1997-1998 Academic Catalog

208 Financial Information Loan Funds Detailed information concerning all loans including eligibility, application procedures, and repayment schedules is available from the Financial Aid Office. Several types of loans are available. Cedarville College Student Loans The Bancroft Loan Fund Established to assist students who are planning to serve in some aspect of missionary service. The ](/Ines Bucholtz Memorial Loan Fund Established by the parents in memory of their son to assist eligible students. The Jo Anne Buschmann Memorial Loan Fund Established by the parents in memory of their daughter to assist eligible students. The Jonathan Edward Clater Memorial Loan Fund Established by Mr. Clater to assist students whose education would be interrupted by a financial crisis. The Fullerton Music Student Loan Fund Established to assist music majors. The Gale Memorial Loan Fund Established by Mr. Ralph B. Gale to help eligible, needy students on a short-term basis. The Kemp Loan Fund Established by a former Financial Aid Office secretary for eligible students to use over a period of 15-30 days. The M.K. Loan and Grant Fund Established by interested alumni missionary friends to assist children of missionary parents who meet the guidelines and who, without this help, would have difficulty meeting their educational expenses. Nursing Student Loan Program Established to assist students pursuing a course of study leading to a baccalaureate degree in nursing. The Pollv Leunk Memorial Loan Fund Established to assist students who are unable to obtain funds through other sources. The Frances McChesney Memorial Loan Fund Established by the Cedarville College alumni prior to 1952 to assist any eligible, deserving Greene County student. The Miter Loan Fund Established by a friend of the College to assist eligible students. The Science Loan Fund Established by the Science Department to assist science majors who demonstrate financial need. The Student Body Loan and Grant Fund Established by the Class of 1972 to provide loan and grant funds to eligible students. The Student Emergency Fund Established to provide short term loans to help students facing unanticipated emergencies. Federal Family Education Loan Programs Federal Stafford Student Loan funds are available to dependent and independent undergraduate students. Requests for loan assistance from this program may be made through the FAFSA. Cedarville College processes applications electronically through the Great Lakes Higher Education Corporation and its participating lenders. Applications will be mailed directly to the student from Great Lakes. The federal government will subsidize (pay) the interest on loans while the student is in school and during a six month grace period following withdrawal or graduation if the student has demonstrated financial need as determined by the FAFSA calculations. The interest rate, as of July 1, 1994, is a variable rate not to exceed 8.25%. Freshmen can borrow up to a maximum of $2,625, sophomores-$3,500, juniors and seniors - $5500. Loan origination and insurance fees totaling 4% of the loan amount will be deducted by the lender. Federal Unsubsidized Stafford Student Loan funds are available to students who do not qualify for all or part of the subsidized Stafford Loan on a need basis. The annual loan limits are the same, as stated above, for the subsidized, unsubsidized, or any combina– tion of the two programs. In this program, all the terms are the same as the subsidized Stafford; however, the federal government does not cover the interest expenses while the student is in school or during the six-month grace period. The student does have the option to defer payments during in-school and grace periods; however, the interest continues to accrue. Independent students are eligible to borrow additional funds through the Unsubsidized Stafford as of July 1, 1994. Freshmen and sophomores may borrow an additional $4,000 and juniors and seniors can borrow an additional $5,000 per year. Federal Parent Loan to Undergraduate Students (PLUS) funds are available for creditworthy parents to borrow on behalf of their students. This loan program is not based on financial need and may be used to replace all or part of the expected family contribution. Parents may borrow any amount up to the cost of education less any financial aid the student is receiving. The interest rate is a variable rate and will not exceed 9%. The lender will deduct 4% of the loan amount to cover the origination and insurance fee. Repayment does begin within 60 days following full disbursement of the loan proceeds. Further information and applications for this program may be obtained by contacting the Financial Aid Office. Students should be aware that funds awarded from these programs are considered to be awarded for the entire loan period requested by the borrower. Should the student withdraw before the end of the loan period, a proportionate refund of the loan proceeds may be returned to the lender. In addition, if a student is enrolled for less than a full academic year immediately preceding graduation, the annual loan limit may be prorated based on the number of credits remaining to complete the program of study. Specific questions relating to the federal regulations outlined above may be directed to the Financial Aid Office. Federal Perkins Loans Federal Perkins Loans are available through the College to students who are citizens of the United States and who demonstrate exceptional financial need. Funds are awarded to Federal Pell Grant recipients first. Other applicants are awarded pending availability of funds. The Federal Perkins Loan Fund was established to help students pursue their courses of study at their chosen institutions of higher education. A student is eligible if he is: (1) a national of the United States, in the United States for other than a temporary purpose and intends to become a permanent resident thereof, a permanent resident of the Trust Territory of the Pacific Islands, or the Northern Mariana Islands; (2) in need of the amount of the loan to pursue a course of study at an eligible institution; (3) capable, in the opinion of the institution, of maintaining good standing in such course of study; and (4) accepted for enrollment as at least a halftime undergraduate student. Continuing students must be in good standing and enrolled as at least a halftime undergraduate. The statute governing the Federal Perkins Loan Fund does not restrict the amount which may be granted per academic year. However, the aggregate of all loans for all years from the FPLF may not exceed $15,000 in the case of any undergraduate student. Repayment begins nine months after graduation or when a student leaves school for other reasons. One may have up to 10 years to pay back the loan, depending upon the aggregate amount borrowed. During the repayment period, the borrower will be assessed 5% interest on the unpaid balance of the loan principle. Exit interviews will be conducted for graduates and others at the conclusion of each quarter to explain loan deferment and cancella– tion provisions for borrowers who continue their education or go into certain fields of teaching or specified military duty. StudentEmployment Federal Work Study This federally-funded program is designed to provide work opportunities for college students. Students in this program may qualify for up to 13 hours a week during the academic year, providing they show a demonstrated need from their federal need analysis (i.e., the FAFSA). All work assignments are made by the Financial Aid Office. Actual hiring is done by the department supervisors who will employ the students. As with campus employ– ment, actual job placement, number of hours worked, and total dollar amount earned cannot be guaranteed by the Financial Aid Office. Community service positions are also available in this program.