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FINANCIAL AID INFORMATION

Financial Aid is available for those who qualify. Federal Student Aid is awarded on a need basis for each applicant. Need is the difference between the cost of your education (education expenses such as tuition, fees, room, board, books, supplies, and other expenses) and the amount the student and his/her family can afford to pay. This is determined by the standard formula established by the U.S. Department of Education. Need is determined by evaluating the information from the Free Application for Federal Student Aid (FAFSA). Factors such as income, assets and benefits are considered in determining the student’s financial needs.

FINANCIAL AID PROGRAMS

Grants

Grants typically do not have to be repaid and are usually need-based. Applying for grants is done by completing the FAFSA application at the financial aid office or by visiting, www.fafsa.ed.gov.

Two types of grants that may be awarded are the Federal Pell Grant and the Federal Supplemental Educational Opportunity Grant (FSEOG):

• Federal Pell Grant: A Federal Pell Grant is a free grant that does not have to be repaid. The student must complete the FAFSA in order to determine eligibility for the Federal Pell Grant. If the student is eligible for a Pell Grant, the award amount eligibility ranges from a minimum of $574 to maximum of $5,645 for the 2013-2014 award year.

• Federal Supplemental Educational Opportunity Grant (FSEOG): A limited amount of funds from the FSEOG program are available to students with the lowest Expected Financial Contribution (EFC). The information provided on the FAFSA application will be used to determine student eligibility. Awards vary based on financial need and fund availability.

Loans

Low interest loans may be available to students. A completed FAFSA application must be submitted to determine loan eligibility. Subsidized Loans are need based, while Unsubsidized Loans are not need-based. The school participates in the William D. Ford Direct (Subsidized/Unsubsidized/PLUS) Loan Program:

• William D. Ford Federal Direct Subsidized Loan: A need-based loan from the federal government from which the government pays for the interest on the loan while the student is enrolled in school. Repayment begins six months after the last day of attendance (LDA). Interest subsidy during the six months grace period is being eliminated for new Stafford Loans made on or after July 1, 2012, and before July 1, 2014. If you receive Subsidized Loan during this timeframe, you will be responsible for the interest that accrues while your loan is in the grace period. The repayment period still begins six months after the student is no longer enrolled at least half-time, but interest that accrues during those six months will be payable by the student rather than subsidized by the federal government. The interest rate disbursed for all student loans on or after July 1, 2012 will be 6.8% with a 1% origination fee which will be deducted for each loan disbursement.

• William D. Ford Federal Direct Unsubsidized Loan: A non-need based loan from the federal government where the student is responsible for interest payments on the loan. Students will be responsible for interest payments 30 days from the date of the 1st disbursement. Students have the option to either pay the interest while in school, or have the interest capitalized (deferred) up to six months after the last day of attendance (LDA). The interest rate for all loans disbursed on or after July 1, 2012 will be 6.8% with a 1% origination fee which will be deducted for each loan disbursement.

• William D. Ford Federal Direct Parent Loan for Undergraduate Students (PLUS): This loan is sponsored by the federal government and is not a need based loan. This loan allows for one of your parents to apply in order to help with education costs. Generally, parents can borrow up to the total cost

of education, minus any aid already being received. This loan requires a credit check. If your parent is denied a PLUS loan, you may be eligible for an additional Federal Direct Stafford Unsubsidized Loan. The repayment period for a Direct PLUS Loan begins at the time the PLUS loan is fully disbursed, and the first payment is due within 60 days after the final disbursement. However, for Direct PLUS Loans with a first disbursement date on or after July 1, 2008, the parent may defer repayment: (1) while the student on whose behalf the parent borrowed the loan is enrolled in at least a half-time basis and (2) for an additional six months after the student ceases to be enrolled at least half-time. The interest rate is fixed at 7.9%. The interest rate is charged from the date of the first disbursement until the loan is paid in full. The origination fee is at 4%, which will be deducted for each loan disbursement.

Federal Assistance is available to help students pay for their education and training. You may receive additional Financial Aid information from the Financial Aid department during office hours.

The Net Price Calculator is a tool that you can use to estimate your “net price” to attend a particular college or university. Net price is the difference between the full cost to attend a specific college, minus any grants and schorlarships for which you may be eligible. The cost includes direct charges (tuition and fees, books and kits) and indirect costs (off-campus room and board transportation, and personal expenses).

Please keep in mind that direct costs are set by the school. Indirect costs (off-campus room and board, transportation and personal expenses) depend on the preference and living style of the individual student (For example, a monthly rent for a room in a shared apartment is going to be different than renting one bedroom apartment all for yourself.) This should be kept in mind when reviewing college “net price” calculations which include costs other than tuition and books.

Net Price Calculator click here. 

FINANCIAL AID ELIGIBILITY REQUIREMENTS

In order to qualify for financial aid, you must meet the following criteria:

• Demonstrate financial need (except for certain loans and scholarships)

• Be a U.S. citizen or eligible noncitizen with a valid Social Security Number (SSN)

• Be working towards a degree or certificate in an eligible program

• Not currently enrolled in high school

• Have earned a high school diploma or General Equivalency Diploma (GED)

• Register with the Selective Service if you are a male between the ages of 18 and 25

• Maintain Satisfactory Academic Progress (SAP) while attending Prestige Health & Beauty Sciences Academy (PHABSA)

• Not be in default of student loans

• Use federal and state aid for educational purposes only