2012-2013 Undergraduate Academic Catalog

Page 286 2012–13 Undergraduate Catalog Introduction Admissions Academic Information Academic Departments Course Descriptions Financial Information Appendix Index William D. Ford Federal Direct Loans Federal Subsidized Stafford Loan 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 University processes applications electronically through the Great Lakes Higher Education Corporation and its participating lenders. Applications will be mailed directly to the student from the guarantee agency. 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. Interest rate for the Subsidized Stafford loans will be 6.8 percent in 2012–13. Freshmen can borrow a maximum of $3,500, sophomores $4,500, and juniors and seniors $5,500. Federal Unsubsidized Stafford Loan Federal Unsubsidized Stafford Student Loan funds are available to students who do not qualify for all or part of the need-based subsidized Stafford Loan. The annual loan limits are the same, as stated above, for the subsidized, unsubsidized, or any combination 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 interest 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. Freshmen and sophomores may borrow an additional $4,000 and juniors and seniors may borrow an additional $5,000 per year. Interest rate for this loan is 6.8 percent. Federal Additional Unsubsidized Stafford Loan A new loan program that was started in the 2008–09 school year which allows students to borrow an additional $2,000 for each academic year. This is in addition to the base Subsidized and Unsubsidized Stafford Loans that are previously described. Eligibility, repayment, cancellation, and deferment criteria are the same as for the original Stafford loans. Interest rate for this loan is 6.8 percent. Federal Parent Loan to Undergraduate Students (PLUS) 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 fixed interest rate is 7.9 percent. The lender will deduct 4 percent of the loan amount to cover the origination and insurance fee. Repayment does begin within 60 days following full disbursement of the loan funds. 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 funds 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 pro-rated 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 University 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. Students are eligible if they are: (1) a citizen of the United States, in the United States for other than a temporary purpose and intend 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 half-time undergraduate student. Continuing students must be in good standing and enrolled as at least a half-time undergraduate. The standard Perkins Loan amount is $1,500. However, the annual amount may be increased as funding allows. 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 withdraws to explain loan deferment and cancellation provisions for borrowers who continue their education or go into certain fields of teaching or specified military duty. Student Employment Federal Work Study This federally-funded program is designed to provide work opportunities for University students. Students in this program may qualify for up to 20 hours of work a week during the academic year, providing they show a demonstrated need based on their FAFSA. Actual hiring is done by the department supervisors who will employ the students. As with campus employment, 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. Visit cedarville.edu/studentemployment for more information. Campus Employment Although unable to guarantee actual job placement, the number of hours worked, or total dollar amount earned, Cedarville University assists needy students by recommending them for part- time employment. Students are employed in various part-time jobs on campus such as maintenance, dining hall, housekeeping, and others. Part-time student employment is not restricted to upperclassmen and is encouraged at all levels. Off-Campus Employment Because of the University’s reputation for attracting quality students, many area employers contact the career services office to employ students on a part-time basis. Though no formal restrictions pertain to this employment, students are encouraged to limit their working hours to approximately 20 hours per week to ensure sufficient time to study.