FINANCIAL AID OFFICE - Black River Technical...
Transcript of FINANCIAL AID OFFICE - Black River Technical...
FINANCIAL AID OFFICE
Student Loans
KNOW WHO YOU OWE AND HOW MUCH and……WHERE ARE
YOU GOING???
Note
You MUST READ this complete presentation to be able to answer the relative questions on the Federal Direct Loan Worksheet.
The purpose of this information is to benefit to YOU! We want you to have the information needed to be a responsible borrower and to understand your repayment obligations.
G o t o h t t p : / / w w w . b l a c k r i v e r t e c h . o r g / f i n a n c i a l - a i d / l o a n s f o r t h e f o r m s :
1 . L o a n A p p l i c a t i o n
2 . F e d e r a l D i r e c t L o a n W o r k s h e e t 3 . U p d a t e d C o n t a c t s L i s t G o t o w w w . s t u d e n t l o a n s . g o v ) t o C o m p l e t e :
4 . D i r e c t L o a n E n t r a n c e C o u n s e l i n g
5 . M a s t e r p r o m i s s o r y n o t e ( M P N )
Direct Loan Requirements
Do you really need a loan?
Almost 60% of BRTC students qualify for a Pell grant - if you qualify for at least $1700 Pell/semester, it is enough to cover Tuition, Fees, and $500 books for 12 credit hours -- No loans needed
Loans are NOT free! You have to pay them back. Borrow conservatively….think ahead…..plan ahead! .
Create a budget…and stick to it!
Review the loan payment schedule later in this presentation. Can you afford payments??
Can you decrease any of your current expenses?
Try ALL other options before taking loans.
Pell
Scholarships
Family/Friend Loans
Working at least one job!! (go to school 2 days/nights a week) (depending on program demands)
CREATE A BUDGET!!
Authorized Educational Expenses
Authorized educational expenses include: Tuition
Room and board
Institutional fees
Books
Supplies
Equipment
Dependent child care expenses
Transportation and commuting expenses
Rental or purchase of a personal computer
Loan fees
Other documented, authorized costs
What is your goal??
Think ahead and plan so that you are proactive in your own success!
Are you planning on obtaining a Bachelor’s? Are you getting your college“BASICS”?
Do your courses at BRTC transfer to ???? Go to acts.adhe.edu/ Visit the Registrar of the school you plan to attend and make sure they accept.
How much will I need to complete Bachelor’s ($20,000) and/or Master’s ($20,000)? What will the total be if I take loans for a Technical Certificate/Associates????
If you have over 60 hours, get a degree audit NOW!!
Am I close to reaching my 150% max hours limit at BRTC for my Financial Aid? Will every class I take transfer? MAKE EVERY CLASS COUNT toward your final educational goal!
Will I have Pell when I transfer?? CAN I PAY THE LOANS BACK with the education I am getting????
* Visit with a Financial Aid Officer or your Advisor if you can not answer these questions.
Where are you going and how do you get there?
acts.adhe.edu is the Arkansas Transfer Coursework Website
Bachelors degree programs in today’s educational fast tracks….
General Education requirements for your Bachelor’s program
Degree Plans
Know what you want to do.
- KUDER test information is available in the Career Pathways Office in Administration Building.
- DiscoverArkansas.net has occupations and salaries to help you decide what you want to do.
Know what degree you are working on and take ONLY the courses that will lead to completion of that program.
Don’t waste loan money on classes you don’t need! You are limited to how many credit hours you may attempt toward your chosen degree and still maintain Financial Aid eligibility.
Get advice from Financial Aid when changing degree plans, transferring to a university, dropping a class or getting close to 100 hours to understand the effects this will have on your eligibility to Title IV Funds. (Pell and Loans)
BRTC STUDENT EMAIL
We communicate with students primarily by BRTC email. Make sure you have set up your GMAIL account. Go go www.blackrivertech.edu and access Current Students to activate your account.
Make sure your inbox doesn’t fill up. Email cannot be delivered to a full inbox.
Check this EMAIL weekly, if not daily. This is how you will be notified of dates that Financial Aid REFUNDS are mailed.
Other departments will also expect you to check this account frequently.
Campus Connect
https://connect.blackrivertech.org/cc3_scripts/cc_server.exe Link is at bottom of BRTC homepage
Student account access.
Use it to:
View mid-term and final grades
Register for classes
View your Student Account and financial aid
View your award letter
View Holds
If a new user, Log in using your * Userid – SSN * Password - 1111 Change your password after first log-in
Subsidized Unsubsidized
For students with financial need.
No interest is charged while: in school at least half time during your grace period during deferment periods.
Don’t have to make payments while you are attending school at least half time and during your grace period.
Not based on financial need.
Interest is charged during all periods.
Don’t have to make payments while you are attending school at least half time and during your grace period.
Types of Loans
Requesting a
LOAN
At BRTC, you must submit a LOAN APPLICATION and request a specific amount.
The form must be submitted along with the previously mentioned documents: - Direct Loan Worksheet - Updated Contacts List - AND – Complete Online: - Entrance Counseling - Master Promissory Note View this Presentation!!!
You accept or decline loans by clicking these boxes. If you want to decrease the amount, you click accept and the amount under the offered tab will allow you to type into it. When you are done, click submit.
2013-2014 BRTC STUDENT LOAN APPLICATION
PO BOX 468 ● POCAHONTAS, AR 72455 ● (870) 248-4000 ● FAX (870) 248-4100
___________________________________________ _______________________ Name SSN
*** STUDENT LOANS ARE OPTIONAL ***
STEP 1: Entrance Loan Counseling is required to be completed ONLY once under the Direct Lending program. You must
complete ELC at the following web address www.studentloans.gov.
STEP 2: The Master Promissory Note or MPN is required before submitting your loan request to the FA Office. To complete an
MPN online, you will be required to use your Department of Education-issued PIN that you used to complete your FAFSA. You must
complete the Promissory Note via electronic signature at the following web address www.studentloans.gov. If you do not have a PIN
or do not remember yours, you may request one from http://www.pin.ed.gov/PINWebApp/pinindex.jsp.
*** This box MUST be COMPLETED, or the loan will NOT be processed. ***
SEMESTER LOAN LIMITS DEPENDENT INDEPENDENT Subsidized & Unsubsidized Subsidized & Unsubsidized
Freshman $1,750 $1000 $1,750 $3,000
Sophomore $2,250 $1000 $2,250 $3,000
*You may request any amount but may not exceed the above maximum limits*
Amount Requested $______________________ / PER SEMESTER for □ Fall ONLY □ Spring ONLY □ Fall AND Spring
Signature_____________________________________________ Date Requested_______________________________
Financial Aid Office Use ONLY
Loan Period: ___________________________________________ D________ I________ SAP Status ___________
Budget: $__________________________________________
-EFC ___________________________________________ Sub: ____________________________________________
-Pell Grant ___________________________________________ Unsub: ____________________________________________
-WIG ___________________________________________ Grade Level:_________ First-Time Borrower: Y or N
-WIA ___________________________________________
-Pathways ___________________________________________ Loan Worksheet: ________________________
-TAA ___________________________________________ Contacts List: ________________________
-Rehab ___________________________________________ Entrance Loan Counseling: ________________________
-Other ___________________________________________ Master Promissory Note: ________________________
-Net Available ___________________________________________ Date Entered in POISE: ________________________
NSLDS
www.nslds.ed.gov
View information about every loan you have ever had, including:
Lender/Servicer contact information
Amount of loan
Amount of interest accrued to date
When you received this loan
KNOW WHO YOU OWE AND HOW MUCH and……WHERE ARE
YOU GOING???
NSLDS
Click on the numbers beside each loan to view Loan Details.
This is also one of the pages you will need to print out for your homework.
NSLDS
Here you can see details about your loan, including contact information for your Lender.
It is very important to know who you owe and how much!
Common Servicers
Get your student account set up with your servicer NOW!!
Entrance Counseling
www.studentloans.gov log in, then click “Complete Entrance Counseling”
A requirement for student loans
Explains: borrower responsibilities
interest rates
grace periods
when to pay
how much you’ll pay
how/why to go into deferment or forbearance
what happens if you don’t pay (default)
Takes about 30-45 minutes
Log in with your name, SSN, DOB,
and PIN from FAFSA
Master Promissory Notes
www.studentloans.gov log in, then click “Complete Master Promissory Note”
A legal document!
When you sign it, you promise to repay your loan(s) and any accrued interest and fees.
It includes the terms and conditions of your loan.
It is required!
Can complete online.
Borrower Responsibilities
It is your responsibility to contact your loan servicer and your school if you: Change your name, address, or phone number Stop attending school or drop below half-time enrollment Graduate Fail to enroll at the school that determined you were eligible to receive your loan Do not enroll at least half time for the loan period certified by your school Transfer to another school
You must complete exit counseling before you withdraw, graduate, or drop below half-time attendance (regardless if you plan to transfer to another school), regulations require that you complete an exit counseling session. When BRTC contacts you to do this, DO NOT IGNORE it.
Also, if you transfer to another school, you may have to redo the counseling for each school. The counseling session provides information about how to manage your student loans after college.
KNOW WHO YOU OWE AND HOW MUCH and Where you are going??
Grace Period
Begins when you graduate, withdraw, or drop to less than half-time status
You only get one, and it only lasts 6 months.
You will receive your repayment obligation, which includes: Date payments are to begin
(Payment is expected even if you do not receive a payment booklet or monthly statement.)
Monthly payment amount
Repayment terms
Current principal balance
Interest rate
Things That Affect Eligibility for Financial Aid at BRTC
Completed Financial Aid file- do the FAFSA www.fafsa.ed.gov
Submitting ALL required documents to BRTC Financial Aid Office. Financial Aid Office will notify you by mail of missing documents and then you must remember to submit them to us. This may be veiwed on Campus Connect under the “Review Aid” option.
Previous attendance at other institutions-
Must have ALL official transcripts from previously attended schools before Financial Aid awards will be approved
Satisfactory Academic Progress-(SAP) -- maintaining a 2.00 term & cumulative GA and completing required minimum amount of courses each term
Maximum eligibility limits for Pell and Loans – on the Loan Application
SAP-REVIEW AND CHANGES
Must be enrolled in an approved degree or certificate program.
Must be enrolled in a minimum of six (6) credit hours per semester.
Minimum Cumulative GPA is 2.00.
Maximum Hours Example:
Required Allowed Attempted Hrs
Must complete your program in the 150% timeframe allowed for Financial Aid
Associate of Arts Degree
60 credit ours 90 hours
AAS Registered Nursing
69 credit hours 104 hours
AAS Business Technology
60 hours
90 hours
SAP-REVIEW AND CHANGES
Must maintain and complete the semester with the following number of credit hours:
For full policy, see packet provided or see our website.
Final grades for a semester of 0.00 GPA – either by “ALL F’s” or “All F’s & W’s” – are a SUSPENSION status
An option to APPEAL the Suspension is available ONLY IF extenuating circumstances have occurred. Must fully document the circumstance for the committee to consider for approval. APPEAL applications are available on BRTC website or in the Financial Aid Office.
On 11th day of enrollment
Must Complete
12 or more 9
6-8 5
1-5 All attempted
Budget Allocation of Awards
Cost of Attendance Budget determines your loan amount available. Your TOTAL aid package may not exceed your cost of attendance.
Example:
$6, 800 budget for each semester - Fall/Spring
- 2, 823 Pell for full time both terms - if qualified for maximum Pell award/amt could be less
- 1,000 AR Challenge Scholarship each term
- 2,250 Sub loan each term (sophomore level loan)
- 727 Unsub loan each term
$ 0 need remaining
Any scholarships or other aid received will cause your loan to be reduced!
PELL Lifetime Limits
Federal guideline-600% Pell allowed
6 years of full-time Pell
For years 2009-10 & 2010-2011, the regs were different for Summer Pell – you may have used extra those years Review your Pell used on www.nslds.ed.gov
Do not take unnecessary classes (like let’s take this one so I can get full pell) and
Conserve your Pell refunds (FREE MONEY)……SAVE it for Bachelor’s program, if able. Use your Pell refund wisely!
Loan lifetime limits are coming in the future!!
Multiple Disbursements
ALL student loans will be made in multiple disbursements each semester - 2 equal disb’s for Fall
2 equal disb’s for Spring 2 equal disb’s for Summer (1 in Summer I /1 in Summer II)
*** Disbursement Date Schedules are always posted on the FA page of BRTC website ***
Will not get full amount all at once.
Loans and Pell are based on ATTENDANCE. If you do not attend, you will not earn the funds.
If you take the funds and did not earn them…….you will owe a bill with BRTC and/or the Federal Government.
Repaying Your Loans1
1 The estimated payments were calculated using a fixed interest rate of 6.80%. 2 This repayment plan is available only to borrowers who have an outstanding balance on Direct Loan Program loans that exceeds $30,000, and who had no outstanding balance on a Direct Loan Program loan as of October 7, 1998 or on the date they obtained a Direct Loan Program loan on or after October 7, 1998. 3 These amounts are fixed, rounded to the nearest dollar, and calculated based on a 25-year repayment term. 4 This is your beginning payment, which may increase during your 10-year repayment term. 5 Assumes a 5% annual income growth (Census Bureau). 6 The estimated payments were calculated using the formula requirements in effect during 2006. 7 HOH is Head of Household; assumes a family size of two. You can also estimate what your monthly loan payments will be after you graduate by using our repayment calculator.
https://studentloans.gov/myDirectLoan/viewSamplePaymentsTable.action
Student Loan Repayment
Income-Based Repayment (IBR)---A repayment plan available to a borrower who has partial financial hardship. The IBR monthly payment amount is determined by income, family size, and applicable loan debt and may be adjusted annually depending on these factors.
Income-Sensitive Repayment---Payments are based on a percentage of your gross monthly income but must cover the interest that accrues each month.
Income-Contingent Repayment (ICR)---Eligibility is based on income (or combined income with spouse, if married), family size, and total federal Direct Loan debt.
Loan Consolidation Reduce your monthly payments by extending your repayment period.
Combine all of you student loans with various lenders into one monthly payment.
Benefit from a fixed interest rate.
Do your homework to determine what repayment option is most beneficial for you!
Go to www.Studentloans.gov and click Complete IBR/Pay as you earn/ICR Repayment Plan Request – it is the easiest way to submit for one of these repayment plans!
Student Loan Forgiveness
Loan Forgiveness Programs Loan forgiveness programs promote employment in certain fields by forgiving part or
all of you loan debts, provided you fulfill certain work-related requirements.
Federal Loan Forgiveness Programs Teacher Loan Forgiveness Program – 5 years - $5,000 or $17,500 Public Service Loan Forgiveness Program – 10 years – remaining principal & interest Federal Employee Student Loan – Minimum 3 years required service – up to $10,000
annually – up to $60,000 maximum
State loan forgiveness programs vary. Please check with the individual state.
WHAT IS DELINQUENCY??
Delinquency
Failing to make your scheduled monthly loan payments will negatively affect your credit.
Late payments stay on your credit history for 7 years.
Your lender, loan servicer, and school will begin contacting you via letters and phone calls, which will continue until you resolve the delinquency.
KNOW WHO YOU OWE AND HOW MUCH and……WHERE ARE YOU GOING???
WHAT IS DEFAULT???
Default
If a loan remains delinquent, you will default. If you default, the entire unpaid balance and any accrued collection fees on the applicable loans will become immediately due and payable.
Consequences of default may include any or all of the following: Damage to your credit rating
Garnishment of your wages
Legal action against you
Collection charges (including attorney fees) being assessed against you
Loss of deferment eligibility
Loss of your professional license
An increase in the interest rate on your loan
Withholding of your federal and state income tax refunds
Loss of eligibility for state and federal financial aid
Loss of other state or federal payments
Can’t make your payment?
If you're having trouble making payments on your loans, contact your loan servicer or your school loan advisors as soon as possible to discuss options that may help you.
Options include: Changing repayment plans Deferment, if you meet certain requirements (for example, if you are unable to
find full-time employment, or are experiencing an economic hardship). A deferment allows you to temporarily stop making payments on your loan.
Forbearance, if you don't meet the eligibility requirements for a deferment but are temporarily unable to make your loan payments. Forbearance allows you to temporarily stop making payments on your loan, temporarily make smaller payments, or extend the time for making payments.
If you stop making payments and don't get a deferment or forbearance, your loan could go into default, which has serious consequences!
You must be aware that a deferment or forbearance is for a limited time, and it must be renewed if eligible.
Deferment Criteria
Types of Deferment
In-School
Graduate Fellowship
Rehabilitation Training Program
Unemployment
Economic Hardship
Military
Length of Deferment
No time limit
No time limit
No time limit
Up to 36 months
Up to 36 months
No time limit
Forbearance Criteria
Discretionary Forbearance
For discretionary forbearances, your lender decides whether to grant forbearance or not.
You can request a discretionary forbearance for the following reasons:
Financial hardship
Illness
Mandatory Forbearance
in a medical or dental internship or
residency program & meet requirements
Total owed is 20% or more of your total monthly gross income
National service position which you received a national service award
Teaching service that qualifies for teacher loan forgiveness
Qualify for partial payment under U.S Department of Defense SLRP
National Guard but not activated by governor, but not eligible for a military deferment
Financial Literacy
Come to the financial aid office for additional information on Pell and Loans.
Prepare yourself for repayment!
Start making a habit of good finances now by making better financial decisions regarding your student loans. Set a budget and stick to it.
Plan your educational goals and be looking at what your total student loans may be when completed.
Do not get loans just to support you and your family!
KNOW WHAT YOU ARE DOING HERE AND PLANS FOR FUTURE
KNOW WHO YOU OWE AND HOW MUCH!! www.nslds.ed.gov
Resources
www.nslds.ed.gov www.direct.ed.gov www.studentloans.gov www.npcc.edu/FinancialAid/fa_conditions.htm http://www.consumerfinance.gov/payingforcollege/costcomp
arison/ http://www2.ed.gov/offices/OSFAP/DirectLoan/BudgetCalc/
budget.html http://studentaid.ed.gov/PORTALSWebApp/students/englis
h/IBRPlan.jsp https://studentloans.gov/myDirectLoan/viewSamplePaymen
tsTable.action www.discoverar.net
R E M E M B E R : Y O U A R E O U R S T U D E N T E V E N I F Y O U G O T O A N O T H E R S C H O O L O R S T O P
A T T E N D I N G . W E A R E H E R E T O H E L P Y O U !
Questions ? misty. [email protected] [email protected] [email protected]
Brandi Chester Misty Bradley Natasha Rush