Conditions Governing Financial Aid Awards

CONDITIONS GOVERNING FINANCIAL AID AWARDS

1. Acceptance of certain types of aid requires compliance with the regulations governing that aid. These regulations are stated within the specific Program Descriptions. Non-compliance will result in cancellation of the aid.
2. Financial aid recipients (with the exception of the Alternative Loan program), must be enrolled on at least a half-time basis (i.e. minimum of 6 credits per semester for undergraduate students; 3 credits for graduate students) for the purpose of obtaining a degree or certificate.
3. Lack of academic progress, disciplinary probation or withdrawal from the University is cause of cancellation or reduction of aid. Satisfactory academic progress is defined at sju.edu/sap.
4. Government-funded awards are made pending and subject to the receipt of government allocations. These awards are subject to revision due to mandated changes in Federal or State Regulation and/or allocation levels.
5. Recipients of Federal Aid must be a U.S. Citizen or eligible non-citizen as defined by the U.S. Department of Education. Proof of eligible non-citizen status must be presented for verification to the Director of Student Financial Service.
6. Most awards have been calculated for a full academic year. When all paper work is complete, the aid is credited by semester to the student’s account (Federal Work-Study earnings are NOT credited). One-half of the total award should be deducted from the bill for each semester. Parents and students are responsible for the amount of the bill in excess of the aid award. Most financial aid is awarded for one academic year (2 semesters)
7. Students should apply directly to the appropriate agency administering the state grant program. Financial aid package may not reflect the amounts expected from these sources until Financial Aid receives official notification from the state grant agency.
8. Financial aid received from outside sources and any changes in enrollment status MUST be reported to Financial Aid at finaid@sju.edu. Please email a copy of the award/scholarship notification. This may require an adjustment in either the total amount and/or type of aid provided by the University although all attempts will be made to reduce loans or Federal Work Study first if any reduction is required to prevent an over-award.
9. The total amount of financial aid for students receiving Title IV funds cannot exceed the student’s financial need as determined by the needs analysis report from the Free Application for Federal Student Aid (FAFSA). Other forms of assistance are limited by the guidelines set by University policy and/or by the awarding agency.
10. All students receiving funds under the Federal Direct Loan Program for the first time must complete entrance counseling and a Master Promissory Note (MPN) at studentaid.gov. Loan recipients are also required to complete exit counseling interview online at studentaid.gov prior to graduation, withdrawal from all classes or termination of study. It is the responsibility of each loan recipient to ensure that the appropriate exit counseling is completed before leaving campus.

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NOTE: If any funds are designated as grants or loans, they are need-based and students must REAPPLY for them each year. This publication is an informational brochure to help students understand their financial aid awards. Information in this brochure is subject to change and although every effort has been made to ensure the accuracy of information, the Financial Aid Office is not liable for errors or omissions. Financial aid packages can be adjusted at any time according to changes in federal and institutional regulations.

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II. CONDITIONS GOVERNING FINANCIAL AID AWARDS

IF YOU ARE PLANNING TO BORROW ANY FEDERAL LOANS, PLEASE READ THE FOLLOWING SECTION BEFORE ACCEPTING YOUR AWARD

I understand the following information about my student loans:

• I must pay back my loans with accrued interest and deducted fees.
• I must repay my loans even if I don’t complete my education, if I am dissatisfied with my education, or if I am unable to get a job after I complete my program.
• I must repay my loans within 10 years, unless my loans are consolidated.
• I may prepay all or part of my loans without penalty.
• My minimum monthly payment for a loan is $50, but may be more depending on the amount borrowed.

In most cases, repayment will begin as follows:

• Federal Direct Loans- following a six-month grace period.
• Federal Plus Loans- within 60 days of the disbursement, unless a deferment option has been arranged.
• I must notify my school and lender within 10 days, if I:

° Change my name, address, telephone number, references, graduation date, social security number, transfer to another school, enroll less than half time.

• I will be notified in writing, if any of my loans are transferred to another holder. I must direct all future correspondence to that holder.
• If I qualify, I may apply for a deferment (a postponement of payments).
• If I do not qualify for a deferment and am unable to make payments on a loan, I may request forbearance from my lender. Forbearance is a special arrangement made for borrowers experiencing financial hardships.
• If I fail to repay a loan, I may be considered in default and the following may result:
  • My status may be reported to a national credit bureau and have a negative effect on my credit rating for seven years.
  • The entire unpaid amount of my loan, including interest, may become due and payable immediately.
  • I may lose repayment schedules and deferment possibilities.
  • My federal and state income tax refunds may be withheld.
  • My wages may be garnished.
  • I may be ineligible to receive any further federal or state financial aid funds

VERIFICATION POLICY

Verification is a requirement of the U.S. Department of Education and is the process of confirming information submitted on the Free Application for Federal Student Aid for various Federal Title IV Funds including the Federal Loan. Student applicants should be aware that this federal regulation requires them to submit tax data and other requested information to Financial Aid before processing of student loan applications and/or the awarding of funds. Students must submit the required information to complete the verification process no later than 45 days before the last day of the student’s enrollment.

Items to be verified include: adjusted gross income from the IRS form; U.S. income taxes paid; number of family members for whom parents provide more than half of their support; the number of children in post secondary schools who are enrolled at least half time; dependency status; untaxed income; eligible non-citizen status and any other item for which conflicting information has been submitted to Financial Aid. Any change in eligibility as a result of verification will be noted in a revised award letter to the student.

Documents Required

• Student and parent’s or spouse prior year IRS Tax Transcript
• Verification Form
• Additional documentation may be requested. Please check your Financial Aid Requirements in The Nest, (from Home page, click on Administrative Services, Financial Aid and view the Financial Aid Requirements tab). 

If the independent student or parent/stepparent/spouse did not file taxes, an IRS Verification of Non-Filing letter and copies of all W-2 forms must be submitted. Non-taxable income verification may be requested.

LOAN INFORMATION

New borrowers often ask for help in selecting a reliable lender. In general, interest rates and terms of the loan are similar between lenders. The quality of service throughout the life of the loan may distinguish one lender from another. Due to legislative changes Saint Joseph’s University does not have a preferred lender list. For convenience, a list of lender names and contact information that previous students have used is provided. Before deciding to borrow, carefully investigate all options. Please be sure to understand the application procedures, eligibility criteria, interest rate and processing fees, disbursement procedures, and repayment terms for each loan being considered. Refer to the elmselect.com website, which compares the terms and features of various Private Alternative Education Loan programs.

*Disclaimer: Federal Work Study jobs are not guaranteed. Eligible students may apply for jobs available via Career Development Center. FWS awards are dependent on the availability of funding and may be withdrawn or subject to change depending on this availability. Any financial aid package could be adjusted at any time according to federal and institutional regulations. Please visit sju.edu/finaid for additional information on Federal Work Study.