Financial aid rules

Recent changes in the Higher Education Act of 1965 have gradually increased eligibility for students from middle class families for federally-funded loans and grants. The changes were mainly in the areas of maximum loan amounts, the creation of an unsubsidized Stafford Loan, and a move from fixed to variable interest rates. The newly introduced rules enacted more transprerency in the college Financial Aid System. As per the new guidelines financial aid officers are prohibited form taking gifts from students for the service. As per the new guidelines issue by the Federal Government, $5million more students will be eligible for the Federal Financial Aid.


* The amount and requirements for Financial Aid will be change every academic year with the financial institution.


* Both of dependent and independent students are eligible for receiving Financial Aid. But the parents of dependent students are expected to contribute money to the cost of their childs education.


* Students need to submit the FASAFA before the deadlines to get appropriate aid amount.


* If students miss a deadline, they will or qualify for the low-interest Perkins Loan. Generaly, federal loans will be served on the basis of first come, first served method.


* The private banks of every state fund the federal loans. Some loans are interest free loans, as the federal government pays the in interest amount on all interest-free loans.


* Unsubsidized Stafford loans are created for the non qualified students of subsidized Stafford Loan.


* The unsubsidized loans charge an origination fee of 6.5 percent of the amount of the loan, and 5 percent for the other Federal Aid Programs.


* Based on the financial need of a student, the college will determine the eligibility criteria for subsidized and unsubsidized loans.


* The maximum amounts for Stafford Loans are $3,500.Junitr and senior students can borrow $5,500 and graduates can borrow $8,500 and $2,625 is for fresher.


* The federal loan amount for undergraduates will be $23,000 and $65,600 for combined undergraduate and graduate Stafford Loans.


* Students must reply to the Financial Aid mails and must maintain excellent academic track record to be eligible for Federal Perkins Loan, Federal Stafford Loan, Federal SLS/Plus Loan, Federal Direct Loan or Nursing Loan or owe a refund on any Title IV Grant (Federal Pell, Federal SEOG or SSIG).


* The minimum eligibility rules for the dependent students are:


o Should be born before January 1,1985


o Should be married


o Childrens of the e applicant must receive more than half support


o Must have dependents


o Veteran of united states armed services


* If the students wish to renewal their loan amount, need to sign the loan renewal form and submit to the Financial Aid Office.


* An applicant needs to enclose the related documents if the application is selected for federal verification.


The enclosed documents are:


o Signed copy of parents tax return


o Parents 2008-W statements


o Signed copy of studnts tax return


o Stundents W-2 statements


* The students need to submit the verification documents within the 45 days from the requested ate, otherwise the application considered as invalid.


* Every school has its own Financial Aid disbursement method. Check thoroughly with the financial aid office to know your disbursement schedule. Most of the schools disburse during the first week of academic year.


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