Office of Student Financial Aid
 
 
TO:
Financial Aid Recipients
FROM:
Office of Student Financial Aid
SUBJECT:
How to Secure Your Financial Aid
DATE:
June 4, 2004 (Revised)
  
1.0
Please read the attached “Fact Sheet Federal and State Aid”, most of your questions about the delivery of aid will be answered.
 
2.0
Award letter – This is an offer of aid. You may cancel or decline any piece of aid that you and/or your parent(s) do not want to accept. Following the philosophy of the U. S. Congress in authorizing the Title IV Federal Student Aid Programs: they are designed to assist the student and his/her spouse or the student and his/her parent(s) in meeting the cost of the education. These programs offer assistance, but do not replace the efforts of the student, spouse and/or parent(s) in meeting the cost of the education.
3.0
Award letter – Sign one copy and return it to the Office of Student Financial Aid, keep one copy for your records.
 
4.0
Promissory Notes for Loans – Read the form completely. Provide the required data; sign, date and return two Promissory Notes to the College (complete both copies the same way); keep one copy for your records. The Master Promissory note is designed by the U. S. Department of Education to cover multiple enrollment periods. If you have had a loan before, the award letter may not include new Promissory Notes.
 
5.0
Work-Study – Read the Work-Study assignment Sheet, if enclosed. This is where you have been assigned to work. Money to pay for work done on the Federal Work-Study Program has been provided to the assigned site. The office assumes no responsibility under Federal Regulations to pay you for working somewhere other than where you have been assigned. Funds to pay for the job assigned will be at the assigned site and cannot be transferred. You cannot earn more than the award letter states that you can earn for each semester.
 
6.0
State Grant – (Alabama residents only) An Alabama Student Grant application form may be enclosed. If you have not already filed, you must complete the form and supply the required documentation (this aid is only good for the Fall and/or Spring Semesters). If you fail to provide five documents as proof of Alabama Residency as required, you will not qualify for State Grant Aid.
 
7.0
A Financial Aid Award Disbursement Schedule is enclosed, which states when Federal Work-Study checks can be secured and when refunds are paid from other programs.
 
8.0
Return the data to the:
Office of Student Financial Aid
Miles College
P. O. Box 3800
Birmingham, AL 35208
 
9.0
Contact the office if you should have questions at (205) 929-1665 or call your case manager/counselor. Case Managers are assigned based upon the first (1st) alphabet in your last name.

A – G – (205) 929-1667
H – O – (205) 929-1569
P – Z – (205) 929-1664
 
10.0
Other Contacts
Director of Student Financial Aid                              (205) 929-1665
Coordinator of Federal Work Study                          (205) 929-1513
Loan Default Aversions Coordinator                         (205) 929-1661
Quality Assurance/Data Processing                          (205) 929-1513
Student Grants & Scholarships                                (205) 929-1414

Fact Sheet Federal, State, and Institutional Aid

This sheet provides limited data about the awards being offered to you for the purpose of meeting your educational cost. Please remember that Federal and State Aid funds are to be used to meet your educational expenses. You can reference additional data about Student Financial Aid in the Student Guide, a publication of the U. S. Department of Education and in the Miles College Catalog.

1.0

Federal Aid

1.1

Federal Pell Grant – This grant unlike a loan does not have to be repaid. A Federal Pell Grant is awarded only to undergraduate students who have not earned a Bachelor’s or Graduate degree. The Program can be referenced in the Code of Federal Regulations as CFR690.

1.2

Federal Supplemental Educational Opportunity Grant – This grant unlike a loan does not have to be repaid. Federal SEOG(s) are awarded to undergraduate students with exceptional financial need – that is students with the lowest EFC (Expected Family Contribution) and gives priority to students who receive Federal Pell Grants. (The Program can be referenced in the Code of Federal Regulations as CFR676).

1.3

Federal Work-Study Program – This program provides jobs for undergraduates and graduate students with financial need, allowing them to earn money to help pay educational expenses. The program encourages community service work and work related to your course of study. (The Program can be reference in the Code of Federal Regulations as CFR675.)

1.4

Federal Perkins Loan – This program is a low interest loan for both undergraduate and graduate students with exceptional financial need. The college is the lender. The loan is made with government funds with a share contributed by the College. You must repay the loan to the College. Do not accept this loan if you have reservations about the repayment process. (The Program can be referenced in the Code of Federal Regulations as CFR674.)

1.5

William D. Ford Federal Direct Student Loan:
1.5.1 Federal Direct Stafford Loan – The programs covered under this title represent one of the two major forms of self-help aid. Direct Loans are either subsidized or unsubsidized. It is possible to receive a subsidized loan and an unsubsidized loan for the same enrollment period. A subsidized loan is awarded on the basis of financial need. An unsubsidized loan is not awarded on the basis of need. You will be charged interest from the time the unsubsidized loan is disbursed until it is paid in full. The amount of money you can borrow will depend upon the number of academic hours you have earned. This is a loan and it must be repaid. Do not accept this loan, if you have reservations about the repayment process. (The Program can be referenced in the Code of Federal Regulations as CFR685.)
1.5.2 Federal Direct PLUS (Parent) Loan – The program permits parents with good credit histories to borrow the money to pay the educational expenses of each child who is a dependent undergraduate student enrolled at least half-time. To qualify your parent must pass a credit check, which will be performed by the U. S. Department of Education. This is a loan, which the parent borrower, if approved, must pay back. Repayment begins 60 days after the final disbursement is made for each academic year. (The Program can be referenced in the Code of Federal Regulations as CFR685.) Definition of Parent: A student’s biological or adoptive mother or father or the student’s stepparent, if the biological parent or adoptive parent has remarried at the time of application. Please note that legal guardians are not eligible to borrow plus loans [Ref 34CFR 668.2].
2.0
State Aid

2.1

Alabama Student Grant Program – These funds are awarded to documented residents of the State of Alabama. Funds are designed to assist residents in meeting educational cost. To secure aid, you must apply, and reapply each year that aid is needed. The State of Alabama provides the application form and determines the size of each award. (The Program can be referenced as Chapter 300-4-3).

2.2

Alabama Student Assistance Program/Leveraging Educational Assistance Partnership Program (LEAP) – The goal of the Alabama Student Assistance Program is to provide financial assistance to residents of the State of Alabama for Post Secondary Education in the State of Alabama. The Alabama Student Assistance Program is administered in accordance with Policies and Procedures established by the Alabama Commission on Higher Education. (The Program can be referenced as Chapter 300-4-2.)
3.0
Other Beneficial Facts:

3.1

Satisfactory Academic Progress – All recipients of Federal and State aid must meet the Standards of Measurable Academic Progress. The law requires you to pass a specific number of hours, maintain a specific G.P.A. (Grade Point Average) and not be in pursuit of a degree for more than 1.5 percent of the degree requirements stated in the Miles College Catalog on pages 34 and 35 and in the Code of Federal Regulations as CFR668 Sections 668.16 and 668.34.

3.2

Withdrawals – The law requires that when you withdraw during a payment period or period of enrolment, the amount of student financial assistance that you have earned up to that point is determined by a formula. If you receive more assistance than you earned, the excess funds must be returned to the Federal Program. The amount of assistance is determined on a prorated basis. To earn all of your Federal aid, you must not withdraw, drop out or quit before completing 60% of the semester in which you are enrolled. (The Program can be referenced in the Code of Federal Regulations as CFR668.22, also Public Law 105-244).
4.0
What is the roll of Federal/State Financial Aid and definition of terms ?

4.1

Remember that Federal and State sources of aid are designed to assist the student and his/her parent(s) in meeting the cost of the education (Reference The Student Guide, Financial Need, page 8).

4.2

Financial need is determined by the U. S. Department of Education (The Federal Need Analysis Methodology). The role of the Financial Aid Director is to put together a financial aid package that comes as close as possible to meeting your need. However, because funds are limited, the amount awarded to you though Federal and State Programs may fall short of the amount for which you are eligible. (Reference The Student Guide, Page 8, [Financial Need])

4.3

The Dependency status of a student is determined by Federal Regulations, not the College. You must meet the Federal definition to be considered as an Independent student (Reference page 8 of The Student Guide – “Dependency Status” for the definition or you can locate the definition in the FAFSA ([Free Application for Federal Student Aid]).

4.4

If you have special circumstances, which you want to bring to the attention of the Financial Aid Office (e.g. Parent has lost his/her job, student who is independent has lost his/her job, parent is ill for an extended period of time, parent is incarcerated or is otherwise unable to provide assistance) you must be able to provide documentation to support the condition. Check with the Financial Aid Office to find out what documentation will be needed.
5.0
How are awards paid to recipients?

5.1

Federal Aid – The following Federal Aid sources are applied directly to your account. If excess cash exist (more than is needed to meet your cost) it will either be given to you as a refund or returned to the Federal Government:
5.1.1 Federal Pell Grants
5.1.2 Federal Direct Stafford and Federal Direct PLUS (Parent) Loans
5.1.3 Federal Supplemental Educational Opportunity Grants (SEOG)
5.1.4 Federal Perkins Loans
5.2
Federal Aid - The following Federal Aid source is applied as follows:
5.2.1 Federal Work-Study – Generally, work-study funds are paid directly to the recipient and can be used by the student to meet other educational cost. At times, due to a limited amount of funds, other aid will not cover all of your cost; you will be given the option to authorize the college to use Federal College Work-Study earnings to help you meet those cost not covered by loans, grants, or other aid. [Ref. 34CFR 675.16 and CFR 675.16(a)(4)(i)]
5.3
State Aid
5.3.1 Alabama Student Grants are applied directly to your account. Any excess funds will be returned as a refund.
5.3.2 Alabama Student Assistance Program/Leveraging Educational Assistance Partnership (LEAP) funds are applied directly to your account. Any excess funds will be returned as a refund.

5.4

Institutional Aid (e.g. Academic Scholarships, Performance Grant-in-Aid awards, Athletic Grant-in-Aid awards and others). This aid will be applied against your account. These programs do not generate any excess cash and no refund should be anticipated. (See the Miles College Catalog, pages 28 and 29).

6.0

Resolution of concerns you may have about your aid.

6.1

Matters regarding refunds, or the status of your account must be discussed with the Business Office.

6.2

Matters regarding the delivery of Federal and State Aid must be discussed with the Financial Aid Office.

6.3

Matters regarding Academic Scholarships, Performance Grant-in–Aid awards and Athletic Grant-in-Aid awards must be discussed with the Administrator who authorized the award (e.g. Scholarship Chairman, Athletic Coach, Band/Choir Directors).

7.0

All recipients of Federal Loans must attend a Pre-Loan Counseling session before the loan is disbursed. (e.g. Federal Perkins Loans, Federal Stafford Loans) (Reference CFR668 Section 668.164 Disbursing Funds).

8.0

Recipients of William D. Ford Federal Direct Stafford Loans who are first time borrowers must wait 31 days after the first day of class before any loan money can be applied to their account. If you are not enrolled at the conclusion of the 30 days (from 1ST day of class through the next 30 days) you will not be eligible to receive the loan. This could result in your having to pay any remaining funds due the college from personal funds (Reference CFR668 Section 668-164 Disbursing Funds). Please also review 3.2 Withdrawals (Under “Fact Sheet Federal, State, and Institutional Aid”).

9.0

Please review the attached calendar, which will provide data about when work-study earnings and Federal Student loan refunds will be issued.
 
Again, you can reference the College’s Catalog and/or the Student Guide (a Publication of the U.S. Department of Education) for additional information. You may also call the Office at (205) 929-1665 or visit Bell Hall on the Miles College Campus to secure information directly from the Office of Student Financial Aid.
 
FEDERAL FINANCIAL AID DISBURSEMENT SCHEDULE
2004-2005 Academic Year
   
1.0 Type of Aid:
   
1.1
Federal Pell Grant, SEOG (Federal Supplemental Educational Opportunity Grant(s), Federal Perkins Loan, Federal Stanford Subsidized/Unsubsidized Loan(s), Federal PLUS (Parent) Loans, Alabama Student Grant, SSIG (Leveraging Educational Assistance Partnership Program) funds.
Semester
Start of Refund Disbursements
Frequency of Disbursements
Disbursement Location
Fall
August 27, 2004
Every Friday thereafter until all disbursements have been made.
Checks will be mailed to your local address.
Spring
January 29, 2004
Summer
June 10, 2005

2.0
Federal Work-Study Program
     
  2.1 Federal Work-Study/Work Cycle Payment Cycle
   
2.1.1 July August 11, 2004
21.2 August September 10, 2004
2.1.3 September October 10, 2004
2.1.4 October November 10, 2004
2.1.5 November December 10, 2004
2.1.6 December January 12, 2004
2.1.7 January February 10, 2004
2.1.8 February March 10, 2004
2.1.9 March April 12, 2004
2.1.10 April May 10, 2004
2.1.11 May June 10, 2004
2.1.12 June July 12, 2004
     
3.0
DISBURSEMENTS TO ALL FIRST TIME BORROWERS OF ROBERT T. STAFFORD SUBSIDIZED/UNSUBSIDIZED LOANS (PER REGULATIONS OF THE U. S. DEPARTMENT OF EDUCATION) ARE AS FOLLOWS:
3.1 Fall Semester 2004…………………....September 15, 2004
3.2 Spring Semester 2005……………..…...February 17, 2004
3.3 Summer Session 2005………………..June 30, 2005
3.4 Will continue each Friday thereafter until all disbursements have been made
   

4.0

Please review your award letter for information regarding the type(s) of loans you have received (e.g. Stafford Subsidized, Stafford Unsubsidized, Federal PLUS (Parent), or Federal Perkins Loans).

5.0

The U.S. Department of Education will provide you with a disclosure statement, which will tell you about the fees you have paid in order to receive the loan (e.g. net amount minus loans fees equals gross loan received).

6.0

You and/or your parent’s may decide that you/they do not want the loan. In this case the loan can be canceled. If you want to cancel the loan, you must tell the college in writing not later than 14 days after you have been notified that the loan has been applied to your account (the student’s account).

7.0

To be eligible to receive financial aid, you must carry a minimum of six (6) hours. One exception is the Federal Pell Grant Program where award size is based upon your enrollment as either a full-time, three quarter time or half-time enrolled student. The Federal Campus-Based programs also permit awards at reduced budgets for students carrying less than 6 hours per semester/session.

8.0

If you do not want to receive as much loan as has been awarded, you must notify the office in writing of the amount of the adjustment you want to have made. The office will then adjust the loan downward and provide you with a revised award amount and a revised award letter.

9.0

Please feel free to contact the office with any other concerns, which you may have regarding the Federal and State Student Financial Aid Programs. Please reference 6.0 (Under “Fact Sheet Federal, State, and Institutional Aid”) for other persons you may need to contact to help with non Federal/State Financial Aid matters.