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).

Return of Title IV Funds

For many Stratford students, an important source of funding is the Title IV financial assistance programs of the U.S. Department of Education (DoE). Participating students that withdraw from the University may have some or all of the funds returned to the DoE depending on the length of enrollment. Refunds are calculated as mandated by the Higher Education Act of 1965.

Stratford University cannot receive funding from the Department of Education until the student loan has been originated.

If loans are received before a student withdraws, drops out, is dismissed, or takes a leave of absence prior to completing 60% of a payment period or term, a Return to Title IV Calculation is done to determine the student’s portion of earned aid. This is money earned toward education. For a student who withdraws after the 60% point-in-time, all funds are earned and disbursed to the University. The calculation determines how to return money to the lender. The University must return the amount of Title IV funds no later than 45 days after the date of the student’s withdrawal. If a student received a stipend check, the student may have to return or repay funds. If more funds are disbursed than the student earns, the student and the University is required to return a portion of the loans. If less funds are disbursed than the student earns, the institution owes that student a post withdrawal disbursement which must be paid within 120 days of the student leaving the University. The calculation is based on the percentage of earned aid using the following Return to Title IV Calculation:

Percent of Earned Aid = Day of the term the student withdrew divided by total days in term (all terms are 70 days)

Any break of five days or more is not counted as part of the days in the term. Funds are returned to the appropriate federal program based on the percentage of unearned aid using the following formula:

Aid to be Returned = Amount of federal aid dispersed minus the amount of earned federal aid

Refunds are allocated in the following order:

Unsubsidized Federal Stafford Loans
Subsidized Federal Stafford Loans
Federal PLUS Loans
Federal Pell Grants for which a return of funds is required
FSEOG for which a return of funds is required
Other assistance for which a return of funds is required

Notification of Post Withdrawal Disbursements

A Post Withdrawal Disbursement (PWD) occurs when a student has withdrawn and the disbursement of loans and grants are applied to outstanding tuition and fees. When a student withdraws from the University, the University is required to determine the amount of earned student aid by performing a Return of Title IV (R2T4) calculation. If it is determined that a student has earned more aid that was disbursed, a PWD is needed. The student authorizes the University to obtain a PWD by signing an authorization for Post Withdrawal Disbursement. For a Parent PLUS Loan, the parent must sign the authorization for Post Withdrawal Disbursement. The student is notified in writing by the University in the event of a PWD. The notification letter informs the parent or student they have 14 days from the date the University sent notification to determine if they choose to accept PWD. The student must indicate on the credit balance authorization form where they want the University to return a credit balance resulting from overage of their Title IV disbursement. The student may return the credit balance to the lender or request a stipend. A confirmed acceptance of a PWD must be made within 120 days of the date of determination the student withdrew by the University.

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.