (FaFSa). most students use FaFSa on the Web to complete              haven’t previously received a Direct Loan, you must complete
          their applications. The information on your FaFSa is transmit-       entrance counseling before CmC can make the first disburse-
          ted to the schools that you list on the application, and those       ment of your loan. This helps you to understand your responsi-
          schools use the information to assess your financial need for        bilities regarding your loan. You may complete this counseling
          student aid.                                                         online.

          the award package                                                    the master Promissory note
                Direct Loans are generally awarded as part of a larger               To take out a Direct Loan for the first time, you must
          “award package,” which may contain other types of aid as well,       complete a master Promissory Note (mPN). The mPN will be
          to help you meet the costs of going to college.                      provided by the Department. CmC offers the option of com-
                                                                               pleting the mPN electronically, you can complete the mPN on-
                The Direct Loan Program offers the following
                                                                               line at the Direct Loans master Promissory Note website. The
          types of loans:
                                                                               mPN is a legal document in which you promise to repay your
              4Subsidized: for students with demonstrated financial           loan(s) and any accrued interest and fees to the Department. It
                need, as determined by federal regulations. No interest        also explains the terms and conditions of your loan(s).
                is charged while a student is in school at least half-time,         To complete an mPN online, you will be required to use
                during the grace period, and during deferment periods.         your Department of Education-issued PIN. If you do not have
               4Unsubsidized: not based on financial need; interest            a PIN, you may request one from the official PIN site. a parent
                is charged during all periods, even during the time a          borrower must also request a PIN number from the PIN site to
                student is in school and during grace and deferment            use when completing a PLUS mPN.
                periods.                                                             In most cases, once you’ve submitted the mPN and it’s
                                                                               been accepted, you won’t have to fill out a new mPN for future
               4PLUS: unsubsidized loans for the parents of dependent
                                                                               loans you receive. You can borrow additional Direct Loans on a
                students and for graduate/professional students.
                                                                               single mPN for up to 10 years.
                PLUS loans help pay for education expenses up to the cost
                of attendance minus all other financial assistance. Interest        You’ll receive a disclosure statement that gives you specific
                is charged during all periods.                                 information about any loan that CmC plans to disburse under
                                                                               your mPN, including the loan amount, fees, and the expected
               4Consolidation: Eligible federal student loans can be           disbursement dates and amounts.
                combined into one Direct Consolidation Loan.
                                                                                                                               Dependent                 Independent
                                                                                                                                Student1                   Student2
               Student borrowers are not required to begin making pay-
                                                                                                1st-year                   $5,500 (maximum            $9,500 ($3,500)
          ments until after they drop below half-time attendance.                               undergraduate              $3,500 subsidized)
                CmC will tell you how much you may borrow and the
                                                                                                2nd-year                   $6,500 ($4,500)            $10,500 ($4,500)
          types of loans you are eligible to receive.                                           undergraduate
                Note: PLUS loan borrowers cannot have an adverse                                3rd- and 4th-year          $7,500 ($5,500)            $12,500 ($5,500)
          credit history (a credit check will be done).                                         undergraduate
                                                                                                                1
                                                                                                                  Except those whose parents are unable to borrow a PLUS loan.
                                                                                These limits also apply to dependent students whose parents are unable to borrow a PLUS loan.
                                                                                2
    How the loans are disbursed (paid out)                               grace periods
          Generally, your loan will cover a full academic year and             When you graduate, drop below half-time, or withdraw
    your school will make at least two disbursements to you, for         from your academic program, you will receive a six-month
    example, at the beginning of each semester.                          grace period for your Direct Subsidized and Unsubsidized
          In most cases CmC will disburse your loan money by             Loans. Your grace period begins the day after you stop attend-
    crediting it to your school account to pay (tuition and fees,        ing school on at least a half-time basis. once your grace period
    room and board, and other authorized charges). If the loan           ends, you must begin repaying your loan(s).
    disbursement amount exceeds your school charges, CmC will                   If you re-enroll in school at least half time before the end
    pay you the remaining balance of the disbursement directly by        of your 6-month grace period, you will receive the full 6-month
    check or other means.                                                grace period when you stop attending school or drop below
           Using the loan for education expenses: You may use            half-time enrollment.
    the loan money you receive only to pay for your education                  There is no grace period for Direct PLUS Loans—the
    expenses. Education expenses include school charges such as tu-      repayment period for each Direct PLUS Loan you receive
    ition, room and board, fees and indirect expenses such as books,     begins 60 days after your school makes the last disbursement
    supplies, equipment, dependent child care expenses, transporta-      of the loan. If you’re a parent PLUS borrower, you can defer
    tion and rental or purchase of a personal computer.                  repayment of Direct PLUS Loans first disbursed on or after July
                                                                         1, 2008, while the student for whom you obtained the loan is
    Paying interest while in school
                                                                         enrolled at least half time, and for an additional 6 months after
          You may choose to pay interest on your Direct Unsub-
                                                                         the student graduates or drops below half-time enrollment.
    sidized or Direct PLUS loans while you are in school. If you
    choose not to pay the interest while you’re in school, we will             remember, if you choose to defer payment on a Direct
    add it to the unpaid principal amount of your loan.                  PLUS Loan, any interest that accumulates during the deferment
                                                                         period will be added to the unpaid principal amount of your
          This is called “capitalization,” and it can substantially
                                                                         loan. This is called “capitalization,” and it increases your debt
    increase the amount you repay, especially if you are receiv-
                                                                         because you’ll have to pay interest on this higher principal
    ing multiple loans for a multi-year program. Capitalization
                                                                         balance.
    increases the unpaid principal balance of your loan, and DL will
    then charge interest on the increased principal amount.                    Reservists Called to Active Duty: If you are called or
                                                                         ordered to active duty for more than 30 days from a reserve
          It will save you some money in the long run if you pay
                                                                         component of the U.S. armed Forces, the period of your
    the interest as it accrues on your loan while you’re in school or
                                                                         active duty service and the time necessary for you to re-enroll
    during the grace period. This is also true if you pay any interest
                                                                         in school after your active duty ends are not counted as part of
    that accrues during periods of deferment or forbearance after
                                                                         your grace period. However, the total period that is excluded
    you leave school.
                                                                         from your grace period may not exceed three years. If the call or
                                                                         order to active duty occurs while you are in school and requires
    When you graduate or leave                                           you to drop below half-time enrollment, the start of your grace
    school                                                               period will be delayed until after the end of the excluded pe-
                                                                         riod. If the call or order to active duty occurs during your grace
    leaving school: graduating, withdrawing, or
   dropping below half-time
                                                                         period, you will receive a full 6-month grace period at the end
                                                                         of the excluded period.
          once you are no longer enrolled at least half time in an
                                                                               If you are a reservist called to active duty with the U.S.
    eligible program, you’ll receive a 6-month grace period (see be-
                                                                         armed Forces for more than 30 days, contact the Direct Loan
    low) on your Direct Subsidized and Unsubsidized Loans during
                                                                         Servicing Center to let us know your status.
    which you are not required to make loan payments. You must
    begin repayment at the end of your grace period.                     choosing a repayment plan
           If you have an in-school deferment on a Direct Subsidized           You’ll have the choice of several plans, and the Direct
    or Unsubsidized Loan that entered repayment at an earlier date       Loan Servicing Center will notify you of the date your first
    before you returned to school and you graduate, drop below           payment is due. If you do not choose a repayment plan, we
    half-time enrollment, or withdraw from school, you will be           will place you on the Standard repayment Plan. most Direct
    required to immediately begin making payments on the loan            Loan borrowers choose to stay with the Standard repayment
    because the 6-month grace period has already been used up;           Plan, but there are other options for borrowers who may need
    there is no second grace period.                                     more time to repay or who need to make lower payments at the
                                                                         beginning of the repayment period.
          make sure that both your school and the Direct Loan Ser-
    vicing Center know that you are no longer enrolled. If you don’t     consolidation
    begin making payments when required, there is the possibility               If you have multiple federal education loans, you can
    that you will lose repayment incentives you may have received        consolidate them into a single Direct Consolidation Loan. This
    or even go into default.                                             may simplify repayment if you are currently making separate
          CmC will require an Exit Counseling before you graduate        loan payments to different loan holders, as you’ll only have one
    or withdraw. You can complete online, for example, at the            monthly payment to make. There may be tradeoffs, however, so
    Direct Loan Servicing Web Site.                                      you’ll want to learn about the advantages and possible disadvan-
                                                                         tages of consolidation before you consolidate
    Parents                                                                 ment on a federal education grant, and must meet other general
                                                                            eligibility requirements for the Federal Student aid programs. You
          Direct Loans are low-interest loans for students and par-
                                                                            can find more information about these requirements in Funding
    ents to help pay for the cost of a student’s education after high
                                                                            Education Beyond High School: The Guide to Federal Student aid
    school. The lender is the U.S. Department of Education (the
                                                                            available at: www.studentaid.ed.gov.
    Department) rather than a bank or other financial institution.
          With Direct Loans, you                                            applying for a PluS loan and the master
                                                                            Promissory note (mPn)
          4Borrow directly from the federal government and have                    To take out a Direct Loan for the first time, you must
           a single contact-the Direct Loan Servicing Center-for            complete a PLUS application and master promissory note (mPN).
           everything related to the repayment of your loans, even          The mPN is a legal document in which you promise to repay your
           if you receive Direct Loans at different schools;                loan(s) and any accrued interest and fees to the Department. It also
          4Have online access to your Direct Loan account                   explains the terms and conditions of your loan(s). CmC offers the
           information 24 hours a day, 7 days a week at Direct              option of completing the mPN electronically, you can do so online
           Loans on the Web at: www.dl.ed.gov.                              at the Direct Loans e-mPN website. If you are borrowing Direct
                                                                            PLUS Loans for more than one student, you’ll need to complete a
          4Can choose from several repayment plans that are                 separate mPN for each one. To complete an mPN online, you will
           designed to meet the needs of almost any borrower, and           be required to use your Department of Education-issued PIN (not
           you can switch repayment plans if your needs change.             your child’s). If you do not have a PIN, you may request one from
    types of direct loans                                                   the official PIN site.
         The following Direct Loans are made through the William                  In most cases, once you’ve submitted the mPN and it’s
    D. Ford Federal Direct Loan (Direct Loan) Program, which is             been accepted, you won’t have to fill out a new mPN for future
    administered by the U.S. Department of Education:                       loans you receive to pay for the educational expenses of the
                                                                            same student.
          Direct Subsidized Loans
          4are for students with demonstrated financial need,                    You’ll receive a disclosure statement that gives you specific
           as determined by federal regulations. No interest is             information about any loan that CmC plans to disburse under
           charged while a student is in school at least half-time,         your mPN, including the loan amount and loan fees, and the
           during the grace period and during deferment periods.            expected loan disbursement dates and amounts.
          Direct Unsubsidized Loans                                         credit check & endorser alternative
          4are not based on financial need; interest is charged                    When you apply for a Direct PLUS Loan, the Depart-
           during all periods, even during the time a student is in         ment will check your credit history. To be eligible for a PLUS
           school and during grace and deferment periods.                   Loan, you must not have an adverse credit history. If you are
          Direct PLUS Loans                                                 found to have an adverse credit history, you may still borrow
          4are unsubsidized loans for the parents of dependent              a PLUS Loan if you get an endorser who does not have an
           students and for graduate/professional students. PLUS            adverse credit history. an endorser is someone who agrees to
           loans help pay for education expenses up to the cost of          repay the Direct PLUS Loan if you do not repay the loan. The
           attendance minus all other financial assistance. Interest        endorser may not be the student on whose behalf a parent
          is charged during all periods.                                   obtains a Direct PLUS Loan. In some cases, you may also be
                                                                            able to obtain a Direct PLUS Loan if you document to our
          Direct Consolidation Loans                                        satisfaction that there are extenuating circumstances related to
          4Eligible federal student loans can be combined into one
                                                                            your adverse credit history.
           Direct Consolidation Loan.
                                                                            loan limits, interest rate, and loan charges
    Parent eligibility requirements for a                                         There are no set limits for Direct PLUS Loans, but you
    direct PluS loan                                                        may not borrow more than the cost of your child’s education
           You must be the student’s biological or adoptive parent          minus any other financial aid received, such as a Direct Subsi-
    or the student’s stepparent, if the biological or adoptive parent       dized or Unsubsidized Loan. CmC will determine the actual
    has remarried at the time of application. Your child must be a          amount you may borrow.
    dependent student who is enrolled at least half-time at CmC.
                                                                                  The interest rate for Direct PLUS Loans is a fixed rate
    For financial aid purposes, a student is considered “dependent”
                                                                            of 7.9%. Interest is charged on Direct PLUS Loans during all
    if he or she is under 24, unmarried, and has no legal depen-
                                                                            periods, beginning on the date of your loan’s first disbursement.
    dents at the time the Free application for Federal Student aid
                                                                            To find out more information on interest rates for Direct PLUS
    is submitted. (Exceptions are made for veterans, wards of court,
                                                                            Loans, contact the Direct Loan Servicing Center.
    and other special circumstances.) If a student is considered
    dependent, then the income and the assets of the parent have to                In addition to interest, you pay a loan origination fee that
    be reported on the FaFSa.                                               is a percentage of the principal amount of each Direct PLUS
                                                                            Loan that you receive. This fee helps reduce the cost of making
    additional requirements to receive a                                    these low-interest loans. We deduct the fee before you receive
    PluS loan                                                               any loan money, so the loan amount you actually receive will be
          Parent PLUS loan borrowers cannot have an adverse credit          less than the amount you have to repay.
    history (a credit check will be done). In addition, parents and their
                                                                                  Dependent students whose parents have applied for but
    dependent child must be U.S. citizens or eligible noncitizens, must
                                                                            were unable to get a PLUS Loan are eligible to receive ad-
    not be in default on any federal education loans or owe an overpay-
                                                                            ditional Direct Unsubsidized Loan funds.
                  How a loan is disbursed (paid out)                                         using the loan for education expenses:
                        Generally, your loan will cover a full academic year and                   You may use the loan money you receive only to pay for
                  your child’s school will make at least two disbursements to you,           your child’s education expenses at the school that is giving you
                  for example, at the beginning of each semester.                            the loan. Education expenses include school charges such as
                                                                                             tuition, room and board, fees, and indirect expenses such as
                                                                                             books, supplies, equipment, dependent child care expenses,
                                                                                             transportation, and rental or purchase of a personal computer.


       descriptions of Financial aid
                  Federal grants:
                  Federal Pell grant:                                                        Work-Study (Federal/colorado):
                      Pell Grants are awarded to help undergraduates (students                  This program provides jobs — usually in colleges/
                  who have not earned a Bachelors or Professional Degree) pay                universities — for undergraduate and graduate students
                  for their education after high school. For many students, these            who need financial aid. Some students will be working in a
                  grants provide a “foundation” of financial aid to which aid from           community service location.
                  other federal and non-federal sources may be added. Grants do                   Your pay will be at least the federal minimum wage, but it may also
                                                                                             relate to the type and difficulty of the work you do. The total amount
                  not have to be repaid.                                                     you earn in a year depends on how many hours per week you work.
                      Awards may range up to $5,550 per academic year.                       Most students perform work-study 10-20 hours per week, although some
                                                                                             do more or less. CMC sets the number of hours you can work based on
                  Federal Supplemental                                                       your financial need.
                  education opportunity grants (Seog):                                          are work-study jobs on- or off-campus? Both. However, a
                      This is a grant to help you pay for your education after high          work-study job must always be for a public or private
award amounts     school. It is for undergraduates only.                                     non-profit organization (limited).
                      You could get up to $4,000 per year, depending on your need, the
are subject to    availability of SEOG funds at your school and the amount of other aid      Federal direct Stafford loans:
change; stay in   you receive.                                                                   Is a low-interest loan made to you by the dependent
touch with the    academic competitiveness grant (acg):                                      student, to help you pay for your education after high school.
financial aid         aCGs are awarded to first- and second-year students who
                                                                                             The interest rate is fixed at 4.5% for Subsidized and 6.8% for
office.                                                                                      Unsubsidized loans disbursed on/after July 1, 2010.
                  are Pell-eligible and completed a rigorous program of study in
                                                                                                 There are two kinds of Stafford Loans. The Subsidized is
                  high school.
                     First-year students enrolled full time or part-time may receive up to   based on need and the government pays the interest while you
                  $750. Second-year students may receive up to $1,300 per year.              are in school. The Unsubsidized is not need-based, so it is
                  national Science and mathematics access                                    available to students regardless of financial need. While the
                                                                                             student is still in school, the interest is automatically
                  to retain talent (Smart) grant:
                                                                                             “capitalized” (i.e., added to the principal). However, the student
                      SmarT Grants may be awarded to Pell-Grant-eligible third
                 and fourth year undergraduates majoring in physical, life, or
                                                                                             may request to make interest payments while he or she is still
                                                                                             in school.
                  computer sciences, mathematics, technology, engineering or a                   The money for these loans comes from a lender. most
                  foreign language determined to be critical to national security.           students will begin repayment six months after leaving
                  recipients must maintain a 3.0 GPa in their major.                         college or when dropping below half-time status. Under some
                      The maximum yearly award is $4,000.
                                                                                             conditions, repayment may be deferred.
                  colorado grants:                                                               The Unsubsidized loan has two tiers of loan limits. The higher loan
                                                                                             limits are available to independent students and to dependent students
                      money made available from the Colorado General                         whose parents cannot obtain PLUS Loans.
                  assembly to help you pay for your education. State grants                  Federal Family direct PluS loans
                  include:
                                                                                                 Graduate/professional students or parents of dependent
                  leveraging educational assistance                                          undergraduates may be eligible for a PLUS Loan. applicants
                  Partnership (leaP)                                                         must have a good credit history. Graduate students must fill out
                                                                                             the FaFSa to determine their Stafford Loan eligibility before
                      Students enrolled full time may get from $200 to $2,500
                                                                                             applying for a PLUS Loan.
                  per academic year from LEaP.
                                                                                                 These loans are not based on financial need, and are,
                  college responsibility Program (crP)                                       therefore, made regardless of income level. PLUS Loans are
                      Students enrolled full time may get $850 per academic                  offered by banks, savings & loans, credit unions, etc.
                  year from CrP.                                                                 The interest rate is fixed at 8.5% for loans disbursed
                                                                                             on/after July 1, 2006. PLUS repayment starts 30-60 days after
                                                                                             disbursement.
                                                                                                Borrowers may use a PLUS Loan for the entire cost of attendance
                                                                                             minus any other financial aid.
                   alternative loan                                                        For Pell grants, Seog, State grants, Work-
                        alternative loans are available to students who are not eligible   Study, and Stafford loans
                   for federal loans, or who need assistance beyond their financial aid         When your need/eligibility has been determined, and a
                   eligibility. These loans are made privately through banks and other     financial aid package assembled, CmC will send you an award
                   financial institutions and are subject to their terms.                  letter listing the kind(s) and amount(s) of aid you will receive.
                                                                                           For PluS loans
                       Costs? Ideally you want the loan with the lowest interest               You can apply for a PLUS Loan by going to www.
                   rate, lowest fees, and best customer service. Loans with lower          studentloanonline.com to establish an account, complete the
                   fees often have higher interest rates, and loans with lower             promissory note and do an on-line credit check. In addition,
                   interest rates often have higher fees. You should do some               your lender of choice may also have applications. CmC will
                   calculations based on your specific situation to decide which           certify your loan once your credit check is complete.
                   one will serve you better.


        Federal direct Student loans
                   Federal Subsidized Stafford loans,                                      1098-T with information needed to claim the Hope Scholar-
                   dependent and independent students                                      ship and Lifetime Learning tax credits. You will need the IrS
                         4Interest rate is fixed at 5.6%                                   form 8863 to file with your income tax return.
                         4Up to $3,500 as a freshman                                              The Student Loan Interest Deduction allows up to $2,500
                         4Up to $4,500 as a sophomore                                      to be deducted from the income on which taxes are paid. Your
tax laws will            4Up to $5,500 for remaining undergraduate years                   lender should send form 1099-E with information needed to
change as                4Up to $8,500 for each year of graduate school                    claim the student loan interest deduction. IrS forms 1040 and
congress and                                                                               1040a include an option to claim this deduction.
the irS pass       Federal unsubsidized Stafford loans,                                           The Tuition and Fees Deduction allows taxpayers to
new regulations.   - dependent students                                                    deduct up to $4,000 of qualified expenses for the 2009 tax year.
                         4Interest rate is fixed at 6.8%                                          Taxpayers cannot claim this deduction and a Hope or
                         4Up to $5,500 as a freshman                                       Lifetime Learning credit for educational expenses paid in the
                         4Up to $6,500 as a sophomore                                      same year.
                         4Up to $7,500 for remaining undergraduate years                          Note that neither your college nor your lender may
                         All limits are minus amounts borrowed in the same year            provide all the information needed for you to claim these tax
                         with a Subsidized Stafford Loan.                                  benefits. You will need to keep careful records of your
                                                                                           educational expenses and how you paid for them. Your financial
                   Federal unsubsidized Stafford loans,                                    aid, student loan and academic documents also may be
                   - independent students                                                  important to help you claim the tax benefits.
                         4Interest rate is fixed at 6.8%                                          Caution: There are income restrictions on the above tax
                         4Up to $9,500 as a freshman                                       benefits. and there are other details that seriously affect them as
9                        4Up to 10,500 as a sophomore                                      well. Be sure to check with a tax professional on all the details
                         4Up to $12,500 for remaining undergraduate years                  before applying for these benefits on your tax return.
                         All limits are minus amounts borrowed in the same year                   other tax benefits are also available to students and
                         with a Subsidized Stafford Loan.                                  parents. They include a Coverdell (ESa), early withdrawals from
                                                                                           other Iras, Qualified State Tuition Programs, education savings
                   Federal Parent loans (PluS)                                             bonds and employer-provided assistance.
                         4Interest rate is fixed at 8.5%                                          There are rules and restrictions that affect these tax
                         4Parents or graduate/professional students may borrow             benefits, too. Be sure to check with your tax professional and
                          the cost of education minus any financial aid their              your school’s financial aid office for specific details on these
                          child receives                                                   benefits as they become available for your possible use.
                         4Good credit history required
                                                                                           important terms
                   Help from tax breaks                                                    Promissory Note: a legal document that obligates the
                                                                                           borrower to repay the loan.
                         Current federal tax laws provide help for students and
                   parents with their higher education expenses. The Hope Schol-           Notice of Loan Disclosure Statement: a document
                   arship Credit, for example, allows up to $1,650 to be subtracted        specifying the interest rate, when a check will be disbursed and
                   from federal income taxes for tuition and required fees. This           mailed, how much the net proceeds of the check will be, and
                   credit is available for the first two years of college for each         the amount of origination fee deducted from the gross amount
                   student in the family.                                                  of the loan.
                         The Lifetime Learning Credit is for up to $2,000 per year         Disbursement: Handing over the loan proceeds to the
                   for tuition and required fees for any undergraduate, graduate           borrower. In federal programs the money for PLUS Loans will
                   or professional study. This credit is available for each family         be sent to the school.
                   (not each student). Colorado mountain College will send form
                                                                                                         Note:
                                                                                                         You are obligated to repay your loan even if
                                                                                                         – you do not complete your
                   Origination Fee: a fee charged by the U.S. Department of                                educational program;
                   Education to offset the cost of the federal student loan program.
                                                                                                         – you are not satisfied with the education or
                   The fee is usually deducted from the loan proceeds.                                     other services you purchased from a school;
                   Default Fee: a fee, “default insurance,” charged for federally                        – you cannot find employment,
                   backed student loans. It usually is deducted from the loan                              (although you may apply to defer
                   proceeds and sent to the guarantor.                                                     payment for a specified time).


        common financial aid questions
                   Will my parents’ contribution be less if any                        if i have a guardian, is he or she supposed
 this              of my brothers or sisters are also continuing                       to file a financial aid application?
 information       their education beyond high school?                                       No, grandparents, foster parents and legal guardians are
 sheet was               Generally speaking, yes. Your parents’ contribution might     not considered parents on the FaFSa unless he/she legally
 prepared in       be lower if both parents are working, and about 50% lower if        adopted you.
 advance for the   they are helping more than one of their children through            is a stepparent expected to complete the
 200 - 20       college or career school at the same time.                          financial aid application even though they
 award year.       my parents are divorced (separated). Which                          feel no responsibility to support my
 information       parent should complete the financial aid                            education?
 is subject to     application?                                                             Federal programs and CmC expect a stepparent’s
 change without           The parent who should complete the application is the        information to be included on the financial aid application.
 notice.           one with whom you lived for the longest period during the last      What is satisfactory academic progress?
                   12 months. If you didn’t live with either parent, or lived with           all students receiving federal- and/or state-funded
                   each parent for an equal number of days, the application should     financial aid are required to meet certain standards that ensure
                   be filled out by the parent who provided the most support for       that they are making reasonable progress toward obtaining a
                   you during the last 12 months.                                      degree or certificate. In addition to grade point average,
                          “Support” means money for such things as housing, food,      students are expected to complete a minimum number of credit
                   clothes, transportation, medical and dental care, and school.       hours each semester. The number of hours to be completed will
                                                                                       vary according to the student’s enrollment classification.
                                                                                       Students also have a maximum time frame that must be
                                                                                       adhered to. a detailed Satisfactory academic Progress Policy is
                                                                                       made available at Financial aid Facts on our website.


        common mistakes you can avoid on your financial aid application
0                      Here are some of the most common mistakes students/
                   parents make — and that you can avoid.
                                                                                       4Students/parents often forget to report allSocial Security,
                                                                                        of untaxed income. They should include
                                                                                                                                    required sources

                                                                                            child support, welfare benefits, including TaNF and
                   4Forgetting to signfor aapplication. Be sure both student
                    and parent apply
                                       the
                                            PIN to sign. If you’re submitting
                                                                                            earned income credit.
                         at pin.ed.gov                                                 4DivorcedThey should list onlyincludeown income and that
                                                                                        income.
                                                                                                 parents sometimes
                                                                                                                       their
                                                                                                                             their ex-spouses’

                   4For income reporting,adjustedoften use their W-2 form.
                     They should take the
                                          parents
                                                  Gross Income from their
                                                                                            of their current spouse.
                         last 1040 federal tax return.                                 4Forgetting to fill out a separateyour college’s for a Stafford
                                                                                        Loan if required. Check with
                                                                                                                          application
                                                                                                                                         financial aid
                   4When reporting taxes paid, parentsshoulduse the taxes
                    withheld on their W-2 form. They
                                                       often
                                                             list the actual
                                                                                            office to verify how they process their student loans.
                         taxes paid as shown on their last 1040 federal tax return.    4Forgetting to round off numbers to the nearest dollar.
                                                                                       4Follow instructions.
        How to contact us                                                                    www.coloradomtn.edu
                   alpine campus                                  (90) 0-       central Service & Financial aid office
                   1330 Bob adams Drive                                                (90) 9-9 or -00-2-9
                   Steamboat Springs, Co 80477                                         831 Grand avenue (Po Box 1668)
                   roaring Fork campus – Spring Valley            (90) 9-200       Glenwood Springs, Co 81602
                   3000 County road 114
                   Glenwood Springs, Co 81601
                   timberline campus                              (9) -20
                   901 South Highway 24
                   Leadville, Co 80461

				
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