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Federal Student Loans - One very important way of meeting educational needs is
with the Federal Family Educational Loan Program (FFELP). This program consists
of the Subsidized and Unsubsidized Federal Stafford Loans. These loans must be
repaid by you the student, after you have permanently left the school. They are
made by a participating Lender (bank, savings and loan, and or credit union).
Please indicate on your financial aid letter which of our Preferred Lenders
(M&T, CitiBank, HSBC, or Chase) you have selected and will be filling in on
your promissory note, Which you will receive from NYSHESC.
Complete a Free Application for Federal Student Aid (FAFSA). Complete the form online at www.FAFSA.ed.gov. The processor
sends the information to the central processing system (CPS). The CPS
calculates the student's Estimated Family Contribution (EFC), and sends this
information back to the application processor. The processor, in turn, prints a
Student Aid Report (SAR) with the EFC on it, and mails it to the student.
The significance of the EFC is two-fold:
It provides a standard by which most colleges develop a financial aid package.
Most financial aid administrators take the total cost of attendance and
subtract the EFC. The result is the student's financial need.
Cost of Attendance
minus EFC
=Financial Need
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The cost of attendance is composed of direct costs and indirect costs. Direct
costs include tuition, fees, room and board; in other words, what is directly
charged to the student by the college. Indirect costs are equated with
incidental expenses (e.g., books, personal expenses, and transportation).
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The EFC is a combination of the parents' contribution (if student is dependent)
and the student's contribution.
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Financial need is an indication of the amount the student and student's parents
(if student is dependent) are unable to contribute toward the cost. Therefore,
financial aid administrators try to meet or compensate the financial need
through financial aid.
Note: No student may receive financial aid in excess of the cost of attendance.
It determines how much federal aid a student is eligible for.
Loans:
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Federal Direct Loans are the U.S. Department of Education's major form of
self-help aid.
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Subsidized: The federal government will pay the interest on
the student's loan ("subsidize" the loan) while the student remains
enrolled at least half-time (six semester hours), as well as for the first
six-months after the student leaves college, and during deferment periods.
Financial need is required.
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Unsubsidized: Once the loan is disbursed, the borrower is
responsible for the interest charges on the loan, including periods of
deferment. This loan is awarded after financial need has been met.
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The interest rate on a Federal Direct Loan is variable. The maximum interest
rate is 8.25 percent. An originating fee of four percent charged to the student
is subtracted from the loan before disbursement. Before receiving the loan
funds, students receive a promissory note to complete and return to the Office
of Financial Aid.
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A graduate student may borrow up to $18,500 or their "cost of
education" whichever is lower. With a maximum of $8,500 of it being
a subsidized loan and the remaining being an unsubsidized loan.
Additional Note:
If a student has unusual circumstances, the Financial Aid Administrator should
be notified. Examples include:
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tuition expenses at an elementary or secondary school
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unusual medical or dental expenses not covered by insurance
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a family member who recently became unemployed
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changes in income that affect a student's eligibility for financial aid
Roberts Wesleyan College is required by the U.S. Department of Education to
check the accuracy of information for selected Student Aid Reports before Title
IV funds Federal Direct Subsidized Loans, Federal Direct Unsubsidized Loans)
can be disbursed to accounts. This process is called Verification. If you are
selected for Verification, all information requested must be provided to
confirm eligibility for the Federal funds that appear on your financial aid
package.