Federal Programs General Eligibility Requirements Federal Pell Grant (PELL) Federal Supplemental Educational Opportunity Grants (FSEOG) Federal Work-Study (FWS) Federal Direct Loan (FDL) Iraq and Afghanistan Service Grants The programs authorized under Title IV of the Higher Education Act are the major source of federal student aid. Title IV programs include: Grants Federal Pell Grant Federal Supplemental Educational Opportunity Grant (FSEOG) Loans Direct Loan Federal Perkins Loan Federal Work-Study (FWS) General Eligibility Requirements To receive Federal Student Aid, you must: Have a valid Social Security number (with the exception of students from the Republic of the Marshall Islands, Federated States of Micronesia, or the Republic of Palau). Be a U.S. citizen or an eligible non-citizen. Have a high school diploma, a GED, or have been home-schooled. Be registered with Selective Service (Males between the ages of 18 and 25). Be matriculated or accepted for enrollment as a regular student in an eligible degree or certificate program. Certify by signing a FAFSA that any federal student aid funds awarded to you will be used solely for educational purposes. Certify by signing a FAFSA that you are not in default of any federal student loan and that you do not owe a repayment of any federal student aid grant. Not have been convicted under federal or state law of the sale or possession of illegal drugs while you were a student receiving federal student aid. Demonstrate financial need. Maintain Satisfactory Academic Progress (SAP) in college or career school. Federal Pell Grant (Pell) How do I qualify? How much money can I get? Lifetime Eligibility Used (LEU) How is my Federal Pell Grant LEU calculated? Unusual Enrollment History What will be required of you if selected? Appeal Process A Federal Pell Grant unlike a loan, does not have to be repaid. Federal Pell Grants usually are awarded only to undergraduate students who have not earned a bachelor's or a professional degree. You are not eligible to receive a Federal Pell Grant if you are incarcerated in a federal or state penal institution or are subject to an involuntary civil commitment upon completion of a period of incarceration for a forcible or non-forcible sexual offense. The Pell Grant can be used to pay your tuition, or, if your tuition is covered by other means, help you buy your books and supplies, or pay your transportation costs. How do I qualify? To determine if you're eligible financially, the U.S. Department of Education uses a standard formula, established by Congress, to evaluate the information you report when you apply. The formula produces an Expected Family Contribution (EFC) number. Your Student Aid Report (SAR) contains this number and will tell you if you're eligible. How much money can I get? Amounts can change yearly: For the 2015–16 award year (July 1, 2015 to June 30, 2016), the maximum award is $5,775. For the 2016-17 award year (July 1, 2016 to June 30, 2017), the maximum award is $5,815. The amount you get, though, will depend on; your financial need, your cost of attendance, your status as a full-time or part-time student, and your plans to attend school for a full academic year or less. Important Note: You cannot receive Federal Pell Grant funds from more than one school at a time. Lifetime Eligibility Used (LEU) The amount of Federal Pell Grant funds you may receive over your lifetime is limited by federal law to be the equivalent of six years. Since the maximum amount of Pell Grant funding you can receive each year is equal to 100%, the six-year equivalent is 600%. To find out your current LEU percentage, click on the following link: https://www.nslds.ed.gov/nslds/nslds_SA/ How is my Federal Pell Grant LEU calculated? Scheduled award: The maximum amount of Federal Pell Grant funding you can receive is calculated for an award year. An award year is a period from July 1 of one calendar year to June 30 of the next calendar year. Your scheduled award: is partially determined by using your EFC that is calculated from the information you (and your family) provided when you filed your FAFSA is the maximum amount you would be able to receive for the award year if you were enrolled full-time for the full school year; and represents 100% of your Pell Grant eligibility for that award year. Percent used: To determine how much of the maximum six years (600%) of Pell Grant you have used each year, the U.S. Department of Education compares the actual amount you received for the award year with your scheduled award amount for that award year. Of course, if you receive the full amount of your scheduled award, you will have used 100%. It’s possible that you might not receive your entire scheduled award for an award year. There are a number of reasons for this, the most common of which are that you are not enrolled for the full year or that you are not enrolled full-time, or both. If you did not receive the full amount of your scheduled award, we calculate the percentage of the scheduled award that you did receive. For example, if your scheduled award for an award year is $5,000, but because you were enrolled for only one semester you received only $2,500, you would have received 50% of the scheduled award for that award year. Or if you received only $3,750 for the award year because you were enrolled three-quarter-time and not full-time, you would have received 75% for that year. The U.S. Department of Education keeps track of your LEU by adding together the percentages of your Pell Grant scheduled awards that you received for each award year. Unusual Enrollment History Effective with the 2013-2014 academic year, the U.S. Department of Education has established new regulations to prevent fraud and abuse in the Federal Pell Grant Program by identifying students with unusual enrollment histories. Effective with the 2015-2016 academic year, the scope increased to all federal aid recipients, not just Federal Pell Grant recipients. Students that have received federal aid at multiple institutions in the past four (4) academic years are flagged as having unusual enrollment. Once flagged, the Financial Aid office must take action and review the prior academic history to determining federal financial aid eligibility for that student. Some students who have an unusual enrollment history (UEH) have legitimate reasons for their enrollment at multiple institutions. However, such an enrollment history requires our office to review your file in order to determine future federal financial aid eligibility. If selected by the Department of Education (via the FAFSA), this must be resolved before you will receive financial aid. What Will Be Required of You If Selected If selected, our office will notify you of what is required. We will check your financial aid history at your previous institutions that you attended during 2011-2012, 2012-2013, 2013-2014, and 2014-2015. You are required to have received academic credit at any institution you received federal aid while attending in those relevant academic years. We will notify you which institutions you need to request official transcripts/non-official transcripts from for our office to review. Once all transcripts have been received, our office will verify the academic credit was received at each institution during the relevant year. If so, we will notify you that you have satisfied this requirement. If you failed to receive academic credit at any institution you received a Federal Pell grant at during the relevant award years, your federal financial aid will be denied and you will be notified. Appeal Process If you were denied because it was determined that you did not earn academic credit, you may appeal by submitting an Unusual Enrollment History (UEH) Appeal Form. This appeal will be reviewed by our office and we will notify you of the decision. These decisions are final and are not appealable to the Department of Education. Federal Supplemental Educational Opportunity Grants (FSEOG) What is a Federal Supplemental Educational Opportunity Grant? How will I know if I have been awarded FSEOG? What is a Federal Supplemental Educational Opportunity Grant? A FSEOG is an award given to undergraduate students who show exceptional financial need. FSEOG is available only to students who meet the following criteria Have not obtained a first bachelor's degree or professional certificate. Eligible Federal Pell Grant recipient Have not exhausted your 12semester life-time eligibility limit Have an Expected Family Contribution (EFC) between 0-500 Must be registered for a minimum of six units (Half-Time) The FSEOG program is administered directly by the Office of Financial Aid at each participating school and is therefore called “campus-based” aid. CUNY receives a fixed amount of funds each academic year to package FSEOG awards. To increase your chances to receive a FSEOG, please file your FAFSA as early as possible. These funds are limited and are packaged on first-come, first-served basis. In recent years, FSEOG awards have ranged from $100 to $300 per semester. How will I know if I have been awarded FSEOG? If you are awarded FSEOG, the award will be posted to your Financial Aid Award Summary page in CUNY first. To view this page, login to your Student Center in CUNY first, and click on "View Financial Aid." After the college packages you with your financial aid awards, you will also receive an e-mail award letter that will indicate whether or not you have been awarded FSEOG. Federal Work-Study (FWS) What is Federal Work-Study (FWS)? The Federal Work Study (FWS) Program is a need based federally funded program that offer students an opportunity to gain valuable work experience that will enhance their job skills. In order to participate in the FWS program, students must (1) receive a FWS award as part of their financial aid package; (2) be enrolled at least half time (6 units/credits) or have been accepted for such enrollment; and (3) maintain Satisfactory Academic Progress. FWS employment may be offered to student employees in several ways: on campus, off campus, and/or through Public Service Corp (PSC). Federal guidelines prohibit students from working during scheduled class hours. Work hours must be arranged in a way that it does not conflict with class hours. Typical jobs include clerical work; providing overall assistance to departments such as the Library, Computer Labs, tutoring and child care center. *To apply for a Federal Work Study award, students must fill out a Free Application for Federal Student Aid (FAFSA) and answer “yes” to question 31, “Are you interested in being considered for work study?” Federal Work Study Award A Federal Work Study (FWS) award represents the maximum amount of earning that students are allow to receive in an Academic Year. What you must do prior to be assigned to a job? Students who receive a FWS award must also accept it by following the steps below: Log on to CUNYfirst (www.hostos.cuny.edu/first) HR/Campus Solutions Self Service Student Center Accept/Decline Awards Select Aid Year (select 2017 for 2016-2017) On the Award Package page ACCEPT FEDERAL WORK STUDY FALL/SPRING Submit Confirm Note: Students who decline their FWS award may request the Office of Financial Aid to have it reinstated; however, it will depend on the availability of funds. 2016-2017 FWS Payroll Calendar FWS funds are never distributed in a lump sum, nor can be paid for hours not actually worked. FWS awards are made for, and must be earned in, a specific time period within the Academic Year (Summer/Fall/Spring). Any unearned amount is forfeited and cannot be carried over to the subsequent Aid Year. Federal Work Study Hiring Process Students identified as FWS award recipients will receive an invitation to attend a Job Fair/Placement Orientation at the beginning of the each semester. Throughout the event, students will be provided with the necessary information and guidance offered by staff FWS Team members. (Students must complete steps outlined in the Federal Work Study Award section.) Once you have secured a job, you will be provided with a set of documents also known as the “Hiring Packet”. The packet must be completed and submitted to the Office of Financial Aid prior to beginning employment. Instructions for completing the FWS Hiring Packet are included within the forms; however, instructions will also be provided at the Job Fair/Placement Orientation. Student employees cannot begin employment without receiving confirmation from the FWS Team. During the Job Fair/Placement Orientation, prospective student employees will receive overall information about the FWS program (e.g. students’ responsibility). All student employees must complete and sign the following forms: Federal Work Study Student/Employer Acknowledgment Student Class Schedule Family Educational Rights and Privacy Act (FERPA) Non-Disclosure Agreement Federal Work Study Program—Acknowledgement of Student Responsibilities In order to comply with the Department of Homeland Security, identity and employment authorization of individuals hired for employment in the United States, student employees must also complete the I-9 form and provide proper documentation. I-9 Form—Employment Eligibility Verification FWS earnings are considered taxable income and are treated as any other income when filling tax returns; therefore, student employees must also complete and sign the following forms: W-4 Form—Employee’s Withholding Allowance Certificate IT-2104 Form—Employee’s withholding Allowance Certificate IT- 2104E if applicable Notice and Acknowledgement of Pay Rate and Payday Note: Students must have FICA taxes withheld if working at an off campus agency/site and/or working during the Winter Session. Federal Work Study Payroll The FWS payroll takes place in the Office of Financial Aid on a biweekly basis. Timesheets are submitted every two weeks on the Monday following the end date Pay Period, for the prior fourteen days worked. Students will be provided with a FWS Payroll Calendar for the academic year at the time of hire. Payroll is a deadline driven process. The FWS Payroll Calendar includes important dates such as the Pay Period (begin and end date), Timesheet Deadline and Pay Day. Amount of earning may vary depending on the pay rate and amount of hours worked in a pay period. Important: As of December 31, 2016 New York State’s Minimum Wage has been increased to $11.00. Hostos Community College currently pays $11.00 per hour to students participating in the FWS program. Federal Work Study Payment Options FWS checks will be mailed to the student’s address on record (Campus Community). However, student employees may opt to receive their “paycheck” via direct deposit by completing the steps below: Log on to CUNYfirst (www.hostos.cuny.edu/first) HR/Campus Solutions Self Service Campus Finance Manage my Direct Deposit Enroll in Direct Deposit Access to Paystubs, Compensation History and W2 form Students may have access to their Paystubs, Compensation History and W2 forms via CUNYfirst: Log on to CUNYfirst (www.hostos.cuny.edu/first) HR/Campus Solutions Self Service Payroll and Compensation Select your choice from the sub-menu Federal Work Study Announcement Fall graduation candidates and/or students not attending or enrolling at Hostos Community College at least half time (six units/credits) in the upcoming Spring 2017 semester must stop working the last day of the Fall Semester. Federal Direct Loans (FDL) Application Procedures Eligibility for William D. Ford Federal Direct Loans Direct Loan Entrance Counseling How much money can I Borrow? Are there any limitations on the amount I can Borrow? When Should I Apply for a Loan? Do I have to sign a new Master Promissory Note each year? When do I receive my money? May I receive my money all at once? May I cancel all or part of my loan(s) after it has been disbursed? What are the interest rates for Federal Direct Loans? Am I charged interest while going to school? Is there a charge for processing a loan? When do I pay back my loan? How do I pay back my loan? Who manages my loan account? Can I find out how much I have borrowed? Where do I send my loan payments? What if I have trouble making my direct loan payments? What happens if I don't make my loan payments on time? What can I do if I am notified I am in default? Can I ever get out of repaying my loan? What are my rights as a Direct Loan Borrower? What are my responsibilities as a Direct Loan Borrower? Federal Direct Loans Program Application Procedures A potential borrower MUST first file and receive a response from a FAFSA. Once the FAFSA is finalized, an applicant can apply for a William D. Ford Federal Direct Loan through the office of Student Financial Services by completing a Loan Origination Request Form. A counseling session and the completion of a Direct Loan Entrance Counseling are required for First-time borrowers. It is also highly recommended for continuing student to complete a Financial Awareness Counseling. In addition, once the loan is approved, a promissory note MUST be signed by the borrower in order to have the loan disbursed. [top] Eligibility for William D. Ford Federal Direct Loans To be eligible for a Federal Direct Loan, a student must be: A U.S. Citizen or Eligible Non-Citizen MUST be matriculated and registered for a minimum of 6 undergraduate credits for the semester(s) that you are applying for. (SUMMER / FALL / SPRING) Have at least a 2.0 cumulative G.P.A. unless it is your first semester at the college You must meet all eligibility requirements for Federal Financial Aid. In addition, you must demonstrate financial need for the loan. Financial need is demonstrated when your EFC, plus the loan amount, plus any other financial aid you are receiving adds up to less than your cost of attendance. [top] Direct Loan Entrance / Financial Awareness Counseling The Direct Loan Entrance / Financial Awareness Counseling can be completed on the internet at www.studentloans.gov. A Student Loan Ombudsman Office is available for assistance with loan problems at 1-877-557-2575. [top] How much money can I Borrow? Academic Level Dependent & Independent Students 1st Year – Fewer than 23 credits earned Up to $3,500 Per Year (Subsidized) 2nd Year – 24 or more credits earned Up to $4,500 Per Year (Subsidized) Undergraduate Aggregated Maximum No more than $23,000 Please note: If you are not eligible to borrow the full amount you request in Direct Subsidize loan funds, or you believe you need additional loan funds, you may be able to request some or all the balance as a Direct Unsubsidized Loan. If you are a dependent student, your parents may be able to take out a Direct PLUS Loan for you. [top] Are there any limitations on the amount I can Borrow? Yes. You may not borrow more than the cost of attendance at Hostos C.C. minus the EFC minus any other financial aid you receive. Before processing your loan request, the Financial Aid Office will calculate the amount of loan assistance you are eligible for. If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. This time limit does not apply to Direct Unsubsidized Loans or Direct PLUS Loans. If this limit applies to you, you may not receive Direct Subsidized Loans for more than 150 percent of the published length of your program. This is called your “maximum eligibility period.” Your maximum eligibility period is generally based on the published length of your current program. You can usually find the published length of any program of study in your school’s catalog. For example, if you are enrolled in a four-year bachelor’s degree program, the maximum period for which you can receive Direct Subsidized Loans is six years (150 percent of 4 years = 6 years). If you are enrolled in a two-year associate degree program, the maximum period for which you can receive Direct Subsidized Loans is three years (150 percent of 2 years = 3 years). Because your maximum eligibility period is based on the length of your current program of study, your maximum eligibility period can change if you change to a program that has a different length. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count toward your new maximum eligibility period. Certain types of enrollment may cause you to become responsible for the interest that accrues on your Direct Subsidized Loans when the U.S. Department of Education usually would have paid it. Lastly, if your period of enrollment is less than a full academic year, the amount of loan assistance you are entitled to may be less than the maximum amounts listed above. Furthermore, the Federal Government may restrict how frequently you may request or receive the maximum loan amount. Finally, the Office of Financial Aid may refuse to process your loan request or may otherwise reduce the amount of your loan. If so, a written explanation will be provided to the student. [top] When Should I Apply for a Loan? A student loan is a serious legal and financial obligation. You should apply for a loan only after careful consideration of all other options for financing your education. Think of borrowing as a commitment to pursuing and completing your education successfully. If you find you have to interrupt your studies, you could face having to repay your loan without the education you went into debt to obtain. Williams D. Ford Federal Direct Loan Applications will be available to students at the beginning of each academic year. Visit the Financial Aid Office for further information. [top] Do I have to sign a new Master Promissory Note each year? Once you have signed an electronic or paper Master Promissory Note for a Federal Direct Loan, you are not required to sign a new MPN in most instances. The note already on file will be used for subsequent year loan borrowing under the Federal Direct Loan program. You always have the option of resigning your MPN every time you borrow but it is not a requirement. PLEASE NOTE: if you previously signed an MPN that did not result in a disbursement of Direct Loan funds, you must resign your MPN for subsequent loan requests. [top] When do I receive my money? Please note, first-time borrows are not scheduled to receive a disbursement until at least 30 days of the term has passed. Every attempt is made to have the actual loan disbursement dates coincide with the anticipated disbursement dates on your Loan Disclosure Statement. However, this is not always possible. Your actual loan disbursement date depends on when your MPN is returned and acknowledged by the processor. Your disbursement will be either in the form of a check or as a direct deposit. If you have elected the direct deposit option for receiving financial aid disbursements, your disbursement will be credited to your direct deposit account on the scheduled disbursement week. Before crediting any loan funds toward your tuition or releasing any funds to you, the college will verify that you enrolled on at least a half-time basis. The Bursar's Office will calculate unpaid tuition and fee balances at the time your loan is disbursed. Deductions from your loan proceeds will be credited to your unpaid charges before you receive the balance of your funds. [top] May I receive my money all at once? No. You will receive your loan money in at least two installments, neither of which will be more than one-half of the loan total. For loans covering the full academic year, the second disbursement will be approximately 30 days after the start of the spring semester. For loans covering one semester only, the second disbursement will occur about midway through the semester. [top] May I cancel all or part of my loan(s) after it has been disbursed? You have up to 14 days after the loan has been first disbursed to cancel all or part of the loan and have it returned to the U.S. Department of Education. To cancel all or part of your loan you must come to the Financial Aid Office to fill out the William D Ford Federal Direct Loan Change Form. On that form you may indicate that you want to cancel or decrease your loan. You may cancel all or part of your loan by returning the funds yourself to the U.S. Department of Education within 120 days of the loan disbursement date. Contact the Direct Loan Servicing Center for guidance on how and where to return your loan money. You do not have to pay interest or the loan fee on the part of your loan(s) that you return within these time frames. [top] What are the interest rates for Federal Direct Loans? It varies. The interest rate for your loan is adjusted each year on July 1 and is calculated according to a federal formula. However, it will never exceed 8.25%. You will be notified as the interest changes throughout the life of the loan. If you wish to find out the current academic year interest rates for each loan, please come to the Financial Aid Office for more information. [top] Am I charged interest while going to school? SUBSIDIZED LOAN: “No”, the Federal Government supports or subsidizes the interest payments while you are in school and during any grace or deferment periods. You do not pay interest on a subsidized loan until your loan enters repayment. UNSUBSIDIZED LOAN: “Yes”, the Federal Government does not pay the interest charges. You are charged interest from the day your loan is disbursed until it is fully repaid, including all in-school, grace and deferment periods. You have the option of either paying the interest as you go or allowing it to accumulate. If you allow the interest to accumulate, it will be capitalized, or added to the principal amount of the loan, thereby increasing the total amount you will have to repay. [top] Is there a charge for processing a loan? Yes, there is a loan fee on all Direct Subsidized Loans and Direct Unsubsidized Loans. The loan fee is a percentage of the loan amount and is proportionately deducted from each loan disbursement. The percentage varies depending on when the loan is first disbursed, as shown in the chart below. Loan Fees for Direct Subsidized Loans and Direct Unsubsidized Loans First Disbursement Date Loan Fee On or after Oct. 1, 2014, and before Oct. 1, 2015 1.073% On or after Oct. 1, 2015, and before Oct. 1, 2016 1.068% [top] When do I pay back my loan? You have a six month Grace Period after you graduate, leave school, or drop below half-time before you begin repaying your loan. During the grace period, you do not have to make payments on the Principle and you are not charged any interest. You can, of course, prepay any portion of your loan at any time without penalty. In addition, during the grace period, you'll receive repayment information from your loan servicer, and you'll be notified of your first payment due date. Payments are usually due monthly. [top] How do I pay back my loan? The Federal Direct Loan Program offers a choice of several repayment plans that differ in a number of ways to meet the needs of individual borrowers. You may choose any one of the plans and, in most cases, can change from one plan to another during your repayment period. There is no limit to the number of times you may switch from one plan to another. Each plan has certain features and conditions that you must carefully consider before deciding which plan to use. You will be able to receive information about these plans as well as other repayment options (such as loan consolidation) at your exit counseling. Repayment Plan Eligible Loans Monthly Payment and Time Frame Quick Comparison Standard Payment Plan Direct Subsidized and Unsubsidized Loans Subsidized and Unsubsidized Federal Stafford Loans all PLUS loans Payments are a fixed amount of at least $50 per month. Up to 10 years You'll pay less interest for your loan over time under this plan than you would under other plans. Graduated Repayment Plan Direct Subsidized and Unsubsidized Loans Subsidized and Unsubsidized Federal Stafford Loans all PLUS loans Payments are lower at first and then increase, usually every two years. Up to 10 years You'll pay more for your loan over time than under the 10-year standard plan. Extended Repayment Plan Direct Subsidized and Unsubsidized Loans Subsidized and Unsubsidized Federal Stafford Loans all PLUS loans Payments may be fixed or graduated. Up to 25 years Your monthly payments would be lower than the 10-year standard plan. If you are a Direct Loan borrower, you must have more than $30,000 in outstanding Direct Loans. FFEL borrower, you must have more than $30,000 in outstanding FFEL Program loans. For example, if you have $35,000 in outstanding FFEL Program loans, and $10,000 in Direct Loans, you can use the extended repayment plan for your FFEL Program loans, but not for your Direct Loans. For both programs, you must also be a "new borrower" as of Oct. 7, 1998. You'll pay more for your loan over time than under the 10-year standard plan. Income-Based Repayment Plan (IBR) Direct Subsidized and Unsubsidized Loans Subsidized and Unsubsidized Federal Stafford Loans all PLUS loans made to students Consolidation Loans (Direct or FFEL) that do not include Direct or FFEL PLUS loans made to parents. Your maximum monthly payments will be 15 percent of discretionary income, the difference between your adjusted gross income and 150 percent of the poverty guideline for your family size and state of residence (other conditions apply). Your payments change as your income changes. Up to 25 years You must have a partial financial hardship. Your monthly payments will be lower than payments under the 10-year standard plan. You'll pay more for your loan over time than you would under the 10-year standard plan. If you have not repaid your loan in full after making the equivalent of 25 years of qualifying monthly payments, any outstanding balance on your loan will be forgiven. You may have to pay income tax on any amount that is forgiven. Pay As You Earn Repayment Plan Direct Subsidized and Unsubsidized Loans Direct PLUS loans made to students Direct Consolidation Loans that do not include (Direct or FFEL) PLUS loans made to parents. Your maximum monthly payments will be 10 percent of discretionary income, the difference between your adjusted gross income and 150 percent of the poverty guideline for your family size and state of residence (other conditions apply). Your payments change as your income changes. Up to 20 years You must be a new borrower on or after Oct. 1, 2007, and must have received a disbursement of a Direct Loan on or after Oct. 1, 2011. You must have a partial financial hardship. Your monthly payments will be lower than payments under the 10-year standard plan. You'll pay more for your loan over time than you would under the 10-year standard plan. If you have not repaid your loan in full after you made the equivalent of 20 years of qualifying monthly payments, any outstanding balance on your loan will be forgiven. You may have to pay income tax on any amount that is forgiven. Income-Contingent Repayment Plan Direct Subsidized and Unsubsidized Loans Direct PLUS Loans made to students Direct Consolidation Loans Payments are calculated each year and are based on your adjusted gross income, family size, and the total amount of your Direct Loans. Your payments change as your income changes. Up to 25 years You'll pay more for your loan over time than under the 10-year standard plan. If you do not repay your loan after making the equivalent of 25 years of qualifying monthly payments, the unpaid portion will be forgiven. You may have to pay income tax on the amount that is forgiven. Income-Sensitive Repayment Plan Subsidized and Unsubsidized Federal Stafford Loans FFEL PLUS Loans FFEL Consolidation Loans Your monthly payment is based on annual income. Your payments change as your income changes. Up to 10 years You'll pay more for your loan over time than you would under the 10-year standard plan. Each lender's formula for determining the monthly payment amount under this plan can vary. If you can demonstrate that the above repayment plans cannot accommodate your particular economic circumstances, the US Department of Education may provide you with an alternate repayment plan. You may want to read the U.S. Dept of Education's Repaying your Student Loans for more detailed information about repayment options. [top] Who manages my loan account? When you receive your Direct Loan, you will be contacted by your loan servicer (you repay your loan to the loan servicer). Your loan servicer will provide regular updates on the status of your Direct Loan, and any additional Direct Loans that you receive. To identify your assigned Direct Loan Servicer, you may visit the National Student Loan Data System (NSLDS) for students. [top] How can I find out how much I have borrowed? You may access information about your student loan borrowing and other types of federal student aid you have received at the National Student Loan Data System (NSLDS) for Students. [top] How do I Make a Payment? Your loan servicer handles all billing regarding your student loan, so you’ll need to make payments directly to your servicer. Each servicer has its own payment process and can work with you if you need help making payments. Visit their site to make a payment CornerStone MOHELA ESA/Edfinancial Navient FedLoan Servicing (PHEAA) Nelnet Granite State – GSMR OSLA Servicing Great Lakes Educational Loan Services, Inc. VSAC Federal Loans PLEASE NOTE: Sign up for automatic debit through your loan servicer, and your payments will be automatically taken from your bank account each month. As an added bonus, you get a 0.25% interest rate deduction when you enroll! [top] What if I have trouble making my direct loan payments? The first thing to do is to contact the Your Direct Loan Servicer. They will discuss with you the various options that may make it easier for you to manage your monthly payment schedule. You may be able to have your monthly payments lowered by changing to a different payment plan. Under some circumstances, such as returning to school, becoming unemployed or suffering economic hardship, you may qualify for a deferment. If granted a deferment, you will be able to suspend regular loan payments for a certain time. If your loan was first disbursed after July 1, l993, and you are not in default, refer to the Student Loan Deferment and Cancellation Summary for a list of available deferments. Being granted a deferment is not automatic. You must submit your request for a deferment in writing and continue to make your regular loan payments until the deferment is granted. You may view the approved conditions for obtaining a deferment and download the appropriate deferment form for your situation at the Direct Loan Servicing Online Deferment Forms page. If you don't qualify for a deferment, you may be able to request forbearance. If granted forbearance, you may be permitted to reduce or delay your regular payments for a time. Being granted forbearance is not automatic. You must submit your request for forbearance in writing and continue to make your regular loan payments until forbearance is granted. For more information you may visit StudentAid.Ed.Gov. Finally, if you have a number of educational loans and have difficulty making payments on all of them, you may qualify for a Federal Direct Consolidated Loan. Loan consolidation allows you to combine multiple loan debts into just one monthly payment and can help lower your monthly repayment amount by extending the repayment period. [top] What happens if I don't make my loan payments on time? If you don't make your loan payments on time and don't contact the Direct Loan Servicer about it, you will be considered delinquent in repaying the loan. If you fail to make payments for six months, the loan will go into default. If this happens, you can be asked by the federal government to repay the entire loan immediately. You can be sued to collect the amount of the original loan, plus interest, court costs and other penalties. You will be reported to national credit bureaus and have your credit rating adversely affected. Your income tax refunds may be withheld and up to 15% of your wages can be garnisheed to collect the debt. If you are receiving Social Security, the federal government may withhold a portion of your benefits to pay your loan debt. Finally, your school records will be impounded and you will be prohibited from receiving any federal student aid at any school you wish to attend until the default is resolved. [top] What can I do if I am notified I am in default? Contact the Direct Loan Servicing Center. They will inform you under what circumstances you may have the default status rescinded and will discuss with you the possibilities for regaining your eligibility for financial aid and rehabilitating your loan. If you have a FFELP loan, you should contact your lender or guaranty agency about similar options available for restoring financial aid eligibility and rehabilitating your loan. You may regain eligibility for federal financial aid by making satisfactory payment arrangements on your defaulted loan with the loan servicer or guarantee agency handling your account. A satisfactory repayment arrangement is defined as making 6 consecutive voluntary monthly payments of an amount determined reasonable and affordable based on your financial circumstances. If you make 9 consecutive, voluntary, and on-time monthly payments of a reasonable and affordable amount under an agreement with the loan servicer or guarantee agency, you will qualify for loan rehabilitation. Loan rehabilitation provides you with a "second chance" by removing your student loan from default status, restoring financial aid eligibility and reinstating deferment privileges. [top] Can I ever get out of repaying my loan? There are certain exceptional circumstances, such as the borrower's death or permanent disability, which can result in the discharge or cancellation of a student loan. A discharge releases the borrower from all obligations to repay. There are also certain conditions under which your Direct Loan balance can be forgiven. Remember that your loan cannot be discharged because you didn't complete your program of study, didn't like the school or couldn't find a job after graduation. For more information about student loan forgiveness, visit StudentAid.Ed.Gov [top] What are my rights as a Direct Loan Borrower? You have a right to: written information about your loan obligation, information on loan consolidation and refinancing, and a list of your rights and responsibilities as a borrower. a copy of your promissory note, and return of the note when your loan is paid in full. information, before you begin repayment, on interest rates, fees you might be charged and how they are collected, and the total balance owed on your loans. a loan repayment schedule that lets you know, before you begin repayment, when your first payment is due, the number and frequency of payments, and the amount of each payment. an explanation of default and its consequences. an explanation of the grace period, and of federal interest benefits, if you qualify for those benefits. pre-pay your loan at any time without penalty. a description of applicable deferment, forbearance and discharge provisions. [top] What are my responsibilities as a Direct Loan Borrower? You have a responsibility to: repay the loan according to the loan repayment schedule even if you don't receive a bill or repayment notice. notify the Direct Loan Servicing Center in advance if you will be late in making a payment or if you are unable to make payments. notify the Direct Loan Servicing Center of anything that affects your ability to repay, or your eligibility for a deferment, forbearance or cancellation. notify the College, if you are still enrolled, or the Direct Loan Servicing Center of any change in your name, address, Social Security Number or any change in your employer's name or address. notify the Direct Loan Servicing Center if you fail to enroll for the period covered by the loan, or if you graduate, withdraw from school, begin attending less than half-time, or transfer to another school. receive online or in-person entrance counseling before you are given your first loan disbursement and exit counseling before you leave school. Federal Perkins Loan (FPL) A Federal Perkins Loan is a low-interest (5 percent) loan for both undergraduate and graduate students with exceptional financial need. Hostos Community College will be your lender. The Loan is made with the government funds with a share contributed by Hostos CC. You must repay this loan to Hostos Community College. How much can I borrow? Depending on when you apply, your level of need, and the funding level available, you can borrow up to: $4,000 for each year of undergraduate study (the total amount you can borrow as an undergraduate is $20,000). $6,000 for each year of graduate or professional study (the total amount you can borrow as a graduate/professional student is $40,000, including any Federal Perkins Loans you borrowed as an undergraduate). How will I be paid? Hostos Community College will either pay you directly (usually by check or Direct-Deposit) or credit your account. You will receive the loan in at least two payments during the year. Is there a charge for this loan? A Perkins Loan borrower is not charged any fees. However, if you skip a payment, make a payment late, or make less than a full payment, you may have to pay a late charge plus any collection costs. Late charges will continue until your payments are current. How much will I have to repay each month? Your monthly payment amount will depend on the size of your debt and the length of your repayment period. The chart below shows typical monthly payments and total interest charges for three different 5-percent loans over a 10-year period. Total Loan Amount Number of Payments Approximate Montly Payment Total Interest Chargers Total Repaid $4,000 120 $42.43 $1,091.01 $5,091.01 $5,000 120 $53.03 $1,364.03 $6,364.03 $15,000 120 $159.10 $4,091.73 $19,091.73 When do I pay back this loan? If you’re attending school at least half time, you have nine months after you graduate, leave school, or drop below half-time status before you must begin repayment. This is called a grace period. If you’re attending less than half time, check the Bursar’s Office (Perkins Loans division) to determine your grace period. At the end of your grace period, you must begin repaying your loan. You may be allowed up to 10 years to repay. Will I have an opportunity to cancel my loan after I sign the Promissory Note? Yes. Hostos Community College will notify you in writing whenever it credits your account with your Perkins Loan funds. This notification will be sent to you no earlier than 30 days before, and no later than 30 days after Hostos CC credits your account. You may cancel all or a portion of your loan if you inform the Bursar’s Office (Perkins Loan division) at Hostos CC that you wish to do so within 14 days after the date that Hostos CC sends you this notice, or by the first day of the payment period, whichever is later. The Bursar’s Office can tell you the first day of your payment period. If you receive Perkins Loan funds directly by check, you may refuse the funds by not endorsing the check. Can I postpone repayment of my FPL? Yes. Under certain circumstances, you can receive a deferment or forbearance on your loan. During a deferment, you are allowed to temporarily postpone payments on your loan, and no interest accrues. You may receive a deferment under certain conditions, such as unemployment. Deferments are not automatic. You must apply for one through the Bursar's Office (Perkins Loans division) by using a deferment request form available at the Perkins Loans division. If you are temporarily unable to meet your repayment schedule but are not eligible for a deferment, you can receive forbearance for a limited and specific period. During forbearance, your payments are postponed or reduced. Interest continues to accrue; you are responsible for it. Forbearance isn't automatic either. You may be granted forbearance in up to 12-month intervals for up to three years. You must apply in writing for forbearance through the Bursar's Office (Perkins Loans division) or the agency Hostos Community College employs to service your loan. You'll have to provide documentation to support your request for forbearance. You must continue making schedule payments until you are notified that deferment or forbearance has been granted. Can my FPL be canceled? Yes. If the borrower dies or becomes totally and permanently disabled, the loan can be canceled. A loan can also qualify for cancellation under certain other conditions--as long as the borrower is not in default. If you serve as an enlisted person in certain specialties of the U.S. Armed Forces may, as an enlisted incentive, repay a portion of your Federal Perkins Loan. Note that this is not a cancellation. If you think you qualify, contact your recruiting officer. Iraq and Afghanistan Service Grants Iraq and Afghanistan Service Grants Who can get an Iraq and Afghanistan Service Grant? How much money can I get? If your parent or guardian died as a result of military service in Iraq or Afghanistan, you may be eligible for an Iraq and Afghanistan Service Grant. Like other federal grants, Iraq and Afghanistan Service Grants provide money to college or career school students to help pay their education expenses. However, Iraq and Afghanistan Service Grants have special eligibility criteria. Who can get an Iraq and Afghanistan Service Grant? You may be eligible to receive the Iraq and Afghanistan Service Grant if You are not eligible for a Federal Pell Grant on the basis of your Expected Family Contribution but Meet the remaining Federal Pell Grant eligibility requirements, and Your parent or guardian was a member of the U.S. armed forces and died as a result of military service performed in Iraq or Afghanistan after the events of 9/11, and You were under 24 years old or enrolled in college at least part-time at the time of your parent’s or guardian’s death. How much money can I get? The grant award is equal to the amount of a maximum Federal Pell Grant for the award year but cannot exceed your cost of attendance for that award year. For the 2016–17 award year (July 1, 2016, to June 30, 2017), the maximum Federal Pell Grant award is $5,815. Due to sequestration, award amounts for any Iraq and Afghanistan Service Grant that is first disbursed on or after Oct. 1, 2015, and before Oct. 1, 2016, must be reduced by 6.8 percent from the award amount for which a recipient would otherwise have been entitled. Any Iraq and Afghanistan Service Grant that is first disbursed on or after Oct. 1, 2016, and before Oct. 1, 2017, must be reduced by 6.9 percent. For example: For any 2016–17 Iraq and Afghanistan Service Grant first disbursed on or after Oct. 1, 2015, and before Oct. 1, 2016, the maximum award of $5,815 is reduced by 6.8 percent ($395.42), resulting in a maximum award of $5,419.58. For any 2016–17 Iraq and Afghanistan Service Grant first disbursed on or after Oct. 1, 2016, and before Oct. 1, 2017, the maximum award amount of $5,815 is reduced by 6.9 percent ($401.23), resulting in a maximum award of $5,413.77. How will I get paid? The payment procedures are the same as those for the Federal Pell Grant. Learn how (and when) you’ll be paid.