Federal Aid
Complete a Free Application for Federal Student Aid (FAFSA). This can be done online at www.fafsa.ed.gov.
PLEASE NOTE: THERE IS NO COST TO COMPLETE A FAFSA. If you are directed to a different site, STOP! Do not complete the payment process. Instead, go to the above website and start over.
You may request a paper FAFSA from the Department of Education
at 1-800-4FEDAID.
Once the FAFSA has been received by the Department of Education, a processor sends the information to the central processing system (CPS). The CPS calculates the student's Estimated Family Contribution (EFC), and sends this information back to the application processor. The processor, in turn, prints a Student Aid Report (SAR) with the EFC on it, mails it to the student, and electronically submits the data to the school or schools the student has selected.
THE ROBERTS WESLEYAN COLLEGE SCHOOL CODE IS 002805.
THE NORTHEASTERN SEMINARY SCHOOL CODE IS 034194.
The significance of the EFC is two-fold
!) It provides a standard by which most colleges develop a financial
aiD package
Most financial aid administrators take the total cost of attendance
and subtract the EFC. The result is the student's financial need.
- The cost of attendance is composed of direct costs and indirect costs. Direct costs include tuition, fees, room and board; in other words, what is directly charged to the student by the college. Indirect costs are equated with incidental expenses (e.g., books, personal expenses, and transportation).
- The EFC is a combination of the parents' contribution (if student is dependent) and the student's contribution.
- Financial need is an indication of the amount the student and student's parents (if student is dependent) are unable to contribute toward the cost. Therefore, financial aid administrators try to meet or compensate the financial need through financial aid.
Note: No student may receive financial aid in excess of the cost of
attendance.
2) It determines what types and how much federal aid are eligible for
the student
This primarily refers to the Federal Pell Grant. For the 2007-2008
academic school year, a student with an EFC up to $4110 qualifies. The
minimum Federal Pell Grant offered is $400; the maximum is $4310.
This also refers to the Federal Supplemental Educational Opportunity
Grant (SEOG). The Federal SEOG is awarded through the Office of
Financial Aid to students with exceptional financial need. A student must
have an EFC low enough to receive a Federal Pell Grant in order to be
eligible for a Federal SEOG. Therefore, Federal Pell Grant recipients with
the lowest EFCs and greatest need will be the first students to receive
Federal SEOGs.
Stafford Loans
Federal Family Educational Loan Program (FFELP) is one very important way of meeting educational needs by providing Stafford loans. For the 2008-2009 academic year, the Subsidized loan has a fixed rate of 6.0% and the Unsubsidized loan has a fixed rate of 6.8%. A 1% federal default fee is subtracted from the loan before disburseement. Origination fees may also be charged according to your lender's fee policy, up to 1% per federal guidelines and will be subtracted from the loan before disbursement.
Before receiving any loan funds, students must first complete entrance counseling at www.mappingyourfuture.org , and then sign a Master Promissory Note at www.hesc.com. You will be asked to choose a lender. Once you have signed a MPN and a loan has been disbursed, this MPN will be valid for ten years and you will not need to sign another one while attending RWC unless you choose to change your lender or your lender withdraws from issuing FFELP student loans.
Subsidized
The federal government will pay the interest on the student's loan ("subsidize" the loan) while the student remains enrolled at least half-time (six semester hours), as well as for the first six-months after the student leaves college, and during deferment periods. Financial need is required.
For the 2008/2009 academic year:
- A first-year student (0 - 29 earned cumulative semester hours) may borrow up to $3,500.
- A second-year student (30 - 59 earned cumulative semester hours) may borrow up to $4,500.
- A third-year student and beyond (60+ earned cumulative semester hours) may borrow up to $5,500.
- A Graduate student may borrow up to $8500.
Unsubsidized
Once the loan is disbursed, the borrower is responsible for the interest charges on the loan, including periods of deferment. This loan is awarded after financial need has been met and if the student is qualified.
For the 2008/2009 academic year:
- Undergraduate dependent students may borrow up to $2000.
- Undergraduate Independent first and second-year students (0-59 earned cumulative semester hours) may borrow up to $6000.
- Undergraduate Independent third-year student and beyond (60+ earned cumulative semester hours) may borrow up to $7000.
- Undergraduate dependent students whose parent was denied a plus may borrow an additional $4000 (freshman or sophomore) or $5000 (junior or senior)
- Graduate students may borrow up to $12000.
Stafford Aggregate Loan Limits (effective 7/1/2008)
Undergraduate Dependent Students: $31,500
(no more than $23,000 of which can be subsidized.)
Undergraduate Independent Students: $57,500
(no more than $23,000 of which can be subsidized.)
Graduate and Professional Students: $138,500
(no more than $65,500 of which can be subsidized.)
Parent Loan
PLUS loans are available to parents (or step-parents) or legal guardians of dependent students enrolled at least half-time in college. Eligibility is limited to the cost of attendance minus financial aid already awarded. Repayment normally begins within sixty days of full disbursement, but parents may request a forbearance according to lender policy. The current rate for the 2008-2009 academic year is 8.50% fixed. For this academic year (2008/2009) total fees of up to four percent (4%) may be deducted from the approved loan amount before disbursement. This includes a 1% federal default fee from the guaranty agency, and 3% origination fees from your lender which may be charged according to your lender's fee policy.
To be eligible to receive a FFELP PLUS, a parent generally will be required to pass a credit check. A parent cannot be turned down for not having credit history, only for having an adverse one. If a parent is denied for a FFELP PLUS, a dependent student automatically becomes eligible to borrow a FFELP Unsubsidized Loan. First and second year students (0 - 59 earned cumulative semester hours) may borrow up to $4,000. Third-year students and beyond (60+ earned cumulative semester hours) may borrow up to $5,000.
Preferred Lenders are the financial institutions with which Roberts Wesleyan College would prefer you borrow your Stafford or PLUS loans from for this and all future academic periods. These lenders have been selected for their exceptional service to students and their families, not only while in school, but also in repayment. Most offer special interest rate and repayment incentives to students who diligently work to repay their loans. You are not required to choose from this list. Please carefully select a lender that best suits your needs.
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Contact Information |
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831495 |
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www.bankofamerica.com
(800) 344-8382 |
Chase JP Morgan Chase Bank
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www.chasestudentloans.com
(800)487-4404 |
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www.studentloan.citibank.com (800)967-2400
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www.edamerica.net (800)337-1009 |
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www.key.com/borrowsmart
(800)539-5363 |
| Nelnet |
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833669 |
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ww.nelnet.com (800)866-7372 |
RBS Citizens Bank, NA |
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810240 |
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www.citizensbank.com (800)708-6684 |
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www.salliemae.com (800)272-5543 |
Wachovia |
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830005 |
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www.wachovia.com (877)689-0763 |
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Federal Perkins Loans
Federal Perkins Loans are loaned out by colleges to students with financial need. The federal government pays the interest while the student remains enrolled at least half-time. Repayment of the loan begins nine months after a student drops below half-time, withdraws, or graduates. The interest rate is five percent. Students may not choose to receive this loan instead of the FFELP. Before classes begin a student will need to sign a Perkins promissory note.
Employment Opportunities
Federal College Work Study (CWS) provides jobs for enrolled students with financial need which allows them to earn money to help pay college-related expenses. Most Federal CWS jobs pay minimum wage.
Note: Employment on campus and hours worked cannot be guaranteed.
Campus-based Aid
The Federal SEOG, Federal Perkins Loan, and Federal CWS are called campus-based programs because they are administered directly by the Office of Financial Aid.
How much aid a student receives from each of these programs depends on financial need and the availability of funds. Unlike the Federal Pell Grant and Federal Direct Loan programs, which provide funds to every eligible student, Roberts Wesleyan College receives a certain amount of funds for each campus-based program every year. When that money is gone, no more awards can be made from that program for that year.
Additional Note:
If a student (or student's family) has unusual circumstances, the Financial Aid Administrator should be notified. Examples include:
- tuition expenses at an elementary or secondary school
- unusual medical or dental expenses not covered by insurance
- a family member who recently became unemployed
- changes in income that affect a student's eligibility for federal financial aid
Roberts Wesleyan College is required by the U.S. Department of Education to check the accuracy of information for selected Student Aid Reports before Title IV funds (Federal Pell Grants, Federal SEOG Grants, Federal Direct Subsidized Loans, Federal Direct Unsubsidized Loans, Federal Perkins Loans, Federal College Work Study) can be disbursed to accounts. This process is called Verification. If you are selected for Verification, all information requested must be provided to confirm eligibility for the Federal funds that appear on your financial aid package.
Contact: Marcie Krause, Financial Aid Specialist (585) 594-6636
