A Guide to Your Financial Aid Award Letter - gordon.edu

1 A Guide to Your Financial Aid Award Letter Your Financial aid Award may include the following: Federal or state grants Scholarships and institutional need-based grants Work- study Low-cost federal student loans (Perkins or Stafford) Please carefully review this information and follow any necessary instructions. If you wish to decline any portion of this Award , you must cross out that portion, sign and return a copy of the Award Letter to the Student Financial Services Office by July 1. If you do not return the Award by July 1, we will assume you accept the aid awarded. *Some awarded funds require additional action to access the funds. (Loans, Work study ). Grants and Scholarships Generally grants and scholarships are gift aid which does not require repayment. If you receive a private scholarship or grant beyond what is listed on your Award Letter , please inform the Student Financial Services Office as soon as possible.

2 We reserve the right to decrease your Financial aid Award when an additional resource results in a significant reduction of need. This is required by current regulations if you are receiving any form of federal, state or institutional assistance. Typically the first $3,000 of private awards may be used to cover unmet need, and any private scholarship over $3,000 may replace Gordon College Grant aid dollar for dollar. Work- study (or student loan if requested) may also be reduced if necessary. Work- study Federal Work- study (FWS): The student employment estimate on the Award represents funds available for the student to earn. These funds are not credited to the student account directly. Working students earn paychecks to supplement their income and cover education-related expenses. On-campus work is reserved for students with demonstrated need, when possible.

3 For further information contact the Office of Student Employment at 1-978-867-4275. Federal Perkins Loan This College-administered loan program, backed by federal and matching Gordon funds, is awarded by the Student Financial Services Office based on high need with priority given to returning students . The repayment period is 10 years with some deferment or forgiveness options for further education, teaching, social work, Peace Corps, VISTA, correctional or military service. If you are awarded a Perkins Loan, you will receive a Perkins Letter , will be sent to you at the end of July. Additional action is needed to access funds. Federal Loan Programs Federal regulations require new Stafford loan borrowers to complete a master promissory note and an entrance loan counseling interview before loan funds can be disbursed. You will receive additional information about the Stafford Loan in June.

4 Although we will honor your choice of lender, we will provide recommendations based upon favorable repayment options and quality service. Federal Stafford Student Loans (subsidized and unsubsidized1) Borrowing limits Interest Rate and Fees Repayment Dependent students '2 1st Year: $5,500* 2nd Year: 6,500 * 3rd, 4th and 5th Years: $7,500* Independent students ' 1st Year: $9,500* 2nd Year: $10,500* 3rd, 4th and 5th Years: $12,500* *All loan limits include $2,000 in Unsubsidized Stafford Loan. The interest rate is fixed at on all subsidized Stafford loans and on unsubsidized Stafford loans processed after July 1,2009 and before July 1, 2010 Repayment is deferred while a student is in school Standard Repayment Term of 10 years Deferment and Forbearance options may be available Determining Your Award Financial aid awards are determined using the information you reported on the Free Application for Federal Student Aid (FAFSA), and supporting tax documents.

5 Completing the FAFSA generates the Student Aid report (SAR), which lists your family's expected Family Contribution (EFC). This is the amount you and your family can reasonably be expected to contribute toward your educational expenses. By estimating expected educational expenses such as tuition, fees, books, and room and board, we determine the Cost of Attendance. The difference between the Cost of Attendance and the EFC is your family's demonstrated Financial need. Many parents use a combination of current income, payment plans, parent and alternative loans, or home equity loans to meet their demonstrated Financial need. COST OF ATTENDANCE - EFC = Financial NEED Educational Expenses are based on the following Tuition Payment Plan Options Gordon College offers a Tuition Payment Plan, allowing you to spread an academic year's tuition over several monthly payments.

6 The Student Financial Services Office will send an estimated tuition bill in mid-June for the upcoming fall semester and by early December for the upcoming spring semester. Please note, there is a $50 administrative fee per semester when using the eight-month payment plan. 2009-2010 Per Semester Per Year Tuition (12-18 semester hours) $13,576 $27,152 Student Service and Technology fee $600 $1,200 Room (double) $2,560 $5,120 Board $1,300 $2,600 Total $18,036 $36,072 Two-Payment Option: One payment-in-full of balance (after any Financial aid) each semester Fall Semester Payment Due Dates July 15, 2009 Spring Semester Payment Due Dates DeDecember 15, 2009 Eight-Month Payment Plan Option: Four payments toward the outstanding balance each semester. Fall Semester Payment Due Dates July 15, 2009 September 15, 2009 August 12, 2009 October 15, 2009 Spring Semester Payment Due Dates December 15, 2009 February 15, 2010 January 15, 2010 March 15, 2010 Parent Loans Gordon College also provides options for parent borrowers wishing to share the borrowing responsibility for their child's education.

7 Parents may apply for the following programs. (Application information to follow in June with first bill.) Loan Program Borrowing Limits Interest Rate and Fees Repayment Federal PLUS Loan For parents of dependent, under- The interest rate is fixed at on all PLUS Loans disbursed on or after July 1, 2009. Fees range from 3-4%. Federal PLUS Loan repayment graduate students . begins 60 days after the loan is fully Approval is based on parent's good disbursed credit standing alone. No debt-to- Interest only option for the first two income ratio is calculated or proof of or four years employment is needed. No annual limits; may borrow up to the cost of education less any Financial aid. Alternative Loans While many students have borrowed private education loans Gordon College suggests that students and parents review all terms and conditions of any private student loan before borrowing.

8 Some key items to be aware of include: interest rate and how it is calculated, repayment terms, potential for deferral for graduate school, and the possibility of repayment beginning during a delay in enrollment. Some students have found it advantageous to keep their alternative loan with the same lender as their Stafford loan. Financial Aid Recipients Should Be Aware of the Following Responsibilities Eligibility for Financial Aid To be considered for Financial aid, you must be making satisfactory academic progress. Incompletes and withdrawals are not considered earned semester hours. You must maintain a GPA of at least for your first 26 semester hours; for 27 through 55 semester hours; and for 56 semester hours and above. Awards are prorated by term over the academic year. If you fail to attend for any term, you lose the aid for that term. Financial aid recipients must be enrolled as full-time degree candidates (at least 12 semester hours per term).

9 Awards will be reduced if a student enrolls half-time (8-11 semester hours). Only certain types of federal aid are available to students enrolled less than half-time. Reapplying for and Renewability of Your Aid Eligible students may receive Financial aid for a maximum of eight semesters while pursuing an initial undergraduate degree at Gordon College. Special circumstances may be considered for those taking up to 10 semesters to complete. Please contact the Director of Student Financial Services office for details. You must reapply for Financial aid every year. Applications will be available mid-December and are due by April 15. Late applicants may lose aid. The total amount of your Award will stay approximately the same provided that: You meet our priority filing date of April 15 There are no significant factor ( s) that change your eligibility, ( , increases in income, changes in the number of siblings in college) Your ability to borrow through the Federal Stafford Student Loan program increases as you progress through your four years at Gordon College.

10 Some years a portion of your need-based Gordon Grant may be replaced by this increased loan eligibility. Verification In order to verify all family Financial information submitted in the application process, the Award Letter may ask that you submit certain documentation within the next two weeks, including the following: Signed copies of parent and student 2008 Federal Tax Returns with all schedules and W-2s, or a non-filer statement (available from the Gordon College Student Financial Services Office) Documentation of untaxed income such as 551, child support, housing allowance or VA benefits Other information as requested in individual circumstances Gordon Verification Worksheet Financial aid funds cannot be disbursed until verification has been completed. Failure to supply the information requested will result in loss of all aid funds. Notification of Changes Your Financial aid Award is based on the information you submitted to the Student Financial Services Office.