Need Based Financial Aid

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Need Based Financial Aid

• UMBC
• Office of Financial Aid and Scholarships

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Types of Financial Aid

• Grants (free money)
• Federal
• State
• Institutional
• Loans (to be repaid)
• Federal Family Education Loan Program (FFELP)
• Institutional
• Alternative

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• Students are still eligible to submit FAFSA for
  the 2005-2006 school year
• Paper Application vs. Online Application
• www.fafsa.ed.gov (quicker reduces errors)
• Submit a FAFSA for each academic year
• Available as early as January 1st for 2006-2007
  to meet March 1st priority deadline

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Filling Out the

• To complete the FAFSA you will need
• Department of Education PIN Number
• To sign application electronically for faster
  processing
• Student Parent
• UMBC School Code
• 002105
• Double check to make sure you are using UMBCs
  code
• Previous years asset and federal tax information
• Ex for 2005-2006 use 2004 tax return
• Student Parent

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FAFSA Submitted Successfully!!!

• Calculation of EFC (Estimated Family
  Contribution)
• UMBC uses EFC to determine need
• Student will receive Student Aid Report (SAR)
• FAFSA sent electronically to UMBC

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Award Notification

• Students will receive an estimated award
  notification if
• Valid FAFSA on file with UMBC
• Must be admitted to a degree-seeking program
• Revised award letter if there are any changes to
  aid eligibility
• Notify Office of Financial Aid and Scholarships
  of any known outside scholarships
• Aid cannot be processed unless all requested
  documentation has been received
• Be sure to keep up-to-date email and snail mail
  addresses on file with UMBC!

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Award Notification

• GRANTS
• Federal Pell Grant
• FSEOG (Federal Supplemental Educational
  Opportunity Grant)
• UMBC GIA (Grant In Aid)
• Must meet priority deadline of March 1st for
  consideration of FSEOG and GIA
• Grants awarded based on financial need as
  calculated by the FAFSA

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Award Notification

• Maryland Higher Education Commission (MHEC)
• In-state residents only
• Must meet March 1st FAFSA deadline
• Awards may not show on initial award offer
• Awards must be accepted with MHEC
• For more information contact MHEC
• www.mhec.state.md.us

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Award Notification

• LOANS
• Stafford Loans (Student Loan)
• SUBSTAFF Subsidized Stafford Loan
• vs.
• UNSTAFF Unsubsidized Stafford Loan
• PLUS (Parent Loan for Undergraduate Student)
• Perkins Loan (Institutional Student Loan)
• Federal loan awarded by UMBC
• Must meet priority deadline of March 1st for
  consideration of Perkins.

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Additional Steps

• Stafford PLUS Loans
• Visit www.umbc.edu/financialaid to complete a
  Master Promissory Note (MPN) with a preferred
  lender
• Recommend MPN on file with school by June 30th
• Online Student Loan Counseling
• Stafford Borrowers must complete through UMBC
  Financial Aid website

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Loan Facts

• Master Promissory Notes
• Stafford-one time application MPN good for 10
  years
• PLUS-MPN good for 10 years credit check required
  each year
• Interest Rates for 2005-2006
• Stafford 4.7
• PLUS 6.1
• Loan Origination Fees
• Up to 4 for Stafford and PLUS
• Repayment
• Stafford-6 month grace period after graduation or
  being registered at least half-time
• PLUS-repayment begins after second disbursement

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How Much Stafford Loan Can I Borrow?

• Federal Guidelines are Based on
• Grade Level
• Dependent vs. Independent
• Criteria
• Undergraduate vs. Graduate

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Stafford Federal Loan Limits per Academic Year
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Additional Options

• If PLUS Loan Denied by Lender
• Student Eligible for Additional Stafford Loan
  (Unsubsidized)
• Submit Denial Letter and Request Form to UMBC
• Alternative Loans
• Credit check required
• Co-signer may be required
• Apply online through Financial Aid Website

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After Loan Application is Submitted

• Lender will send request for loan to UMBC
• UMBC will certify the loan amount and set
• disbursement dates with the lender
• Student will receive a Process Letter
• Notifying student that financial aid has been
  reviewed and amount verified

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Where is my Money?

• myUMBC my.umbc.edu
• Billing and payment information (Contact Bursars
  Office)
• ELM (Electronic Loan Management)
• To check status of loan www.elmresources.com
• Students must have a FERPA on file for release of
  information to third party (including parents)

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Loan Disbursement

• Enrollment requirements
• At least 6 credits for Stafford and Plus
• Fall and Spring Disbursement
• The earliest funds will arrive is 10 days before
  the first day of class for each semester
• Loan funds will post to the student account and
  pay toward the current balance for the semester
• First-Time Freshman Stafford Borrowers
• 30 Day Delay on First Disbursement

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Grant disbursement

• Automatically applied to student accounts for
  Fall and Spring semesters
• Student must be registered
• Taking less than 12 credits may effect grant
  eligibility and amount

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Refund Checks

• What happens if my financial aid is more money
  than by UMBC bill?
• Overage will be mailed back to student or parent
  to use for educational and living expenses
• Takes approximately 10 to 14 business days to
  receive refund check after disbursement
• Check myUMBC account ?

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My Bill is due!?!?

• Bill is due, but my financial aid has not posted
  to my account yet ?!?! HELP
• Check myUMBC account ?
• Contact your friendly financial aid office to
  make sure they have all necessary information
  from you
• Late Fee 150
• Posted to student account if tuition fees have
  not been paid in full by 20 business days past
  bill due date
• May be waived if student has meet all deadlines,
  and financial aid is enough to cover remaining
  balance
• Student will not be dropped from classes

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Questions?

• www.umbc.edu/financialaid

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