Federal Financial Aid
 
To make college more affordable, the federal government offers a variety of need-based grants and loans for qualified students.

Monroe's Federal Financial Aid school code is 004799.

Eligibility for a 2009-2010  FSEOG award is determined by a standardized needs analysis in conjunction with Monroe's packaging guidelines. Students must be  full-time, matriculated Pell recipients with EFCs of zero, who meet satisfactory academic progress requirements.  FSEOG awards  may be  $120 or for students residing in a dormitory residence, $500.

First Year ACG (0to 23 credits)

Second Year ACG (24-48 credits)

Second year undergraduate students who graduated after January 1 2005, meet the criteria for the first year ACG and have a cumulative GPA of 3.0 may receive up to $1300 per academic year.

A Federal Grant for undergraduate BBA students who are in their 3rd (60-89 credits) year and/or 4th year (90-120 credits), are enrolled in programs 150 or 155 and have a cumulative GPA of 3.0 and are attending at least half-time. Students must be Pell eligible.

As of the Fall 2008 semester, Monroe College began participating 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 0.5% is deducted from each loan disbursement of a Direct Loan. This 0.5% 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%. 

Both programs require Entrance and Exit Interviews.  Mapping Your Future or a paper Entrance Interview is used for the FFELP program.

However  Entrance 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. The College will be notified of the completion of the interviews. Students who are unable to complete the counseling sessions online may  complete 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.

Exit Interviews are also done on line for both programs when possible.  These are usually conducted by the College's Default Management Department.

The Federal Unsubsidized Stafford Loan is administered by Monroe College but funded by individual banks. 

• 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.
• Example: Unsubsidized loan is $1,000. $200 in interest accrues on this loan while the student is in school. When repayment begins six months after the student graduates or leaves school, the loan balance will be  $1,200

As of 2008-2009 both independent and dependent students are eligible for an additional unsubsidized loan of $2,000 per award year. Therefore, the Federal Unsubsidized Student Loan Program now allows independent undergraduate students to borrow up to $6,000 per academic year in their Freshman and Sophomore years and up to $7,000 in their Junior and Senior years. Undergraduate students may not borrow more than a total of $31,000 in unsubsidized loans for all of their undergraduate studies. Students who do not complete a FAFSA application may only use unsubsidized loans.

Federal Parent Loans for students are available to parents of dependent students to help meet their children's educational expenses. Application forms are available from participating lenders and the Student Financial Services Office. Student eligibility criteria are the same as those for Federal Stafford Loans; however, students do not have to complete a FAFSA application if a PLUS loan will be their only form of Financial Aid. PLUS loan borrowers are subject to credit checks.

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. There is a minimal credit check. For loans disbursed on or after July 1st 2006, the interest rate is fixed at 8.50%.

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. However, interest will accrue during this time.

As of the Fall 2008 semester, Monroe College became a participant in the Federal Direct Lending Program. Freshmen students who have not previously borrowed through FFELP will be placed in the Direct Lending Program.  Transfer students who already have FFELP loans are encouraged to remain with their current lending institution if possible. if their lender is no longer working with Monroe College, such students may be placed in the Direct Lending Program.

 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 a PIN by going to https://dlenote.ed.gov/ 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.
• Example: Unsubsidized loan is $1,000

       -   $200 in interest accrues on this loan while the student is in school

       -    When repayment begins six months after the student graduates or leaves school, the loan balance will be $1,200.

Federal Direct Parent Loans for students are available to parents of dependent students to help meet their children's educational expenses. Parents may go to http://www.dlenote.ed.gov/ to complete an electronic Master Promissory Note after they have created a PIN.  Student eligibility criteria are the same as those for Federal Stafford Loans; however, students do not have to complete a FAFSA application if a PLUS loan will be their only form of Financial Aid. PLUS loan borrowers are subject to credit checks.

All Direct PLUS loan borrowers have a loan origination fee and insurance premium fee equal to 4% of the loan amount. Parents receive the same rebate of 1.5% this origination fee of 4%, which is deducted from the loan before it is disbursed.

• If the parent 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.

The loan is disbursed in two or more payments. The maximum Direct PLUS loan is equal to the cost of a student's education minus other expected financial aid. Direct  PLUS loans now carry an interest rate of 7.9%.  As of July 1, 2008, holders of Direct parent loans may defer repayment of their PLUS loan until six months after the student is no longer matriculated and enrolled at least half-time.  During this period, holders of parent loans may choose to pay the interest on the loan or have it capitalized. Interest begins to accrue on the date of the first loan disbursement and continues to be charged during periods of deferment or forbearance.   Parents may discuss this with a Student Financial Counselor. If the repayment is not deferred, it must begin 60 days after the loan is fully disbursed for that loan period.

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.

 As of July 1, 2008, holders of Direct parent loans may defer repayment of their PLUS loan until six months after the student is no longer matriculated and enrolled at least half-time.  During this period, holders of these loans may choose to pay the interest on the loan or have it capitalized.  Interest begins to accrue on the date of the first loan disbursement and continues to be charged during periods of deferment or forbearance.  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.

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 if a key  component of these skills.

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

DEPENDENT STUDENTS

INDEPENDENT STUDENTS

GRADUATE STUDENTS

MAXIMUM AGGREGATE (COMBINED TOTAL)

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.

Dependent students  whose parents have been denied a Parent PLUS Loan, may be considered to be eligible for Independent unsubsidized loan  limits.

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 from the Office of Student Financial Services.

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.

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 Student Financial Services Counselor.

Monroe College Preferred Lender List