All federal financial aid programs require an assessment of individual financial need. Need is determined by the ability of the parents, student and/or spouse to contribute toward educational expenses. Students must complete the Free Application For Student Aid (FAFSA), available at the Financial Aid Office, at guidance offices at area high schools and online at www.FAFSA.ed.gov. Renewal of aid is not automatic; and students must reapply each year. Students should apply as soon as possible after January 1st for the upcoming fall semester classes.
Federal Pell Program
The Federal Pell Grant program is the largest federal student aid grant program. These funds are available to eligible undergraduate students seeking a first baccalaureate degree who demonstrate financial need. Effective with the 2012-13 award year, the amount of Federal Pell Grant Funds a student may receive over his or her lifetime is limited by a new federal law to be equivalent of six years of funding. Since the maximum amount of Pell Grant funding a student can receive each year is 100%, the six-year equivalent is 600%. A student whose Lifetime Eligibility Used (LEU) is near, equal to, or exceeds 600% is no longer eligible to receive Federal Pell Grant funding. The Department of Education keeps track of your LEU by adding together the percentages of all your Federal Pell Grant awards. You can review your LEU percentage on the U.S. Department of Education’s central database for student aid – www.nslds.ed.gov. Regardless of your LEU percentage, Federal Pell Grant funding ends when you earn a baccalaureate degree.
Federal Supplemental Educational Opportunity Grant (FSEOG)
Federal SEOG is a grant program administered by Northeast State. Eligible students must be undergraduate students pursuing a first baccalaureate degree. The awards average $800. Students may be eligible for higher amounts during summer terms. Funds are limited, and according to federal regulations, must be awarded first to students with the lowest family contributions with preference given to Federal Pell Grant recipients.
Federal Work-Study Program (FWS)
The Federal Work-Study Program offers students an opportunity to earn money for educational expenses. Job placement will be arranged through the Financial Aid Office. Earnings may not exceed the amount of the award. To determine the amount of your eligibility, complete and submit the FAFSA. Students are paid an hourly wage rate for work performed. Checks are issued semimonthly. These funds are not used to pay tuition and fees. Typically, students work 10-20 hours per week. Eligible students may have the opportunity to perform community service on or off campus or work as tutors in local elementary schools for the America Reads Program. Additional information is available in the Financial Aid Office; F-102.
Federal Direct Loan Program (FDLP)
Loans are awarded based on a student’s dependency status, financial need, cost of attendance, and grade level. Subsidized Loans are based on need and the federal government will pay the interest while the student remains enrolled at least half-time. Unsubsidized Loans are based on the student’s cost of attendance and other financial aid. These loans require the student to pay or accrue the interest while enrolled, although the principal amount of the loan is deferred.Repayment period begins when you totally withdraw, drop below half-time, graduate or fail to enroll in at least six credit hours. Effective July 1, 2009, the interest rate for undergraduate students is a fixed 5.6% for Subsidized Federal Loans and a fixed 6.8% for Unsubsidized Federal Loans. For information on repaying student loans or deferments/forbearance visitwww.studentaid.ed.gov. Students participating in the program are eligible for federal interest benefits. This means that the federal government will pay the interest due prior to the beginning of the repayment period.
To determine eligibility and financial need, students must complete, sign, and submit the FAFSA. A Loan Information Worksheet must be submitted to the financial aid office as early as possible, but not later than one month prior to the start of the period in which you intend to borrow. The Financial Aid Office will electronically transmit the loan request to the lender. Students requesting a loan are required to complete, sign, and submit a Master Promissory Note (MPN), complete the Entrance Counseling, and must be enrolled at least half-time (6 credit hours) before loan funds will be disbursed.
The Federal Direct Loan Program enables students to borrow up to $3,500 as a freshman and $4,500 as a sophomore per academic year. To qualify for loans, students must show financial need. To determine your financial need, complete and submit the FAFSA. Eligible students must be enrolled at least half-time. To request a loan, applicants must also submit a Direct Loan Information Worksheet to the financial aid office and do the Entrance Loan Counseling at StudentLoans.gov. A request for a Direct Loan should be submitted as early as possible but not later than one month prior to the start of the period in which the student intends to borrow. The Financial Aid Office will electronically transmit the loan request to the Department of Education (DOE). Eligible students must e-sign a master promissory note (MPN) which can be completed, signed electronically, and submitted to DOE before loan funds will be disbursed. When students officially withdraw or drop below half-time (less than 6 credit hours), graduate, or leave Northeast State for any reason he/she must complete an Exit Loan Interview at NSLDS.ed.gov.
Federal Direct Parent PLUS Loan Program
Federal Direct Plus Loans are available to parents of undergraduate dependent students. This non-need-based federal loan program enables credit worthy parents to borrow up to the cost of education less any student financial assistance awarded for each child enrolled at least half-time in a postsecondary institution. The variable interest rate is established each July 1st. The interest rate is capped at 9%; repayment begins within 60 days after the loan is fully disbursed. An origination fee of up to a maximum of 3% will be deducted from the loan disbursement. Loan proceeds are issued in multiple disbursements. Northeast State will issue a check for the remaining balance and the check will be mailed to the parent’s address as noted on the loan application after tuition charges are satisfied. Repayment begins 60 days after the loan is fully disbursed, and continues while the student is enrolled. The maximum repayment period is ten years. The interest rate is a fixed 7.9%.
Repayment of loans begins six months after the date the student ceases enrollment of at least a half-time basis. There are various repayment plans offered by DOE. The standard repayment plan requires a fixed amount of a minimum of $50 per month for a period not to exceed 10 years; however, payment amounts will be based on the total loan amount. The interest rate may vary each year with an interest cap of 8.25%. For information on repaying student loans ordeferments/forbearance click the topic, or visit www.studentaid.ed.gov. Students participating in the program are eligible for federal interest benefits. This means that the federal government will pay the interest due prior to the beginning of the repayment period. Contact the Financial Aid Office for more information.
For loan disbursement information see Payment of Awards, Section 11-B. All borrowers must participate in entrance and exit loan counseling activities when notified by the Financial Aid Office;click here for more information
Federal Direct Consolidation Loan Program
You may be able to combine your existing Federal education loans into one new consolidated loan that offers several advantages. For more information, visit the Direct Consolidation Loan Program-Borrower Services.
Information about loan deferments, cancellations, payments, schedules, entrance/exit interviews, etc., may be obtained at www.StudentLoans.gov or by contacting the Northeast State Financial Aid Office.
The Federal Student Aid Ombudsman of the Department of Education works with borrowers to resolve loan disputes and solve other problems on an informal basis. The Ombudsman Office assists borrowers with:
- Direct Loans Subsidized and Unsubsidized Direct Student Loans, Direct PLUS Loans (for parents) and Direct Consolidation Loans;
- Federal Family Education Loans (FFEL) Subsidized and Unsubsidized Stafford Loans, PLUS Loans (for parents) and Consolidation Loans;
- Guaranteed Student Loans, SLS Loans and
- Perkins Loans.
The Ombudsman Customer Service Line is: 1-877-557-2575