Frequently Asked Questions

Federal Financial Aid

Navigating through the financial aid process can be confusing.  The Stephens College Financial Aid office has compiled a list of the most frequently asked questions about financial aid.  If you have additional questions or concerns, please contact the Financial Aid office at [email protected] or at (573) 876-7106.

How do I apply for financial aid?

• Obtain a Personal Identification Number (PIN) online.   PINs can be used to sign your FAFSA electronically, making the application process simpler and faster. 
• Complete the Free Application for Federal Student Aid (FAFSA).  The form may be filed after January 1 of each year.  There is no charge for submitting the FAFSA.
• List Stephens College on your FAFSA. Our school code is 002512. 
• Print out and keep a copy of the FAFSA for your records.

What is a FAFSA?
The FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA) is a needs analysis form provided and specified by the Federal Department of Education in order to calculate a family's ability to contribute to the student's educational costs. The FAFSA form can be found online at www.fafsa.ed.gov

I am in a certificate program. Can I receive financial aid?

No, except for alternative loans which are non-Federally funded loans with loan terms that are based on the applicant's credit history. You may choose to apply for a second bachelor's degree. You would then be eligible to apply for Federal financial aid.

What happens after I submit my FAFSA?
You will receive a Student Aid Report (SAR) from the Federal government that shows the results of the FAFSA.  Check the SAR for accuracy and make any necessary corrections. Included on the SAR is your Expected Family Contribution (EFC), which is calculated from the information you provided on the FAFSA. The EFC is used to calculate your Federal financial aid package.

If your application is selected for verification, you will be notified to complete the Verification Worksheet and submit required documentation.  Do not submit documentation unless it is requested.

The Stephens College Financial Aid office will receive a copy of your Student Aid Report. We will determine the amount of aid you are eligible to receive and notify you by email regarding your award.

What is the Stephens College school code for Federal Financial Aid?

The Stephens College FAFSA code is 002512.

How much can I expect to get in financial aid?

The amount of financial aid for which you are eligible depends upon the Estimated Family Contribution (EFC) that the Federal Department of Education determines, as well as the Cost of Attendance (COA) that Stephens College determines. There are maximum amounts for grants and loans based on enrollment level, and do not reflect the actual amount of your financial aid. They are the maximum a student could receive in an academic year.

 

	Subsidized Loans	Unsubsidized Loans
Freshman	$3,500	$6,000
Sophomore	$4,500	$6,000
Junior	$5,500	$7,000
Senior	$5,500	$7,000
Graduate student		$20,500

What types of federal financial aid may be available?

Undergraduate (bachelor's degree)

• Federal Pell Grant
• Federal Supplemental Educational Opportunity Grant (FSEOG)
• Federal Perkins Loan
• Federal Direct Subsidized Stafford Loan
• Federal Direct Unsubsidized Stafford Loan
• Federal Work-Study Program
• Outside Scholarships (scholarships which you bring with you to Stephens)
• Alternative Loans
• Missouri State programs*

*Missouri Department of Higher Education (MDHE)

(800) 473-6757 or (573) 751-3940

http://www.dhe.mo.gov/

April 1 priority date for Fall

Graduate (master's degree)

• Federal Direct Unsubsidized Stafford Loan
•  Grad PLUS Loan
• Alternative Loans

What is a Pell Grant?

A Pell Grant is need-based aid that does not have to be repaid after graduation. It is available to undergraduate students with no prior bachelor's or professional degree. Students are notified of eligibility on the Student Aid Report (SAR). The maximum award for the academic year is currently $5,550. The amount of each Federal Pell Grant depends on your financial need, cost of education, and your enrollment status.

What is the difference between a Subsidized (sub) Stafford Loan and an Unsubsidized (unsub) Stafford Loan?

The Federal Stafford Loan is a long-term, low-interest loan that is available to all students. For the 2012-2013 academic year, subsidized Stafford Loans will have a 3.4% fixed interest rate. Unsubsidized Stafford Loans have a 6.8% fixed interest rate. A 1% origination fee will be charged and deducted from all Stafford Loan amounts.

The Subsidized Stafford Loan is awarded for the academic year and is based on your financial need and academic grade level. Financial need is determined by your cost of attendance minus your Estimated Family Contribution (EFC) and any other aid you will receive. The Federal government subsidizes or pays the interest on the loan while you are enrolled at least half time or in an eligible period of deferment. Interest will be charged once you enter repayment status.

The Unsubsidized Stafford Loan is awarded based on your cost of attendance minus any other aid you will receive and your academic grade level. You are responsible for the interest on this loan from the time the loan is disbursed until is it paid in full.  The Federal government DOES NOT subsidize the interest on this loan. You may choose to defer the interest during enrollment and deferment periods, but it will be capitalized (added to the principal amount).

What is an alternative loan?

Alternative loans are non-Federal loans offered by some lenders and state governments.  The purpose of an alternative loan is to supplement a student's financial aid package. They are not Federally endorsed or guaranteed, but they must be certified, or approved, through the Stephens College Financial Aid office. An alternative loan cannot exceed your cost of attendance (budget) minus all other financial aid.

We strongly recommend that you use alternative loans as a measure of last resort and pursue all of your Federal loan options ( Stafford and PLUS) first. Alternative loans are based on creditworthiness, so the initial step in applying is a credit check with the lender. Since the loans are not Federally endorsed, each lender's loan program is different. Each loan varies on interest rates, fees charged, the amount you may borrow (minimum and maximum) and repayment terms.

Private student loans (also known as alternative student loans or personal student loans) can help you pay for college, generally at better interest rates than other lines of credit.

• You should only use private student loans as supplemental funding after you have exhausted all other sources of financial aid..
• As with any student loan, be conservative and only borrow what you absolutely need.

What Are the Advantages of Private Student Loans?

• Most private loans allow you to apply with or without a cosigner.
• Ability to cover any need unmet by Federal student loans.
• Most programs have variable interest rates that are based on your credit tier.

Are there situations in which I will not receive financial aid?

Yes, among them are:

• You are in default on any student loans you already have
• You have met or exceeded federally set loan limits (a rare occurrence especially at the graduate level)
• You are selected for verification and have not provided appropriate documents to the Financial Aid office
• Other reasons as explained on your Student Aid Report (SAR)

Also, you must maintain satisfactory academic progress as defined by Stephens College in order to maintain eligibility.

What is verification?

Verification is a process by which the Federal government has randomly selected your FASFA to verify accuracy.You will be requested to submit tax transcripts and a verification worksheet. Your financial aid cannot be disbursed until the verification is complete.

When will I be notified of my financial aid award?

Before you can receive a financial aid award, the Financial Aid office must have received a copy of your FAFSA, and you must have been accepted into a Graduate, Online & Non-Credit Programs program. After that, we will send an award letter to you within approximately two weeks.

Please read the award letter carefully. If you are a first-time borrower at Stephens College, you must complete a Master Promissory Note (MPN) and Loan Entrance Counseling, both of which are required by the federal government. www.studentloans.gov

How will I receive my money?

Your financial aid will be credited to your Stephens College bill after you enroll in classes each term (provided all documentation has been received). The exact date will vary from semester to semester based on loan disbursement dates. If there is an outstanding balance after financial aid is credited to your account, you will receive a bill for that amount. If there is a credit balance, you will receive a refund check. The first loan disbursements usually do not occur until several weeks after the start of classes.

What is considered full-time status for financial aid purposes?

	Full-time status	Part-time status
Undergraduate students	12 credit hours per semester	6 credit hours per semester
Graduate students	6 credit hours per semester	3 credit hours per semester

Can I use my financial aid funds to purchase books?

Yes. Contact the Financial Aid Office at (573)-876-7106 or [email protected], to determine if you are eligible for a book voucher (charges books against financial aid). Book vouchers are only redeemable at www.mbsdirect.net.