Financial Aid Overview
TYPES OF FINANCIAL AID | LOAN REPAYMENT | GRANTS | NET PRICE CALCULATOR |
APPLICATION INFORMATION | FREQUENTLY ASKED QUESTIONS
Student Eligibility
To receive student financial aid, there are various eligibility requirements that must be met. These requirements are as follows:
- have financial need
- have a High School Diploma, General Education Development (GED) Certificate, or equivalent
- be enrolled or accepted for enrollment as a regular student
- be a U.S. citizen or eligible non-citizen
- have a valid Social Security Number
- maintain satisfactory academic progress
- sign the statements of educational purpose and non-default on the Free Application for Federal Student Aid (FAFSA)
- register with the Selective Service, if required
- not be in default on a federal student loan or owe an overpayment on a federal student grant
Financial Need
Most student financial aid funds are awarded based on a financial need. The exceptions to this include unsubsidized Stafford and all PLUS Loans.
Dependency Status
Students are classified as dependent or independent because federal student aid programs are based on the idea that students, and their families, if applicable, have the primary responsibility for paying for their post-secondary education.
For the 2008-2009 aid year, a student is considered an independent student if at least one of the following applies:
- was born before January 1, 1985.
- is married as of the date completing the FAFSA.
- is enrolled in a graduate or professional educational program (beyond a bachelor's degree) .
- has legal dependents other than a spouse.
- is an orphan or ward of the court (or was a ward of the court until age 18).
- is a veteran of the U.S. Armed Forces ("veteran" includes students who are a National Guard or Reserve enlistee who was called to active duty for purposes other than training, or were a cadet or midshipman at one of the service academies, and were released under a condition other than dishonorable.)
- is currently serving on active duty in the U.S. Armed Forces for purposes other than training.
LOANS
A loan is a form of financial assistance that must be repaid, with interest. There are two main categories of educational loans: need based and non-need based.
- Need based loans are insured and subsidized by the federal government. These loans are awarded to families to assist when no cash is available.
- Non-need based loans are insured but not subsidized by the federal government. These loans are awarded to families regardless of income or assets.
Federal Stafford Loans
Under the William D. Ford Federal Direct Loan (Direct Loan) program, students borrow from the federal government at participating schools. The student must repay the loan to the government. Under the Federal Family Education Loan (FFEL) program, students borrow money from a private lender (i.e. a bank, a credit union). The student must repay the loan to the lender. There are two types of Federal Stafford loans available to students: subsidized and unsubsidized.
Parent Loans for Undergraduate Students (PLUS) Loans
Undergraduate dependent students are eligible to borrow up to a base loan amount. PLUS Loans enable parents with good credit histories to borrow funds for the remaining education expenses of their children. Parents must meet citizenship requirements and must not be in default on prior loans. The borrower must repay the loan to the lender.
Federal Perkins Loans
A Federal Perkins Loan is a low-interest loan for both undergraduate and graduate students with financial need. The school is the lender and the student must repay this loan to the school.
Consolidated Loans
A Federal Consolidation Loan is not an actual loan type, but a method for student and parent borrowers to simplify loan repayment by allowing the borrower to consolidate several types of federal student loans with various repayment schedules into one loan (with only one payment per month).
Federal Subsidized and Unsubsidized Stafford Loans
There are two main categories of educational loans: subsidized loans (need based) and unsubsidized loans (non-need based).
Subsidized
Need based loans are issued by either the federal government or a private lender , but are insured and subsidized by the federal government. They are awarded to families to assist when no cash is available.
Unsubsidized
Non-need based loans are also by either the federal government or a private lender and are federally insured, however they are not subsidized by the federal government. Regardless of family income or assets, this lower cost student loan is available. The other significant difference of the unsubsidized loan compared to the subsidized loan is that although the principal payments on the loan are deferred while the student is in school, the interest begins to accrue once the unsubsidized loan is originated. Students have the option of paying the interest while they are in school or waiting until the principal repayment plan begins.
PLUS Loans
PLUS Loans are loans taken out by the parent(s) of the student. Parents can borrow up to the total cost of attendance (minus any other financial aid received) at a low interest rate. Although the loans are insured by the federal government, parents are responsible for the accrued interest on the loan as soon as the loan is originated. Repayment of a PLUS Loan begins 60 days after the loan is received and may extend for 10 years. A PLUS Loan is considered to be an unsubsidized Stafford Loan for parents.
Federal Perkins Loan
Federal Perkins Loan funds come from the federal government and are administered by the institPCTIon. These loans can be deferred while the student is in school, and the federal government will pay the interest. In fact, the federal government continues to subsidize the loan, paying the accrued interest to the lender, until nine months after the student either graduates, leaves school, or drops below half-time status.
Consolidation Loans
A Federal Consolidation Loan is not an actual loan type, but it enables a student to bundle all of the federal loans received into a single loan. When the consolidation loan is issued, the lender will pay off all outstanding balances of all loans placed into consolidation.
Federal educational loans have four main repayment plans, consisting of the Standard Repayment and three alternatives. The monthly payments of the alternative plans are lower than those of the Standard Repayment plan, but the term of the loan is extended and the amount of interest to be repaid over the life of the loan is increased. The repayment plans are as follows:
Standard Repayment
Under this plan a fixed monthly amount will be paid for a loan term of up to ten years. There is a $50 minimum payment requirement.
Extended Repayment
Under this plan the loan term may be extended up to 30 years, depending upon the amount borrowed.
Graduated Repayment
Unlike the standard and extended repayment plans, this plan begins with lower payments, which gradually increase every two years. As with the extended repayment plan, the loan term may be extended up to 30 years.
Income Contingent Repayment
Under this plan, repayment is based on the borrower's income and the total amount of debt. Monthly payments are adjusted each year as the borrower's income changes. The loan term is up to 25 years, at which point any remaining balance on the loan will be discharged. This repayment plan option is not available to parents.
Subsidized Stafford Loans
Payment of a subsidized Stafford loan may be deferred as long as the student is enrolled in an eligible institPCTIon at least half-time. Repayment will begin six months after the student graduates, withdraws, or drops below half-time status.
Unsubsidized Stafford Loans
Payment on the principal balance of the loan may be deferred while the student is in school. Students may choose to pay or defer the interest payments while they are in school until repayment of the principal balance begins.
PLUS Loans
Repayment of a PLUS loan generally begins on the date of the last disbursement of the loan and may be extended up to 10 years, however parents do have the option of delaying repayment until six months after their dependent student is no longer enrolled at least half-time.
Grad PLUS Loans
There is no grace period for a Grad PLUS loan. Repayment begins on the date of the last disbursement of the loan, however, while enrolled in school on at least a half-time basis you are eligible for an in-school deferment that allows you to postpone payments on your Grad PLUS Loan until you graduate or drop below half-time status. The standard repayment period is up to ten years.
Additional Deferments
Under certain circumstances, students may apply for a deferment or a forbearance. During deferment students are allowed to temporarily postpone payments on their loan, with no accrual of interest. If students are ineligible for a deferment, a forbearance may be received. During a forbearance, payments on a student loan are either postponed or reduced, but interest continues to accrue. For additional information relating to student loan deferments or forbearances, refer to the Department of Education Student Guide website or contact the loan lender/guarantor.
A grant is a monetary stipend awarded to students who can prove need or skill. Grants do not have to be repaid. They are awarded by the federal government, state governments, schools, and other institPCTIons. Students will be automatically considered for any Federal grants that pertain to their student financial aid package when they submit their Free Application for Student Financial Aid (FAFSA) form.
Federal Pell Grants
A Pell Grant is generally awarded only to undergraduate students who have not earned a bachelor's or professional degree and have financial need. Pell Grants provide a foundation of financial aid for many students to which other aid may be added. To determine eligibility for Federal Pell Grants, the U.S. Department of Education uses a standard formula to evaluate the information supplied by the student. This formula produces an Expected Family ContribPCTIon (EFC) amount. The Federal Pell Grant amount received depends on a student's EFC, cost of attendance, status as either full-time or part-time, and whether the student has attended school for a full academic year. Pell Grants are limited each award year depending upon program funding and a maximum per student amount.
Federal Supplemental Educational Opportunity Grants (FSEOG)
An FSEOG is awarded only to undergraduate students who have exceptional financial need (as determined by the institPCTIon). Priority is given to students who have received a Federal Pell Grant. Other determining factors include level of need, the amount of FSEOG funding available to the InstitPCTIon, and the policies of the financial aid department. FSEOG are subject to a maximum yearly amount.
Teacher Education Assistance for College and Higher Education (TEACH) Grant
This program is effective beginning with the 2008-2009 Award Year and provides up to $4,000 a year in grant assistance to undergraduate, post-baccalaureate, and graduate students who agree to serve for at least four years as full-time “highly qualified” teachers in high-need fields in public or not-for-profit private elementary or secondary schools that serve students from low-income families. A TEACH Grant recipient who does not complete the required teaching service within eight years of completing his or her academic program, subject to certain exceptions, or fails to meet certain other requirements of the TEACH Grant Program, must repay the TEACH Grant as a Direct Unsubsidized Loan under the William D. Ford Federal Direct Loan Program with interest, accrued from the date the TEACH Grant was disbursed.Scholarships
State Grants
Scholarships are available in a wide variety of forms. They may be based on need, ability, grades, profession, heritage, etc. Every scholarship has unique conditions as to who may apply and/or the eligibility criteria. Additional scholarship information may be found by visiting one of the websites listed below.
www.fastweb.com
www.collegenet.com
www.collegegold.com
www.collegeboard.com
Scholarship Programs Search
Typically, state grants do not have to be repaid. If you have questions regarding your eligibility for state grants, please contact the department of education office within your state of residence.
Alternative Loans
Alternative Loans (or private loans) are offered by private lenders and do not involve any federal forms. These loans are frequently PCTIlized when federal loans do not provide the necessary level of funding, or if more flexible payment options are desired. For more information on private loans, please contact your lender or the financial aid office.
The U.S. Department of Education's guide to Federal Student Aid can provide a comprehensive overview of overall program eligibility. That said, please keep in mind that your institPCTIon may not be eligible to participate in all programs mentioned in the Guide. It can be found by clicking on the following link:
Financial Aid Resource Publications from the U.S. Department of Education.
Free Application for Federal Student Aid (FAFSA)
The FAFSA is a federal form a student must complete to qualify for most student financial aid. A FAFSA must be submitted if a student wants to apply for state and federal financial aid. A new FAFSA must be submitted every award year.
Verification
A verification process is used to ensure the accuracy of the information provided by students and parents on the FAFSA. The educational institPCTIon may contact the student to submit additional supporting documentation (e.g. Federal Tax Forms, Verification Worksheet).
Q. How do I start the financial aid process?
A. The first step to receiving financial aid is to complete the Free Application for Federal Student Aid (FAFSA).
Q. Our family probably makes too much money to be eligible for financial aid. Should I fill out a FAFSA anyway?
A. ABSOLUTELY! It is a common misperception that a family with moderate to high income will not be eligible for aid. There are many factors involved in determining your eligibility and many people mistakenly give up aid for which they are eligible because they fail to file a FAFSA. Additionally, you are eligible for at least PLUS (Parent Loan for Undergraduate Students) and Unsubsidized Stafford Loans regardless of your calculated need.
Q. When should I file my FAFSA?
A. Ideally you should file your FAFSA form right after filing your Federal Taxes. You can file a FAFSA prior to completing your tax return, but your estimates should be as accurate as possible as you will be required to update your FAFSA upon filing your return. In some cases there may be state aid available to residents attending school within their state (such as the California Grant Program). You must file your FAFSA prior to the date specified by the state to be considered for state aid. The earlier you are able to file your FAFSA, the sooner your financial aid will be finalized.
Q. What is a Federal School Code and what is its purpose?
A. A Federal School Code is a number designated to a specific school of higher education. When entered onto your FAFSA, it instructs the US Department of Education to send the results of your processed FAFSA to the school(s) you plan on attending. Please select the following school code 'when completing your FAFSA application:
| CAMPUS | School Code |
| PCTI | 040823 |
Q. What is PIN and how can I get one?
A. PIN is an acronym that stands for Personal Identification Number. This unique number will be assigned to you by the Department of Education to serve as a legal electronic signature you can use to "sign" your FAFSA form online. It will also be needed if you must make corrections to your FAFSA form online.
Don’t remember your PIN or want to apply for one? Upon logging in, select the PIN task from your checklist page and follow the instructions to the appropriate link.
IMPORTANT: Your PIN is an important piece of private information. You should keep it safe and private. No one else, including Financial Aid Advisors, should ever need to know your PIN. Safeguard it as you safeguard all of your private financial information.
Q. Why must I complete a FAFSA every year?
A. The Department of Education has determined that the best indicator of your financial need is your tax return from the previous year. In order to make sure that you are receiving everything for which you are eligible we must have the most recent information possible. A new FAFSA is required for each new award year (July 1st through June 30th.)
Q. What is an EFC?
A. EFC stands for Estimated Family ContribPCTIon. This figure is calculated by the Department of Education from the information provided on your FAFSA. It represents the amount of money that the Department of Education determined you and your family can put towards your Cost of Education per academic year. The Total Cost of Education includes your tuition, fees, program costs, and estimated cost of living while attending school.
Q. How do I apply for a Pell Grant?
A. All you need to do is file a FAFSA form with the Department of Education. Our Financial Aid Department will package everything for which you are eligible.
Q. I have been selected for Verification. What does this mean?
A. Verification is one of the processes by which the Department of Education audits the Federal Student Aid Program. At least 30% of the students who file a FAFSA form are randomly selected by the Department of Education for verification. If you are selected for verification, the Department of Education has authorized the Financial Aid Department to collect copies of your Federal Tax Return information and information regarding your household to ensure the information provided on your FAFSA form is accurate.
Q. I have received a copy of my Student Aid Report (SAR) from the Department of Education, but I have not received an Award Notification from the school yet. Why not?
A. There may be a couple of reasons for this. If the Department of Education is requesting additional documentation to verify and/or clarify information you provided on the FAFSA, the financial aid office will contact you to request these documents. We will not be able to provide an Award Notification until all required documents have been received. So be sure to follow through on providing any additional documentation as soon as possible.
A delay in our Award Notification can also occur if your FAFSA form is missing the correct Federal School Code for the campus you plan to attend. Check the School Code section of the report to make sure that the correct school code is on your FAFSA. For a list of our school codes, please refer to the question above entitled, "What is a Federal School Code and what is its purpose?”
Q. I was not approved for a PLUS Loan. What options do I have?
A. You should contact the lender to determine if there is an opportunity to reverse the decision. Sometimes providing the lender a verbal explanation or written documentation regarding a specific credit situation may result in a loan approval. Additionally, you can reapply with a co-borrower. If neither of those are feasible options for you, there are other private funding options available. Please contact the Financial Aid Department and we will assist you.
Q. I have received a scholarship. What should I do?
A. Please send proof of your scholarship (award certificate and congratulatory letter) to the Financial Aid Department. It may be mailed or faxed. Please contact the Financial Aid Department for the correct number to which it should be faxed. We will revise your package to reflect your scholarship.
Q. I am not a U.S. citizen. Can I still get financial aid?
A. Many resident non-citizens are eligible to receive Federal Student Aid. Please contact the Financial Aid Department so we may assess your eligibility. NOTE: International students in this country on an I-20 Visa are not eligible for federal