Federal Direct Student Loans Federal Direct Student Loans are loans available to eligible students to help pay for the cost of education. The lender is the U.S. Department of Education. Maximum loan limits, set by federal law are applied based upon the student’s yearly progress at the university as well as household income. A student may be eligible for one or both varieties of student loans. Repayment generally begins six months after the student has graduated, left school or dropped below a half-time enrollment status. There are two types of Federal Direct Student Loans: • Subsidized–Awards are based on financial need. Student borrowers are not required to pay the interest that accrues while enrolled in school. The federal government pays the interest on subsidized loans for students that are enrolled at least half- time as well as during the first six months of the grace period. Subsidized loans are limited to 150% of the length of a student’s academic program. Graduate students are not eligible for subsidized loans. • Unsubsidized-Awards are not based on financial need. Student borrowers are charged interest while in school but may choose to have the interest payment deferred while in school. If the student borrower selects to defer interest payments while in school, at repayment, the amount owed will be increased by the interest that has accrued. If the student borrower chooses to pay the interest while in school, the borrower will need to contact their student loan servicer to set up payment arrangements. Direct PLUS Loans (Parent and Graduate) Direct PLUS Loans are part of the federal Direct Loan Program. Unlike most other federal student loans, PLUS Loans are not awarded when you apply for financial aid. Graduate/ professional students (Grad PLUS Loan)
and parents of undergraduates (PLUS Loan) apply separately for the PLUS (in addition to completing a FAFSA) if they need additional funds to cover college costs. Eligibility is not based on financial need, and graduate students and parents of undergraduates may borrow up to the amount of the student’s Cost of Attendance, minus any other financial assistance a student receives. Federal Work-Study Program Federal Work-Study (FWS) is a need-based, federal financial aid program that provides part-time employment to students needing financial assistance, as well as encouraging recipients to participate in community service activities. Additionally, by providing a wide range of employment opportunities, FWS helps students gain work experience that complements and reinforces their educational and career objectives. Under this program, funds are administered according to regulations and guidelines established by the Congress of the United States and the Department of Education. To ensure that Hodges University remains in compliance with federal regulations, updated guidelines have been established. A student must first qualify for FWS funds. To determine eligibility, students must complete a FAFSA. A Work-Study student can be assigned to any department in accordance with the guidelines provided by the Office of Financial Aid. Work-Study students may have access to student records as approved by their supervisors, but are not permitted to attend employee meetings or functions. Work-Study students are to be provided with guidelines from the Office of Financial Aid as well as from their supervisors so that their duties and responsibilities are clearly understood. Students are compensated through financial aid funds as determined by the Office of Financial Aid and timesheets are processed through the payroll office and are monitored by the Office of Financial Aid to determine continued eligibility for the program.
66
Hodges University Student Handbook
Made with FlippingBook Ebook Creator