Financial Aid Consumer Information The Schilling-Douglas School participates in the following programs: Federal Pell Grant Federal Supplemental Educational Opportunity Grant William D. Ford Federal Direct Loan Program Federal Family Educational Loan Program The Pell Grant is gift assistance and requires no repayment. Grants to students of up to $4,731.00 during the 08-09 award year are authorized by Federal legislation. Family income that represents middle to uppermiddle income or less would generally make the student eligible for a grant. Students from families with higher income may also be eligible for a grant due to consideration of family size, number of family members in post-secondary school, emergency expenditures or other factors. The William D. Ford Federal Direct Loan Program allows students and/or parents to borrow money from the U.S. Department of Education. There are four different loan programs currently available at Schilling-Douglas School: Subsidized Federal Direct Loan, Unsubsidized Federal Direct Loan, Federal Direct PLUS Loan and the Federal Direct Consolidation Loan. All of these loans have a variable interest rate and differ in repayment requirements. You must be eligible to use the subsidized loan based on need. The interest rate is currently 6.00% for the subsidized and 6.80 for the unsubsidized loan programs, both with a cap of 8.25%. Neither program requires repayment to begin until 6 months after the students graduates or withdraws from school. The PLUS loan interest rate is currently 7.90% with a cap of 9% and is available regardless of income. The PLUS loan enters repayment once it is fully dispersed. The Federal Family Education Loan Programs allow students and/or parents to borrow in the same types of programs as described above through other participating lenders. Applying for Student Aid Pell and FSEOG: The student must complete the Free Application for Federal Student Aid which is obtainable from the school. Direct Loan: Completion of the Free Application with the addition of the appropriate loan promissory note which are both available from the school. FFELP: Completion of the Free Application with the addition of the appropriate loan application which are available from the school or from the participating lender of your choice. Awarding of Aid Pell: A distinguished feature of the Pell Grant Program is its control concept of "entitlement" which guarantees that a student who demonstrates need will receive a grant based on that need and on the cost of education at the school they choose to attend. FSEOG: Funds are awarded to students who also demonstrate financial need. However, unlike Pell, FSEOG's are not entitlements. The school has a set amount of funds for FSEOG's and cannot award more funds once the allocation is used up. The school will select the neediest of its students (several from each if its starting classes) for this award. Due to the minimal amount of money allocated to the school, student awards will average $500. Direct Loans: 1. The Direct Subsidized Loan enables students to borrow money from the U.S. Department of Education at a low interest rate to meet educational expenses. Eligible undergraduates may borrow up to $3,500 for their first academic year. However, you cannot borrow more than the cost of attendance at your school less any other financial aid you may receive. This program is based on need. 2. The Direct Unsubsidized Loan is a loan available for students who do not otherwise qualify for the subsidized loan. Dependant students may borrow up to $5,500 per academic year less any subsidized loan eligibility. Independent students may borrow up to $9,500 per academic year less any subsidized loan eligibility. This program is not based on need. 3. The Direct PLUS loan is available for parents of dependent students. Parents of dependent students may borrow up to the cost of attendance minus any other financial aid you receive. This program is not based on need. FFELP: Federal Subsidized Stafford Loans, Federal Unsubsidized Stafford Loans and Federal PLUS loans as described above are also available. These loans would be made by participation lenders rather than the U.S. Department of Education. Students and parents may not use both the Direct Loan and the FFELP for the same loan period. However, a student may choose one program and the parent may choose the other if otherwise eligible. General Eligibility You must be enrolled as a regular student in an eligible program. You must be a U.S. citizen or an eligible non-citizen. You must show you have need as determined by the aid application except for non-need based loan programs. You must make satisfactory progress towards completing your program of study. You may not be in default on an NDSL, GSL, FFEL, PLUS loan or any of the Direct Loans. You may not owe a refund on a Pell Grant or an SEOG. Frequency of Payments PELL and FSEOG: Disbursed in two equal payments. The first half at the beginning of the program and the second half at 450 hours. LOANS: One half of the loan proceeds is disbursed to the school at the beginning of the program after one month of attendance and the second half at 450 hours. Note: The Pell will be credited directly to the student's account and the student receipted accordingly. All financial aid will be applied first against school charges with any excess subsequently being paid to the student. Early releases of funds to the student will be handled on an individual basis. Refunds Due to Title IV Programs Schilling - Douglas will determine the amount of a refund in accordance with published refund policies and Federal requirements. If it is determined that a refund is due, the order of distribution is as follows: Federal Stafford Loan Program, Federal PLUS Loan Program or Federal Direct Loan Programs, Pell, FSEOG. Effective July 1, 2006 - Rights to use Federal Funding are based on your scheduled hours of attendance.