1 | Page SICCEF08110302 Educational Funding Welcome Packet Dear Student, Congratulations on your decision to pursue your education at Herzing University Online! We hope you find our career- focused, convenient and caring approach to be exactly what you are looking for in an online educational institution. To help you get started, our Educational Funding and Student Accounts departments have teamed up to create this helpful guide that provides information on financing your education. Our Student Accounts department handles cash payments, employer reimbursement payments, military payments, and all other funding payments not associated with the Federal Title IV Financial Aid program. Student Accounts also handles withdrawal calculations and student loan exit counseling. Our Educational Funding department processes all students receiving aid from the Federal Title IV program. These are the funds commonly referred to as “Financial Aid” such as the Pell Grant, FSEOG, and Stafford Loans. Our Educational Funding department reviews your Free Application for Federal Student Aid (FAFSA) to determine your eligibility for federal funding. Certain FAFSAs are selected for a more extensive review process called verification, which our Educational Funding department will complete. If your application is selected for verification, you will be asked to provide additional documentation. Once the analysis has been completed, the Educational Funding department will notify you of your eligibility and award you according to your packaging preference. If you decide to make any changes to your schedule along the way, the Educational Funding department will also work with you to revise your financial aid award based on any fluctuations that may occur. Ultimately, the Educational Funding department works with students, both new and continuing, to ensure they receive the Title IV funding they are eligible for each semester until graduation, as well as budget counseling to help assist students in minimizing unnecessary loan debt as they pursue their education. If you have any questions regarding the information in this packet, please feel free to contact the appropriate department: Student Accounts Department Educational Funding Department Phone: 1-866-508-0748 Option #2 Phone: 1-866-508-0748 Option #2 Fax: 1-414-727-7090 Fax: 1-414-727-7090 Email: [email protected]Email: [email protected]We wish you the best of luck on your journey of pursing higher education through Herzing University Online. Thank you, Educational Funding Department Herzing University Online
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1 | P a g e SICCEF08110302
Educational Funding Welcome Packet
Dear Student,
Congratulations on your decision to pursue your education at Herzing University Online! We hope you find our career-
focused, convenient and caring approach to be exactly what you are looking for in an online educational institution. To
help you get started, our Educational Funding and Student Accounts departments have teamed up to create this helpful
guide that provides information on financing your education.
Our Student Accounts department handles cash payments, employer reimbursement payments, military payments, and
all other funding payments not associated with the Federal Title IV Financial Aid program. Student Accounts also
handles withdrawal calculations and student loan exit counseling.
Our Educational Funding department processes all students receiving aid from the Federal Title IV program. These are
the funds commonly referred to as “Financial Aid” such as the Pell Grant, FSEOG, and Stafford Loans. Our Educational
Funding department reviews your Free Application for Federal Student Aid (FAFSA) to determine your eligibility for
federal funding. Certain FAFSAs are selected for a more extensive review process called verification, which our
Educational Funding department will complete. If your application is selected for verification, you will be asked to
provide additional documentation. Once the analysis has been completed, the Educational Funding department will
notify you of your eligibility and award you according to your packaging preference. If you decide to make any changes
to your schedule along the way, the Educational Funding department will also work with you to revise your financial aid
award based on any fluctuations that may occur. Ultimately, the Educational Funding department works with students,
both new and continuing, to ensure they receive the Title IV funding they are eligible for each semester until graduation,
as well as budget counseling to help assist students in minimizing unnecessary loan debt as they pursue their education.
If you have any questions regarding the information in this packet, please feel free to contact the appropriate
department:
Student Accounts Department Educational Funding Department Phone: 1-866-508-0748 Option #2 Phone: 1-866-508-0748 Option #2 Fax: 1-414-727-7090 Fax: 1-414-727-7090 Email: [email protected] Email: [email protected] We wish you the best of luck on your journey of pursing higher education through Herzing University Online.
Third Party Funding ....................................................................................................................................... 8
Federal Financial Aid ................................................................................................................................... 11
Parent PLUS Loan for Dependent Students ................................................................................................ 13
Alternative Loans ........................................................................................................................................ 14
The Financial Aid process at Herzing University ......................................................................................... 16
After Graduation, Withdrawal or Dropping Below Half-Time .................................................................... 17
Federal Pell Grant The Pell Grant was established under the Higher Education Act of 1965. The Federal Pell Grant Program provides need-
based grants to low-income undergraduate students. Pell Grants are awarded only to undergraduate students who have
not earned a bachelor or a professional degree. Graduate level students are not eligible for the Federal Pell Grant.
Federal Pell Grant, unlike a loan, does not have to be repaid.
The maximum amount of a Pell Grant can change each award year and depends on program funding. The amount of Pell
Grant funds that you receive will depend not only on your financial need as determined by your expected family
contribution (EFC), but also on your cost of attendance (as determined by the school), your enrollment status as a full-
time or part-time student and your plans to attend school for a full academic year or less. Students may not receive
Federal Pell Grant funds from more than one school at the same time. Students who received their first Pell Grant on or
after July 1, 2008 are limited to 18 semesters, or their equivalent, of Pell Grant funding. Students can receive up to two
Pell Grant awards in one award year if they wish to accelerate their course work.
Financial need is determined by the U.S. Department of Education using a standard formula, established by Congress, to
evaluate the financial information reported on the Free Application for Federal Student Aid (FAFSA) and to determine
the family EFC. The fundamental elements in this standard formula are the student's income (and assets if the student is
independent), the parents' income and assets (if the student is dependent), the family's household size, and the number
of family members (excluding parents) attending postsecondary institutions. As an EFC increases, eligibility for the Pell
grant decreases. After completing a FAFSA, the student receives a Student Aid Report (SAR), which notifies the student
if he or she is eligible for a Federal Pell Grant and will provide the student with their EFC. The institution(s) that the
student has listed on the FAFSA will receive an Institutional Student Information Record (ISIR), which will share with
them the same information.
Federal SEOG Grant The Federal Supplemental Education Opportunity Grant (FSEOG) Program provides need-based grants to low-income
undergraduate students to promote access to postsecondary education. Priority is given to those students with
"exceptional need" (those with the lowest expected family contributions at the institution). Students must also be
eligible to receive Federal Pell Grant funds to be eligible for Federal Supplemental Education Opportunity Grant funds.
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William D. Ford Federal Direct Stafford Loans Direct Stafford Loans are loans for students and parents to help cover the cost of a student's higher education. The
lender is the U.S. Department of Education rather than a bank or other financial institution.
With Direct Loans, you:
Borrow directly from the federal government and have a single contact, the Direct Loan Servicing Center, for
everything related to the repayment of your loans, even if you receive Direct Loans at different schools.
Have online access to your Direct Loan account information 24 hours a day, 7 days a week at Direct Loans on
the Web at: www.dl.ed.gov.
Can choose from several repayment plans that are designed to meet the needs of almost any borrower, and
you can switch repayment plans if your needs change.
Federal Direct Subsidized Stafford Loan Program
The Subsidized loan program allows students (who demonstrate federal financial need and who are enrolled at least half
time each term) to borrow up to $3,500 for the first year of undergraduate study, $4,500 for the second year, and
$5,500 per year for subsequent undergraduate study. The interest rate is fixed. Interest does not accrue nor does
repayment begin on subsidized Direct Loans until termination of college enrollment or reduction of course load to a less
than half time status. Interest accrued while in school and during the grace period, is paid by the federal government.
The standard repayment period is up to ten years. Subsidized Direct Loans carry a 1.5% federal origination fee and an
up-front interest rebate equal to 1.0% of the loan amount. New borrowers must complete a Federal Direct Loan
electronic Master Promissory Note (MPN) and complete an online Entrance Counseling Session to borrow funds through
this program.
Federal Direct Unsubsidized Stafford Loan Program
The Unsubsidized loan program allows all students (regardless of federal financial need and who are enrolled at least
half time each term) to borrow up to $5,500 for the first year of undergraduate study, $6,500 for the second year, and
$7,500 per year for subsequent undergraduate study less the amount of any subsidized Direct Loan received by the
student. New borrowers must complete a Federal Direct Loan electronic Master Promissory Note (MPN) to borrow
funds through this program. The interest rate is fixed and the origination fee is the same as specified above under the
description of the subsidized Direct Stafford Loan Program, however, interest accrual begins immediately during in-
school and deferment periods. Interest accruing during these periods may be paid or capitalized.
Independent students may borrow up to an additional $4,000 per year through the unsubsidized Direct Loan Program.
Dependent students may borrow up to the same additional amount through this program if the student’s parent is
denied eligibility to borrow funds through the Federal PLUS Loan Program.
The Parent Loan for Undergraduate Students (PLUS) is a federal unsubsidized loan available to parents of dependent students through the Department of Education. PLUS loans can be used to cover educational related expenses up to the cost of attendance minus all other financial assistance that the student receives.
Eligibility Requirements
A student must be dependent as defined by the FAFSA and enrolled in at least six credits (half-time) per semester. In order to be eligible to take out a PLUS loan, the parent applying for the loan must not have an adverse credit history, as approval for this loan is credit based. The parent and student must be U.S. citizens or eligible noncitizens. Neither the parent nor student can be in default on any federal education loan or owe an overpayment on a federal education grant.
Fees & Limits
Interest rates for the PLUS loan are fixed. Interest begins accruing the same day as the first disbursement date. There is also a 4% origination fee charged on all loans with a 1.5% rebate (2.5% will be deducted from the gross loan amount to cover the origination fee).
Although there is no aggregate limit set for Direct PLUS Loans, a parent may not borrow more than the cost of the student’s education minus any other financial aid received, such as grants, scholarships, tuition assistance or loans. If you have questions regarding the amount that can be borrowed, please contact the Educational Funding Department.
Applying for PLUS
To apply for a PLUS loan, please contact the Educational Funding Department to obtain a Direct PLUS Pre-Approval Form. This form should be completed and signed by both the parent and student and then returned to the Educational Funding Department.
If the parent is approved for the loan through the pre-approval process, the parent must complete a Master Promissory Note (MPN) at https://studentloans.gov to have the loan included in the student’s educational funding package. Once a financial aid award letter is sent to the student, the letter must be signed by both the student and parent in order for our offices to disburse the PLUS funds.
If the parent’s application for a PLUS Loan is denied, the student may be eligible to receive additional Unsubsidized Loan funding as outlined in the Federal Direct Unsubsidized Stafford Loan Program previously discussed in the section above.