Educational Funding Welcome Packet

Transcription

1 Educational Funding Welcome Packet Dear Student, Congratulations on your decision to pursue your education at Herzing University Online! We hope you find our careerfocused, convenient and caring approach to be exactly what you are looking for in an online educational institution. To help you get started, our Educational Funding and Student Accounts departments have teamed up to create this helpful guide that provides information on financing your education. Our Student Accounts department handles cash payments, employer reimbursement payments, military payments, and all other funding payments not associated with the Federal Title IV Financial Aid program. Student Accounts also handles withdrawal calculations and student loan exit counseling. Our Educational Funding department processes all students receiving aid from the Federal Title IV program. These are the funds commonly referred to as Financial Aid such as the Pell Grant, FSEOG, and Stafford Loans. Our Educational Funding department reviews your Free Application for Federal Student Aid (FAFSA) to determine your eligibility for federal funding. Certain FAFSAs are selected for a more extensive review process called verification, which our Educational Funding department will complete. If your application is selected for verification, you will be asked to provide additional documentation. Once the analysis has been completed, the Educational Funding department will notify you of your eligibility and award you according to your packaging preference. If you decide to make any changes to your schedule along the way, the Educational Funding department will also work with you to revise your financial aid award based on any fluctuations that may occur. Ultimately, the Educational Funding department works with students, both new and continuing, to ensure they receive the Title IV funding they are eligible for each semester until graduation, as well as budget counseling to help assist students in minimizing unnecessary loan debt as they pursue their education. If you have any questions regarding the information in this packet, please feel free to contact the appropriate department: Student Accounts Department Educational Funding Department Phone: Option #2 Phone: Option #2 Fax: Fax: [email protected] [email protected] We wish you the best of luck on your journey of pursing higher education through Herzing University Online. Thank you, Educational Funding Department Herzing University Online 1 P a g e

2 This comprehensive welcome packet is designed to inform you of the many options available to fund your education at Herzing University Online. Table of Contents Student Payments... 3 Scholarships... 4 Third Party Funding... 8 Federal Financial Aid Parent PLUS Loan for Dependent Students Alternative Loans The Financial Aid process at Herzing University After Graduation, Withdrawal or Dropping Below Half-Time Frequently Asked Questions P a g e

3 Student Payments Student payments are a great way to invest in your education without accumulating a large amount of student loan debt. Paying now can help students save a lot of money on loan payments in the future. Herzing University s student-centered approach allows you to make interest-free monthly payments, rather than requiring you to pay your tuition balance for the entire semester upfront. Our Student Accounts department is willing to work with you to set up a payment plan that makes paying for tuition more affordable. If after reviewing your finances you decide that you cannot fully fund your education through a student payment plan, we offer an option to pay monthly payments in conjunction with your Educational Funding package. We ask that you take a look at your finances and determine how much you can contribute towards your education on a monthly basis. Once you determine a monthly payment amount that is financially feasible for you, we can then set up your monthly tuition payment plan. Any amount of money that you can contribute toward the cost of your education now will reduce the amount of student loan debt you accumulate throughout your program. This is a direct benefit to you and your long term success and financial management. Herzing University has an ongoing commitment to help students reach their personal and financial goals. We are currently offering a Financial Responsibility Grant for students who make full or partial monthly tuition payments. The Financial Responsibility Grant is worth up to $1, and does not need to be repaid. For more information about this grant, please contact our Educational Funding Department toll free at (866) Option #2. Once you have your monthly payment plan established, you have several options to make your payments. VISA and MasterCard through our online payment system VISA and MasterCard over the phone with a Student Accounts Representative Money Orders Cashier s Checks Traveler s Checks Cash payments in person For more information regarding student payments, please contact our Student Accounts Department at (866) Option #2. 3 P a g e

4 Scholarships Herzing University offers scholarships; however, the majority of student scholarship options come from external sources. There are many free websites that allow you to search thousands of scholarship opportunities and can help you determine which scholarships you may be eligible for based on information you provide about yourself. Things to know: Please keep in mind each scholarship agency has its own established eligibility requirements and application steps with deadlines. We highly encourage you to check with the specific scholarship agency regarding their requirements, application steps and deadlines. If the agency requires information regarding the school, please notify the Educational Funding Department immediately so we may prepare the necessary information for you as quickly as possible. Be careful of scholarships that charge a fee to apply, as most legitimate scholarships do not charge an application fee. Finding Scholarships: Use all resources available to you: o The Internet scholarship specific websites and search engines o Your place of employment o Ethnic organizations o Local volunteer, civic, or government organizations (i.e. Rotary Club, Knights of Columbus, Kiwanis Clubs, Lions Club, Chamber of Commerce, Elk Club, Shriners, etc.) o Local church or parish o Local family foundations o Corporate Foundations (Large brand names associated with educational support) Use the reference desk at your local library to help you search for local scholarships. They usually have a listing of what is available to you in your area. Scholarship Links: Below is a list of known scholarship sites to help you get started. This list is not meant to be comprehensive and we encourage you to seek out additional sources. A scholarship search engine which also provides tips regarding application completion and other financial resources. A scholarship search engine which also provides excellent tips for finding funding for school. A scholarship search engine which allows student to search for scholarships as well as other types of available funding P a g e

5 Applying for a Scholarship: Thoroughly review the requirements for the scholarship. If you have questions, ask the scholarship agency to provide more information or ask to speak to a representative. If you must complete a form, type or neatly print all of the information requested. If the application you are applying for requires information from Herzing University Online, please contact the Educational Funding Department at (866) Option #2. Apply to any scholarships you think you may qualify for. You never know what you may be selected to receive and how much that may help you on your educational journey. Carefully proofread and edit your application. Avoid misspellings, errors and misleading statements. Make sure you allow yourself enough time to complete the entire application process, including writing a personal statement and collecting necessary recommendations, in order to ensure on time delivery of your application. Do not rely on postmark dates or expect extensions. Tips on specific items you may need to submit with your scholarship application Letters of recommendation: select someone who knows you well enough to describe your goals, academic achievements and/or employment history. To help the person you have selected write an outstanding recommendation, provide them with the details of the scholarship and provide them with a deadline. Ask that the recommendation be typed or neatly printed. Signatures should be signed, not typed. Personal Statements: provide a well written statement about yourself and your academic achievements thus far, along with the goals you have set for yourself. Most scholarship agencies do not do personal interviews, so a personal statement is your way of making yourself stand out from the other candidates. Financial Need: some applications require financial information. Be specific and explain how a scholarship would help your financial situation. Include any special personal or family circumstances that would demonstrate your need. Herzing University does not endorse or promote one scholarship agency or foundation above another. The information listed is merely a guide to assist students in obtaining additional financial funding for college education. 5 P a g e

6 Herzing University Scholarships: Adult Learner Scholarship An Adult Learner Scholarship is available each semester at each campus. The scholarship amount and awarding of the scholarship will be determined by the Scholarship Selection Committee. The scholarship will be for an amount not exceeding $ per semester for full time study for two semesters. An applicant must meet all of the following criteria: o Does not qualify for the Herzing High School Merit Scholarship or the Henry G. Herzing Scholarship o Demonstrates the need for Financial Assistance o Received two written recommendations from employers or educators o Submits a qualifying essay of words as to why he/she is pursuing their career field and why he/she has chosen Herzing University Online. Applicants must complete the application and submit it, along with recommendations and qualifying essay, no later than two weeks prior to the start of their first semester to qualify for the Adult Learner Scholarship for that semester. Students who miss the first semester deadline may submit an application no later than two weeks prior to the start of their second semester, but after that time, this scholarship is no longer available to them. Academic Award Students with a cumulative grade point average in the top 5% of the student body after their second or subsequent semester (completion of at least 24 credits at Herzing University) will receive an academic award of $ The award is a credit to the next semester s tuition if students carry a course load of at least 12 credit hours. No application is required. The award will be determined by the Educational Funding Department and students will be notified if they are eligible recipients. Academic Persistence Award: This award is made available to students who initially enroll at Herzing University in an Associate or Bachelor Degree program and continue through to completion of a Bachelor degree on a full-time basis with no interruption in their education. To qualify for this award, transfer students must complete 75% of the credits required for completion of their Bachelor degree at Herzing University. The award is $ It is credited to the tuition account of the student during their last semester of study. Students who believe they qualify for the award must obtain an application from the Educational Funding Department and submit it to that department prior to starting their last semester of study at Herzing University. Institutional Scholarship for Completion of Second Degree/Major: Students who are in the process of completing a second degree program (major), second minor, or concentration within a Bachelor degree program will be entitled to receive an institutional scholarship for a course of his/her choice during their final semester of study. 6 P a g e

7 Henry G. Herzing Scholarship for Severely Injured Service Members Herzing University is offering $1,000 scholarships to 12 service members who have become severely injured as a result of service to our great country. Their spouses and dependents are also eligible to apply. The scholarship is named after the University's founder, Henry Herzing, who served in the U.S. Navy as a Sr. Missile Test Officer at White Sands. Mr. Herzing is currently Chancellor of Herzing University. To be eligible, applicants must be enrolled in a program at Herzing University Online and maintain full-time student status (approximately two classes at a time for each 8-week term).this scholarship is non-renewable, however recipients are encouraged to re-apply each year. Institutional Grants: Based upon extraordinary student need and/or unusual conditions or change of circumstance, students may be awarded an institutional grant. Such determination is made by the Institutional Grant Committee composed of the Campus President, Director of Educational Funding, and one other staff member. The standard application for financial aid can also be used as the application for this grant. The deadline for submission of the application for this grant is prior to the end of the add/drop period of each semester. Awards will be made based upon the number of students with extraordinary need, the extent of the need, and fund availability. The amount of the award is normally between $ and $ per semester. The average award is typically $ Herzing University does not discriminate on the basis of race, color, religion, sex, marital status, sexual orientation, age (except as mandated by state law), or national origin, nor against any qualified individual with a disability or those known to have a blood borne infectious disease in any of its educational policies, procedures, or practices. 7 P a g e

8 Third Party Funding Third party funding is any payment that is applied toward your tuition coming from a source other than your own payments. A few examples are listed below: Employer Reimbursement/Education Assistance Some employers offer educational benefits to their employees. These may include helping the student pay for their education or reimbursing for educational expenses. We highly recommend checking with your employer to determine if they provide educational benefits for their employees. If you are a dependent student, your parents employer(s) may extend benefits to dependent children. If you are married, your spouse s employer may also extend benefits to spouses. You will be asked to provide any invoices or billing statements from your employer, as well as proof of eligibility for the benefit, to the Educational Funding or Student Accounts department. If you wish for Herzing University to provide your employer with any information requested, you will need to sign a FERPA release form. Your employer may also have a direct-bill option so that your tuition is paid for automatically by your employer. Contact the Student Accounts department if you have this option available and we will be able to assist you with this set up. Check with your employer to see if your company may qualify for an additional discount by being a preferred provider with Herzing University. You can also contact your Admissions Advisor and pass along your employer s contact information to help with this process. Active Duty Military Benefits/Tuition Assistance Active Duty Military and Reservists may be eligible for a Military Appreciation Scholarship. Please be sure to notify your Admissions Advisor if you believe you may be eligible. (Documentation is required.) Tuition Assistance (TA) o TA is an educational benefit paid to eligible members of the armed forces. o Each branch of service has its own eligibility requirements so please check with your Education Service Officer (ESO) or the closest education office on base. o Herzing University requires that students utilizing Tuition Assistance provide our Student Accounts department with invoices as soon as possible in order to ensure prompt processing and receipt of payment. o For more information on Tuition Assistance, please visit your branch of service s website on Tuition Assistance. o My Career Advancement Accounts (MyCAA) from Military One Source Spouses of DOD Active Duty members and activated members of the National Guard and Reserve components are generally eligible. MyCAA typically pays for education and training programs, tuition, licensing, and credential fees. For more information on eligibility requirements, what it covers, and how to apply please visit: ncementaccounts.aspx 8 P a g e

9 Veterans Affairs Education Benefits Veterans may be eligible for a reduced tuition rate. Please be sure to notify your Admissions Advisor if you believe you may be eligible. (Documentation is required.) There are several types of benefits available to Veterans under the Montgomery GI Bill and the new Post 9/11 GI Bill. To determine which benefits you are eligible for, and to help you determine which benefits will best suit your needs, please visit the VA s website at: or call the VA at (888) For assistance completing the appropriate forms or to discuss how Herzing University Online works with students using VA benefits, please contact the Educational Funding Department at (866) Option #2. Students seeking to use VA benefits to cover their tuition costs must provide documents confirming eligibility to a Herzing University School Certifying Official in order to have their enrollment certified with the VA. For more information on submitting documentation, please contact the Educational Funding Department or your Admissions Advisor. For a list of Programs approved for Veteran s benefits, please visit: Native American Tribal Grants and Scholarships Native Americans may be eligible for tuition benefits from their tribe. Please check with your tribe s Higher Education Board for eligibility requirements and application steps. Please provide the Educational Funding Department with any paperwork that must be completed by Herzing University as soon as possible. This will ensure prompt processing and receipt of payments. Tribal students must fill out a FAFSA to determine Pell and/or SEOG eligibility. Tribal Information, including Tribe Name, address, phone number, and counselor or Higher Education Director, must be given to your Admissions Advisor to assist you in following the proper steps and in contacting the Education Office. Each Tribe will have individual enrollment guidelines to follow. Please check with your Tribe for eligibility criteria and timelines for application deadlines. Native Americans may also be eligible for extra funding through employment reimbursement from the Indian Health Services, casinos and hotels as well as other tribal businesses. Contact your employer for more information. 9 P a g e

10 Federal Financial Aid Federal Pell Grant The Pell Grant was established under the Higher Education Act of The Federal Pell Grant Program provides needbased grants to low-income undergraduate students. Pell Grants are awarded only to undergraduate students who have not earned a bachelor or a professional degree. Graduate level students are not eligible for the Federal Pell Grant. Federal Pell Grant, unlike a loan, does not have to be repaid. The maximum amount of a Pell Grant can change each award year and depends on program funding. The amount of Pell Grant funds that you receive will depend not only on your financial need as determined by your expected family contribution (EFC), but also on your cost of attendance (as determined by the school), your enrollment status as a fulltime or part-time student and your plans to attend school for a full academic year or less. Students may not receive Federal Pell Grant funds from more than one school at the same time. Students who received their first Pell Grant on or after July 1, 2008 are limited to 18 semesters, or their equivalent, of Pell Grant funding. Students can receive up to two Pell Grant awards in one award year if they wish to accelerate their course work. Financial need is determined by the U.S. Department of Education using a standard formula, established by Congress, to evaluate the financial information reported on the Free Application for Federal Student Aid (FAFSA) and to determine the family EFC. The fundamental elements in this standard formula are the student's income (and assets if the student is independent), the parents' income and assets (if the student is dependent), the family's household size, and the number of family members (excluding parents) attending postsecondary institutions. As an EFC increases, eligibility for the Pell grant decreases. After completing a FAFSA, the student receives a Student Aid Report (SAR), which notifies the student if he or she is eligible for a Federal Pell Grant and will provide the student with their EFC. The institution(s) that the student has listed on the FAFSA will receive an Institutional Student Information Record (ISIR), which will share with them the same information. Federal SEOG Grant The Federal Supplemental Education Opportunity Grant (FSEOG) Program provides need-based grants to low-income undergraduate students to promote access to postsecondary education. Priority is given to those students with "exceptional need" (those with the lowest expected family contributions at the institution). Students must also be eligible to receive Federal Pell Grant funds to be eligible for Federal Supplemental Education Opportunity Grant funds. 10 P a g e

11 William D. Ford Federal Direct Stafford Loans Direct Stafford Loans are loans for students and parents to help cover the cost of a student's higher education. The lender is the U.S. Department of Education rather than a bank or other financial institution. With Direct Loans, you: Borrow directly from the federal government and have a single contact, the Direct Loan Servicing Center, for everything related to the repayment of your loans, even if you receive Direct Loans at different schools. Have online access to your Direct Loan account information 24 hours a day, 7 days a week at Direct Loans on the Web at: Can choose from several repayment plans that are designed to meet the needs of almost any borrower, and you can switch repayment plans if your needs change. Federal Direct Subsidized Stafford Loan Program The Subsidized loan program allows students (who demonstrate federal financial need and who are enrolled at least half time each term) to borrow up to $3,500 for the first year of undergraduate study, $4,500 for the second year, and $5,500 per year for subsequent undergraduate study. The interest rate is fixed. Interest does not accrue nor does repayment begin on subsidized Direct Loans until termination of college enrollment or reduction of course load to a less than half time status. Interest accrued while in school and during the grace period, is paid by the federal government. The standard repayment period is up to ten years. Subsidized Direct Loans carry a 1.5% federal origination fee and an up-front interest rebate equal to 1.0% of the loan amount. New borrowers must complete a Federal Direct Loan electronic Master Promissory Note (MPN) and complete an online Entrance Counseling Session to borrow funds through this program. Federal Direct Unsubsidized Stafford Loan Program The Unsubsidized loan program allows all students (regardless of federal financial need and who are enrolled at least half time each term) to borrow up to $5,500 for the first year of undergraduate study, $6,500 for the second year, and $7,500 per year for subsequent undergraduate study less the amount of any subsidized Direct Loan received by the student. New borrowers must complete a Federal Direct Loan electronic Master Promissory Note (MPN) to borrow funds through this program. The interest rate is fixed and the origination fee is the same as specified above under the description of the subsidized Direct Stafford Loan Program, however, interest accrual begins immediately during inschool and deferment periods. Interest accruing during these periods may be paid or capitalized. Independent students may borrow up to an additional $4,000 per year through the unsubsidized Direct Loan Program. Dependent students may borrow up to the same additional amount through this program if the student s parent is denied eligibility to borrow funds through the Federal PLUS Loan Program. 11 P a g e

12 What is a Direct PLUS Loan? Parent PLUS Loan (For Dependent Students Only) The Parent Loan for Undergraduate Students (PLUS) is a federal unsubsidized loan available to parents of dependent students through the Department of Education. PLUS loans can be used to cover educational related expenses up to the cost of attendance minus all other financial assistance that the student receives. Eligibility Requirements A student must be dependent as defined by the FAFSA and enrolled in at least six credits (half-time) per semester. In order to be eligible to take out a PLUS loan, the parent applying for the loan must not have an adverse credit history, as approval for this loan is credit based. The parent and student must be U.S. citizens or eligible noncitizens. Neither the parent nor student can be in default on any federal education loan or owe an overpayment on a federal education grant. Fees & Limits Interest rates for the PLUS loan are fixed. Interest begins accruing the same day as the first disbursement date. There is also a 4% origination fee charged on all loans with a 1.5% rebate (2.5% will be deducted from the gross loan amount to cover the origination fee). Although there is no aggregate limit set for Direct PLUS Loans, a parent may not borrow more than the cost of the student s education minus any other financial aid received, such as grants, scholarships, tuition assistance or loans. If you have questions regarding the amount that can be borrowed, please contact the Educational Funding Department. Applying for PLUS To apply for a PLUS loan, please contact the Educational Funding Department to obtain a Direct PLUS Pre-Approval Form. This form should be completed and signed by both the parent and student and then returned to the Educational Funding Department. If the parent is approved for the loan through the pre-approval process, the parent must complete a Master Promissory Note (MPN) at to have the loan included in the student s educational funding package. Once a financial aid award letter is sent to the student, the letter must be signed by both the student and parent in order for our offices to disburse the PLUS funds. If the parent s application for a PLUS Loan is denied, the student may be eligible to receive additional Unsubsidized Loan funding as outlined in the Federal Direct Unsubsidized Stafford Loan Program previously discussed in the section above. 12 P a g e

13 Alternative Loans Alternative loans (or private loans as they are often referred to) should only be considered after all grant and scholarship options have been exhausted. However, alternative loans may be a viable option for additional tuition funding needs if you are eligible to borrow. If you are able to make out of pocket payments toward a portion of what you owe in tuition, you can apply for a smaller alternative loan that will only cover the portion that you are unable to cover with payments. Any out of pocket payments made will help keep your loan debt as low as possible. If eligible, students should consider Federal Stafford Loans and parents of dependent students should consider the Parent PLUS loan before taking out an alternative loan. Interest rates, repayment options, and deferment and forbearance opportunities, tend to be more favorable with Stafford and PLUS loans. If you have multiple loan options available to you, it is always in your best interest to compare interest rates, terms and conditions, and other benefits prior to deciding which loan to choose. A credit check is required for Alternative Loans, but is not a requirement for Federal Direct Stafford Loans. Alternative Loans are not Federal Financial Aid but are a way to help cover out of pocket expenses not covered through other forms of funding or payment. If you decide to apply for an alternative loan, it may be necessary to obtain a cosigner to gain approval. Cosigners are usually required Most students will need to apply with a cosigner in order to meet the credit history, income, and employment requirements to receive a loan. A cosigner does not have to be a relative. Why is a cosigner important? Likely needed to meet loan requirements May increase the chance of approval May help lower the interest rate May speed up the application process What are the cosigner s responsibilities? A cosigner agrees to assume equal responsibility for repaying the loan. The loan becomes a part of the cosigner s credit history, even if the borrower is the one making all the loan payments. The cosigner should: Understand how much the student intends to borrow, and how the money will be spent Keep copies of the loan terms and credit agreement Ask the borrower for guest access to his/her online student loan account before repayment begins, to help ensure payments are being made in full and on time 13 P a g e

14 Student and cosigner application information needed may include: Social Security number Personal reference information name and phone number Employment information name, address, phone number and gross income Monthly rent or mortgage payment amount Resources: What to know before you borrow: Your guide to private student loans Preparing to repay your private student loans The Student Loan Down Hands on Banking 14 P a g e

15 The Financial Aid process at Herzing University Online Each institution of higher education differs in how the financial aid process works. This guide is meant to explain how Herzing University handles this process and the steps you will need to take to make sure you are doing your part. New Students The enrollment process begins in the Admissions Department. Here you will work with your Admissions Advisor to make sure all the steps are completed and eligibility requirements are met in order to be accepted into the University. Your Admissions Advisor will also make sure your initial Financial Aid steps are completed, such as having your FAFSA completed if you are interested in Financial Aid. After these steps are complete, you will then receive your schedule from our Registration Department. Once you receive your schedule, you will be contacted by the Educational Funding Department within hours. At that time, the Educational Funding Department will begin to determine your eligibility. When the initial review of submitted documents occurs, many students are selected for a process called Verification. If selected for this process, you will be required to provide additional documentation. To complete Verification, the Educational Funding Department must clear up any discrepancies within your FAFSA and supporting documentation before being able to move forward in processing your aid. Upon determining your eligibility, the Educational Funding Department will send out your award letter via . The award letter typically includes your financial aid eligibility for your first two semesters. It is your responsibility to carefully review your award letter. It may be possible to increase or decrease award amounts depending on your eligibility, which will be clearly indicated in the award letter . Once you have reviewed your award letter and award letter attachment, you will need to sign the attachment (if you are a dependent student receiving a PLUS loan, your parent must also sign) and fax or it back to the Educational Funding Department. Once we receive a signed copy of your award letter, you will be classified as an enrolled student and you will receive information about logging-in to classes and ordering books. At that point, you have successfully completed the financial aid process until the next time you are ready to be repackaged. Repackaging your Financial Aid Students are generally packaged two semesters at a time. As soon as one package ends, you will receive a new package for the following two semesters. Further information for current students is located on the University s online course website. The FAFSA for the upcoming award year is always released in January and can be filled out any time after it is released. It is important that you complete the FAFSA each year you are enrolled in school. If you plan to file taxes, it is likely in your best interest to fill out the FAFSA after your taxes are completed, so that you have accurate information. The deadline for submitting your FAFSA each year is April 15 th. This ensures that you will receive your financial aid information in a timely manner. 15 P a g e

16 After Graduation, Withdrawal, or Dropping Below Half-Time Six months after you graduate, leave college, or drop below half-time status (less than 6 credits in a semester), you will need to start paying back your student loans (you are only entitled to this six month grace period once). You have 10 years to pay back these loans and you may be able to write off the interest paid on your student loans on your federal taxes each year. Many students often are not aware of their rights and responsibilities as a student loan borrower after they have graduated or have dropped below half time status. There are several options students have if they find that they are unable to make the monthly payments on their student loans for a period of time. All students who have borrowed Federal student loans are required to complete Exit Counseling which is designed to help you understand what is required and what your options are, should you face any difficulty in making your monthly payments. Please be sure to complete this very crucial step as it will provide you with important information. One of the more common challenges students face is making the decision on whether or not to consolidate their student loans. We encourage students to explore all available resources to help make an informed decision. Several websites offer consolidation calculators. These are designed for students to import their total loan balance, select a repayment method, and see an estimated monthly payment on the variety of options available to them. This may aid you in your decision. Students that are having difficulty and are unable to make the required monthly payments on their loans are encouraged to utilize Herzing University s Alumni Support Center. They will help facilitate conversations with your lender to help prevent defaulting on student loans. The sooner your lender knows about your situation, the sooner they are able to provide the necessary information and resources to you. You should be aware that going into default negatively impacts your credit score and will leave you ineligible to borrow student loans again until you have made satisfactory repayment arrangements. Defaults are also reported on your credit report and have many other negative factors which may cause problems for you financially for a long time down the road. For further information along with ways to prevent default, please contact the Alumni Support Center at (866) , ext P a g e

17 Frequently Asked Questions Q What is Federal Financial Aid? o Federal Financial Aid is aid provided by the Department of Education. Federal Financial Aid includes both grants and loans. Please visit the student aid website to learn more at: Q Are there alternatives to Federal Financial Aid? o Yes, please contact the Educational Funding Department for more information. Alternatives may include scholarships, military payments, tribal payments, student payments and private, credit-based, and loan funding sources to name a few. Q Does Herzing University offer any grants or scholarships? o Yes! Please see the most recent University Catalog for more information on scholarships. More information can be found on our website at: Q How do you determine what I m eligible for? o Your eligibility is determined based on the Expected Family Contribution (EFC) calculated on your FAFSA. This number is calculated by the US Department of Education and is explained in further detail by going to the following link: o Each person s financial aid eligibility is almost completely unique to the individual. We urge you to keep your financial aid information as private as you would your wage or tax information. Due to FERPA regulations we may not discuss a student s eligibility with anyone but the student. With that being said, there are several key calculations that are completed when determining financial aid eligibility. Step one: determine your need. We start with an estimated cost of attendance that contains your tuition, books, fees, room and board and personal expenses and your EFC is then subtracted. Step two: determine your grant eligibility using your EFC and the number of credits you are scheduled for that semester. Step Three: loan eligibility if you have indicated to us that you wish to utilize loans to help cover your educational costs. Q Am I eligible to receive state grants? o Unfortunately, due to many states current regulations pertaining to state grants, they often will not fund online students. Please check with your own State Grant agency for specific details and eligibility requirements. Some states may have programs that Herzing University qualifies for, so it is in your best interest to collect as much information as possible on the grants offered in your state to determine if you will qualify while attending Herzing University Online. 17 P a g e

18 Q How much money am I eligible to borrow through Federal Financial Aid for my undergraduate degree? o In total, dependent students can borrow $34,500 and independent students can borrow $57, combined in subsidized loans and unsubsidized loans from all institutions. You may not exceed $23, in total subsidized loans taken out from all institutions. Undergraduate study includes Diploma, Associate, and Bachelor Programs. Q How do I find out what my current loan balance is? o Please visit the National Student Loan Data System (NSLDS) at to view your loan history. Please note this website does not track private or alternative loans. Q How often do I have to fill out a FAFSA? o The Department of Education requires all students intending on receiving aid for the new award year to complete their FAFSA each year as soon as you complete your previous year tax return. The new FAFSAs are available after January 1 st of every year. Once the FAFSA is available for completion an will be sent to the address indicated on your previous year s FAFSA. Please check with the Educational Funding Department for the deadline for continuing students to complete their FAFSAs. The deadline is typically April 15 th, which coincides with the deadline to file your income tax return. Each award year runs from July 1 st to June 30 th of the next year (ex. 7/1/2010-6/30/2011). Q I need to make updates to my FAFSA, can I? o If you need to make updates to your FAFSA, our office recommends you speak with your Educational Funding Advisor before doing so. Some updates are not allowed by the Department of Education and some may cause drastic changes to your eligibility. Please contact the Educational Funding Department for assistance. Q How often am I packaged for Financial Aid? o Although it will depend when you started your coursework with the University and if you had an overlapping loan period due to attendance at another institution prior to enrolling at Herzing University, typically students are packaged every two semesters. Please reference your most recent award letter which indicates which two semesters you are packaged for. Q How do I apply for Federal Financial Aid? o Please review the application steps listed under the contact information of the Department of Educational Funding and Administration page. Q What is Herzing University Online s School Code: o (This will be listed as Madison, WI.) 18 P a g e

19 Q What does Verification mean and why have I been selected? o The Department of Education randomly selects FAFSA applications for a process called Verification. However, a FAFSA may also be selected if information on the FAFSA appears to have been entered in error or conflicts with other provided documentation. o When a student has been selected for Verification, the Educational Funding Department is required to collect a Verification Worksheet. This is ed to the student with a request for signed tax returns for the student and their spouse or parents, depending on the student dependency and marital status. o The Educational Funding Department may also request additional documents or information to help us better understand your financial situation. Additional documents requested will vary depending on the type of information provided on the FAFSA. This is to ensure that the information entered on the FAFSA is correct and that your maximum eligibility is determined. Q I don t want to take out loans. Will grants cover the full tuition costs? o The Pell and SEOG grants generally do not fully cover the cost of tuition at Herzing University based on current limits for Federal grant funding as set by the Department of Education. Grant eligibility is determined by the EFC that is generated by your FAFSA and the number of credits you are scheduled for. You have the choice to accept or decline part or your entire Financial Aid Award. For additional questions regarding your grant eligibility or to explore the option of alternative funding please contact your Educational Funding Advisor. Q I want to decline some of my funding, what do I do? o If your awards are available, you can go to click on the Educational Funding link, Award Letter link, and then the View link under the package you would like to reduce, and enter in the lower amount you would like to borrow. Or you can simply contact your Educational Funding Advisor via phone or and let them know how much you would like to decline. You can also contact our general line at Option #2. Q Will I have any left over funding to help cover living expenses? o Herzing University currently packages students at direct cost. This means that you are packaged with only enough financial aid to cover your tuition costs. You may have additional funding that you are eligible for which is always indicated in your award letter. If you have specific questions as to the amounts you are eligible for, please reference the award letter sent to you via . To inquire on the possibility of increasing the amount of your loans, please contact your Educational Funding Advisor via phone or . o The Educational Funding Department strongly recommends taking only enough aid to cover your tuition expenses. This will help limit your overall loan debt upon graduation. If you do find yourself in need of excess funding, we recommend that you evaluate the amount of money you would like to take out so that you don t borrow more than what you really need in student loans. You should also use a loan repayment calculator ( to see how increasing the amount you borrow will increase in your monthly payment once repayment on your loans begins. 19 P a g e

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21 Q I have excess funding from my student loans and received an excess loan funding check. What can I use it for? o By Federal Law, excess financial aid funding is designed to assist students with school related expenses only. These expenses may include additional books to assist with classes, certification testing, school supplies, etc. Q When will I receive my financial aid excess funding? o The date indicated on your award letter indicates the anticipated date that the Educational Funding department will request your funding. As soon as your funding has been received by the University, it will be applied to your student account. Once your funding has been applied to your account and your tuition has been covered, our Student Accounts department will write the check for the excess funding and mail it to you within 14 days of receiving the funding. If you need a copy of your award letter resent to you to reference, please contact the Educational Funding Office. Q What types of paperwork or records should I keep? o The Educational Funding Department recommends that you create an Educational Funding folder; whether it is in paper format or a folder created on your computer, disk, USB drive or in your account. We recommend that you keep a copy of your Master Promissory note, notes that you took during your Entrance Counseling session, all of your award letter s and attached award letters, and any other correspondence or information you may have received. That way these items will always be available for reference when needed. Q I want to use the VA benefits or Active Duty Tuition Assistance granted by my military branch of service. How can I use them and what do I need to do? o Be sure to let the Student Accounts or Educational Funding Department know right away if you plan to use these benefits and they can help you begin the process of obtaining your Veteran Education Benefits or Tuition Assistance paperwork. Q What happens if I run out of Financial Aid? o Unfortunately, if you reach your aggregate Stafford loan limit, we are unable to award you any additional Stafford loan funding. You will be held responsible for any tuition costs that are not covered by financial aid. Alternative resources such as private loans may be an option. Information is listed within the Alternative Loan section of this packet, or you can contact the Educational Funding Department to learn more. Q If I change my schedule, will it affect my financial aid? o It very likely will. Changes in the number of credits you are taking will affect the amount of tuition charged and the financial aid needed to cover those charges. If you receive Federal Pell grant, that may also change since it is based on your enrollment status. If you are exploring the option of changing your schedule, please check with the Educational Funding Department before doing so. 21 P a g e

22 Q What happens to my Financial Aid if I fail a class? o If you receive a grade of F for a class, the class is considered completed unsuccessfully. If the class is required for graduation, you will be required to retake the class and you will be charged for it again. Financial aid may cover the cost of the course. The Educational Funding Department will determine your eligibility for that course. Q If I am 18 years old, why do I need my parents to provide their information and sign my FAFSA? o Per Federal regulations, the government reviews questions on your FAFSA to determine your dependency status. Many students over the age of 18 are still considered dependent students. The definition of a dependent student according to the FAFSA is different than the definition of dependent used for filing taxes. A student may still be dependent according to the FAFSA even if they are not claimed as a dependent on another person s tax forms. If you feel you have special circumstances, please contact the Educational Funding department for assistance. Q Why do I need to provide a FERPA Release form for Herzing University to release information to my parents or spouse? o Per the FERPA regulations, even though a student is considered by the Department of Education dependent upon their parents for support, the privacy regulations still prevent institutions from releasing information to anyone but the student if they are over the age of 18. o For married students, per FERPA regulations, the University is unable to release any information to a spouse without prior written consent. This applies to community property states as well. o The student must provide written consent before any University employee may release information. Verbal consent is not acceptable. To obtain a FERPA release from, please call the Registration or Educational Funding Department to have one sent to you. 22 P a g e