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Q: What is the difference between a grant, a scholarship and a loan? A: A grant is a gift. It does not have to be repaid and it is based on the student's financial need. A scholarship is an achievement award which is usually based on academic grades, abilities, skills, test scores, class rank, etc. Loans are funds borrowed by the student and/or parent. In most cases, loans must be repaid with an interest charge and a specified repayment period. Q: Is there a maximum income level that will make me ineligible for financial aid? A: No. Income level does not automatically disqualify you for financial aid. Other variables, such as the number in the family and the number attending college, are taken into consideration. Q: What are the factors that determine need? A: Most people have the misconception that income is the only factor in determining need. However, other variables are considered such as: family size, number of family members in college, age of older parent, savings, investments, and various allowances to income and assets. Q: What are my chances of receiving financial aid? A: The only way to determine your eligibility for financial aid is to submit a Free Application for Federal Student Aid (FAFSA). The likelihood of receiving some form of financial assistance is probably better than most students and their families anticipate. Q: In order to receive financial aid do I have to apply every year? A: Yes. In order to receive consideration for all programs you must file a Free Application for Federal Student Aid (FAFSA) each year. File the FAFSA in the month of January. If necessary, you may estimate your taxes to complete the form. Q: What is the deadline to apply for financial aid? A: To receive maximum consideration for aid, students apply using the FAFSA, which must be received by the processor, prior to February 15 of each year. March 1st is the closing deadline for the Maryland state scholarship programs. Q: I missed the March 1 application deadline, can I still apply for financial aid? A: Yes, students may still apply for a Stafford / Direct Loan, Pell Grant and Federal College Work Study. There is no specific deadline for these federal programs. Anyone who completes a Free Application for Federal Student Aid (FAFSA) of the enrollment year, will be considered for these types of aid. You must be enrolled at the time funds are disbursed. Students who have eligibility for additional aid will be considered on a case by case basis, as funds are identified after the priority date. Q: What forms do I need to apply? A: Initially, you need only to complete the Free Application for Federal Student Aid (FAFSA), online at www.fafsa.ed.gov using your assigned Personal Identification Number (PIN). The PIN can be obtained at www.pin.ed.gov. You will also need a PIN number for one of your parents identified on the FAFSA. Q: Will I be required to submit additional forms to a college other than the FAFSA? A: Possibly, if you are selected for review in a process called verification, your college will contact you about what additional forms are necessary. In addition, some colleges may require a CollegeBoard CSS/Financial Aid PROFILE or an Institutional Financial Aid Application to be filed. Be sure to check with your college(s) financial aid office to verify what forms they require. Q: What does COA MEAN? A: Cost of Attendance includes the various costs to pay for college expenses for a student's academic year. COA includes tuition, fees, room, board, books, supplies, transportation, and personal expenses. Q. I received a scholarship from the university, may I also receive need-based financial assistance? A: Yes. Receipt of a scholarship does not preclude receipt of need-based financial assistance. However, scholarship assistance must be considered as a resource in determining eligibility for need-based aid. If a student had an initial need of $8,000, and receives a $1,000 scholarship, the scholarship amount would be subtracted from the $8,000, and the difference of $7,000 would be considered the students remaining need. Q: How do I apply for the college’s scholarships? A: Normally, you apply by completing the Application for Undergraduate Admission and Scholarships, and the Application for Freshman Scholarships and Awards. Q: What happens after my Freshman year? Will my aid stay the same? A: The Financial Aid Offices are committed to meeting as much of the students' need as possible throughout their undergraduate years. However, an individual student's need may change from year to year. Educational costs may increase, and changes in family size, number in college, and gross income can increase or decrease parental contribution from year to year. If a family's circumstances remain the same, the parents calculated contribution should be relatively consistent. Q: Will my aid change if I move off campus? A: Possibly. Contact the financial aid office to determine how your aid may be affected. Q: If I am awarded financial assistance for both fall and spring semesters of the academic year, but do not enroll in the fall semester, will my aid change? A: Normally, the college will withdraw the aid award for the fall term; but allow the student to receive awarded aid for the spring. Q: I have a credit on my bill, when can I have the money? A: Normally, colleges refund to the student, any credit on the student's account after the third week of school. Q: Do I need a separate form to apply for a Federal Stafford or Direct Loan? A Yes, you will need to complete the Stafford Loan Master Promissory Note that can be completed on line with the preferred bank or with a hard copy from the bank. The Direct Loan does not require a separate form but for the completion of the FAFSA. Q: How do I receive the loan funds? A: The value of the loan will be credited to the student’s account and the college will hold whatever funds are due to the institution. If this process leaves a credit on the student’s account, the student will be mailed a refund check, normally after the third week of classes. Q: How can I apply for work study? A: Students should file a FAFSA before March 1, and have financial need to receive priority for Work Study. However, other jobs may still be available on campus. Q: Do I need to submit tax returns? A: Only if the college financial aid office sends a letter requesting that the forms be submitted as part of the verification process. Q: What does it take to be considered an independent student? A: Step Three of the FAFSA is used to identify students as either dependent or independent. To be considered an independent student, you must answer 'Yes' to at least one of the thirteen questions listed in this step. Also, the Financial Aid Office can override a student's dependency status; but to do so, requires some very unusual family circumstances. These circumstances require documented evidence from third-party witnesses (police reports, clergy, counselors, etc.). Q: If my parents are separated or divorced, whose income is reported on the Free Application for Federal Student Aid (FAFSA)? A: The parent you live with, should complete the FAFSA. If the parent you live with has remarried, the income of that parent and their new spouse (step-parent) must be used. Q: What is the interest rate on my loans? A: For the Stafford and Direct loans, the interest rate became a fixed rate of 6.8 percent as of July 1, 2006. The PLUS Loan interest rate is fixed at 8.5 percent. Q: Why does the loan amount on my award letter differ from the amount on my bill? A: The amount on your bill reflects the amount you are eligible for per semester minus 1.5% loan fees deducted prior to disbursement. Parent Loans have a 2.5% fee deducted. You may want to refer to your promissory note for a detailed explanation. Q: Is the money I receive from financial assistance programs taxable? A: Any scholarships, benefits, fellowships, or grants (gift aid) or any other source of funds that, when combined exceed the cost of tuition, fees, books, and required equipment and supplies, are considered taxable income. Loans are not included. Since you are required to report taxable awards to the I.R.S. as income, you should keep a detailed record of all expenditures for tuition, fees, books, and required equipment and supplies. Housing and food are considered non-exempt, so money spent on these items is subject to income tax. For more detailed information, consult a personal tax advisor. Work study earnings are taxable and must be reported on tax returns. Q: What should I do if my family's financial circumstances change after I apply for financial aid? A: If a family's financial circumstances have changed due to death of a parent, divorce, separation, or loss of employment; they should contact the Financial Aid Office. Q: Will the financial aid offered at one school transfer to another school? A: No. Financial aid does not transfer from school to school. Students planning to transfer to another school should contact the Financial Aid Office at both schools to find out what is required. Q: Is there any aid available if I decide to attend summer school? A: Students may receive aid during summer sessions through the Federal Pell Grant and Stafford/Direct Loan programs if they show financial eligibility, and have not received their maximum allocation for the academic year. Students may also receive consideration for a full- or part-time job through the Federal Work Study program.
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