Following is a sample loan calculation for an independent, associate's degree seeking graduate.
What is Entrance Counseling?
As a student loan borrower, you must complete Entrance Counseling so you can be completely informed before borrowing a loan. This process is designed to notify you of all of the important information about your Direct Subsidized Loan, Direct Unsubsidized Loan or Direct Plus Loan. You may complete this process in approximately 30 minutes by visiting: www.studentloans.gov, creating an account and completing Entrance Counseling.
What is Exit Counseling?
After you have taken a federal student loan, you will need to prepare to repay it. Exit Counseling will provide you with the important information you will need. This process will take 20-30 minutes to complete and you will be able to do so by visiting: www.studentloans.gov, logging in and Completing Exit Counseling. You are required to do this when you graduate, leave school or reduce your course load to below half-time status (less than 6 hours). You will need your FSA ID as well as names, addresses, email addresses and phone numbers for your next of kin, two references who live in the US and your future employer (if known). You will review and sign your Borrower’s Rights and Responsibilities and be reminded of all of the terms and conditions of your loans. More specific information regarding Exit Counseling may be found at: http://direct.ed.gov/leaving.html.
A sample estimated 15-16 cost of attendance for an independent student seeking an associate's degree is
demonstrated below in the sample shopping sheet.
This process allows the financial aid administrator to use discretion to address a student’s ability to pay educational expenses due to unusual circumstances. On a case-by-case basis, with significant documentation and justification, adjustments may be made in the student’s file when warranted.
The use of this process is rare and is determined on a case-by-case basis by the financial aid administrator. Dependency overrides are generally used if a student can be documented as lacking parental support due to being abused, being abandoned or experiencing some other type of parental neglect. This process allows a student who is normally categorized as dependent to be re-categorized as independent.
As a borrower of a Federal Student Loan, you have the right to know the following:
Note: You are obligated to the terms and conditions for repayment of your loan(s) even if your lender and/or school do not make the required disclosures, or if your loan is sold. Make sure you are well-informed. Any loan borrowed by the student or parent will be submitted to the National Student Loan Database System (NSLDS), and will be accessed by guaranty agencies, lenders, and schools as determined to be authorized users of the data system.
To Your School
or attendance status; or if your (or your family’s) financial situation changes.
that is requested
To Your Lender (Notify your Lender)
If you cannot resolve a dispute over a loan with the school, you have the right to contact the Ombudsman Group.
Methods of Contact: Phone: 1-877-557-2575 / Fax: 202-275-0549 /
Postal Mail: FSA Ombudsman Group, 830 First Street, NE, Mail Stop 5144,
Washington, DC 20202-5144
Students are potentially eligible for two kinds of financial aid from the government: grants (which do not need to be repaid) and loans (which must be repaid with interest).
Maximum Title IV Aid available to students:
The Federal Direct Loan terms and conditions:
Subject to a student’s eligibility, a borrower may qualify for Direct Loans as follows:
There is an expense for the use of borrowed money, known as interest. Direct Subsidized and Direct Unsubsidized loan interest rates on loans disbursed after July 1,2015 and before July 1, 2016 is 4.29% These rates are variable.
Below are Direct Subsidized, Unsubsidized, and PLUS Loan fees first disbursed on or after Oct. 1, 2014.
There are different loan fees for Direct Loans disbursed before 10-1-2014. These rates can be found at: https://studentaid.ed.gov/sa/types/loans/interest-rates#are-there-any-other-fees-for-federal-student-aid.
Master Promissory Note
The document used to execute a legally binding agreement federal student loan is known as a Master Promissory Note (MPN). Your rights and responsibilities as a borrower as well as the terms and conditions of your loan(s) are located on this document. It can be used for one or more academic years. The standard repayment term for Direct Loans is 10 years.
Subsidized Usage Limit Applies (SULA)
As of July 1, 2013, a first-time borrower is subject to additional provisions authorized under the Moving Ahead for Progress in the 21st Century Act (MAP-21. SULA eligibility for a Direct Subsidized Loan cannot go beyond 150% of the length of the program the borrower is enrolled in. Exceeding the 150% limit may cause the borrower to lose Direct Subsidized Loan eligibility.
For more information on student loans go to: https://studentaid.ed.gov/sa/types/loans
Students may also qualify for Federal Pell grants. Amounts change each award year. Specific information may be obtained here: https://studentaid.ed.gov/sa/types/grants-scholarships/pell
You will need to review your budget with the Financial Aid team.
Federal Student Aid (FSA) is financial assistance for eligible students to help pay for their educational expenses while enrolled in college. FSA is the most common form of financial assistance students apply for and ought to be considered before private loans.
To determine eligibility for federal loans and grants, you must complete the Free Application for Federal Student Aid (FAFSA). FAFSA is NOT a loan application and applying does not require any credit checks into your financial history. The FAFSA simply gives you information on what the federal government will contribute to your education, so you and your family can plan and budget early and more accurately. You should complete the FAFSA even if you think you won't qualify, as most families ARE eligible for some form of federal student aid. We suggest that all incoming students apply for FAFSA at www.studentloans.gov.
Grants are financial gifts that are not paid back. [The only time they must be paid back is if they are obtained through false information or if the student’s withdrawal from school creates an over-award.]
Federal direct loans must be paid back regardless of whether a student graduates. Three of the most common loans are:
Before you apply for a Federal Direct Loan, you will need to complete entrance counseling at http://studentloans.gov. Then, you may apply for your loan by signing a Master Promissory Note at the same website.
Please note that any loan borrowed by the student or parent will be submitted to the National Student Loan Database System (NSLDS), and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system.
Fountainhead College is a Military-Friendly School and we support our military students and veterans by helping their financial aid process be as seamless as possible.
If you served on Active Duty, you might be eligible for education benefits offered by the Department of Veterans Affairs. For example, the Post-9/11 GI Bill provides financial support for education and housing expenses to individuals with at least 90 days of aggregate service after September 10, 2001, or individuals discharged with a service connected disability after 30 days. You must have received an honorable discharge to be eligible for the Post-9/11 GI Bill.
If you are currently serving in the military, you may be eligible for funding offered through the Department of Defense Tuition Assistance program. Check your eligibility status and the amount for which you qualify with your Service prior to enrolling.
If you are the spouse or child of a service member who is serving on active duty Title 10 orders in the paygrades of E1-E5, O1-o3, or W1-W2, you may be eligible for financial assistance from the Department of Defense for education, training, and/or the occupational licenses and credentials necessary for a portable career.
If you are the spouse of child of a service member, you may be eligible for transfer of the service member’s Post-9/11 GI Bill Benefits to you.
Learn more about our Veterans Benefit Programs
and also see the Financial Aid FAQ for "What types of aid are available and how much will I receive?"