Forms & FAQs

What is the FAFSA and where can I get the FAFSA form?

The FAFSA is the Free Application for Federal Student Aid and you must complete it in order to apply for federal aid programs.  You can complete the form online or you can fill out the paper version.  Completing the FAFSA is safe and convenient and generally has a quicker turnaround time.  Visit www.fafsa.ed.gov for the application.

 

 

Do I need to apply each year for financial aid?

Yes.  You will need to complete the FAFSA for each school year you enroll, whether it's part-time or full-time.  Every year, you will receive a new financial aid reward letter from your school, listing the types of financial aid you are eligible to receive. 

How do I find out if I am eligible for student financial aid?

Eligibility for federal student aid is based on financial need and on several other factors. 

For information about federal student aid from the U.S. Department of Education, visit www.studentaid.ed.gov.

 

How do I apply for a Federal Stafford Loan?

You need to begin by completing the FAFSA.  This form will enable your school to determine your eligibility for all types of Federal Financial Aid, including the Federal Stafford Loan.  Once your college notifies you that you are eligible for the Federal Stafford Loan, you will need to complete a Federal Stafford Loan, you will need to complete a Federal Stafford Loan Master Promissory Note (MPN). 

How much can I borrow through the Federal Stafford Loan program?

If you are a dependant student, the maximum you can borrow under the Federal Stafford Loan is $2,625 as a Freshman, $3,500 as a Sophomore, and $5,500 as a Junior and Senior.  If you are an independent student, the maximums are $6,625 as a Freshman, $7,500 as a Sophomore, and $10,500 as a Junior or Senior. 

For information about federal student aid from the U.S. Department of Education, visit www.studentaid.ed.gov.

What is the Student Aid Report (SAR) and what is it for?

The SAR is also known as Student Aid Report and is a document that lists all of the information you provided in the FAFSA and gives you a chance to review it and make any necessary changes or corrections.  After completing your FAFSA, you and all of the schools you listed on the FAFSA will receive copies of your SAR.  If you have any changes to your SAR, send corrections to the address listed on the report.

 

 

What is a financial aid award?

Your financial aid reward is prepared by the financial aid office of each school you have applied to and is based on both the FAFSA and any financial aid applications you have filled out for that specific school.  It lists all the types of amounts of financial aid for which you are eligible.  It may include grants, scholarships, work study, and loans.  You need to carefully review your reward and compare award letters as you decide which school to attend.

What is the difference between a subsidized and unsubsidized Stafford Loan?

A subsidized Federal Stafford Loan is a need based loan for undergraduate and graduate students.  Interest is subsidized by the government, meaning the government pays the interest for you while you are in school at least halftime and for a six-month grace period after you leave school.  An unsubsidized Federal Stafford Loan is not need-based and the federal government does not subsidize the interest (pay it for you).  Therefore, you are responsible for paying the interest on the loan from the day it is disbursed.  You can choose to defer interest payments until you leave school through. 

Are there restrictions on how I use my student loan money?

Yes- it depends on the specific loan and the conditions that you agreed to as a borrower or co-borrower.  In the majority of cases, you must use your student loan money only for education -related expenses such as tuition, room and board, books and supplies, lab fees, and transportation expenses. 

Is there a loan that my parents can take out for my education?

If you are a dependant undergraduate student, your parent(s) can apply for the Federal PLUS Loan that allows them to apply for the amount they need to cover your balance for the year.  For a Direct PLUS Loan, your parents must complete a Direct PLUS Loan application and promissory note, contained in a single form that you get from your school's financial aid office.  For a FFEL PLUS Loan, your parents must complete and submit a PLUS Loan application, available from your school, lender or your state guaranty agency.  After the school completes its portion of the application, it must be sent fot a lender for evaluation.  Also, your parents generally will be required to pass a credit check.  If you parents don't pass the credit check, they might still be able to receive a loan if someone, such as a relative or friend who is able to pass the credit check, agrees to endorse the loan.  An endorser promises to repay the loan if your parents fail to do so.  Your parents must also qualify for a loan without passing the credit check if they can demonstrate that extenuating circumstances exist.  You and your parents must also meet other general eligibility requirements for federal student financial aid.  Please check the Federal Student Aid website for the most up to date information and changes. 

How much can parents borrow with a Federal PLUS loan?

The yearly limit on a PLUS Loan is equal to the cost of attendance minus any other financial aid received.  If the cost of attendance is $6,000, for example, and $4,000 in other financial aid is received, your parents can borrow up to $2,000.

How can I find scholarships?

Scholarships are available through a variety of sources—including colleges and universities, civic and community organizations, religious institutions, and private corporations.  You can find out about scholarships, through your high school guidance office, local library, and through the Internet using scholarship search engines (when using the Internet, be very leery and cautious of offers and do not give out personal information without verifying that it is legitimate). 

What is a EFC and what determines it?

EFC is your Expected Family Income and is a dollar estimate of how much you and your family will be expected to contribute to your education less the amount of the financial aid package you have received.  It is determined using a formula developed by the Department of Education and designed to assess what a family can afford.  Factors include the number of children in college, number of family dependents, income, and a percentage of total assets as examples.

 

 

What is the Master Promissory Note?

The Master Promissory Note (MPN) is simply the promissory note.  It is the legal document that you sign as a borrower or co-borrower on a loan.  By signing the MPN, you are promising to repay your student loan (based on the terms and conditions contained in the note), regardless of whether you graduate or are satisfied with your education.  

Is the MPN my loan application?

No.  The MPN is only the promissory note.  Rather than completing a separate application, you begin the loan process each year by answering "yes" to the question that asks if you are interested in student loans on the FAFSA.

 

What should I do with the MPN after it has been completed?

Once the MPN has been completed with your requested lender's name and number, keep a copy for your records and send the original to the address instructed on the form. 

How long is the MPN valid?

The MPN is valid for 10 years from the time that you first sign it. 

 

 

Do I have to sign the MPN each year?

If your school is authorized by the Department of Education and uses the MPN as a multi-year note, you will only have to sign the note once as long as you don't change your lenders.  If you attend a two -year or proprietary school you will need to complete the MPN each year.  If your MPN exceeds 10 years you must sign a new MPN. 

If I get a loan, how do I get my money?

Typically, loan funds are sent in two disbursements, one at the beginning of each semester.  For federal education loans, disbursements are sent to your school's financial aid office via check or electronic funds transfer (EFT).  Your financial aid office is then responsible for disbursing the funds to you.  You should also check with your financial aid office for specific procedures, timelines, etc. 

When do I start repaying loans?

You do not have to begin repaying your loans until one of the following occurs - six months after you graduate, you withdraw, or you drop below half time.  Remember that on unsubsidized loans, interest accrues while you are in school.  Although you can choose to defer interest until after your grace period, your total loan costs will be higher because accrued interest will be added to your principal balance (capitalized) when you enter repayment status and start making payments.