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Loans are not gifts. They must be repaid. If you are having trouble making your payments, call the Direct Loan Servicing Center. The Direct Loan Servicing Center will work with you to help you avoid the serious consequences of default. Don’t let your loan get into this situation. 

The Consequences of Defaulting

  • The entire unpaid balance and accrued interest become due and payable immediately.
  • You lose your deferment options.
  • You lose eligibility for additional federal student financial aid.
  • Your account is assigned to a collection agency.
  • Your account will be reported as delinquent to credit bureaus, damaging your credit rating.
  • The Federal Government can intercept any income tax refund due to you or you and your spouse.
  • Late fees, additional interest, court costs, collection fees, attorney’s fees, and other costs incurred in collecting your loan will increase your loan debt.
  • Your employer (at the request of the Federal Government) can garnish part of your wages and send them to the government.
  • The Federal Government can take legal action against you.

Truth in Lending Act (TILA)

In August of 2008, the Higher Education Opportunity Act (HEOA) amended the Truth-in-Lending Act (TILA), establishing private education loan disclosure requirements regarding loan terms on or with the loan application. Lenders must also disclose information about lower cost alternatives like federal student loans. Additionally, once the loan is approved and finalized for disbursement, additional disclosures must be provided.

These regulations were passed to ensure that borrowers of private education loans have the necessary information to make informed choices about financing products to fund educational costs. These regulations apply to all private education loans, but not to loans under the Federal IV loan programs (Stafford, Perkins and PLUS).

The following documents must be provided to you under the Federal Truth in Lending Act:

  • The Self-Certification form must be completed before receiving your first disbursement of loan funds;
  • Final Disclosure statement with the Right-to-Cancel Period information.

After you signed your promissory note, the Final Disclosure statement confirms the terms and conditions of your loan. At the time that this Final Disclosure is delivered, your right-to-cancel period begins. During this period of three to six days, you may cancel the loan by contacting the lender. The lender cannot release the first disbursement of your loan funds until the end of the right-to-cancel period.

Borrowers may qualify for other assistance under Title IV. The terms and conditions of Title IV programs may be more favorable than private education loans. You may qualify for federal education loans. Contact the financial aid office for more information.

Full-time status is defined as enrollment in 12 or more credit hours per semester for undergraduate students and enrollment in nine or more credit hours per semester for graduate students. Part-time status is defined as less than full time. The enrollment status definitions apply to fall, spring and summer semesters.

 

Enrollment status for Financial Aid Purposes

Student Level Full Time 3/4 Time 1/2 Time Less than 1/2 Time
Undergraduate 12+ 9-11 6-8 1-5
Graduate 9+ N/A 5-8 1-4

 

Audit courses, non-credit courses, and credit-by-exam courses do not qualify for financial aid purposes.

Before you receive Federal Direct Loans, you are required to complete entrance counseling if you have not already borrowed a Direct Loan before. You can fulfill this requirement at www.studentloans.gov.

Before you graduate (or if you drop below half-time attendance), you are required to complete an exit counseling interview for all educational loans you received during your attendance.

To complete the exit counseling online, go to www.studentloans.gov. This process takes 25 minutes on average.You can also access basic loan information, loan totals, and other financial aid specifics at www.nslds.ed.gov. You will need your FSA ID to access your personal detailed information.

We adhere to all federal and state guidelines in administering financial aid, without regard to race, color, sex, religion, age, handicap, or national origin. It is the student’s responsibility to make sure the College has a copy of the FAFSA information.

Every year the College awards institutional scholarships, grants, and loans to our students. To help you plan and locate funds to finance your education, numerous publications are available at www.studentaid.ed.gov/pubs.

Deferment
A deferment is a period during which your monthly loan payments are temporarily postponed. If you are enrolled in school at least half-time, unemployed, experiencing economic hardship, or meet other specific criteria, you may qualify for a deferment. However, you will be responsible for the interest that accrues on your Direct Unsubsidized Loan during the deferment period.

Forbearance
Forbearance is a period during which your monthly loan payments are temporarily postponed or reduced. You may request forbearance if you are willing but unable to make loan payments due to certain types of financial hardships. You will be responsible for the interest that accrues on all of your loans during the forbearance period.

In order to help students meet their educational goals and to ensure access to all financial resources, the financial aid professionals of Saint Luke’s College of Health Sciences adhere to the following Code of Conduct to govern its relationships with private lenders in the student loan industry.

  1. No action will be taken by Saint Luke’s College of Health Sciences’ financial aid staff that is for their personal benefit or could be perceived to be a conflict of interest.
    1. Employees within the financial aid office will not award aid to themselves or their immediate family members. Staff will reserve this task to an institutionally designated person, to avoid the appearance of a conflict of interest.
    2. If a preferred lender list is provided, it will be compiled without prejudice and for the sole benefit of the students attending Saint Luke’s College of Health Sciences. The information included about lenders and loan terms will be transparent, complete and accurate. The complete process through which preferred lenders are selected will be fully and publicly disclosed. Borrowers will not be auto-assigned to any particular lender.
    3. A borrower’s choice of a lender will not be denied, impeded, or unnecessarily delayed by the institution, even if that lender is not included on Saint Luke’s College of Health Sciences’ preferred lender list.
    4. No amount of cash, gift, or benefit in excess of a de minimis amount shall be accepted by a financial aid staff member from any financial aid applicant (or his/her family), or from any entity doing business with or seeking to do business with Saint Luke’s College of Health Sciences (including service on advisory committees or boards beyond reimbursement for reasonable expenses directly associated with such service).
    5. Financial aid staff will refrain from taking any action he or she believes is contrary to law, regulation, or the best interests of the students and parents he or she serves.
  2. Information provided by the financial aid office is accurate, unbiased, and does not reflect preference arising from actual or potential personal gain
  3. All required consumer information is displayed in a prominent location on the institutional website(s) and in any printed materials, easily identified and found, and labeled as “Consumer Information.”
  4. Financial aid professionals will disclose to their institution any involvement, interest in, or potential conflict of interest with any entity with which Saint Luke’s College of Health Sciences has a business relationship.

Adapted for Saint Luke’s College of Health Sciences from the NASFAA Board of Director’s Code of Conduct and the Higher Education Opportunity Act of 2008 published requirements.

  • I understand that my financial aid offers are contingent upon adequate funding and state and federal regulations.
  • I must maintain satisfactory academic progress to continue to receive Federal, State, and most private assistance.
  • Funds I accept must be applied to outstanding educational expenses at Saint Luke’s College of Health Sciences before the surplus may be disbursed to me. All assistance will be used for educational expenses related to my attendance at Saint Luke’s College of Health Sciences.
  • These offers may be voided or changed at any time if incorrect or false information is discovered on the application or if there has been an error in computing the offer.
  • Any change in enrollment, state residency, or the receipt of additional outside resources after the initial offer must be reported to the Financial Aid Office. Revisions or changes in status will necessitate revisions of the offers.
  • I understand that if I withdraw from school prior to the completion of a semester, the financial assistance received will be prorated and the unused portion of the financial assistance will be refunded to the pro­grams involved. Depending on the proration of the aid, I may owe a balance on my account.
  • I understand that all academic year William D. Ford Direct Loans (Subsidized, Unsubsidized, and Parent PLUS) must be disbursed in two equal payments.
  • I understand that financial aid disbursements are generally made during the first week of the semester.  Financial aid disbursements are made weekly on a case by case basis throughout the semester, as needed.
  • As a first-time borrower of William D. Ford Direct Loans (Subsidized and Unsubsidized), I realize that I must complete an online entrance counseling session before any part of my loan can be disbursed and credited to my account.
  • I understand that if I have received loans at any time while enrolled at Saint Luke’s College of Health Sciences, I must complete an exit counseling session before I leave the College for any reason.
  • I understand that I may be seeking a degree and receive aid from only one institution during an academic term.
  • I understand that to receive federal aid I must be en­rolled in at least six credit hours at Saint Luke’s College of Health Sciences (except for those who qualify for Federal Pell Grant funds) as an undergraduate student and five credit hours as a graduate student.
  • I understand that I must be enrolled in a minimum of 12 credit hours at Saint Luke’s College of Health Sciences in order to receive Foundation scholarships.
  • I understand that proceeds from William D. Ford Direct Parent PLUS loans will credit directly to my account, pay off all charges, and any overpayment will be refunded to my parent. In order for overpayments to be refunded to me, my parent borrower must indicate this on the Parent PLUS Information Worksheet.
    Authorizations
  • I authorize the release of information concerning financial assistance received at Saint Luke’s College of Health Sciences to other institutions of higher educa­tion or other agencies from which I am also receiving or requesting financial assistance for educational purposes. For dependent students, this would also include parents’ information. I also authorize Saint Luke’s College of Health Sciences to receive information concerning financial assistance from other institutions and agencies.
  • I authorize Saint Luke’s College of Health Sciences to credit my account with Federal Pell Grant and Title IV funds for any charges I accrue in addition to tuition and fees. I understand I have the right to rescind this statement at any time by written notification to the Financial Aid Office.

I authorize the use of electronic means of communi­cation such as email and secure websites for official notifications concerning financial aid awards, eligibility, and any related programs. I understand that I have the right to rescind this statement at any time by written notification to the Financial Aid Office.

By accepting Title IV funds (Federal Pell Grant, Federal SEOG, Federal Direct Loans – Sub, Unsub or Parent PLUS), I am verifying that I have read and understood the above statements and authorizations and agree to them.

A promissory note is a legally binding contract between the borrower of a Direct Loan and the lender (in this case, the U.S. Department of Education). It contains the terms and conditions of the loan and explains how and when it should be repaid. Before you receive your loan funds, you must sign a promissory note. The Master Promissory Note (MPN) is completed online at www.studentloans.gov. You will sign the MPN using your Federal Student Aid (FSA) Identification from your FAFSA.

When you sign the MPN, you are confirming your understanding that your school may make multiple loans for you for the duration of your education (up to 10 years) without you having to sign another promissory note. You are also agreeing to repay your lender, the U.S. Department of Education, all loans made to you under the terms of the MPN. Therefore, it is very important that you completely read and understand all of the information on the MPN before you sign it.

Students convicted of possession or distribution of drugs, or who are in default on a student loan, or who owe a repayment of a federal grant, may not be eligible for financial assistance. Contact us with questions regarding any of these situations.

If the student received federal aid, the return of federal funds is the first priority. If the student received state aid or institutional aid or made personal payments, the state and institutional aid are repaid proportionally according to the source of payments.

Federal student aid programs will be returned in the following regulated order: Federal Direct Unsubsidized Loans, Federal Direct Subsidized Loans, Federal Perkins Loans, Federal PLUS Loans and Federal Pell Grants, Federal SEOG and Other Title IV aid programs.

Students should also refer to the drop/withdraw policy to ensure they complete the requirements needed to drop/withdraw from a course(s).

The account of the student who has federal aid and withdraws from the College before the first 60 percent of the semester has occurred will be evaluated according to the Department of Education guidelines and formula.

The policy conforms to the Higher Education Amendments of 1998. Title IV programs affected are Subsidized and Unsubsidized Direct Loans, Perkins Loans, PLUS (Parent Loans for Undergraduate Students), Pell Grants and FSEOG grants.

Federal aid is earned by the percentage of the payment period the student completes. To figure the percentage of aid earned, divide calendar days completed in the semester by total days in the semester. Weekends are included, but scheduled breaks that are at least five days in length are excluded. If the student completes more than 60 percent of the semester, 100 percent of the aid is earned for the semester and no immediate repayment obligation is incurred. If the student completes 59 percent or less of the semester, the portion of federal aid determined to be unearned must be repaid to the federal programs.

The College will return Title IV aid from the student’s account according to the federal formula. A student may be required to return a Title IV overpayment. If the College notifies the student to return an overpayment, the student has 45 days to return the funds to the College. If the student does not comply with the 45-day requirement, the Department of Education will be notified to begin the collection. The student will be ineligible for further Title IV aid until either the overpayment is paid in full or satisfactory repayment arrangements have been made with the Department of Education.

Institutional refunds and the formula used to determine the required return of federal and other student aid will be completed within 45 days of the withdrawal date.

Federal regulations require students to meet satisfactory academic standards in order to receive federal financial assistance. The two standards utilized by the College to determine satisfactory academic progress are quantitative and qualitative. Quantitative progress requires students to pass a minimum number of credit hours. Qualitative progress requires students

to earn a predetermined Saint Luke’s College of Health Sciences cumulative grade point average. Students must be in compliance with the College’s written standards for both quantitative and qualitative progress to maintain eligibility for any type of federal financial assistance. Students failing to maintain satisfactory academic progress will be ineligible for further federal financial assistance until academic progress guidelines are met. Final quantitative and qualitative progress will be assessed each semester.

Saint Luke’s College of Health Sciences will attempt to notify students when they have not maintained satisfactory academic progress. However, students are responsible for being aware of the satisfactory academic progress policies and eligibility guidelines even if the College’s notification is not received.

 

Undergraduate

Quantitative Progress

To be considered making satisfactory quantitative progress, a student must successfully complete at least 75 percent of the hours attempted. Failing grades (D, F), withdrawals (W), and incompletes (I) will be counted in the number of hours attempted, but will not be counted as successfully completed. 

Qualitative Progress

To be considered making satisfactory qualitative progress, a student must maintain a minimum cumulative grade point average of 2.0.

 

Maximum Time Frame and Credit Hours

Students may receive financial assistance for up to one and one-third times the published program length (133.3 percent). Part-time attendance counts in this calculation. For example, the normal program length for a bachelor’s degree is 124 credit hours, therefore, the maximum number of attempted credit hours may not exceed 165. Only hours applicable to the degree the student is enrolled in will be counted.

 

Graduate

Quantitative Progress

To be considered making satisfactory quantitative progress, graduate students must successfully complete at least 67 percent of the hours attempted. Failing grades (C, D, F), withdrawals (W), and incompletes (I) will be counted in the number of hours attempted, but will not be counted as successfully completed.

Qualitative Progress

To be considered making satisfactory qualitative progress, a graduate student must maintain a minimum cumulative grade point average of 3.0.

Maximum Time Frame and Credit Hours

Students may receive financial assistance for up to one and one-half times the normal program length (150 percent). Part-time attendance counts in this calculation. The normal program length for a graduate degree is 49 credit hours, therefore the maximum number of attempted credit hours may not exceed 73. Only hours applicable to the College’s Master of Science in Nursing degree will be counted.

Financial Aid Warning

When a student does not meet the qualitative or quantitative academic progress standard, they will be placed on Financial Aid Warning for the next term of attendance. Students remain eligible to receive aid during the warning period and their record will be reviewed for compliance again following their next term of enrollment.

Students who are placed on Financial Aid Warning will be sent a notification to their College email account.

 

Financial Aid Suspension

A student who is placed on Financial Aid Warning and does not meet the qualitative and/or quantitative academic progress standards at the conclusion of the warning period will then be placed on Financial Aid Suspension. This suspension status results in the loss of eligibility for all types of financial aid until all SAP standards are met.

Students who are placed on Financial Aid Suspension will be sent an email notification to their College email account. Students are responsible for being aware of the Satisfactory Academic Progress policies and will remain ineligible, even if the College’s notification is not received.

A student who fails to make Satisfactory Academic Progress after being on Financial Aid Warning may appeal, in writing, the loss of eligibility. The appeal must be based on documented mitigating circumstances that were clearly beyond the student’s control. Types of required documentation may include doctor and hospital reports, legal documents, written statement/information from a relative or other official source as deemed appropriate by the committee reviewing the appeal. Written appeals and all supporting documentation must be submitted to the financial aid office. Students are encouraged to submit their written appeal and supporting documentation as soon as possible. This will allow the appeal to be reviewed in a timely manner and allow the student sufficient time for planning financially for the upcoming semester of enrollment. 

The appeal form will be considered incomplete if all the areas below are not specifically addressed. Supporting documentation is highly recommended. The completion of a petition form requires a written statement addressing the following areas:

  • Explain what happened that caused you to not meet financial aid academic progress standards. Attach supporting documents that you have to verify your situation (medical bills, doctor’s note, etc.).
  • Explain what has changed that will now allow you to be successful and meet academic progress standards in future terms.
  • Explain what you plan to do academically to meet academic progress standards.

The committee will review the written appeal and supporting documentation and notify the student in writing of the appeal decision within 14 days of the date received.

To appeal the committee’s decision, the student must submit a written appeal and all supporting documentation to the Grievance Committee within seven days of the date on the committee’s written response. Students should make every attempt to informally resolve complaints/grievances and should attempt to resolve any disputes regarding any matters with the College representative/department involved. If a situation cannot be informally resolved, formal student grievances follow the formal grievance policy.

As a student, you have the right to know:

  • What financial aid programs are available and how to apply for them
  • Procedures and deadlines for submitting an application(s) for financial aid
  • Cost of attendance and how financial need is determined
  • The type and amount of assistance you will receive, and how and when you will be paid
  • That all application information is treated with the highest level of confidentiality
  • The eligibility criteria for awarding aid
  • The conditions of any loan you accept
  • The job description and starting pay rate for any student job you accept
  • How Academic Progress is determined
  • Requirements in the case of withdrawal, refunds, and repayment of financial aid
  • The contents of your financial aid file, in accordance with the Family Educational Rights and Privacy Act (FERPA) and request an appeal if you believe a mistake has been made
  • Your financial aid package will be reviewed upon your request if family and/or financial circumstances have changed
  • Campus security and crime statistics, please contact the Dean of Students
    As a student, you have the responsibility to:
  • Plan for your educational and living expenses
  • Submit all forms requested by the Financial Aid Office to complete the application process in a timely and accurate manner
  • Read, understand, and retain copies of all information and/or forms that are sent to you and all other documents you sign
  • Comply with the provisions of any aid received, as well as any promissory note(s) and all other agreements you sign
  • Notify Saint Luke’s College of Health Sciences of all additional resources you receive that are not listed on your offer letter
  • Keep Saint Luke’s College of Health Sciences informed of any change of address, name or marital status while you are a student, and until all loans have been repaid in full
  • Use aid only for educational expenses related to attending Saint Luke’s College of Health Sciences
  • Maintain satisfactory progress
  • Register and attend classes for the number of hours required for your aid disbursement
  • Perform satisfactorily in any work assignments accepted through student employment programs

Students who fail to attend any classes will be ineligible for Title IV financial aid. Federal Financial Aid eligibility is based on courses actually attended. If notification of non-attendance in any class is received at any time, the determination of federal financial aid eligibility will be re-evaluated for that term and may result in financial aid forfeiture and/or a balance due to the College. In addition, the following are circumstances in which a student’s Title IV aid will be adjusted/prorated:

  • Withdrawal/dropping of classes prior to the first posting of financial aid may result in a reduction or adjustment to the awarded Title IV aid. 
  • Federal regulations require the College to complete a Return to Title IV Aid Calculation for students who stop attending all classes at any point throughout the semester (see Return to Title IV policy listed in the catalog for more information). This recalculation is based on the last date of attendance during the semester regardless of whether the student withdrew officially or simply stopped attending classes (unofficial withdrawal).
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