Student Aid

http://www.studentaid.ed.gov/
Use 'MyFSA' to create personalized folder to record your interests, career and college searches and any relevant personal information. Track your progress in the college planning and application process.
www.studentaid.ed.gov/completefafsa
Direct Loan web site: http://www.dl.ed.gov/
US Depoartment of Labor's Occupational Handbook - info on various careers and earning potential: www.bls.gov/oco
SAR - Student Aid Report contains application results
FAFSA - Free Application for Federal Student Aid
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PREPARE --> APPLY --> RECEIVE --> REPAY
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Apply for FAFSA:
1) Get a PIN - Personal Identification Number. Safeguard your PIN !
http://www.pin.ed.gov/
2) Collect the documents - list available at http://www.fafsa.ed.gov/
- SSN
- W-2 forms
- Income Tax Return
- Current Bank Statements
- Alien Registration Card
3) Complete the application between January - July
4) Review SAR, make corrections if necessary and resubmit. Complete, correct SAR will contain Expected Family Contribution - EFC number used to determine federal student aid eligibility
5) If you are selected for verification, school financial aid office will ask you to submit documents as appropriate. You need to meet deadline!
6) Contact your financial aid office
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3 categories of federal student aid:
I) G R A N T S - does not have to be repaid and are awarded based solely on financial need.
There are 2 types:
- Federal Pell Grant
Awarded only to undergraduate students.
The amount of other student aid does not affect the amount of your Pell Grant..
Depends on: EFC, cost of attendance, whether you are full or part-time student and whether you are attending for full academic year or less.
For 2006-07. it ranged 400$-4050$
- FSEOG - Federal Supplemental Educational Opportunity
Awarded to those with exceptional financial need - lowest EFC, range from 100$-4000$.
The amount you receive depends on the amount of other aid you get and the availability of funds at your school. The schools financial aid office decide how to award these funds.
II) W O R K S T U D Y
III) L O A N S - borrow money with interest. Loans are legal obligations. Types:
- Federal Perkins Loan - repayed to school
- Stafford Loans - must be enrolled as at least a half-time student. Financial need is not a requirement to obtain Stafford Loan, however if you demonstrate financial need, the US Department of education will pay the interest that accrues on this loan during certain period. There is a fee of up to 4% of the loan deducted proportionaly from each loan disbusement and because of this deduction you'll receive slightly less than the amount you are borrowing.
* Direct Stafford Loan - borrow directly from the US Department of Education at participating schools
* FFEL Stafford Loan or Federal Stafford Loan - private lenders provide funds that are guaranteed by the federal government. You repay it to bank or private lender that made you the loan
- Consolidation Loans allow you to combine several types of federal student loans into one loan with one monthly payment
APPLICATION FOR PERKINS OR STAFFORD LOAN
You apply by completing FAFSA. However, you'll need to sign a promissory note, which is a binding legal contract that says you agree to repay your loan according to the terms of the promissory note. Read this note carefully before signing.
HOW MUCH CAN I BORROW?
* Subsidized Stafford Loan available to students with financial need. US Department of Education pays the interest:
- while you are in school at least half time,
- for the first 6 months after you leave school
- during a period of deferment - postponement of loan payments
- loan can not exceed your financial need
- Unsubsidized Stafford Loan - available to students with no financial need
School is using this equation to detrmine
Amount of your Unsubsidized Loan =
Cost Of Attendance - Federal Pell Grant - Subsidized Stafford Loan - Any other Aid you receive
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You can receive a subsidized loan and an unsubsidized loan for the same enrollment period as long as the total of these loans does not exceed the annual loan limit.
CAN I CANCEL MY STUDENT LOAN?
Your school must notify you in writing whenever it credits your account with your loan funds.
You may cancel all or a portion of your loan if you inform your school within 14 days after the date your school sends you this notice or by the first day of the payment period, whichever is later.
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Eligibility requirements:
- financial need
-US citizen or eligible noncitizen
- Must have valid SSN - Social Security Number http://www.ssa.gov/
- must be enrolled as a regular student and working toward degree in eligible program
- Pass an approved ATB - Ability To Benefit Test
- Maintain satisfactory academic progress
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Check filed complaints about school: http://www.bbb.org/
School info:
* school accreditation
* school's loan default rate - percentage of students who attended school, took out federal loan and failed to repay it on time
* school's job placement rate - percentage of students who are placed in jobs relevant to their courses of study
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FINANCIAL NEED = COA (Cost of Attendance) - EFC (Expected Family Contribution)
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To be eligible for Federal Pell Grant (2006-07), EFC must be < href="http://www.studentaid.ed.gov/pubs">www.studentaid.ed.gov/pubs. Click on the year under the 'The EFC Formula'
If you are eligible for financial aid, the financial aid office at each school will send you an award letter outlining the amount and type of student financial aid available from all sources. It states the type and amount of financial aid the school is willing to provide if you accept admission and register at that school.
SPECIAL CIRCUMSTANCES: The financial aid administrator must have compelling reasons to use professional judgement to make adjustments because of special circumstances.

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Illinois Student Assistance Commission
http://www.collegezone.com/
Leveraging Educational Assitance Partnership (LEAP) Program - state aid
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US Department of Education database:
http://www.studentaid.ed.gov/ , 'Funding' , 'State Aid'
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Byrd Program: www.ed.gov/programs/iduesbyrd/index.html
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IRS:
(*) The Hope Tax Credit - worth up to 1500$, available for 1st and 2nd year students enrolled at least half time
(*) The Lifetime Learning Tax Credit is tax benefit equal to 20% of a family tuition expenses - up to 10000$
www.irs.gov
IRS publication 970, Tax Benefits for Higher Education
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www.students.gov
Site provides access to government resources to help you plan and pay for your education. Besides, you can use this site to file your taxes, searcxh for a job and take advantage of other government services.
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www.consumer.gov/idtheft or 1-877-IDTHEFT
--> You must reapply for federal student aid every year
--> Save all records and materials used to complete your FAFSA, make a copy of your application-you might need them later to prove the information you reported was accurate (verification)
HELP: www.studentaid.ed.gov/completefafsa or 1-800-433-3243
--> To add or change school later, you just need PIN to do it online, or by phone 1-800-433-3243 when you need DRN (Data Release Number) located in your SAR, your address and answer to question 31 (concerning a drug conviction)
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SAR (Student Aid Report) contain your EFC (Expected Family Contribution) used in detrmining your eligibility for federal student aid.
Youl'll receive results by e-mail within a few days after your FAFSA has been processed
Review carefully your SAR to make sure it's correct and complete. If it is, and it contains your EFC, contact the school you are interested in attending.
If the school you want to attend is not listed on your FAFSA, you must submit your SAR to that school for processing by the last day of enrollment in 2006/07 or by September 17, 2007, whichever comes first.
REPAYING YOUR LOAN
(1) the interest you pay is lower than commercial rates (fed. gov. subsidizes the rate)
(2) you don't begin to repay the amount you borrowed until you leave school or drop below half-time
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(*) When you sign a promissory note, you are agreeing to repay the loan according to the term of the note
(*) The note states that even if you don't complete your education, you must repay your loan, and even if you can't get the job after you complete the program
(*) You must make payments on your loan even if you don't receive a bill or repayment notice
(*) You are obligated to make payments even if you don't receive any reminders (coupon books)
(*) You must make monthly payments in the full amount required by your repayment plan - partial payments do not fulfill your obligation to repay your student loan on time
(*) You must continue to make payments until you have been notified that your request has been approved if you applied for a deferment, forbearance or a loan discharge
(*) Keep a copy of any request form you submit, and document all contact you have with the firm that holds your loan
(*) Keep in touch with your lender or loan servicing agency and notify them when you:
graduate, withdraw from school, drop below half-time status, change name or address or transfer to another school
(*) You must receive entrance counseling before you are given your first loan disbursement and exit counseling before you leave school, your school will provide important information about your loan and your lender will give you additional information
BORROWER'S RIGHTS
--- Before the first loan disbursement
Before your school makes your first loan disbursement, you must receive the following information about your loan from your school, lender or Direct Loan Servicing Center:
* The full amount of the loan and the current interest rate
* the date you must start repayment
* A complete list of loan fees you must pay and info on how those charges are collected
* info about the yearly and total amounts you can borrow
* info about the max repayment periods and the min repayment amount
* An explanation of default and its consequences
* An explanation of available options for consolidating your loans and a statement that you can prepay your loans at any time without a penalty
--- Before you leave school
* A current description of your loans, including average anticipated monthly payments
* The amount of your total debt (principal and estimated interest), your current interest rate and the total interest charges on the loan
* The name of the lender or agency that holds your loans, where to send payments, and where to write or call if any questions* An explanation of the fees you might be charged during the repayment period (late charges and collection of litigation costs if you are delinquent or in default
* A reminder of available options for loan consolidation and a reminder that you can prepay your loan without penalty at any time
* A description of applicable deferment, forbearance and discharge (cancellation) provisionsRepayment options and advice about debt management
* Notification that you must provide your expected permanent address and the name and address of your expected employer
GRACE PERIOD - you have the right to a grace period before your repayment period begins ( 6 or 9 months depending on the type of the loan)
Fedral Perkins Loan - 9 months
Direct or FFEL Stafford Loans - 6 months
- subsidized loan - you don't have to pay any principal and you won't be charged interest
- unsubsidized loan - you don't have to pay any principal, but you will be charged interest, you can pay it as you go along or it will be capitalized-added to the principal
Loan repayment schedule
School, lender or Direct Loan Servicing Center must give you a loan repayment schedule that states:
* when your first payment is due
* the number and frequency of payments
* the amount of each payment
HELP: www.studentaid.ed.gov , click on 'Repaying' or www.studentaid.ed.gov/pubs
DEFAULT occurs when you fail to meet the terms and conditions of the promissory note such as not making timely payments.
Time to repay loans
- Fedral Perkins Loan - up to 10 years
- Direct and FFEL Stafford Loans - 10 to 30 years
How often do I make payments
Direct Stafford Loan-usually monthly payments using your PIN at www.dl.ed.gov
FFEL Stafford Loan-usually monthly payments to the private lender that made the loan
Federal Perkins Loan-monthly payments to school that loaned you money
Repayment Options
When it comes time to repay, you can pick a repayment plan:
* 10-year Standard Plan with a minimum payment of $50
* An Extended Plan
* A Graduated Plan with a monthly payment that starts low and then increases gradually during the repayment period
* Income Sensitive Reapayment Plan-Income Contigent Repayment Plan
* If you don't choose a repayment plan when you first begin repayment, you'll be placed under the Standard Repayment Plan
* You can change plans to suit your financial circumstances ( Direct Loan - you can change plan anytime, FFEL - you can change plan once a year)
Tax incentives for paying back student loans
This benefit applies to all loans used to pay for postsecondary education costs, including loans. The max deduction is $2500 a year.
Internal Revenue Service (IRS) Publication 970: Tax benefits for Higher Education
POSTPONING LOAN REPAYMENT (DEFERMENT AND FORBEARANCE)
These periods don't count toward the length of time you have to repay your loan. You can't get a deferment or forbearance for a loan in default.
A DEFERMENT is a period of time during which no payments are required and interest does not accrue (accumulate) unless you have an unsubsidized Stafford Loan, in which case you must pay the interest.