FINANCIAL AID Accepted Student Day April 10, 2010
Dec 21, 2015
AGENDA Frequently Asked Questions
General Financial AidFederal Student EmploymentFederal Pell Grant/SEOGState GrantsStafford LoansPLUS (Parent Loan for Undergraduate
Students)Perkins LoanAlternative Loans
HOW DO I APPLY FOR FINANCIAL AID? Complete 2010-11 FAFSA Apply on-line at www.fafsa.ed.gov Student and parent both need a PIN to
sign FAFSA electronically (www.pin.ed.gov) If estimates are used parents must correct
once taxes are filed Corrections may change the aid award
WHAT IS A PIN NUMBER? Used to sign FAFSA electronically PIN Site: www.pin.ed.gov Results much faster Real-Time PIN Parents must also apply for a PIN Secured link is only valid for 14 days
WHAT IS A STUDENT AID REPORT? Summary of information reported on the
FAFSA Should be reviewed for any errors or
necessary corrections Will be sent via e-mail if a valid e-mail
address is provided on the FAFSA
WHAT IS AN EFC? Expected Family Contribution Methodology developed by Congress Formula = Parent contribution from income and
assets + Student contribution from available income and assets.
WHY DOES THE FINANCIAL AID OFFICE NEED TAX INFORMATION? 33% of all students who complete a
FAFSA are selected for Verification by the Federal Processor
Required to verify the tax information with the FAFSA information
If there are discrepancies the student will then be selected
WHAT IS MEANT BY COST OF ATTENDANCE? Tuition and fees Room and board Books and supplies, equipment,
transportation, and miscellaneous personal expenses
Loan fees Health Insurance HP Tablets
FEDERAL STUDENT EMPLOYMENT Employment may be on or off campus Eligible employers
School Federal, state, or local public agency Private nonprofit organization For-profit organization
FEDERAL STUDENT EMPLOYMENT Have to work to receive the money Students have the option to sign their
employment checks over to Chatham They should not subtract their award from
their balance, if they are not going to sign their checks over
On campus positions are also available for students who are not eligible for federal work study
FEDERAL PELL GRANT Students with EFC’s ranging from 0 to 5273 are
eligible (2010-11) Awards range from $976 to $5550 Awarded to eligible undergraduates pursuing
first bachelor’s or professional degree and Actual award amount based on Cost of
Attendance, Expected Family Contribution (EFC), and enrollment status
ACG – ACADEMIC COMPETITIVENESS GRANTS Awarded to students who have completed a
rigorous high school curriculum Must be Pell eligible FY student – eligible for $750 per year Need a 3.0 cumulative GPA for the grant to be
renewed for their second year Need final high school transcript to determine
requirements have been met
SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT (SEOG) Eligible students
Undergraduates pursuing first bachelor’s or professional degree
Awarded first to students with exceptional financial need (i.e., students with the lowest EFCs at that school)
Priority to Federal Pell Grant recipients Chatham’s maximum is $1500 per year (based on
approved funding)
STATE GRANTS Pennsylvania State Grant (PHEAA) – current
maximum award is $4120 Deadline is May 1, 2010 Eligibility criteria established by PHEAA In most cases – FAFSA is the only form that
students’ from other states need to complete, unless there is an exception by that state.
If student is from out of state and is told that we do not participate in their state grant program – we can complete the necessary paperwork to comply
FEDERAL DIRECT LOAN PROGRAM Subsidized Stafford: Must demonstrate “need” Unsubsidized Stafford: Need is not a
consideration Base annual loan limits (combined subsidized
and unsubsidized)$3,500 for 1st year undergraduates$4,500 for 2nd year undergraduates$5,500 for each remaining undergraduate year$8,500 for each year of graduate/professional
study
DIRECT LOAN PROGRAM Additional unsubsidized loan eligibility for
independent undergraduates, graduate students, and dependent students whose parents are unable to borrow under the PLUS Program:$4,000 per year for first and second years of
undergraduate study$5,000 per year for remaining years of
undergraduate studyAll undergraduate students who complete the
FAFSA are now eligible for $2000 in an Unsubsidized Stafford loan
CUMULATIVE DIRECT LOAN LIMITS. Undergraduate
Dependent—$23,000 between subsidized and unsubsidized Stafford loans
Independent—$57,500 (up to $23,000 may be in subsidized Stafford loans)
COSTS OF BORROWING DIRECT LOANS Fixed interest rate – 6.8% - Unsubsidized Loan Fixed interest rate – 4.5% - Subsidized Loan Loan fees based on principal amount of each loan:
After rebate are .5%
REPAYMENT OF DIRECT LOANS Six-month grace period
Maximum repayment period between 10 and 20 years depending on repayment plan chosen
Deferment and cancellation provisions available
HOW DO I APPLY FOR A DIRECT LOAN? Student completes a Master Promissory Note
(MPN) once when they first borrow Complete on-line at www.studentloans.gov
FEDERAL PLUS LOAN FOR UNDERGRADUATE STUDENTS Borrowers are parents of dependent
undergraduate students Must be credit-approved Annual loan limit: cost of attendance minus
other aid Fixed interest rate: 7.9% Loan fees based on principal amount of each
loan:2.5% in fees – after rebate
WHEN DOES THE PLUS GO INTO REPAYMENT? Repayment begins 60 days after loan is fully
disbursed
Deferment provisions available – parents must complete paperwork on an annual basis
PERKINS LOAN PROGRAM
Eligible studentsUndergraduate studentsPriority to students who show exceptional need
Loan amount varies Maximum annual loan
$5,500 undergraduate students – our maximum is $2200
PERKINS LOAN PROGRAM Interest rate: 5% Nine-month grace period Repayment period may be up to 10 years Deferment and cancellation provisions
available Perkins MPN – administered through Student
Accounts
WHAT IS AN ALTERNATIVE/PRIVATE LOAN? Loan used to cover educational expenses Student can borrow up to the cost of
attendance – minus other aid Dependent students must have a co-signer
because they do not have an established credit history
Loan is deferred until six months after graduation
Loan accrues interest while they are in school – interest rate changes quarterly
Student may make interest only payment while they are in school
CHATHAM PAYMENT PLAN 4 monthly payments each term No enrollment fees Late fees will be applied monthly if payment
missed
ELECTRONIC AWARDS Student will receive award letter with secured
e-mail link Award will be sent to e-mail address listed on
Admissions application Can make changes on the website and they
will be sent to our office automatically Students will be able to complete the entire
financial aid process on-line
PLUS/ALTERNATIVE LOAN Listed on all dependent student award letters Amount listed is up to cost (this is what the
student/parent can borrow) Student and parent must choose to borrow PLUS
or alternative loan PLUS is more of a cost-savings if parent does not
mind that the loan is in their name This is not an actual loan until it has been
approved
IMPORTANCE OF GOOD CREDIT Review credit report at least once per year www.annualcreditreport.com Free of charge – once every 12 months FICO score available for a nominal fee 80% of credit scores contain an error
IMPORTANCE OF GOOD CREDIT Payment History
Pay on time Amounts Owed
Installment better than revolving Length of Credit History
Keep oldest account open New Credit
Ok to check credit Types of Credit
Apply only for what you need
CHATHAM SCHOLARSHIPS Students are required to maintain a 2.0
cumulative grade point average in order for scholarships to be renewed
Scholarships are available for right terms of full-time study
Students are reviewed once they have been here for two terms of full time study
After two terms if they do not have a 2.0 cumulative GPA, then they will have one probationary term in which they will still receive the award
SATISFACTORY ACADEMIC PROGRESS Full-time students are required to complete at
least 12 new credits each term and maintain a 2.0 cumulative grade point average
If a student does not make progress they will be on financial aid probation
Students may be on financial aid probation for up to two terms and still receive financial
After two terms of probation if a student does not make up the deficiencies they will be on financial aid suspension
FINANCIAL AID CONTACT INFORMATION Hours: Monday through Friday: 8 to 5 E-mail: [email protected] Phone: 412-365-2781 Fax: 412-365-1643 Address:
Woodland Road; Braun Hall; Pittsburgh, PA 15232
LINK FOR FINANCIAL AID PRESENTATION
http://www.chatham.edu/admissions/aid/undergraduate/types.cfm