Transcript Federal [Direct] Stafford Loans

Loan Workshop
APPLIED TECH AUDITORIUM
Monday, October 4, 2010
4:00 PM
Please be seated. This session will begin shortly.
Guilford Technical Community
College
William D. Ford Federal Direct
Loans
Loan Entrance Counseling
DEFAULT
Federal Direct Stafford Loans
 Federal Student Loan
 Your lender will be the U.S. Department of Education
 Half-Time Enrollment Required
Repayment
Repayment begins 6 months from the date
you drop below half time:
 Graduate,
 Drop below half-time enrollment, or
 Withdraw from all classes.
Federal Subsidized Stafford
Loans
 Federal Subsidized Stafford loans (Sub) are low-
interest, need based, education loans.
 The Federal Government pays the interest
(subsidizes) on this loan during in-school status,
grace periods, and authorized deferment periods.
Federal Unsubsidized
Stafford Loans
 A borrower unable to qualify for a need-
based Stafford loan (Sub) may apply for an
Unsubsidized Stafford Loan (UnSub).
 An UnSub loan doesn’t qualify for the federal
interest subsidy, which means the student is
responsible for the interest.
No Penalty
for
Pre-Payment
Annual Maximum Eligibility
Academic Year
 First Year Student (32 or less credit hours)
 Dependent student: $5,500 (Max $3,500 Sub)
 Independent student: $9,500 (Max $3,500 Sub)
 Second Year Student (33 or more credit hours)
 Dependent student: $6,500 (Max $4,500 Sub)
 Independent student: $10,500 (Max $4,500 Sub)
Annual Eligibility, Continued
New Terms
“Cost of Attendance”
“Expected Family Contribution”
“Need”
Cost of Attendance
2010-2011
 Tuition and Fees-$1,542
 Books and Supplies-$1,044
 Travel-$2,943
 Miscellaneous-$4,959
 Room and Board-$7,596
 Total COA-$18,084
(Assumes In-State, Not living with parents.)
Expected Family Contribution (EFC)
 Result of the processing of the Free Application for
Federal Student Aid (FAFSA).
 Found on your Confirmation when submitting, and
the Student Aid Report (SAR) (sent to you by the
FAFSA Processor).
 Not literally the amount you will pay, but is part of
your need calculation, and the main determinant of
your Pell eligibility.
Need Calculation
COA – EFC = Need
Cost of Attendance
-Expected Family Contribution
-Other aid and resources
Remaining Need (Sub Loan Eligibility)
Eligibility, Continued
Sub Loan Eligibility is the LOWER of:
Remaining Need
Or
Grade Level Eligibility
 No matter what your grade level or dependency status,
you can never receive aid in excess of your Cost of
Attendance.
Lifetime Maximum Awards
 Dependent, undergraduate student
Aggregate limit of $31,500, no more than $23,000 of
which may be subsidized.
 Independent, undergraduate student
Aggregate limit of $57,500, no more than $23,000 of
which may be subsidized
Interest Rate
Disbursed between 7-1-10 and 6-30-11
 Subsidized
Stafford: 4.5%.
 Unsubsidized
Stafford: 6.8%
Interest Rate Reductions
Academic Year
2009-2010
2010-2011
2011-2012
Interest Rate
5.6 %
4.5 %
3.4 %
(Applies only to Subsidized Stafford Loans.
Unsubsidized remains at 6.8 percent.)
Reminder-At Least Half Time
You must be enrolled in at least six (6) credit hours
each semester (including summer if you plan to
attend) to be eligible for Stafford Loans.
If you fall below six hours after the loan has been
certified and before funds are disbursed, the funds
must be returned and the loan will be cancelled. You
will be responsible for any charges on your account
that were not covered by other financial aid.
ToDo # 1: On-line Entrance
 Use the link on our web page or
www.StudentLoans.gov
 Information is followed by a 15-question quiz.
 You must answer at least 12 correctly to complete
the session.
 Student Loans advises us when you have
successfully completed.
ToDo # 2: Master Promissory Note
 Web site is www.StudentLoans.gov.
 You will need name, address, and telephone number for
2 references. (These aren’t co-signers!)
 Sign with your Department of Education PIN number.
 You should print a copy for your records.
ToDo # 3: Loan Request Form
Complete the Loan Request form. Then print, sign,
and submit the form to Enrollment Services.
 Step 1
 Select loan period. Requested amount MUST be
divided into two equal payments period.




Fall/Spring
Spring Only
Spring/Summer
Summer Only
Disbursement Info
 All Stafford loans are required by law to be
delivered in two (2) disbursements. The first half
at the beginning of the enrollment period; the
second disbursement must be beyond the mid
point of the enrollment period.
 Full Year Loan: 1st half at beginning of Fall semester, 2nd
half at beginning of Spring semester.
 Single Semester Loan: 1st half at beginning of the
semester, 2nd half at least mid-way through the semester.
Exception
Are you a first-year student?
If yes:
Are you a first-time borrower?
If yes:
First-year student
First-time borrower
30 Day Delay (after first day of classes)
Loan Request Form-Continued
•Step 2
•Choose A or B:
•(A) Please certify my loan for the maximum
amount I am eligible to receive from the
subsidized and unsubsidized loan programs for
the academic year.
•OR
•(B) I am requesting a lesser amount of $____
Subsidized
UnSubsidized
Loan Request Form-Continued
Step 3: Monthly Budget Calculator
Estimated monthly Income for loan
period
Loan Request Form-Continued
•Step 3: Monthly Budget Calculator
•Rent/Mortgage
•Home/Cell Phone
•Child Care
•Monthly Debt Payments (credit cards, etc.)
•Other Personal Expenses
•Utilities
•Food
•Transportation
•TOTAL MONTHLY EXPENSES
Loan Request Form-Continued
•Step 3: Monthly Budget Calculator
Results
Subtract monthly expenses from monthly
income.
(Should be a negative number)
What Happens Next? (1)
 Once you have met all of the
requirements (such as the on-line
entrance counseling), the loan officer will
certify your loan.
 You will know when your loan has been
certified by checking Web Advisor.
What Happens Next? (2)
 Complete all information requested on your Master
Promissory Note (MPN).
 Sign using your PIN from the Department of Ed. (The
same PIN you used to sign your FAFSA.)
A delay in completing your MPN means a
delay in receiving your funds.
What Happens Next? (3)
Direct Loans receives your MPN; it is matched
with our school certification.
This begins the process of disbursing funds.
You will receive a Disbursement Notice from
Direct Loans.
What Happens Next? (4)
• Funds are received from your lender.
• GTCC must confirm that you are still eligible
for the funds, still attending at least ½ time,
and if you have charges that need to be
deducted from the funds, etc.
• Checks are scheduled to be mailed 14 days
after the lender disbursement. (Checks are
mailed to the permanent address we have for
you in our system, so be sure it is correct!)
Disbursement Info
By law, an origination fee of .5% will be
subtracted from each disbursement by the
lender. (Total fee: 1.5%)
The loan fee will be shown on the disclosure
statement that the lender will send to you.
SAP
Satisfactory Academic Progress
 To continue receiving financial aid, you must
make Satisfactory Academic Progress. There
are three components:
 You must complete 66% of all classes you
attempt.
 You must maintain a cumulative grade point
average of 2.0 or better.
 You must complete your program within
150% of the published time period.
Be Sure To…
 Check your GTCC mailcruiser account
frequently. This is the primary way we
will communicate with you.
 Read and understand all paperwork that you
receive from GTCC and Direct Loans. If you
have questions, call the person that sent you the
letter. (Be sure to have the letter in hand when
you call!)
Reminders
 Borrow only what you need. This is a
loan and must be repaid!
 Exit Counseling is required.
To Find Loan Info on our Web:
 Go To www.tinyurl.com/gtccloans
 Scroll down to “New GTCC Borrowers.”
 You need to complete all four items.
is item #3.)
(This workshop
To Do List
 On-Line Entrance Counseling
 Master Promissory Note (MPN)
 Loan Application and Budget Worksheet