Financial need is determined by a
formula applied to all applicants. It
was developed by the U.S. Department of
Education and is reviewed annually by
Congress. The Expected Family
Contribution (EFC) is calculated by this
formula.
Award payments made by checks are
mailed to the student's address on file
with the Financial Aid Office. Payment
Schedules are also available in the
office of Student Financial Services.
Students must attempt 24 credits
during the academic year in order to
earn the full Federal Pell award.
Therefore, enrollment status for Federal
Pell will be as follows:
Full-time 12 credits (or equivalent); 3/4
time 9 through 11.5 credits (or equivalent); 1/2
time 6 through 8.5 credits (or equivalent); and
less than half time 1.0 through 5.5 credits (or
equivalent).
Under a rehabilitation program,
collection costs charged to a borrower
may not exceed 24% of the unpaid
principal and accrued interest.
Pre-loan counseling will give you the
opportunity to review the terms of your
loan and your rights and
responsibilities once you have received
the loan.
8.50% for Federal Plus Loan
General information
about Direct Loan interest rates
Loans, disbursed under the
William D. Ford Federal Direct Loan Program,
have either a fixed or a variable interest rate,
depending on when the loan was first disbursed
All Direct Subsidized,
Direct Unsubsidized, and Direct PLUS loans first
disbursed on or after July 1, 2006 have a fixed
interest rate for the life of the loan.
The interest rate for
Direct Subsidized Loans for graduate borrowers
and Unsubsidized Loans for graduate and
undergraduate borrowers first disbursed on or
after July 1, 2006 is 6.8%.
Interest rates for Direct
Subsidized Loans for undergraduate borrowers
have a fixed interest rate as follows:
If first disbursed on or
after July 1, 2006 and prior to July 1, 2008 -
6.8%.
If first disbursed on or
after July 1, 2008 and prior to July 1, 2009 -
6.0%.
If first disbursed on or
after July 1, 2009 and prior to July 1, 2010 -
5.6%.
If first disbursed on or
after July 1, 2010 and prior to July 1, 2011 -
4.5%.
If first disbursed on or
after July 1, 2011 and prior to July 1, 2012 -
3.4%.
If first disbursed on or
after July 1, 2012 - 6.8%.
The interest rate for
Direct PLUS loans first disbursed on or after
July 1, 2006 is 7.9%.
All Direct Subsidized,
Direct Unsubsidized, and Direct PLUS loans first
disbursed before July 1, 2006 have a variable
interest rate. The interest rate on these
variable rate loans is changed on July 1st of
each year.
The interest rate on Direct
Subsidized and Direct Unsubsidized Loans is
determined using the 91-day Treasury bill rate
that was auctioned before June 1st and adding a
certain fixed percentage to it.
The interest rate on Direct
PLUS Loans is determined by using either the
weekly average of the 1-year constant maturity
yield published by the Federal Reserve on or
before June 26 or the 91-day Treasury bill rate
that was auctioned before June 1st.
Direct PLUS Loans that were
disbursed before July 1, 1998 use the weekly
average of the 1-year constant maturity yield.
Direct PLUS Loans that were
disbursed on or after July 1, 1998 use the
91-day Treasury bill rate.
Consolidation Loans
disbursed under the Direct Loan Program can have
either a fixed or variable interest rate
depending on when the application was received.
The amount of interest that
accrues on your loan from month to month is
determined by using what is called the Simple
Daily Interest formula. This method is a simple
formula that multiplies your loan balance by the
number of days since the last payment times the
Interest Rate Factor. The Interest Rate Factor
is determined by dividing your interest rate by
the number of days in a year (365.25).
Application Procedures:
Application is made through the
office of Student Financial
Services by completing a
Loan Origination Request Form. The
applicant is required to first file and
receive a response from a FAFSA.
A counseling session and, the
completion of a Direct Loan Entrance
Interview Quiz are required. When the
loan is approved, a promissory note is
signed by the student.
( The Direct Loan Entrance Counseling
Quiz can be completed on the internet at
Entrance
Counseling for Borrowers ) follow by
an online master promissory note at
http://dlenote.ed.gov
(A Student loan Ombudsman office is
available for assistance with loan
problems at 1-877-557-2575 or
http://ombudsman.ed.gov
)
Selection of Recipients and
Allocation of Awards: To be
eligible for a Federal Direct Loan, a
student must be:
- a U.S. Citizen or permanent resident
alien.
- enrolled in or admitted as a
matriculated, at least half-time in
their current session, six (6)credits or tuition units.
Loan Schedule: The loan
amounts vary and are based on class
year: for example, $3,500.00 during the
student's freshman year, $4,500.00
during the sophomore year, etc. All
students are eligible to receive
interest benefits on their loans unless
they choose to waive them. Some students
are eligible for a full interest subsidy
on a subsidized loan during the time He/She is enrolled in school at least
half-time, and for a following six month
grace period before repayment must
begin. An "Origination Fee" of
3% of the loan amount is subtracted in
full at the time the check is issued.
Rights and Responsibilities
for Recipients: Students may
borrow at a relatively low interest rate
(currently 2.77%) with no repayment as
long as they remain enrolled at least
half-time, and for six months after they
cease to be at least a half-time
students. Payment of the principal may
further be deferred during study under a
graduate fellowship program approved by
the U.S. Commissioner of Education,
during up to three years as a full-time
Peace Corps or VISTA or similar national
program volunteer.
Six months after ceasing to be at
least a half-time student, the borrower
must make formal arrangements with the
loan service to begin repayment. The
following regulations apply:
- Depending on the amount of the loan,
the minimum monthly payment may be at
least $50.00 plus
interest. Under unusual and extenuating
circumstances the loan service, on
request, may permit
reduced payments.
- The repayment period varies and is
dependent upon the repayment plan
chosen. For example,
the Standard Repayment Plan has a
maximum period of ten years, and the
Income Contingent
Payment Plan has a maximum period of 25
years.
- Repayment in whole or part may be made
at any time without penalty.
Federal Direct Loan for Undergraduate
Students (FDPLUS)
Enables either natural or
adoptive parents of dependent
undergraduate students to borrow per
child up to the cost of education, for
each academic year at federally approved
schools. The amount borrowed in any year
cannot be greater than the cost of going
to school during that year, minus all
other financial aid received for the
period of the loan. Costs that may be
covered include tuition and fees, room
and board, books, transportation, and an
allowance for personal expenses. FDPLUS
loans for which the first disbursement
was made on or after July 1, 1993 have
no aggregate loan limit. Interest rates
are variable and change every July 1st.
Repayment of the loan must begin
within 60 days after the date funds are
distributed. Borrowers have 10 years to
repay. The loan servicer may charge an
Insurance Premium of up to 4% on the
loan principal. This premium is deducted
from each loan disbursement. Application
is made through the office of Student
Financial Services
by completing a Loan Origination Request
Form. Parents will be eligible for the
same authorized deferments described in
the Federal Direct Loan Program.
Academic Requirements for Federal Aid (Title IV)
Federal regulations stipulate that a
student at LaGuardia Community College
may remain eligible to receive Title IV
assistance upon achieving at least a
"C" average, or its equivalent
according to the College’s retention
policy, and accumulating credits towards
the degree according to the following
standards:
1) a student's
earned credits are equal to or greater
than
two-thirds of the credits the student
has attempted
at the institution;
2) the credits a
student has attempted are not more than
150 % of the credits normally required
for completion
of the degree. If the standard in:
If 1) and 2) are not met, eligibility
may be retained by
meeting the following conditional
standard.
the credits the student has earned
are equal to or greater than .875 of the
total amount of credits attempted minus
21.
Students who fail to meet the
conditional status will lose Title IV
eligibility. They may file a Financial
Aid Waiver Appeal through the Academic
Standing Committee. The decision of the
committee is final.
Special Value Courses:
To be eligible to receive Title IV, you
must, according to Federal guidelines,
be "making significant progress
toward your degree", meaning that
you must be earning credits at a
sufficient rate. The federal guidelines
for achieving full-time status in a
semester do allow you to include, along
with credits, the tuition units of the
"special value" courses, but
there is a limit: after you have
registered (and received Title IV money)
for thirty or more "special
value" tuition units, Title IV
programs will not pay for any additional
"special value" courses. For
example, if you register for Basic
Writing 099 and Math 095, those two
courses count for a total of 10.0
"special value" tuition units.
If those units are used in calculating
your Title IV award for the semester,
you will have 20.0 "special
value" tuition units remaining in
your account.
If, however, you register for other,
"non-special value" courses
which make you full-time without using
the "special value" tuition
units, you would still have 30
"special value" tuition units
in your account.
Once you have used up your 30
"special value" tuition units,
you can only receive Title IV money for
"non-special value" courses.
Any future awards will be based on the
credit values of regular courses only.
It is therefore to your advantage to try
to take "special value"
courses along with regular courses, if
you have met the prerequisites.
Note: Although ESL
courses are listed as "special
value" courses, those courses do
not count toward the Title IV maximum.
Probation: Students
who do not meet the college's minimum
grade point average (GPA) will be placed
on academic probation. They will be
given one semester to achieve the
minimum grade point average. During the
probationary period students who make
satisfactory academic progress will
continue to maintain their academic
standing with the college and their
concurrent eligibility for financial
aid.
Additional Regulations:
For Federal Pell awards, students under
24 years old as of January 1st must
prove their independence if they claim
to be independent of their parents. They
must also have unusual circumstances
which must be documented.
Students are reminded that attendance
is a requirement for receiving financial
aid. Failure to attend classes could
result in a reduction or loss of
financial aid. If students charge
tuition and/or books and attend classes,
they are still liable for the costs and
will be billed accordingly.
Permanent residents who have not had
their status confirmed by INS/DOH must also
submit a copy of their permanent
resident card. Students who have an
I-94, with the following endorsements,
are no longer eligible for Title IV Aid:
a) Adjusted Applicant, b) 245 c) 245
Applicant, d) Applicant for Permanent
Residence, e) Voluntary Departure, and
f) Deferred Action.
Total Withdrawals and The Return of Title IV
Funds:
The Higher Education Act of 1965 as
amended in 1998 (Public Law 105-244)
revised the rules to return Title IV
funds (e.g. federal Pell ) for students
who completely withdraw from a term of
enrollment. The new rules in
effect since Fall 2000 assume that students
earn their Financial Aid based on the
period of time they remain enrolled.
During the first 60% of the term,
students earn Title IV funds in
proportion to the time they are
enrolled. If a student received more aid
than he/she earned, the unearned portion
must be returned to the Department of
Education. If a student received less
aid than the amount earned he/she may be
eligible for a late disbursement.
The portion of aid the student is
entitled to receive is based on a
percentage by comparing the total number
of days in the semester to the number of
days completed before the withdrawal.
For example if you completed 20% of the
semester, you would have earned 20% of
your Title IV aid. If you received 100%
of your Title IV aid you would have to
return the unearned portion. The
regulation stipulates that the amount to
be returned is to shared by the college
and the student in proportion to the aid
that each possessed. The college's share
of the excess funds is the lesser of:
- the total amount of unearned aid or,
- institutional charges multiplied by
the percentage of aid that was unearned.
The college's share is allocated to the
Title IV programs as determined by
statute. The student's share is the
difference between the total unearned
amount and the college's share. This is
also allocated to the Title IV programs
as determined by statute. The law
provides that any amount that the
student returns to a grant program be
reduced by half. The amount to be
returned is also considered an
overpayment and must be returned within
30 days to the Department of Education.
If the student does not repay the
overpayment in full or make a
satisfactory payment arrangement within
45 days from the date of notification,
the student will become ineligible for
future Title IV funds.
Students who remain enrolled beyond
the 60% point of the term are considered
to have earned all their aid and do not
have to return any Title IV funds.
Effects of Withdrawing on your Title IV Aid:
Federal Pell Grant - If
you withdraw from one or more of your
classes after the first day of classes
but before the official withdrawal date
listed in the schedule of classes and
remain with at least 1.0 tuition unit
through 5.5 tuition units, the amount of
Pell funds you receive for the session
will be reduced. If this amount is less
than the amount you charged or credited
towards tuition/fees and a book voucher,
you will immediately have to pay the
difference to the Bursar's Office.
Federal Supplemental
Educational Opportunity Grant (FSEOG),
Federal Perkins Loan (FPL), Federal Work
Study (FWS) -If the class or
classes you withdraw from by the
official withdrawal date reduce (s) your
enrollment status to less than half-time
status (as described in the Schedule of
Classes) you will not receive any funds
for the session from these programs. If
you work in the Federal Work Study
Program, you must stop working the day
you withdraw-officially or unofficially
- to below half-time status.
Federal Direct Loan Program (FDL)
- You must maintain at least a
half-time enrollment status (as
described in the Schedule of Classes)
throughout the semester, otherwise you
are not eligible for funds from the
above loan programs. If you drop to less
- than a half -time status, you
immediately start using your grace
period and must contact your loan
service for an Exit Interview and
repayment information.
Use the following examples to help
determine your eligibility for Financial
Aid.
Example I. Withdrawing
from all classes.
Student originally registers as a
full-time student. After the last day of
the tuition refund period, the student
withdraws from all of the classes.
Students is currently receiving payment
#2 from TAP.
Title lV Aid-Pell Grant -
During
the first 60% of the term your award
will be pro-rated based on the number of
days completed before the withdrawal.
FSEOG, FPL, FWS, FDL -
Same as Pell Grant.
College Discovery - not
eligible for C.D. funds because student
withdrew from all classes and dropped
below full-time status.
TAP
- will pay for the
session from which all classes have been
withdrawn since it is after the last day
of the tuition refund period. The
student will be seeking TAP payment #3
when the student returns the following
semester.
In order to receive TAP payment (#3),
the student would have to have earned 9
credits or more, have a GPA of at least
0.75 and complete 50% of the courses in
the semester the student received TAP in
the prior term.
Therefore, since the student withdrew
from all classes and did not complete
50% of the courses in the semester for
which the student received TAP
payment #2, the student would not be eligible for TAP payment #3. (See Progress and Pursuit
Chart.)
Example II. Withdrawing
From One Class After the Last Day of the
Tuition Refund Period.
Student originally registers as a
full-time student and withdraws from a
class after the last day of the tuition
refund period. The student becomes 3/4
time with 9 credits/9 tuition units.
Student is currently receiving payment
#3 from TAP.
Title IV Aid - Pell
Grant would be reduced from full-time to
3/4 - time payment. If Session II brings
student back up to full-time, remaining
payment then could be received.
FSEOG, FPL, FWS, FDL -
would remain okay to pay.
College Discovery -
not eligible for C.D. funds because
student dropped below full-time status.
If Session II brings student back up to
full-time, payment then could be
received.
TAP - will pay for the
semester since it is after the last day
of the tuition refund period. When the
student returns he or she will be seeking TAP payment #4
the following
semester.
In order to receive TAP payment (#4), the
student would have to have18 credits or more
and with GPA of at least 1.30 and complete
75% or 9 credits.
(See Progress and Pursuit Chart).
Federal
Programs