Students May Refer to the Monroe Web Site for More Details

• The FAFSA (free application for federal student aid) must be completed in order to apply for federal financial aid programs including government guaranteed student loans. Students are advised to apply for a PIN at www.pin.ed.gov before beginning the FAFSA on the WEB application. Complete the FAFSA by going to www.fafsa.ed.gov and following the directions for the 2009-2010 year. Be sure to print the confirmation page and electronically copy and paste the page to your e-mail. Send the e-mail to sramos@monroecollege.edu.

• New York State Tuition Assistance Program (TAP) - For graduate students, awards may range from $75 to $550 per academic year. Students must register for 12 credits or more to be eligible for TAP awards.

Title IV Eligibility - Students must maintain both qualitative and quantitative standards of progress (SAP) to remain eligible for Title IV aid.

As of the Fall 2008 semester, Monroe College participates in both the Federal Family Educational Loan Program and the Federal Direct Lending Program.

Both loan programs are governed by the same regulations and have the same interest rates; however, in the FFELP program loan funds are provided by participating lending institutions. In the Direct Lending program, loan funds are coming from the Federal government. Both programs follow the same federal regulations, with the exception of Origination Fees.

• As of July 1, 2008, a net origination fee of .5% is deducted from each loan disbursement of a Direct Loan. This .5% net origination fee is a result of the Direct Loans instant rebate of 1.5% from the 2% fee required by law.

• If the student fails to make 12 monthly on-time payments during the first year of repayment, the amount of this rebate will be added back to the student's/parent's outstanding loan balance.

• Parents receive the same rebate against an origination fee of 4%.

• Federal Family Educational Loan Program (Title IV) The Federal Family Educational Loan Program is an entitlement program which enables eligible applicants to obtain student loans to meet their school related expenses. Federal regulations require that students must be matriculated, in good academic standing, and enrolled in a minimum of two classes. Students must complete a FAFSA application before applying for student loans. Before the loan process is completed, the student must also complete an Entrance Interview and a Master Promissory Note.

• Federal Subsidized Student Loan
  A Federal Subsidized Student Loan is a low-interest loan authorized by the federal government to help pay for students' college costs. The interest rate of 6.80% is established by the federal government. The federal government pays the interest due the lender while students are matriculated and enrolled at least half -time in college and until repayment of the loan begins six months after students graduate or withdraw from the college.

• Federal Unsubsidized Student Loan Program
  The Federal Unsubsidized Student Loan Program allows graduate students to borrow up to $12,000 per academic year. The terms for an unsubsidized loan are the same as for a subsidized loan except for the interest payment: the government does not pay the interest of 6.8% on unsubsidized loans. Students must pay all the interest that accrues on this loan during the time they are enrolled in school, during the grace period, and during periods of authorized deferment and forbearance.

• Loan Disbursements of FFELP Loans
  Loan disbursements may be reduced up to a 1% origination fee plus an additional 1% default fee charged by the guaranty agency. For first semester students, funds may not be disbursed earlier than 30 days from the beginning of the semester. Funds are disbursed for the Student Loan Program by the lender through the college.

• Graduate Plus Loan (FFELP)
  Federal Graduate Plus Loans are for Graduate/Professional students enrolled at least half-time in a matriculated program. This is not a need-based loan. Students may borrow up to the cost of attendance less any other financial aid received. Their is a minimal credit check. For loans disbursed on or after July 1st 2009, the interest rate is fixed at 8.50% in the FFELP program.

• Repayment of principal and interest begins within 60 days after the loan has been fully disbursed. There are options to postpone repayment of the Graduate PLUS Loan including periods during which students are enrolled in school.

Transfer students who already have FFELP loans are encouraged to remain with their current lending institution if possible.

Required Steps:

• Complete the FAFSA

• Complete Entrance Counseling on the Federal Direct Loan Website: http://www .dl.ed.gov/

• First time borrowers must complete a Master Promissory Note electronically using by a PIN by going to https://dlenote.ed.gov/ and go to Complete New MPN for Student Loans

• A Master Promissory Note may also be completed using paper, but the preferred method is electronic.

• The college may verify if a student already has a direct loan EMPN on the above web site.

The Federal Direct Subsidized Stafford Loan is a need- based loan administered by Monroe College through funding from the US Department of Education.

• The interest on the loan is paid by the federal government while the student remains in school at least half-time in a matriculated status.

The Federal Direct Unsubsidized Stafford Loan is administered by Monroe College through funding from the US Department of Education.

• The interest on the loan is NOT paid by the federal government while the student is in school.

• Interest will begin to accrue the day the loan is fully disbursed.

• The student has the option of paying this interest while in school or having the interest added to the principal balance of the loan when it enters repayment six months after the student leaves school.

Entrance and Exit Counseling for Direct Loan Borrowers

Entrance and Exit Interviews for Direct Lending can only be administered in two ways. The first and preferred option is the online method. Students will be directed to the Direct Lending web site at http://www.dl.ed,gov/ to complete the relevant online counseling session. Subsequently the College will be notified of the completion of the interviews and the inherent compliance of Federal Regulations as relating to Entrance and Exit Interviews. Students who are unable to complete the counseling sessions online may avail themselves of the alternative method of completing a paper form of interview. This option requires the counselor to provide the student with the Direct Lending Booklet for the appropriate counseling session. The student completes the last two pages of the booklet and returns them to the counselor. These two options are the only forms of counseling that is acceptable.

• Graduate Direct Plus Loan

Federal Graduate Direct Plus Loans are for Graduate/Professional students enrolled at least half-time in a matriculated program. Graduate students receive the same rebate of 1.5% this origination fee of 4%, which is deducted from the loan before it is disbursed.

• If the graduate fails to make 12 monthly on-time payments during the first year of repayment, the amount of this rebate will be added back to the student's/parent's outstanding loan balance.

This is not a need-based loan. Students may borrow up to the cost of attendance less any other financial aid received. There is a minimal credit check. For loans disbursed on or after July 1st 2008, the interest rate is fixed at 7.9%. Applicants for these loans are required to complete the FAFSA and must have applied for the maximum amount of subsidized and unsubsidized loans before applying for the Graduate Direct Plus Loan.

Graduate students may discuss this with a Monroe Loan Advocate. If the repayment is not deferred, it must begin 60 days after the loan is fully disbursed for that loan period.

Loan Limits for Both Ffelp and Direct Loans

PLEASE NOTE: It is Monroe College's policy to counsel students to keep their loan debt as low as possible even though they may be eligible to borrow larger amounts. The College believes in helping students develop sound financial planning skills and keeping loan debt as low as possible is key component of these skills.

AS of JULY 1, 2008, the loan limits for both FFELP and Direct Loans are as follows:

Graduate Students 

Students may go to www.dlenote.ed.gov to Additional Resources and then Budget Worksheet to determine what the repayment amount for their loans will be.

Monroe College has identified alternative lenders who have established a positive track record. Interest rates are variable for most alternative loans. Students should consider interest rates, fees, and customer services when seeking an alternative loan for their education. Comparison information is available on the Monroe Website.

Generally speaking, however, the best rates are secured by having a co¬signer and/or a superior credit rating. Students should resolve any outstanding credit issues before applying for an alternative loan.

Student Loan Policy and Practices/ Preferred Lenders/ Guarantee Agencies

Monroe College is devoted to providing its students and their families with the most vigorous level of support possible in assisting them in meeting their college expenses. Through Monroe's Student Financial Services Office assistance in applying for and securing educational grants, work study, college grants, and scholarships, loan services, payment plans and personal financial counseling is provided by a professional staff.

To provide the highest level of assistance and support for students, Monroe conducts exhaustive research to identify a range of financing options that offer highly competitive rates and choice of payment plans and benefits, customer service and convenience to our students.

For students contemplating student loans, a list of preferred lenders is developed annually to assist families in selecting the most effective and suitable lending options. This list may be obtained from the Financial Aid Office.

Although this list may prove to be a helpful tool, it should be noted that Monroe will certify a loan from ANY Title IV participating lender a student or parent chooses.

To be selected as a preferred lender, the lending institution must be solidly established and have a proven, reputable record of meeting student loan needs. Further, they must provide Monroe students with:

• Quality products and features with no hidden fees;

• Outstanding customer service;

• Quick responses to resolving any student's loan issues;

• A toll free customer service number;

• Electronic processing of loans;

• Dedicated account representatives.

In addition, prior to the beginning of each academic year, extensive documentation relative to these criteria is requested from a broad array of lending organizations. Those lending institutions which appear to most closely meet the above criteria are subsequently interviewed by the College's Loan Committee. Based on this data, the lending institutions which receive the highest rating by the college are placed on the preferred lenders list. An easy comparison outlining the features and benefits among them is developed and made available to students.

Monroe College Preferred Lender List

The college utilizes New York Higher State Education Services Corporation (HESC) as the primary guarantor. These loans are processed through the HESC electronic fund transfer system. Students, however, have the right to choose a guarantor other than HESC. In such cases, students must speak to their Financial Aid Counselor.

• Rights and Responsibilities of Federal Student Loan Borrowers - Student borrowers are not required to begin repayments as long as they remain enrolled at least half time and for six months after they cease to be at least half-time. This is known as the student's grace period.

• Repayment must begin after the grace period ends. However, payment of principal may further be deferred for certain categories, such as Public Health Service Officers, the temporarily disabled, those in internships required before entering a profession, full-time Peace Corps, VISTA or similar national volunteer programs, unemployment, and full time teachers in shortage areas.

• After ceasing to be at least a half-time student, the borrower must make formal arrangements with the lending institution to begin repayment.

• The following regulations apply:

  1. Depending on the amount of student loan, the minimum monthly payment will be $50 plus interest.

  2. Under extenuating circumstances, the lender, on request, may permit reduced payments.

  3. Repayment in whole or part may be made at any time without penalty.

  4. The maximum repayment period is twenty years.

  5. Loans may be consolidated, resulting in longer repayment terms and smaller monthly payments.

  6. Loans may be repaid according to their terms and conditions; missing payments can result in the loan being in default.

  7. Loan borrowers who are experiencing difficulties meeting their loan payments must notify their lending institution to determine the right steps to take to rectify the matter. Loan borrowers can also contact a loan advocate at the college to help resolve repayment issues.

• Loan borrowers who have concerns about any aspect of their loans should seek assistance from the Loan Advocate. If concerns remain, the Directors of Financial Aid are available to discuss any outstanding issues.

• Borrowers who continue to have unresolved issues can contact a Loan Ombudsman at 1-877-557-2575 or by Internet http://sfahelp.ed.gov/http//ombudsman.ed.gov or by mail to the Office of the Ombudsman, Student Financial Assistance, U.S. Department of Education, Room 30122, ROB#3, 7th and D Streets, S.W. Washington, D.C. 20202.

• Students may also access the NSLDS (National Student Loan Data System) web site, http://www.nslds.ed.gov to review information about their loans.