Federal Student Aid

In order to be eligible for federal student aid (FSA), students must have or meet the following criteria:

U.S. citizen with a valid social security number
High school diploma, a General Education Development (GED) certificate, or completed home-schooling
Make Satisfactory Academic Progress
Not owe a refund on a federal grant or be in default on a federal education loan
Enroll in Selective Service (if male and between the ages of 18 and 25)
Complete the Student Aid Eligibility Worksheet (if the student has been convicted for the possession or sale of illegal drugs while receiving federal student aid)

Students must complete a Free Application for Federal Student Aid (FAFSA) annually through www.fafsa.ed.gov. The FAFSA requires the school code which is 017053 for Stratford University. Student must use extreme care when completing the application. Before filling out the FAFSA, a student must request a PIN. This is used as an electronic signature. Students should remember their PIN and keep it recorded in a safe place. Requesting a PIN and completing a FAFSA does not commit a student to using FSA. After filing a FAFSA, Stratford receives an Institutional Student Information Record (ISIR), which notifies the student of eligibility for a Federal Pell Grant and provides the student’s EFC. Not all students are eligible to receive FSA and should consult with the Office of Student Accounts during this process.

The Office of Student Accounts has students fill out the following forms as part their FSA application:

Student Loan Entrance Interview Form
Credit Balance Authorization Form
Student Information Release
If dependent, parents must complete Parent PLUS Loan Application. Generally, dependent students are under 24 years old, not in the military, unmarried, and do not have a child for which the student is supplying half of the support. A full list of the questions that determine dependency can be found at www.fafsa.ed.gov.

Verification: Once the FAFSA, ISIR, and EFC are completed, students may be selected for verification. It is important to remember not all students are selected. The Office of Student Accounts clearly communicates which documents a student needs to provide for verification. All selected students are required to complete verification and no Title IV disbursements are made prior to the completion of verification. These documents may include, but are not limited to:

Verification worksheet
Taxes
Passport, green card, or naturalization documents
Selective Service
SNAP and Food Stamps
Child support paid

The Office of Student Accounts assists students with correcting any incorrect information during the FSA process and communicates any changes in a student’s scheduled award. However, any suspected cases of fraud will be reported to the Regional Office of the Inspector General, or if more appropriate, to local law enforcement having jurisdiction to investigate.

Master Promissory Note: When a student decides to enroll at Stratford University, a master promissory note (MPN) must be completed. The MPN is a legal document in which the student promises to repay the loan and any accrued interest and fees. It also explains the terms and conditions of the loan. The MPN is signed digitally using the student’s PIN.

Budget: The last step in the FSA process is to review the student’s budget. This outlines the cost of attendance, financial assistance awarded, and out-of-pocket expenses owed by the student. The cost of attendance aid being awarded cannot exceed the student’s cost of attendance. Students who do not complete the FSA process (e.g. do not submit all required documents) by the end of the second week of their first term, are packaged as cash paying students, and notified of the payment plan. When students have completed the FSA process, they are referred to as “packaged”.

Transfer of Federal Student Aid

Students who have used FSA at another college, institution, or university may transfer their FSA to Stratford University by inputting the University information into their FAFSA, submitting the required documents, and signing a MPN. Students should see the Office of Student Accounts for any questions regarding this process.

Federal Student Aid Disbursements

A student accounts officer provides an estimated award amount and a student budget upon completion of the FAFSA. Once all documents are reviewed for accuracy, an award letter is created. It includes Pell Grant, Federal Supplemental Educational Opportunity Grant, Subsidized Direct Loan, Unsubsidized Direct Loan, and PLUS loans. A copy of this is sent to the student. All Title IV federal student aid funds received by the institution are credited to the student’s account upon receipt for the U.S. Department of Education, excluding Federal Work Study.

Federal regulations require that Federal Direct Loans cannot be released nor can a Federal PLUS Loan application be certified until the FAFSA has been completed. Federal student aid information for all institutions attended is obtained from the National Student Loan Data System (NSLDS) page of the student’s SAR/ ISIR. The student’s SAR/ISIR must include a valid EFC code prior to disbursement.

Repackaging of Loans

Each academic year, students are required to repackage their FSA. To do this, students must submit a FAFSA for the current year with the corresponding data. The FAFSA for the new academic year needs to be completed and cleared from verification (if applicable) for all students in order to receive loans or grants. Student loans and grants are not guaranteed from one year to the next due to fluctuations in EFC. It is the students’ responsibility to contact the Office of Student Accounts two weeks prior to the end of the academic year. For Pell and FSEOG recipients, the student must contact the Office of Student Accounts two weeks prior to the close-out of the financial aid year (June 30).

Financial Aid Refund Policy

The date the institution receives notification of official withdrawal will be utilized as the student’s official date of withdrawal. Any student who misses 3 consecutive days from all classes will be considered withdrawn from the University and their last date of attendance will be used as their official withdrawal date from the University. For students who have received Federal Title IV financial aid and have withdrawn completely from the University, which includes students on an approved leave of absence, the following return of funds policy is in effect in accordance with the 1998 Code of Federal Regulations 668.22. For a complete copy of the refund policy and the allocation of refunds, contact the Office of Student Financial Services or the Student Accounts Office.

The Office of Student Financial Services is required by federal statute to determine how much financial aid was earned by students who withdraw, drop out, are dismissed, or take a leave of absence, including approved medical leave of absence, prior to completing 60% of a payment period or term. For a student who withdraws after the 60% point-in-time, a student has earned 100% of the Title IV funds. The calculation is based on the percentage of earned aid using the following Federal Return of Title IV funds formula:

Percentage of payment period or term completed = the number of days completed up to the withdrawal date, divided by the total days in the payment period or term. (Any break of 5 consecutive days or more is not counted as part of the days in the term.) This percentage equals the percentage of earned aid.

Funds are returned to the appropriate federal program based on the percentage of unearned aid using the following formula:

Aid to be returned = 100% of the aid that could be disbursed minus the percentage of earned aid, multiplied by the total amount of aid that could have been disbursed during the payment period or term.

If a student earned less aid than was disbursed, the institution would be required to return a portion of the funds and the student may also be required to return a portion of the funds. Keep in mind that when Title IV funds are returned, the student borrower may owe an outstanding balance to Stratford.

If a student earned more aid than was disbursed to them, the institution would owe the student a post-withdrawal disbursement which must be paid within 180 days of the student's withdrawal. Permission from the student may be required in order to issue the post-withdrawal disbursement. Written notification will be provided to the student and must be signed and returned within a specified period of time in order to credit the funds to a student’s account. Stratford must return the amount of Title IV funds for which it is responsible no later than 45 days after the date of the determination of the date of the student’s withdrawal.

Refunds are allocated in the following order:
• Unsubsidized Direct Student Loans (other than PLUS loans)
• Direct Subsidized Student Loans
• Direct PLUS Loans
• Federal Pell Grants for which a return of funds is required
• Federal Supplemental Opportunity Grants for which a return of funds is required
• Iraq Afghanistan Service Grant
• Other assistance under this title for which a return of funds is required

Origination

Stratford University cannot receive funding for Direct Loans until the Direct Loans have been originated.

Notification of Post Withdrawal Disbursements

If a student earned more aid than was disbursed to them, the institution would owe the student a post-withdrawal disbursement which must be paid within 180 days of the student's withdrawal. Permission from the student may be required in order to issue the post-withdrawal disbursement. Written notification will be provided to the student or parent within 30 days of the date of determination and must be signed and returned within a specified period of time in order to credit the direct loan funds to a student’s account. Unless otherwise notified by the student, grant funding earned but not yet disbursed will be posted to the students account directly following the completion of the R2T4. Stratford must return or post to the students account the amount of Title IV funds for which it is responsible no later than 45 days after the date of the determination of the date of the student’s withdrawal. If any additional funds are disbursed to a students account that generate a credit balance, the refund will be sent to the student within 14 days.

Refunds are allocated in the following order:
• Unsubsidized Direct Student Loans (other than PLUS loans)
• Direct Subsidized Student Loans
• Direct PLUS Loans
• Federal Pell Grants for which a return of funds is required
• Federal Supplemental Opportunity Grants for which a return of funds is required
• Iraq Afghanistan Service Grant
• Other assistance under this title for which a return of funds is required

If a student earned less aid than was disbursed, the institution would be required to return a portion of the funds and the student may also be required to return a portion of the funds. Keep in mind that when Title IV funds are returned, the student borrower may owe an outstanding balance to Stratford.

Return of Additional Funds

After all tuition and loan obligations are fully satisfied, some students have a remaining positive balance. Students may receive refunds or settlements of any remaining balance via a direct deposit or check referred to as a refund or stipend check. The Office of Student Accounts discusses this with students during their application process. The time it takes for the University and the student varies based on the course session the student is signed up for. The Office of Student Accounts distributes stipends within 14 days of receiving the funds.

Entrance and Exit Interview and Counseling

Loan entrance counseling explains the obligations of the student as a condition of receiving federal student loans. All students using FSA must complete entrance counseling prior to being packaged to ensure the student understands the amount borrowed, rights and responsibilities regarding repayment, and the obligations being assumed.

Upon withdrawal or graduation (or in the last term of the program), the student must complete loan exit counseling. The purpose of this session is to inform students of their tentative total loans received while in attendance at the University, refunds that may be made, and to provide the student with an estimated repayment schedule. If the student is unable to meet with the Office of Student Accounts, an exit interview packet will be mailed.

Borrower Rights and Responsibilities

Students have certain rights and responsibilities when taking on student loans. The student has the right to receive the following information before the first loan disbursement:

Total amount of the loan
Interest rate
Repayment start date
Effect of loan on other types of financial assistance
List of loan fees and payment methods
Yearly and total amount the student can borrow
Maximum and minimum repayment amount
Explanation of default and its consequences
Consolidating and refinancing options for student loans
Prepay without penalty statement

The borrower has the right to receive the following information before leaving the University:

Total debt (principle and interest), interest rate, and total interest charged
Loan repayment schedule including payment due dates, amounts, and frequency
Name of the lender or agency, where to send payments, and contact information
Late charges or litigation costs if payments are late
Consolidating and refinancing options for student loans
Prepay without penalty statement

The borrower has a responsibility to:

Understand the terms of MPN
Make payments, regardless of notice or bill
Make payments until notification of deferment or forbearance has been granted
Notify a student accounts officer of graduation, withdrawal, below part-time status, or transfer to another institution
Notify the University of change in name, address, or Social Security Number
Receive loan entrance and exit counseling

Out-of-Pocket Expenses and Financial Obligations

Federal student aid covers a predetermined amount toward a student’s tuition. If the amount does not cover all of the tuition, students are required to pay the balance out-of-pocket. The Office of Student Accounts develops a payment plan with the student to determine the payment amount. Out-of-pocket expenses vary based on the program, loan amount, and student status.