Summer financial aid facts

Many students are excited for the aid that will be provided in the summer; however, do they have the correct concept of how the aid is being offered?

Students might be under the impression that the aid is being funded with new grants and money that will be disbursed to everyone in need. This, however, is not the case.

According to Maria Isabel Woods, assistant director for Financial Aid, "there is no such thing as the school receiving money that is automatically disbursed to everyone that turns in an application."

Instead, Woods says, "The Pell grant is only being offered to those students that haven't used their entire money during the school year."

How does this work?

The Pell grant is disbursed in full amount if the student takes 12 hours, the minimum to be considered full time, or more each semester.

If a student has taken a total of 24 hours or more for the 2006-2007 school year, then he/she has already used up their entire Pell grant; therefore, the Pell grant won't be available for him/her in the summer.

Further financial aid includes loans-both subsidized and unsubsidized. Students must attend one entrance-counseling meeting before qualifying for any loans.

Mrs. Vincent, a secretary at the financial aid office, said, "Entrance counseling meetings don't go by appointment, you simply show up at Western Hemisphere room 103, and stay approximately 35 minutes or so."

The entrance-counseling meetings are scheduled for May 2, 16, and 30; all meetings have three different times in which a student can attend: 10:00 am, 1:30 pm, and 5:30 pm.

However, there is a catch for loans in the summer too.

All students automatically qualify for subsidized loans, but if they have used the maximum amount of a loan for the school year, they won't be able to receive a subsidized loan in the summer.

The maximum amounts for loans are as follows: $2,625 for freshmen, $3,500 for sophomores, and $5,500 for juniors and seniors.

If the student took the previous amounts for the regular school year then he/she can only receive a subsidized loan if his/her classification changes at the end of the spring semester.

Classification is determined by the amount of hours a student has (0-29 = freshmen, 30-59 = sophomore, 60-89 = junior, and 90 or more = senior).

For example, if a sophomore student received his $3,500 maximum subsidized loan during the school year, the only way he can receive money is if he obtains 60 or more hours at the end of spring semester, thus allowing him to receive the difference of the loan, which is $2,000.

As far as unsubsidized loans go, only students that file independent are the ones that automatically qualify.

Freshmen and sophomores receive $4,000 and juniors and seniors receive $5,000 in unsubsidized loans.

Unsubsidized loans work the same way; a student will only receive the money for the summer if he/she hasn't used all the money during the school year.

Students that file dependent can only receive an unsubsidized loan if his/ her parents apply for the loan.

The Parent Plus loan requires the same process as a student loan. The process is done through TG loans, but using the parent borrower option and providing the parent's information.

If the parent is approved for the loan, then the money is issued to him/her, and it won't have to be paid until the student graduates.

However, if the parent doesn't qualify then the money is automatically disbursed to the student.

Woods said, "The parent plus loans that have announced they are home deferral, which involves payments until after the student's graduation, are Wachovia, City Bank, and Nelnet."

Mrs. Vincent said, "The process of helping students will be easier if they have filled out the application and if they are aware of such things as Stafford loans are only offered with a minimum of three hours for the summer, the loans will only be disbursed during summer session I and II, and Pell grant is only being offered for summer session I."

Book loans for the summer will also offered and will begin on May 9th for Maymester, May 30th for Summer I, and July 3rd for Summer II.

All type of help for the summer including Pell grant, subsidized, and unsubsidized loans will be up on Uonline beginning he first week of May. Students can then accept their awards online.