Financial Aid
Financial Aid INFORMATION PACKET
FINANCIAL AID CHECKLIST FF REVIEW YOUR FINANCIAL AID AWARD LETTER and return one signed copy to the Financial Aid Office (FAO) by May 1. Keep the second copy to help you complete the gold account worksheet that will be sent with your semester tuition bill in July (for fall) and November (for spring). Visit www.lvc.edu/business-office for a tutorial to assist you in completing the worksheet. FF TO APPLY FOR A FEDERAL DIRECT STAFFORD LOAN, complete, sign, and return the Borrowing Intention
IMPORTANT INFORMATION ABOUT FINANCING YOUR EDUCATION AT LVC The complete list of financing options can be found at www.lvc.edu/financial-aid. Please contact the Financial Aid Office at 717-867-6126 if you have any questions. We’re here to help you!
Form (BIF) that is included in your financial award package. If you are a first-time borrower, you must complete the following requirements online at www.studentloans.gov. Sign in using your FSA ID
FEDERAL STUDENT LOANS AND HOW TO APPLY
and password (the same one you used to sign the FAFSA). Loans cannot be processed until the BIF
If you would like to borrow a Federal Direct Stafford Loan
is returned to the FAO. Return the BIF and complete
for 2018–2019, you MUST complete the enclosed Borrowing
these steps between May 1 and June 1:
Intention Form (BIF) and return it to the FAO. If you are a
FF Complete the Direct Stafford Loan Entrance Counseling (EC)
first-time borrower, in addition to the BIF, you must also complete Entrance Counseling and a Master Promissory Note (MPN). Both may be done at
FF Complete the Direct Stafford Loan Master Promissory Note (MPN) FF TRANSFER STUDENTS ONLY: If you are a transfer student and borrowed Stafford Loans at your previous institution, please go to www.studentloans.gov and request to have the EC released to LVC by entering LVC’s school code of 003288. You do not need to sign. FF Optional: SIGN UP FOR THE HIGHER EDUCATION SERVICES PAYMENT PLAN by June 1. FF Optional: APPLY FOR A 2018–2019 FEDERAL DIRECT PLUS LOAN (loan for parents) between April 15 and
OTHER FINANCING OPTIONS Higher Education Services (HES) Payment Plan: For your convenience, LVC offers an interest-free monthly payment plan. Instead of making lump-sum payments for the fall and spring semesters, you may spread all or part of your balance over 10 months (June 2018–March 2019). There’s an annual enrollment fee of $55 to participate. Visit www.lvc.edu or call HES at 800-422-0010 for details. Federal Direct Parent Loan for Undergraduate Students (PLUS): This is a credit-based education loan for parents of dependent students. The student must
June 1, 2018. Apply regardless of your credit status. If
file the FAFSA in order for the parent to borrow a PLUS
you are denied the loan, your student will be eligible
Loan. The PLUS offers excellent repayment terms and
to borrow additional funds through the Federal Direct
carries a fixed interest rate. The interest rate will be set
Unsubsidized Stafford Loan program. (Review
by the federal government July 1, 2018. The origination
“Before You Borrow” inside this handout before
(upfront) fee is 4.264%. Your parent may apply for the
applying for a loan.)
PLUS Loan by completing the enclosed BIF, the online
FF Optional: APPLY FOR A STUDENT ALTERNATIVE LOAN between April 15 and June 1, 2018. Applying prior to April 15 may result in your credit approval expiring. (Review “Before You Borrow” inside this handout before applying for a loan.)
credit check, and the MPN (if a first-time borrower) at www.studentloans.gov. The student is eligible to borrow additional funds through the Direct Unsubsidized Stafford Loan program ($4,000 for freshmen and sophomores; $5,000 for juniors and seniors) if the parent is denied the
BEFORE YOU BORROW… FF Carefully calculate the amount you wish to borrow before returning the Borrowing Intention Form (BIF) to the FAO. By borrowing the correct amount up front, unnecessary adjustments will be avoided. This will simplify the borrowing process for you. FF The maximum amount you are eligible to borrow through any loan program is listed on the award letter and the BIF. www.studentloans.gov. Sign in using your Federal Student Aid (FSA) ID
FF Borrow for the full academic
(the same one you used to sign the FAFSA) and password. After you’ve
year to avoid credit being run
decided to enroll at LVC, you should complete these steps as soon as
multiple times throughout
possible and the FAO will be notified electronically. The interest rate on the
the year, as well as having
subsidized and unsubsidized loans will be set by the federal government
to complete the application
July 1, 2018. The origination (upfront) fee is 1.066%.
process multiple times. FF Compare interest rates, fees, repayment options, and
PLUS. They must indicate interest in these additional funds on the BIF. The
benefits before deciding
parent should apply for the PLUS Loan between April 15 and June 1, 2018.
which loan to borrow.
Applying prior to this time may result in the parent’s credit check expiring.
FF Borrow in round dollar
Student Alternative Loan: This is a private loan where the student is the
amounts making sure to take
borrower, but in most cases must have a credit-worthy co-signer. We
into account any fees that may
recommend you consider all federal loan options first before choosing
be assessed on the loan. If you
this type of loan. The student and the co-signer should be fully aware
need assistance, please feel
that the loan is the responsibility of both the student and the co-signer.
free to contact the FAO.
If the borrower defaults (stops making payments), the co-signer is responsible for the loan. Some lenders offer a fixed interest rate and a co-signer release option. LVC partners with ELMSelect to provide you with a loan comparison tool to assist you in selecting a student alternative loan that’s right for you. Visit www.lvc.edu/financial-aid and select
the FAO know which loan you wish to have certified by LVC. The student
100%
and co-signer (if required) should apply for an alternative loan between
OF THE INCOMING
April 15 and June 1, 2018. Applying prior to this time may result in the co-
CLASS RECEIVED
Student Alternative Loans under Types of Financial Aid to access the loan comparison tool. If you apply for multiple loans, please be sure to let
signer’s credit check expiring. Review the “Understanding Gap Financing Options” comparison chart inside this handout to assist in selecting a loan that’s right for you.
FINANCIAL AID
TERMS AND CONDITIONS Your 2018–2019 financial awards are offered under the TERMS AND CONDITIONS set forth in the following paragraphs. It is important that you read and understand this information. Please contact the Financial Aid Office (FAO) at 717-867-6126 or [email protected] with any questions. Information on financial aid programs can be found at www.lvc.edu/financial-aid. 1.
All college administered financial awards listed on the award
per semester) this award is based on per credit charges as
letter, with the exception of campus employment earnings,
established for evening, weekend, and weekday classes.
will be credited to your account in the College Business Office for the appropriate semesters when finalized. The copy of the award letter serves as the receipt for the financial awards credited. 2. Some grants from federal or state sources are estimated;
4. All Lebanon Valley College scholarships and grants are awarded to full-time students only for a maximum of eight semesters of undergraduate study. Once you graduate or drop to part-time status, you are no longer eligible for institutional aid, even if fewer than eight semesters of
an official notification may come directly from the agency
eligibility were used. Students returning full-time after
that determines the awards. The accuracy of the estimates is
graduation, including those who will student teach, are
subject to changes in the funding levels and eligibility criteria
eligible to receive the Alumni Tuition Discount worth 25% of
set by the respective agency.
the current undergraduate tuition rate.
3. If you are a full-time student, this award is based on the costs
5. If you anticipate receiving military benefits, please be aware
of full-time attendance at LVC for the 2018–2019 academic
of LVC’s policy with regard to institutional aid. The policy can
year. If you are less than full-time (fewer than 12 credits
be found at www.lvc.edu/financial-aid.
STUDENT RESPONSIBILITIES 1.
You must immediately notify the FAO of any changes in enrollment, finances, or housing.
2. You must notify the FAO of any aid awarded greater than $100 from sources not shown in your current financial award package. Such awards will result in a re-evaluation of your financial need and therefore may cause a reduction in current awards. 3. A Federal Work-Study award may be included in your award package. A work award represents an approximate amount that you may earn during the academic year. However, it is your responsibility to obtain a job and work the required number of hours in order to earn the employment award. You may search for available jobs online. 4. You must maintain Satisfactory Academic Progress (SAP) toward your degree in order to maintain financial aid eligibility. This includes federal, state, and institutional scholarships, grants, loans, and work-study. SAP is reviewed at the end of every semester. It is very important that you understand this policy. The complete policy for
5. Your financial award package may include the Federal Direct Stafford Loan. You are responsible for repaying these funds according to the information contained in the promissory note. Additional information regarding repayment options—including loan consolidation, interest rates, monthly payments, deferment, forbearance, and cancellation—or to defer repayment of loans for service, may be found on the U.S. Department of Education’s website at www.studentaid.ed.gov/repay-loans. 6. All first-time Federal Direct Stafford Loan borrowers must complete Entrance Counseling (EC) and the Master Promissory Note (MPN) before the loan funds will be credited to the student’s account. Complete these steps at www.studentloans.gov. 7. Transfer students who have borrowed at a previous institution must go to www.studentloans.gov and add LVC to the completed EC. The FAO will be notified electronically. It’s not necessary to complete EC a second time. 8. There are both annual and aggregate (total loan borrowing
both full-time and part-time students may be found in the
for the first bachelor’s degree) maximum Direct Stafford
FAO or online.
Loan borrowing limits.
Annual maximums Independent undergraduates and dependent Dependent & independent
Dependent & independent
students whose parents can’t get PLUS are eligible
Credits earned
students—Subsidized Stafford
students—Unsubsidized Stafford
to borrow additional Unsubsidized Stafford
0–27
$3,500
$2,000
$4,000
28–55
$4,500
$2,000
$4,000
56–83
$5,500
$2,000
$5,000
>84
$5,500
$2,000
$5,000
Aggregate maximums Subsidized
Total (Subsidized & Unsubsidized)
Dependent undergraduates
$23,000
$31,000
Independent undergraduates & dependent students
$23,000
$57,500
whose parents can’t get PLUS
9. The FAO recommends you borrow your maximum
NSLDS. This site will provide you with an integrated view
eligibility through the Federal Direct Stafford Loan, as
of Title IV loans from approval through disbursement and
well as consider the HES Payment Plan and Federal
repayment that includes the amount borrowed, interest
Direct Parent PLUS Loan first before considering a
rates, lender, servicer, and guarantor information. NSLDS
student alternative loan. Federal loan programs offer tax
is accessible to guaranty agencies, eligible lenders, and
deductible interest and more flexible repayment options.
eligible institutions of higher education determined by the
10. If you or your parent chooses to borrow a Title IV loan (federal), we recommend you create an account through the National Student Loan Data System (NSLDS) at
secretary to be authorized users of the data system. 11. Review LVC’s Code of Conduct online with regard to education loans.
www.nslds.ed.gov. All federal loans will be submitted to Due to the Family Educational Rights and Privacy Act (FERPA), it is necessary that the individual(s) contacting the FAO have available the student’s Social Security number or LVC student ID (found on award letter). If you enroll at LVC, you will be required to provide written consent if you wish to disclose any information contained in your educational records to others, including parents. Additional information regarding FERPA will be provided during the New Student Advising Day program. NOTICE OF FEDERAL STUDENT FINANCIAL AID PENALTIES FOR DRUG LAW VIOLATIONS Per the Higher Education Opportunity Act (HEOA section
possession or sale of illegal drugs will result in the loss of
488(g)) signed into law August 14, 2008, if you are convicted
eligibility for any Title IV (federal), HEA grant, loan, or work-
of any offense, during a period of enrollment for which you
study assistance. Questions regarding this notice may be
are receiving Title IV (federal) Higher Education Act (HEA)
directed to the FAO. Below is a table describing the periods of
program funds, under any federal or state law involving the
ineligibility should a student be convicted:
The possession of a controlled substance
Ineligibility period
The sale of a controlled substance
Ineligibility period
First offense
One year
First offense
Two years
Second offense
Two years
Second offense
Indefinite
Third offense
Indefinite
UNDERSTANDING GAP FINANCING OPTIONS THE FEDERAL PARENT PLUS LOAN, PRIVATE STUDENT LOANS, AND PRIVATE PARENT LOANS
Many families are considering financing their student’s education with a Federal Parent PLUS Loan or a private education loan. This comp Interest rates and fees for private loans vary between lenders and are typically based on the credit of the individual borrower and co-sign for you. Remember, applying for a private loan does not obligate you to accept it.
Federal PLUS Loan for Parents1
School-certified Priva
Primary borrower
Parent
Student
Credit check required
Yes. Applicant or endorser cannot have an adverse credit history.
Yes. Loan approval and pricing
Co-signer requirement
No, but if a parent has adverse credit history, an endorser may be required.
No, but if you’re a student with a loan without a creditworthy
Co-signer/parent release option
No, parent (and any endorser) is making a commitment to repay the loan for the life of the loan.
Many lenders provide a co-sig co-signer after they graduate, underwriting requirements.
Interest rate
For loans first disbursed on or after July 1, 2017, and before July 1, 2018, the interest rate is 7.0%.
Many lenders offer variable an and 4.60% to 12.99% for fixed. history, so those with good cre
Origination/disbursement fees
4.264% for loans first disbursed on or after October 1, 2017 and before October 1, 2018.
Varies by lender, most offer 0%
Minimum payment amount while the student is enrolled in school
Loans will automatically be placed in principal and interest repayment. The borrower can apply to have the PLUS loan payments deferred while the student is in school and for six months after graduation (interest continues to accrue during this time and unpaid interest is added to the loan’s principal amount when the deferment period ends).
Varies by lender. Many lenders (interest accrues during this ti deferment period ends). Many school period.
Repayment term
10–25 years of principal and interest payments.
Varies by lender; typically term
Payment flexibility
PLUS Loans are eligible for graduated and extended repayment options, federal consolidation, and some public service loan forgiveness options.
Most lenders will work directly offer graduated repayment op
Responsibility to pay
Parent and endorser (if applicable)
Student and co-signer
Loan limits
Up to 100% of the school-certified cost of attendance minus other financial aid received.
Generally, up to 100% of the sc received. Lenders can have diff limits on various factors.
Minimum enrollment status
At least half-time.
Varies by lender. Some offer lo
Application process
Online with the Department of Education through the FAFSA process.
Online with lender.
Free Application for Federal Student Aid (FAFSA) required
Yes. In addition to the FAFSA, some states/colleges require additional forms or applications for aid.
No. Families are not required t
Borrower benefits
0.25 percentage point interest rate reduction for automatic debit enrollment.
Most lenders offer a 0.25 perc enrollment. Additional benefit
Death and disability loan forgiveness
Yes. If the student beneficiary dies, and certain conditions are met, the payments on the loan will be waived.
Varies by lender. Some lenders borrower’s death or permanen
Ability to consolidate through the Department of Education
Yes. Parents can consolidate with other federal loans in their name (not the student’s).
No. Cannot be included with fe
Options for denied loans
If a parent applies and is denied, the student is eligible for additional unsubsidized Stafford loans.
Student can apply with a diffe
Tax deduction for interest paid3
The interest paid on the loan may be deductible subject to the IRS guidelines.
The interest paid on the loan m
This information is provided by Sallie Mae for your reference. Information gathered on private loans is based on national private loan programs offered by publicly-traded c
Federal student loan rate and fee information for 2017–2018 is based on a May 30, 2017 Electronic Announcement from Federal Student Aid, and office of the U.S. Departm are subject to change by the federal government. 1
2
Interest rates, fees, terms, and borrower benefits based on a January 13, 2017 review of national private loan programs offered by publicly-traded companies or subsidiarie
3
For more information see IRS Publication 970 or consult a tax advisor.
Explore federal loans and compare to ensure you understand the terms and features. Private loans that have variable rates may increase over the life of the loan. Federal st and loan forgiveness and deferment benefits, which other student loans are not required to provide. Federal loans generally have origination fees, but are available to stude
parison chart will help you understand the features and benefits of each type of loan. ner. We recommend that you apply for one or more private loans and compare your options before deciding which type of loan is best
ate Student Loan2
Private Parent Loan2 Parent or other eligible non-student individual
g are generally based on creditworthiness.
Yes. Loan approval and pricing are generally based on creditworthiness.
h little or no credit history, it may be difficult for you to qualify for co-signer.
No, but if the primary borrower is not eligible on their own, some lenders may offer a co-signer option.
gner release option where the student can apply to release the , make a specified number of on-time payments, and meet
Varies by lender. Check for availability.
nd fixed interest rates. Rates range from 2.76% to 10.81% for variable Most lenders offer a fixed interest rate. Fixed interest rates range from 5.75% to 12.99%. Some . Rates are typically based on the borrower’s and co-signer’s credit lenders may also offer variable ranges. Variable interest rates range from 4.25% to 10.75%. Rates edit may qualify for a lower rate. are typical based on the applicant’s credit history; other factors such as income and repayment term may also be considered.
%.
Varies by lender, most offer 0%.
s allow private loan payments to be deferred while in school ime and is added to the loan’s principal amount when the y lenders offer options to make interest payments during the in-
Varies by lender. Some lenders allow interest-only payments while in school. Others may offer or require immediate principal and interest repayment.
ms of 5–15 years of principal and interest payments are offered.
Varies by lender; typically terms of 5–15 years of principal and interest payments are offered.
y with the borrower to assess repayment options. Some lenders ptions.
Most lenders will work directly with the borrower to assess repayment options. Parent or other creditworthy adult.
chool-certified cost of attendance minus other financial aid fferent loan limits for different loan programs and may base the
Varies by lender, may or may not require school-certification. Some lenders may have minimum and maximum loan amounts and may base the limits on various factors.
oans to students who are attending school less than half-time.
Varies by lender. Some offer loans to borrowers who have students who are attending school less than half-time. Online with lender.
to complete the FAFSA unless it is the policy of the school.
No. Families are not required to complete the FAFSA unless it is the policy of the school.
centage point interest rate reduction for automatic debit ts vary by lender.
Most lenders offer a 0.25 percentage point interest rate reduction for automatic debit enrollment. Additional benefits vary by lender.
s waive the remaining balance in the event of the primary nt and total disability.
Varies by lender. Some lenders waive the remaining balance in the event of the student’s death or permanent and total disability.
federal student loans.
No. Cannot be included with federal student loans.
erent co-signer if the co-signer is denied.
Varies by lender. Parent or other creditworthy individual may be able to obtain a co-signer.
may be deductible subject to the IRS guidelines.
The interest paid on the loan may be deductible subject to the IRS guidelines.
companies or subsidiaries thereof.
ment of Education. Other federal student loan information was gathered on January 19, 2017 form studentaid.gov. Rates, fees, and availability of federal loan products
es thereof. Private loans that have variable rates may go up or down based on the changes of an underlying interest rate index.
tudent loans are required by law to provide a range of flexible repayment options, including, but not limited to, Graduated Repayment and Extended Repayment, plans, ents regardless of income.
MEET THE STAFF Kendra Feigert Director of Financial Aid
Dorothy Brehm Associate Director of Financial Aid
Vicki Cantrell ’99 Associate Director of Financial Aid
Breanne Zipko ’09 Assistant Director of Financial Aid
LaRue Troutman Financial Aid Assistant and Records Coordinator
FINANCIAL AID RESOURCES Create your Federal Student Aid ID www.fsaid.ed.gov Fill out your FAFSA www.fafsa.gov Learn about Federal Student Aid www.studentaid.gov Apply for Federal Student and Parent PLUS Loans www.studentloans.gov Monitor your Federal Loan Portfolio www.nslds.ed.gov PHEAA State Grant and Special Programs www.pheaa.org HES Payment Plan www.highereducationservices.org Search for Private Scholarships www.lvc.edu/scholarships
FINANCIAL AID OFFICE 101 N. College Ave. | Annville, PA 17003-1400 www.lvc.edu/financial-aid 717-867-6126 | [email protected] Office Hours: Monday–Friday, 8 a.m.–4:30 p.m.
FINANCIAL AID CHECKLIST FF REVIEW YOUR FINANCIAL AID AWARD LETTER and return one signed copy to the Financial Aid Office (FAO) by May 1. Keep the second copy to help you complete the gold account worksheet that will be sent with your semester tuition bill in July (for fall) and November (for spring). Visit www.lvc.edu/business-office for a tutorial to assist you in completing the worksheet. FF TO APPLY FOR A FEDERAL DIRECT STAFFORD LOAN, complete, sign, and return the Borrowing Intention
IMPORTANT INFORMATION ABOUT FINANCING YOUR EDUCATION AT LVC The complete list of financing options can be found at www.lvc.edu/financial-aid. Please contact the Financial Aid Office at 717-867-6126 if you have any questions. We’re here to help you!
Form (BIF) that is included in your financial award package. If you are a first-time borrower, you must complete the following requirements online at www.studentloans.gov. Sign in using your FSA ID
FEDERAL STUDENT LOANS AND HOW TO APPLY
and password (the same one you used to sign the FAFSA). Loans cannot be processed until the BIF
If you would like to borrow a Federal Direct Stafford Loan
is returned to the FAO. Return the BIF and complete
for 2018–2019, you MUST complete the enclosed Borrowing
these steps between May 1 and June 1:
Intention Form (BIF) and return it to the FAO. If you are a
FF Complete the Direct Stafford Loan Entrance Counseling (EC)
first-time borrower, in addition to the BIF, you must also complete Entrance Counseling and a Master Promissory Note (MPN). Both may be done at
FF Complete the Direct Stafford Loan Master Promissory Note (MPN) FF TRANSFER STUDENTS ONLY: If you are a transfer student and borrowed Stafford Loans at your previous institution, please go to www.studentloans.gov and request to have the EC released to LVC by entering LVC’s school code of 003288. You do not need to sign. FF Optional: SIGN UP FOR THE HIGHER EDUCATION SERVICES PAYMENT PLAN by June 1. FF Optional: APPLY FOR A 2018–2019 FEDERAL DIRECT PLUS LOAN (loan for parents) between April 15 and
OTHER FINANCING OPTIONS Higher Education Services (HES) Payment Plan: For your convenience, LVC offers an interest-free monthly payment plan. Instead of making lump-sum payments for the fall and spring semesters, you may spread all or part of your balance over 10 months (June 2018–March 2019). There’s an annual enrollment fee of $55 to participate. Visit www.lvc.edu or call HES at 800-422-0010 for details. Federal Direct Parent Loan for Undergraduate Students (PLUS): This is a credit-based education loan for parents of dependent students. The student must
June 1, 2018. Apply regardless of your credit status. If
file the FAFSA in order for the parent to borrow a PLUS
you are denied the loan, your student will be eligible
Loan. The PLUS offers excellent repayment terms and
to borrow additional funds through the Federal Direct
carries a fixed interest rate. The interest rate will be set
Unsubsidized Stafford Loan program. (Review
by the federal government July 1, 2018. The origination
“Before You Borrow” inside this handout before
(upfront) fee is 4.264%. Your parent may apply for the
applying for a loan.)
PLUS Loan by completing the enclosed BIF, the online
FF Optional: APPLY FOR A STUDENT ALTERNATIVE LOAN between April 15 and June 1, 2018. Applying prior to April 15 may result in your credit approval expiring. (Review “Before You Borrow” inside this handout before applying for a loan.)
credit check, and the MPN (if a first-time borrower) at www.studentloans.gov. The student is eligible to borrow additional funds through the Direct Unsubsidized Stafford Loan program ($4,000 for freshmen and sophomores; $5,000 for juniors and seniors) if the parent is denied the
BEFORE YOU BORROW… FF Carefully calculate the amount you wish to borrow before returning the Borrowing Intention Form (BIF) to the FAO. By borrowing the correct amount up front, unnecessary adjustments will be avoided. This will simplify the borrowing process for you. FF The maximum amount you are eligible to borrow through any loan program is listed on the award letter and the BIF. www.studentloans.gov. Sign in using your Federal Student Aid (FSA) ID
FF Borrow for the full academic
(the same one you used to sign the FAFSA) and password. After you’ve
year to avoid credit being run
decided to enroll at LVC, you should complete these steps as soon as
multiple times throughout
possible and the FAO will be notified electronically. The interest rate on the
the year, as well as having
subsidized and unsubsidized loans will be set by the federal government
to complete the application
July 1, 2018. The origination (upfront) fee is 1.066%.
process multiple times. FF Compare interest rates, fees, repayment options, and
PLUS. They must indicate interest in these additional funds on the BIF. The
benefits before deciding
parent should apply for the PLUS Loan between April 15 and June 1, 2018.
which loan to borrow.
Applying prior to this time may result in the parent’s credit check expiring.
FF Borrow in round dollar
Student Alternative Loan: This is a private loan where the student is the
amounts making sure to take
borrower, but in most cases must have a credit-worthy co-signer. We
into account any fees that may
recommend you consider all federal loan options first before choosing
be assessed on the loan. If you
this type of loan. The student and the co-signer should be fully aware
need assistance, please feel
that the loan is the responsibility of both the student and the co-signer.
free to contact the FAO.
If the borrower defaults (stops making payments), the co-signer is responsible for the loan. Some lenders offer a fixed interest rate and a co-signer release option. LVC partners with ELMSelect to provide you with a loan comparison tool to assist you in selecting a student alternative loan that’s right for you. Visit www.lvc.edu/financial-aid and select
the FAO know which loan you wish to have certified by LVC. The student
100%
and co-signer (if required) should apply for an alternative loan between
OF THE INCOMING
April 15 and June 1, 2018. Applying prior to this time may result in the co-
CLASS RECEIVED
Student Alternative Loans under Types of Financial Aid to access the loan comparison tool. If you apply for multiple loans, please be sure to let
signer’s credit check expiring. Review the “Understanding Gap Financing Options” comparison chart inside this handout to assist in selecting a loan that’s right for you.
FINANCIAL AID
TERMS AND CONDITIONS Your 2018–2019 financial awards are offered under the TERMS AND CONDITIONS set forth in the following paragraphs. It is important that you read and understand this information. Please contact the Financial Aid Office (FAO) at 717-867-6126 or [email protected] with any questions. Information on financial aid programs can be found at www.lvc.edu/financial-aid. 1.
All college administered financial awards listed on the award
per semester) this award is based on per credit charges as
letter, with the exception of campus employment earnings,
established for evening, weekend, and weekday classes.
will be credited to your account in the College Business Office for the appropriate semesters when finalized. The copy of the award letter serves as the receipt for the financial awards credited. 2. Some grants from federal or state sources are estimated;
4. All Lebanon Valley College scholarships and grants are awarded to full-time students only for a maximum of eight semesters of undergraduate study. Once you graduate or drop to part-time status, you are no longer eligible for institutional aid, even if fewer than eight semesters of
an official notification may come directly from the agency
eligibility were used. Students returning full-time after
that determines the awards. The accuracy of the estimates is
graduation, including those who will student teach, are
subject to changes in the funding levels and eligibility criteria
eligible to receive the Alumni Tuition Discount worth 25% of
set by the respective agency.
the current undergraduate tuition rate.
3. If you are a full-time student, this award is based on the costs
5. If you anticipate receiving military benefits, please be aware
of full-time attendance at LVC for the 2018–2019 academic
of LVC’s policy with regard to institutional aid. The policy can
year. If you are less than full-time (fewer than 12 credits
be found at www.lvc.edu/financial-aid.
STUDENT RESPONSIBILITIES 1.
You must immediately notify the FAO of any changes in enrollment, finances, or housing.
2. You must notify the FAO of any aid awarded greater than $100 from sources not shown in your current financial award package. Such awards will result in a re-evaluation of your financial need and therefore may cause a reduction in current awards. 3. A Federal Work-Study award may be included in your award package. A work award represents an approximate amount that you may earn during the academic year. However, it is your responsibility to obtain a job and work the required number of hours in order to earn the employment award. You may search for available jobs online. 4. You must maintain Satisfactory Academic Progress (SAP) toward your degree in order to maintain financial aid eligibility. This includes federal, state, and institutional scholarships, grants, loans, and work-study. SAP is reviewed at the end of every semester. It is very important that you understand this policy. The complete policy for
5. Your financial award package may include the Federal Direct Stafford Loan. You are responsible for repaying these funds according to the information contained in the promissory note. Additional information regarding repayment options—including loan consolidation, interest rates, monthly payments, deferment, forbearance, and cancellation—or to defer repayment of loans for service, may be found on the U.S. Department of Education’s website at www.studentaid.ed.gov/repay-loans. 6. All first-time Federal Direct Stafford Loan borrowers must complete Entrance Counseling (EC) and the Master Promissory Note (MPN) before the loan funds will be credited to the student’s account. Complete these steps at www.studentloans.gov. 7. Transfer students who have borrowed at a previous institution must go to www.studentloans.gov and add LVC to the completed EC. The FAO will be notified electronically. It’s not necessary to complete EC a second time. 8. There are both annual and aggregate (total loan borrowing
both full-time and part-time students may be found in the
for the first bachelor’s degree) maximum Direct Stafford
FAO or online.
Loan borrowing limits.
Annual maximums Independent undergraduates and dependent Dependent & independent
Dependent & independent
students whose parents can’t get PLUS are eligible
Credits earned
students—Subsidized Stafford
students—Unsubsidized Stafford
to borrow additional Unsubsidized Stafford
0–27
$3,500
$2,000
$4,000
28–55
$4,500
$2,000
$4,000
56–83
$5,500
$2,000
$5,000
>84
$5,500
$2,000
$5,000
Aggregate maximums Subsidized
Total (Subsidized & Unsubsidized)
Dependent undergraduates
$23,000
$31,000
Independent undergraduates & dependent students
$23,000
$57,500
whose parents can’t get PLUS
9. The FAO recommends you borrow your maximum
NSLDS. This site will provide you with an integrated view
eligibility through the Federal Direct Stafford Loan, as
of Title IV loans from approval through disbursement and
well as consider the HES Payment Plan and Federal
repayment that includes the amount borrowed, interest
Direct Parent PLUS Loan first before considering a
rates, lender, servicer, and guarantor information. NSLDS
student alternative loan. Federal loan programs offer tax
is accessible to guaranty agencies, eligible lenders, and
deductible interest and more flexible repayment options.
eligible institutions of higher education determined by the
10. If you or your parent chooses to borrow a Title IV loan (federal), we recommend you create an account through the National Student Loan Data System (NSLDS) at
secretary to be authorized users of the data system. 11. Review LVC’s Code of Conduct online with regard to education loans.
www.nslds.ed.gov. All federal loans will be submitted to Due to the Family Educational Rights and Privacy Act (FERPA), it is necessary that the individual(s) contacting the FAO have available the student’s Social Security number or LVC student ID (found on award letter). If you enroll at LVC, you will be required to provide written consent if you wish to disclose any information contained in your educational records to others, including parents. Additional information regarding FERPA will be provided during the New Student Advising Day program. NOTICE OF FEDERAL STUDENT FINANCIAL AID PENALTIES FOR DRUG LAW VIOLATIONS Per the Higher Education Opportunity Act (HEOA section
possession or sale of illegal drugs will result in the loss of
488(g)) signed into law August 14, 2008, if you are convicted
eligibility for any Title IV (federal), HEA grant, loan, or work-
of any offense, during a period of enrollment for which you
study assistance. Questions regarding this notice may be
are receiving Title IV (federal) Higher Education Act (HEA)
directed to the FAO. Below is a table describing the periods of
program funds, under any federal or state law involving the
ineligibility should a student be convicted:
The possession of a controlled substance
Ineligibility period
The sale of a controlled substance
Ineligibility period
First offense
One year
First offense
Two years
Second offense
Two years
Second offense
Indefinite
Third offense
Indefinite
UNDERSTANDING GAP FINANCING OPTIONS THE FEDERAL PARENT PLUS LOAN, PRIVATE STUDENT LOANS, AND PRIVATE PARENT LOANS
Many families are considering financing their student’s education with a Federal Parent PLUS Loan or a private education loan. This comp Interest rates and fees for private loans vary between lenders and are typically based on the credit of the individual borrower and co-sign for you. Remember, applying for a private loan does not obligate you to accept it.
Federal PLUS Loan for Parents1
School-certified Priva
Primary borrower
Parent
Student
Credit check required
Yes. Applicant or endorser cannot have an adverse credit history.
Yes. Loan approval and pricing
Co-signer requirement
No, but if a parent has adverse credit history, an endorser may be required.
No, but if you’re a student with a loan without a creditworthy
Co-signer/parent release option
No, parent (and any endorser) is making a commitment to repay the loan for the life of the loan.
Many lenders provide a co-sig co-signer after they graduate, underwriting requirements.
Interest rate
For loans first disbursed on or after July 1, 2017, and before July 1, 2018, the interest rate is 7.0%.
Many lenders offer variable an and 4.60% to 12.99% for fixed. history, so those with good cre
Origination/disbursement fees
4.264% for loans first disbursed on or after October 1, 2017 and before October 1, 2018.
Varies by lender, most offer 0%
Minimum payment amount while the student is enrolled in school
Loans will automatically be placed in principal and interest repayment. The borrower can apply to have the PLUS loan payments deferred while the student is in school and for six months after graduation (interest continues to accrue during this time and unpaid interest is added to the loan’s principal amount when the deferment period ends).
Varies by lender. Many lenders (interest accrues during this ti deferment period ends). Many school period.
Repayment term
10–25 years of principal and interest payments.
Varies by lender; typically term
Payment flexibility
PLUS Loans are eligible for graduated and extended repayment options, federal consolidation, and some public service loan forgiveness options.
Most lenders will work directly offer graduated repayment op
Responsibility to pay
Parent and endorser (if applicable)
Student and co-signer
Loan limits
Up to 100% of the school-certified cost of attendance minus other financial aid received.
Generally, up to 100% of the sc received. Lenders can have diff limits on various factors.
Minimum enrollment status
At least half-time.
Varies by lender. Some offer lo
Application process
Online with the Department of Education through the FAFSA process.
Online with lender.
Free Application for Federal Student Aid (FAFSA) required
Yes. In addition to the FAFSA, some states/colleges require additional forms or applications for aid.
No. Families are not required t
Borrower benefits
0.25 percentage point interest rate reduction for automatic debit enrollment.
Most lenders offer a 0.25 perc enrollment. Additional benefit
Death and disability loan forgiveness
Yes. If the student beneficiary dies, and certain conditions are met, the payments on the loan will be waived.
Varies by lender. Some lenders borrower’s death or permanen
Ability to consolidate through the Department of Education
Yes. Parents can consolidate with other federal loans in their name (not the student’s).
No. Cannot be included with fe
Options for denied loans
If a parent applies and is denied, the student is eligible for additional unsubsidized Stafford loans.
Student can apply with a diffe
Tax deduction for interest paid3
The interest paid on the loan may be deductible subject to the IRS guidelines.
The interest paid on the loan m
This information is provided by Sallie Mae for your reference. Information gathered on private loans is based on national private loan programs offered by publicly-traded c
Federal student loan rate and fee information for 2017–2018 is based on a May 30, 2017 Electronic Announcement from Federal Student Aid, and office of the U.S. Departm are subject to change by the federal government. 1
2
Interest rates, fees, terms, and borrower benefits based on a January 13, 2017 review of national private loan programs offered by publicly-traded companies or subsidiarie
3
For more information see IRS Publication 970 or consult a tax advisor.
Explore federal loans and compare to ensure you understand the terms and features. Private loans that have variable rates may increase over the life of the loan. Federal st and loan forgiveness and deferment benefits, which other student loans are not required to provide. Federal loans generally have origination fees, but are available to stude
parison chart will help you understand the features and benefits of each type of loan. ner. We recommend that you apply for one or more private loans and compare your options before deciding which type of loan is best
ate Student Loan2
Private Parent Loan2 Parent or other eligible non-student individual
g are generally based on creditworthiness.
Yes. Loan approval and pricing are generally based on creditworthiness.
h little or no credit history, it may be difficult for you to qualify for co-signer.
No, but if the primary borrower is not eligible on their own, some lenders may offer a co-signer option.
gner release option where the student can apply to release the , make a specified number of on-time payments, and meet
Varies by lender. Check for availability.
nd fixed interest rates. Rates range from 2.76% to 10.81% for variable Most lenders offer a fixed interest rate. Fixed interest rates range from 5.75% to 12.99%. Some . Rates are typically based on the borrower’s and co-signer’s credit lenders may also offer variable ranges. Variable interest rates range from 4.25% to 10.75%. Rates edit may qualify for a lower rate. are typical based on the applicant’s credit history; other factors such as income and repayment term may also be considered.
%.
Varies by lender, most offer 0%.
s allow private loan payments to be deferred while in school ime and is added to the loan’s principal amount when the y lenders offer options to make interest payments during the in-
Varies by lender. Some lenders allow interest-only payments while in school. Others may offer or require immediate principal and interest repayment.
ms of 5–15 years of principal and interest payments are offered.
Varies by lender; typically terms of 5–15 years of principal and interest payments are offered.
y with the borrower to assess repayment options. Some lenders ptions.
Most lenders will work directly with the borrower to assess repayment options. Parent or other creditworthy adult.
chool-certified cost of attendance minus other financial aid fferent loan limits for different loan programs and may base the
Varies by lender, may or may not require school-certification. Some lenders may have minimum and maximum loan amounts and may base the limits on various factors.
oans to students who are attending school less than half-time.
Varies by lender. Some offer loans to borrowers who have students who are attending school less than half-time. Online with lender.
to complete the FAFSA unless it is the policy of the school.
No. Families are not required to complete the FAFSA unless it is the policy of the school.
centage point interest rate reduction for automatic debit ts vary by lender.
Most lenders offer a 0.25 percentage point interest rate reduction for automatic debit enrollment. Additional benefits vary by lender.
s waive the remaining balance in the event of the primary nt and total disability.
Varies by lender. Some lenders waive the remaining balance in the event of the student’s death or permanent and total disability.
federal student loans.
No. Cannot be included with federal student loans.
erent co-signer if the co-signer is denied.
Varies by lender. Parent or other creditworthy individual may be able to obtain a co-signer.
may be deductible subject to the IRS guidelines.
The interest paid on the loan may be deductible subject to the IRS guidelines.
companies or subsidiaries thereof.
ment of Education. Other federal student loan information was gathered on January 19, 2017 form studentaid.gov. Rates, fees, and availability of federal loan products
es thereof. Private loans that have variable rates may go up or down based on the changes of an underlying interest rate index.
tudent loans are required by law to provide a range of flexible repayment options, including, but not limited to, Graduated Repayment and Extended Repayment, plans, ents regardless of income.
MEET THE STAFF Kendra Feigert Director of Financial Aid
Dorothy Brehm Associate Director of Financial Aid
Vicki Cantrell ’99 Associate Director of Financial Aid
Breanne Zipko ’09 Assistant Director of Financial Aid
LaRue Troutman Financial Aid Assistant and Records Coordinator
FINANCIAL AID RESOURCES Create your Federal Student Aid ID www.fsaid.ed.gov Fill out your FAFSA www.fafsa.gov Learn about Federal Student Aid www.studentaid.gov Apply for Federal Student and Parent PLUS Loans www.studentloans.gov Monitor your Federal Loan Portfolio www.nslds.ed.gov PHEAA State Grant and Special Programs www.pheaa.org HES Payment Plan www.highereducationservices.org Search for Private Scholarships www.lvc.edu/scholarships
FINANCIAL AID OFFICE 101 N. College Ave. | Annville, PA 17003-1400 www.lvc.edu/financial-aid 717-867-6126 | [email protected] Office Hours: Monday–Friday, 8 a.m.–4:30 p.m.
