ADVANCE COLLEGE - Laserfiche WebLink

Home Browse Search

the Federal Direct Stafford loans, unsubsidized, starts to accrue when the loans are disbursed (approximately thirty-one days after the student starts class). The federal government has elected to pay the interest for the subsidized portion of the student's loan during the time the student is in school as well as during the six-month grace period. The six-month grace period starts when the student completes the program or is no longer enrolled in the program. The student then becomes responsible for the interest on the subsidized portion of his/her loan upon completion of the six-month grace period. The federal government, however, does not pay any interest for the unsubsidized portion of a student's Stafford loan. Any interest, which does accrue on a student's unsubsidized portion of his/her Stafford loan, will be capitalized (added) to the student's loan balance upon the expiration of the student's six-month grace period unless the student elects to pay the interest while in school. If a student obtains a loan to pay for an educational program, the student will have the responsibility to repay the full amount of the loan plus interest less the amount of any refund. If the student has received federal student financial aid funds, the student is entitled to a refund of the money not paid from federal student financial aid program funds. FEDERAL DIRECT PARENT LOANS TO UNDERGRADUATE STUDENTS (PLUS) For dependent students, a parent may borrow up to the cost of attendance, to include direct and indirect costs, annually on behalf of the student. The parent may choose to only borrow the remaining cost of the student's education minus any other financial aid the student may have already received, or the parent may choose to borrow the full amount of the student's education not including any other financial aid. Unlike the Federal Direct Stafford loans, the Federal Direct PLUS loan is credit based. The parent applying for the Federal Direct PLUS loan will be required to complete a simple pre - approval application. A response to the application will be received within one to two days. Repayment on this loan begins within 6o days after the loan has been fully disbursed. programs which contain more specific information on students' descriptions of the financial aid programs available. REFUND DISTRIBUTION POLICY Title IV refunds will be made in the following order: 'es ana intormatlon on me aDove-mentloneu srauem aiu rights and responsibilities, eligibility, need and detailed 1. Direct PLUS Loans 2. Unsubsidized Direct Stafford Loans (other than PLUS loan) 3. Subsidized Direct Stafford Loans 4. Perkins Loans 5. Federal Pell Grants for which a return of funds is required 6. Academic Competitiveness grants for which a return of funds is required. 7. Federal Supplemental Educational Opportunity Grants (FSEOG) for which a Return of funds is required 8. Other assistance under this Title for which a Return of Funds is required (e.g., LEAP) The student (or parent for a PLUS loan) must return unearned aid for which the student is responsible by repaying funds to the following sources in the following order. Amounts to be returned to grants are reduced by 50%. 1. Direct PLUS Loans 2, UnsubsidizedDirect Stafford Loan 3. Subsidized Direct StaffordLoan 4. Federal Pell Grant (50%) 5. Federal SEOG (50%) The school must return unearned funds for which it is responsible as soon as possible but no later than 45 days from the determination of a student's withdrawal. The school may return funds in any of the following manners: d• Deposits or transfers the funds into the school's federal funds bank account; Y Initiates an electronic funds transfer (EFT) to an account belonging to the student; A Initiates an electronic transaction that informs the FFEL or ED, in the case of a Direct Loan, to adjust the borrower's loan account for the amount returned; or ❖ Issues a check CREDIT BALANCES Credit balances occur when the school credits financial aid to the student's account and the total amount of financial aid fund exceeds the student's allowable charges. If the financial aid creates a credit balance, the school pays the credit balance directly to the student or parent as soon as possible but no later than 14 days after the date when the credit balance 38