The process If you are a first time student it is imperative to know a few things going into the financial aid process.
1. File a FAFSA
Financing a college education begins with the student and family unit working together with a financial aid counselor, in order to ensure that educational costs can be met. The New England School of Communications® expects students and parents to assume responsibility for all costs, to the extent of their ability. A family's ability to pay is decided by the Free Application for Student Aid (FAFSA). For information on how to apply for a FAFSA go to the "Mini FAFSA Tutorial" If all educational costs cannot be covered by the family's resources, Financial Aid can be awarded through a variety of programs. No student should be discouraged from applying for financial aid, and should make every effort to apply for federal, state, and local grants and scholarships for which they may be eligible or entitled. Regardless of income level or financial situation, NESCom® encourages every student to fill out a FAFSA. The FAFSA will use the financial information of the student and their family unit to calculate where the student falls in line for Federal Grants and loans. Every student should make every effort to apply for federal, state, and local grants and scholarships for which they may be eligible or entitled.
2. Understand how student loans work
It is important for students and families to understand their loan options as loans are almost always a critical part of financing an education. The basic loan options that are offered at NESCom® are Stafford Loans, Parent Plus Loans, and Private Loans.
As of March 30, 2010 NESCom will participate exclusively in the Direct Lending Program. Because of legislation passed in late March, eliminating all other lenders, all students for the Fall 2010 and beyond must complete a Master Promissory Note with the William D. Ford Direct Lending program if they wish to use their Federal Stafford or Parent PLUS Loans to reduce the out of pocket costs.
All students who file a FAFSA are eligible for a Stafford Loan (with the exception of students who have defaulted on previous student loans). These are loans that are federally backed and are in the students name. Stafford Loans are fixed rate loans that can never exceed an 8.5 % interest rate. The rate may fluctuate below 8.5% but never above. Stafford Loans are divided into two portions, subsidized and unsubsidized. The Subsidized Stafford Loans are "need based" or depend on the students EFC from the FAFSA. Unsubsidized loans are not need based and are accessible to all students that file a FAFSA. Stafford loans are not credit based.
Parent PLUS Loans are taken out in a parent's name. These loans are federally backed and are accessible to all dependent students' parents who file a FAFSA. PLUS Loans are fixed rate loans that will never exceed 9%. Parents may borrow up to the cost of education in a PLUS loan. The cost of education is determined by the amount of need the student has minus all other aid. Parent Plus loans are credit based. If a parent is denied for a parent loan (reducing the ability of a family to pay) the student may be eligible for extra funds in an unsubsidized Stafford Loan.
Because Stafford Loans are backed by the Federal Government they have created a mandatory Entrance Counseling session. Entrance Counseling is an online seminar that takes about 15 minutes. It is styled like a multiple-choice test and informs the student of their rights and responsibilities as a borrower. Upon graduation, the student will also have to complete Exit Counseling. Exit Counseling explains the repayment process.
Private loans are credit based, not federally backed, and are in the student's name. These loans almost always are variable rate loans.
3. Financial Aid is Conditional.
Finally, students must understand that financial aid is an ongoing process. Each student who participates in Title IV funding, must maintain a standard of SATISFACTORY PROGRESS to continue receiving financial aid. At the end of a semester, a student must achieve at least a 1.8 GPA, and 2.0 the first semester are put on probationary status, so that they are made aware that improvement is necessary in order to complete the program and graduate.
If students do not meet the required standards of satisfactory academic progress, they are ineligible for all types of financial aid until the standards have been achieved. Students may not receive retroactive financial aid for the period of ineligibility.
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