Issue link: https://www.e-digitaleditions.com/i/1149806
32 Subsidized Loan Eligible students who meet the federal definition of "need" may receive Subsidized loans, whereby the federal government pays interest on the loan until the student enters repayment. No interest is charged as long as the student is enrolled at least half-time and during deferment periods. Unsubsidized Loan Students who are otherwise eligible for loan, but who do not qualify for the Subsidized loan, may receive Unsubsidized loans. Interest immediately begins accruing on the Unsubsidized loan and the student will be responsible for the interest from the moment the loan is disbursed until it is paid in full. Effective July 1, 2013 (for all students who receive loans for the first time), the Federal Direct Subsidized Loan has a maximum period of time that they will be eligible for the interest subsidy. This period of time cannot exceed 150% of the published length of the student's program or three years, whichever is less. Additionally, this timeframe is cumulative and will carry over when students change their programs of study. If students continue enrollment after receiving subsidized loans for their maximum eligibility period, they will lose eligibility for additional subsidized loans. Furthermore, their prior subsidized loans will begin accruing interest like the Federal Direct Unsubsidized loan. Treatment of Title IV Aid when a Student Withdraws The law specifies how your school must determine the amount of Title IV program assistance that you earn if you withdraw from school. The Title IV programs that are covered by this law are the following: Federal Pell Grants, National SMART grants, TEACH grants, Stafford Loans, PLUS Loans, Federal Supplemental Educational Opportunity Grants (FSEOGs), and Federal Perkins Loans. When you withdraw during your payment period or period of enrollment (you may contact the Financial Aid office to define these for you and tell you which one applies; the amount of Title IV program assistance that you have earned up to that point is determined by a specific formula. If you received (or your school or parent received on your behalf) less assistance than the amount that you earned, you may be able to receive those additional funds. If you received more assistance than you earned, the excess funds must be returned by the school and/or you. The amount of assistance that you have earned is determined on a pro-rata basis. For example, if you completed 30% of your payment period or period of enrollment, you earn 30% of the assistance you were originally scheduled to receive. Once you have completed more than 60% of the payment period or period of enrollment, you earn all the assistance that you were scheduled to receive for that period. If you did not receive all of the funds that you earned, you may be due a post-withdrawal disbursement. If your post- withdrawal disbursement includes loan funds, your school must get your permission before it can disburse them. You may choose to decline some or all of the loan funds so that you don't incur additional debt. Your school may automatically use all or a portion of your post-withdrawal disbursement of grant funds for tuition, fees, and room and board charges (as contracted with the school). The school needs your permission to use the post-withdrawal grant disbursement for all other school charges. If you do not give your permission, you will be offered the funds. However, it may be in your best interest to allow the school to keep the funds to reduce your debt at the school. There are some Title IV funds that you were scheduled to receive that cannot be disbursed to you once you withdraw because of other eligibility requirements. For example, if you are a first-time, first-year undergraduate student and you have not completed the first thirty (30) days of your program before you withdraw, you will not receive any FFEL or Direct Loan funds that you would have received had you remained enrolled past the 30th day. If you receive (or your school) excess Title IV program funds that must be returned, your school must return a portion of the excess equal to the lesser of the following: 1. Your institutional charges multiplied by the unearned percentage of your funds, OR 2. The entire amount of excess funds. The school must return this amount even if it did not keep this amount of your Title IV program funds. If your school is not required to return all of the excess funds, you must return the remaining amount. Any loan funds that you must return, you (or your parent) for a PLUS Loan repay, in accordance with the terms of the promissory note, that is, you make scheduled payments to the holder of the loan over a period of time. Any amount of unearned grant funds that you must return is called an overpayment. The maximum amount of a grant overpayment that you must repay is Student Services 2019-2020