1. How Financial Aid Is Awarded at Saint Augustine’s University

2. Financial Aid, Disbursements, Your Bill, and Refunds

3. Effects of Withdrawal from the University (Return of Title IV Funds)

4. Satisfactory Academic Progress

5. Federal Work-Study

6. Institutional Grants and Scholarships

7. State Grants and Scholarships

8. Federal Loan Programs

9. Private/Alternative Loans

10. Student Loan Code of Conduct

11. Drug Conviction Impact on Federal Student Aid Eligibility

12. Ombudsman

13. Title IV Consumer Information

The Financial Aid Program at Saint Augustine’s University has a dual purpose: to recognize superior academic achievement and to provide assistance to qualified students, who without such aid, would be unable to attend University. All aid given through Saint Augustine’s University is intended to supplement the resources of the student and his or her parents. To determine financial need with a degree of uniformity, Saint Augustine’s University requires that students submit the Free Application for Federal Student Aid (FAFSA), designating Saint Augustine’s University as one of the information recipients. To receive financial assistance the student must be accepted into an eligible program of study offered by the University. The appropriate forms may be obtained from the Office of Financial Aid.

Scholarships for new freshmen are awarded on the basis of the admission application. Students are reviewed based on all facets of the application, and awarded appropriate scholarships and/or Saint Augustine’s University grants. Awards are then communicated to students in the form of an award letter from the Financial Aid Office.

Scholarships for new transfers are awarded on the basis of the student’s transfer GPA. The Office of Admission uses a matrix based on GPA to make these awards, and that information is provided to the Office of Financial Aid via an external update from Jenzabar EX to PowerFaids.

Need-based aid is awarded based on the student’s FAFSA data and the results from the Department of Education. Each year awarding parameters are created to distribute funds appropriately and according to federal regulations. Students are packaged with all aid available to them and sent an award letter by mail or email. Saint Augustine’s University uses a passive acceptance and asks students to inform the Financial Aid Office if they intend to decline or decrease amounts of any loans awarded to them.

The renewal of student aid is reviewed by the Financial Aid Counselor to ensure students are meeting GPA requirements and Satisfactory Academic Progress requirements. The requirements are detailed in the course catalog and online.

All financial aid disbursements made to students by Saint Augustine’s University will occur only after the anticipated enrollment information contained on your award letter has been verified with the Registrar’s Office. If the enrollment status has changed, the disbursement of financial aid will be delayed. For example, if your award is based on full-time enrollment and you are enrolled part-time, your aid will not be disbursed immediately and you should notify our office of the change. You must be enrolled at least half time in order to receive a William D. Ford Direct Subsidized and/or Unsubsidized loan. Half-time is considered 6 hours for undergraduates. Satisfactory Academic Progress must also be verified for each award year before aid is disbursed. Year-based financial aid is typically disbursed to the student in two equal installments, one disbursement in fall and the other in the spring semester. The period of enrollment (Full Year/Fall Only/Spring Only) will determine when the disbursements are made to the student account. Aid is typically posted to student accounts not more than 10 days prior to the first day of class. Most financial aid awards credit to students’ accounts. These awards include but are not limited to funds from the following sources: Pell, SEOG, NCNBS, Saint Augustine’s University institutional scholarships, Perkins loans, Direct PLUS loans, and Direct Stafford Loans. Financial aid will credit to your account if you have an accurate record of your enrollment status in the system. You must sign a promissory note for Direct Stafford Loans, Perkins Loans, and Direct PLUS Loans. If you have been offered a Perkins Loan, you will be contacted before the beginning of the semester concerning dates and procedures for signing these loans. Direct Stafford and Perkins loans also require completion of one-time entrance counseling in order to disburse. Some financial aid awards do not credit to student accounts. Federal work-study awards are issued to the students once a month in a paycheck distributed by the Business Office. Institutional scholarships and grants may only be used to pay Saint Augustine’s University tuition expenses. You are responsible for paying the balance due by the due date after financial aid has been disbursed. Any financial aid resulting in a credit balance will be distributed to you by the Business Office within 14 days. You will receive information regarding the due date of your bill with your statement of account each semester from the Business Office. Financial aid is not automatically renewable. A FAFSA must be filled out each academic year. Reapplication for financial aid should be made as soon as possible after January 1.

Treatment of Federal Title IV Aid After Withdrawal

The law specifies how Saint Augustine’s University must determine the amount of Federal Title IV program assistance that you earn if you withdraw from school. The Title IV programs that are covered by this law are Federal Pell Grants, Iraq/Afghanistan Service Grant, Federal Direct Stafford Loans, Direct PLUS Loans, Federal Supplemental Educational Opportunity Grants (FSEOGs), and Federal Perkins Loans. When you withdraw during the semester the amount of Title IV program assistance that you have earned up to that point is determined by a specific formula. If you received (or Saint Augustine’s University or your parent received on your behalf) less assistance than the amount that you earned, you may be able to receive those additional funds. If you receive more assistance than you earned, the excess funds must be returned by Saint Augustine’s University and/or you.

The amount of assistance that you have earned is determined on a pro-rata basis. For example, if you completed 30 percent of your semester, you earn 30 percent of the assistance you were originally scheduled to receive. Once you have completed more than 60 percent of the semester, you earn all of the assistance that you were scheduled to receive for that semester. If you did not receive funds that you earned, you may be due a post-withdrawal disbursement. If the post-withdrawal disbursement includes loan funds, Saint Augustine’s University must get your permission before it can disburse them. You may choose to decline some or all of your loan funds, you have fourteen days to choose to decline the additional loan funds so that you don’t incur additional debt. Saint Augustine’s University will automatically use all or a portion of your post-withdrawal disbursement (including loan funds if you accept them) for tuition, fees, and room and board charges. Saint Augustine’s University needs your permission to use the post-withdrawal disbursement for all other school charges. If you do not give your permission, you will be offered the funds. However, it may be in your best interest to allow Saint Augustine’s University to keep the funds to reduce your debt.

If you receive (or Saint Augustine’s University or your parent receives on your behalf) excess Title IV program funds that must be returned, Saint Augustine’s University must return a portion of the excess equal to the lesser of:

1. Your institutional charges multiplied by the unearned percentage of your funds.

2. The entire amount of excess funds. Saint Augustine’s University must return this amount even if it did not keep this amount of your Title IV funds.

If Saint Augustine’s University is not required to return all of the excess funds, you must return the remaining amount. Any loan funds that you must return, you (or your parent for a PLUS Loan) repay in accordance with the terms of the promissory note. That is you make scheduled payments to the holder of the loan over a period of time. Any amount of unearned grant funds that you must return is called an overpayment. The amount of a grant overpayment that you must repay is half of the grant funds you received or were scheduled to receive. Saint Augustine’s University will return the unearned grant funds for you, which may cause you to owe a balance.

The requirements for Title IV program funds when you withdraw are separate from any refund policy that Saint Augustine’s University has. Therefore, you may still owe funds to Saint Augustine’s University to cover unpaid institutional charges. Saint Augustine’s University may also charge you for any Title IV program funds that Saint Augustine’s University was

required to return. If you don’t already know what Barton’s refund policy is, see the previous section or ask for a copy in the Business Office. Saint Augustine’s University can also provide you with the requirements and procedures for officially withdrawing from school.

If you have questions about your Title IV program funds, you can call the Federal Student Aid Information Center at 1-800-4-FED-AID. TTY users may call 1-800-730-8913. Information is also available on “Student Aid on the Web” at www.studentaid.ed.gov. The Office of Financial Aid and the Business Office at Saint Augustine’s University are also available to assist you.

Academic Standing

Academic Warning

Students who fall below the Satisfactory Academic Progress (SAP) standards during a given semester are placed on Academic Warning for the following semester. To clear all academic actions, students must meet all three SAP requirements. Students on Academic Warning are eligible for financial aid. Students on Academic Warning must:

* Enroll in no more than 13 credit hours

* Repeat all failed courses

* Spend an average of two hours per week working with a tutor from the Academic Advisement/Tutorial Services Center on designated assignments.

Academic Probation

Students who do not meet Satisfactory Academic Progress Standards the semester after being placed on Academic Warning will be placed on Academic Suspension. However, the student may appeal this placement and, if successful in the appeal, be granted Academic Probation. To clear all Academic actions, students must meet all three SAP requirements. Students on Academic Probation are eligible for financial aid. Students who are granted Academic Probation must:

* Enroll in no more than 13 credit hours

* Repeat all failed courses

* Spend an average of two hours per week working with a tutor from the Academic Advisement/Tutorial Services Center on designated assignments.

Academic Suspension

Students who don’t meet the minimum Satisfactory Academic Progress standards the semester after being placed on Academic Warning or students who do not adhere to the “Academic Plan” set for them by their academic advisor the semester after being placed on Academic Probation are automatically placed on Academic Suspension. A student who attends Maymester or Summer School at Saint Augustine’s University may improve his/her academic standing. However, readmission still requires an appeal and review by the Academic/Financial Aid Appeals Committee.

Academic Dismissal

Dismissal occurs automatically at the end of the semester when a student fails to remove Academic Suspension or after having been placed on Academic Probation for a semester, he/she still fails to meet SAP. A student who is dismissed will be required to leave the college for up to one year.

Letter of Appeal

Students who are academically suspended must submit a letter of appeal to the Provost. Such appeals shall be in writing and must be submitted thirty days prior to the start of the term in which the student is requesting readmission. Students who are readmitted after academic suspension are placed on academic probation and must meet the requirements for students on probation.

Standards of Minimum Progress

In order to avoid being academically suspended from the University, a student must meet the following minimum standards of progress:

* A student’s cumulative grade point average must meet the criteria specified in the table below:

Grading

The grading system is based upon semester hours. The faculty may award the following grades:

Please note:

* Students must pass all courses in their major including supporting courses from other disciplines, with a grade of “C” or better. Thus, students who receive a grade of “D” or “F” in any course in their major are required to repeat that course at Saint Augustine’s University.

“W” Withdrawal is Non-Punitive (not used to compute the student’s cumulative GPA)

Maximum Time Limit

A student is expected to complete a degree/certificate program within a prescribed time frame.  There are maximum total accumulated attempted credit hour time frame restrictions to receiving financial aid.  Financial aid is suspended if the maximum time frame for the student’s program is exceeded.

The longer a student stays in school, the more likely the chances of not meeting the satisfactory academic progress policy because of the maximum time limit.

To remain eligible for federal and state financial aid, undergraduate students must complete their degree requirements within 150 percent of the published length of their academic program.  At Saint Augustine’s University, this means that students in programs requiring 126 hours for graduation are eligible for financial aid during the first 189 attempted hours as an undergraduate.  All attempted hours are counted, including transfer hours, whether or not financial aid was received, or the course work was successfully completed.  Students who are attempting a double major are still required to complete one of the degrees within 189 hours.

SAP Warning

If a student is not meeting SAP, the Financial Aid Office will place the student in a “warning” status allowing them to receive financial aid for the next term. The student will be notified via email of the warning status. The Financial Aid Office will evaluate the student’s SAP at the completion of the warning term. If the student has satisfied SAP requirements, then financial aid will be reinstated for the next term. If the student has not satisfied SAP, the student will no longer receive financial aid funding except in cases of a successful appeal. (See Appeal Process below)

Reinstatement of Financial Aid Eligibility

Financial aid eligibility may be regained by eliminating all satisfactory academic progress deficiencies (at the student’s expense) until the requirements of this policy are met, or by appealing their satisfactory academic progress status.  The sections following describe the areas a student is required to remedy in order to regain financial aid eligibility.  Students who do not enroll for a semester, or pay for school at their own expense, do not automatically qualify to receive financial aid in a subsequent semester.  The terms and conditions of the Satisfactory Academic Policy must be met.

Cumulative GPA’s can only be brought up by completing coursework at Saint Augustine’s University.

Hours Earned deficiencies may be made up by successfully completing coursework at Saint Augustine’s University or at another institution.  However, students who are enrolling elsewhere must complete the General University Petition form and have the coursework approved by the Registrar prior to enrolling in the other institution.  After transient study coursework has been successfully completed, students must provide an official academic transcript to the Registrar’s Office.

Once students are in compliance with all three standards, they must notify the Financial Aid Office in writing to request an evaluation of eligibility.  This process cannot be completed until all grades and hours are posted to the student’s official record at Saint Augustine’s University.  No financial aid award is calculated until the review process is complete.

Appeals

Federal regulations allow for certain cases in which the school may waive the standards.  Appeals for the waiver may be considered if a student’s failure to comply with one or more areas of Satisfactory Academic Progress is due to events beyond the student’s control, such as a student’s extended illness, serious illness or death in the immediate family or other significant life experience that impacted the student’s emotional and/or physical health, and if such mitigating circumstances can be appropriately documented for the specific term(s) in which the deficiency occurred.  Eligibility may be regained by appeal.  Contact the Financial Aid Office to obtain a Satisfactory Academic Progress (SAP) Appeal Form.  SAP appeals are considered on a case-by-case basis.

Appeals Procedure:  Appeals (professional judgment) are the only mechanism available to correct unresolved SAP deficiencies.  All appeals shall be documented using the current form.

Some appeals may be approved for a probationary term.  If this is the case, the student may be required to follow an academic plan that specifies conditions necessary to be eligible for the following term.  These conditions may include:

• Minimum GPA requirement;
• A minimum number of hours to be taken; and/or
• Corrective measures to enhance a student’s success.

Students requiring an academic plan must meet with the Director of Student Success.

SAP Appeals Committee:  Student appeals for reinstatement of financial aid eligibility are reviewed by an appeals committee.  The student does not meet with the Appeals Committee.  All correspondence with the student is conducted by student email.  The Appeals Committee is the final authority in determining whether financial aid is extended or denied a student.  The committee communicates its decision to the student by student Saint Augustine’s University email.  The committee’s decision is final and cannot be appealed.

The Federal Work-Study program is offered to students who demonstrate financial need based on their Free Application for Federal Student Aid (FAFSA) data. To ensure that all eligible students will have the opportunity to participate in work-study, Saint Augustine’s University encourages all students to file their FAFSAs as soon as possible after January 1st every year. Students who indicate their interest in work-study on their application and show financial need, based on their tabulated Expected Family Contribution (EFC) are awarded a maximum of $2000 for the academic year. Students who have a specific EFC and below (varies each year) and who also indicated interest on their FAFSAs are awarded work-study each year. Several students are also awarded on a professional judgment basis by request. Returning students who previously received work-study will receive priority in order to continue to renew their award each year as long as funds permit. Renewed award amounts for returning students will vary depending upon the amount earned in the previous year. All financial aid packages are created automatically, with a double check by the Director or Assistant Director. Once students are awarded work-study, they will review the open job openings located on campus connect. When students have found a place of employment, and have been informed they can be hired by a department supervisor, the student will then inform the Financial Aid Office of the position and department. The student will then be required to submit the appropriate documents required by the Office of Human Resources and Payroll and submit them to the Office of Financial Aid where copies will be made and saved in a secure file that is to be accessed by Human Resources to ensure compliance prior to payroll paying the student. It is the student’s responsibility to review the job listings and secure a position. Supervisors and students are also encouraged to monitor their hours and refrain from working over their allotted awards. In the case that a student was to go above and beyond their award, the funds earned that exceeded the student’s award could be taken from the department’s budget. Students will clock in and out of the time-keeping system each day they work. Community Service students are off campus and cannot use the time-keeping system, so they are given a paper time card to be completed and signed by themselves, as well as their supervisor. These off-campus time sheets should be submitted securely by the supervisor not the student to the Financial Aid Office. All timesheets are due by the schedule sent from the Payroll Office each academic year. Community Service timesheets are calculated and entered manually into the time-keeping system by the Payroll Office. All students are paid once a month based on the Payroll schedule. Students will be paid by a paper check and asked to pick it up and sign for the check in the Business Office.

Merit awards serve to recognize individual students for their academic talent, service, or leadership achievements. Award amounts are determined on an individual basis and celebrate the strength and achievements of each admitted student, in and out of the classroom. One hundred percent of incoming freshmen receive institutional gift-aid assistance. Our investment in student gift-aid assistance totals more than $5 million for entering students. Priority consideration is given to students who submit their application for admission in accordance with stated deadlines. Institutional scholarships and grants may be used to pay Saint Augustine’s University tuition only, unless otherwise specified, and are awarded on a full academic year (2 semesters), fall and spring semesters only. Please note, Saint Augustine’s University scholarships may have to be reduced if you receive awards from outside sources that are specified as tuition specific awards.

North Carolina Need Based Scholarship (NCNBS)

Created by the 2011 North Carolina General Assembly, this is a need-based program for NC residents attending private institutions of higher education located in North Carolina.

Eligibility

Applicant must:

• Be a North Carolina resident as well as an N.C. resident for tuition purposes, as defined by the N.C. Residency Manual
• Be enrolled as an undergraduate student in at least 9 credit hours at a qualifying private North Carolina campus
• Demonstrate a certain level of financial need based on calculated Expected Family Contribution (EFC) from the Free Application for Federal Student Aid (FAFSA)
• Meet requirements for the Federal Pell Grant (except the EFC range restrictions)

Value

Award amounts vary depending on the EFC.

Application Procedure

Applicants must complete the Free Application for Federal Student Aid (FAFSA), listing at least one qualifying private North Carolina institution. Consideration for the grant is automatic once the FAFSA is filed. No deadline has been established; however, applicants should meet financial aid application deadlines established by their institutions. Late applicants may be denied if insufficient funds are available.

NC Forgivable Education Loan for Service (NCFELS)

Description
Established by the North Carolina General Assembly in 2011, the Forgivable Education Loans for Service provides financial assistance to qualified students enrolled in an approved education program and committed to working in critical employment shortage professions in North Carolina. For the 2016-2017 academic year, eligible degree programs may be found by clicking the link below. The North Carolina State Education Assistance Authority provides administration for the program.

Eligibility
A recipient must meet the following eligibility criteria to be considered for FELS:

• Be a legal North Carolina resident and NC resident for tuition purposes
• At the time of application, present a cumulative minimum grade point average (GPA) of:
  • 3.00 for graduating high school students (weighted GPA)
  • 2.80 for undergraduate students pursuing an associate or bachelor’s degree
  • 3.20 for students pursuing a graduate or professional degree
• Register with the Selective Service System, if required
• Recipients must not be in default or do not owe a refund, under any federal or State loan or grant program
  Maintain Satisfactory Academic Progress according to the enrolling policy of the institution
• Be willing to work in NC in a designated critical employment shortage profession

Value
Annual loan amounts are as follows:

• Certificate or associate degree programs: $3,000
• Bachelor’s degree programs: freshmen and sophomores $3,000
• Bachelor’s degree programs: junior and senior: $7,000
• Master’s degree programs: $10,000
• Graduate certificate programs: $10,000
• Doctoral degree programs: $14,000

Maximum Aggregate Loan Limits:

• Certificate and/or associate degree programs: $6,000
• Bachelor’s degree programs: $20,000
• Master’s degree programs: $20,000
• Graduate certificate programs: $20,000
• Doctoral degree programs: $56,000

Note: For 2016-2017, FELS recipients must be enrolled for at least six credit hours each semester to qualify for funding for undergraduate or graduate programs. The award amount will be pro-rated according to a number of credit hours. While the rules for the program provide for a minimum of 3 credit hours for graduate programs, the policy for 2016-2017 establishes a minimum of 6 credit hours per semester.

Application Procedure
Go to www.cfnc.org/FELS to complete the 2016-2017 application. The priority deadline for applying is April 1, 2016. For bachelor’s degree programs, priority is given to juniors and seniors who have been accepted into the program. Applications will be reviewed on a first come, first served basis.

Other Information
FELS loan recipients must sign a promissory note that will require them to seek loan forgiveness through employment in an approved position or repay the loan in cash. Loan forgiveness is described in the FELS Rules. Generally, a loan for one academic year will be forgiven for one year of full-time employment. Loans will accrue interest at the rate of 8% per year from the date of the loan disbursement. Recipients cannot receive FELS funding concurrently with other state-funded loans.

Student Loan Information

Saint Augustine’s University participates in several loan programs to assist families in meeting their educational costs. The William D. Ford Direct Loan program includes the subsidized and unsubsidized Direct Loans made to undergraduate students, unsubsidized Direct Loans made to graduate/professional students, PLUS loans made to parents and to graduate/professional students, and consolidation loans made to borrowers. Student and parent borrowers will receive funding for their federal Direct and PLUS loans directly from the U.S. Department of Education. Direct Loans are loans made with federal capital and owned by the federal government. Loan repayments are made to the government, and Direct Loans are never sold. The Federal Perkins Loan program is a low-interest rate (5%) loan made to undergraduate students with exceptional need. The Federal Perkins Loan is made through the Office of Financial Aid and students are contacted by the office to sign the promissory note. The school is the lender and the funds are made available through the federal government. The loan is repaid to the school. Alternative student loans (also referred to as a private student loan) offers additional funding for students who need it. Alternative loans are not federal student loans, but one through a private bank or lending institution. Generally, alternative loans have interest rates, repayment terms and deferment options that are substantially less favorable than those of the Direct, Perkins, Parent and Grad PLUS Loan programs. Students and parents receiving Title IV education loans will have their information submitted to the National Student Loan Data System (NSLDS). This information will be accessible by the student and institutions determined to be authorized users of the data system.

The Office of Financial Aid administers the loans; determines your loan eligibility; approves the loan; confirms the promissory note, when necessary; receives the funds from the federal government, and credits the loan amount directly to your University student account.

Federal Direct Loan Information

Direct Loans, from the William D. Ford Federal Direct Loan Program, are low-interest loans for eligible students to help cover the cost of higher education. Eligible students borrow directly from the U.S. Department of Education at participating schools. Most students who complete the Free Application for Federal Student Aid (FAFSA) are eligible for Direct Student Loans. Direct Loans are the best student loans available for University students. A student can borrow money in their own name. They do not need a co-signer, and they are not required to go through a credit check. Interest rates are fixed, and repayment begins six months after the student graduates or ceases to be enrolled at least half-time. We advise students to borrow the minimum amount of loan funds they need. Eligible students must be enrolled at least part-time (6 credit hours for undergraduates and 3 credit hours for graduates) in an eligible program.

Direct Loans include the following types of loans:

• Direct Subsidized Loans—Direct Subsidized Loans are for undergraduate students with financial need. Your school will review the results of your FAFSA and determine the amount you can borrow. You are not charged interest while you’re in school at least half-time and during grace periods and deferment periods.
• Direct Unsubsidized Loans—You are not required to demonstrate financial need to receive a Direct Unsubsidized Loan. Like subsidized loans, your school will determine the amount you can borrow. Interest accrues (accumulates) on an unsubsidized loan from the time it’s first paid out. You can pay the interest while you are in school and during grace periods and deferment or forbearance periods, or you can allow it to accrue and be capitalized (that is, added to the principal amount of your loan). If you choose not to pay the interest as it accrues, this will increase the total amount you have to repay because you will be charged interest on a higher principal amount.

Annual and Aggregate Loan Limits

There are limits on the maximum amount you are eligible to receive each academic year (annual loan limit) and in total (aggregate loan limits). The actual amount you can borrow each year depends on your year in school, whether you are a dependent or independent student, and other factors, and may be less than the maximum amounts shown in the loan limit chart. Your school will determine what types of loans and how much you may borrow.

Depending on your financial need, you may be eligible to receive a subsidized loan for an amount up to the annual subsidized loan borrowing limit for your level of study. If you have education expenses that have not been met by subsidized loans and other aid, you may also receive an unsubsidized loan so long as you don’t exceed the combined subsidized and unsubsidized annual loan limits.

The following chart provides maximum annual and aggregate loan limits for subsidized and unsubsidized Direct Loans. Student recipients may not exceed their annual and/or aggregate borrowing limits. These annual loan limit amounts are the maximum yearly amounts you can borrow in both subsidized and unsubsidized loans. You can have one type of loan or a combination of both. Because you can’t borrow more than your cost of attendance minus any other financial aid you’ll get, you may receive less than the annual maximum amounts. Also, the annual loan limits assume that your program of study is at least a full academic year.

Funds are disbursed at the beginning of each semester by the institution, or when student eligibility for funding is determined within a given payment period. Your school will use your loan money first to pay for tuition and fees, room and board, and other school charges. If any loan money remains, you’ll receive the funds by check or other means. Entrance Loan Counseling and a signed Master Promissory Note (MPN) must be on file prior to disbursement of funds.

Current Interest Rates

Direct Loans

• Undergraduate students — for loans first disbursed on or after July 1, 2016, but before July 1, 2017, the interest rate is fixed at 3.76%. If you are a previous loan borrower, the interest rate for previous loans is determined from the point in which you first borrowed your loan. The interest rates have been a fixed rate since July 1, 2006. Each year a new rate will be set based on the 10-year Treasury note index and be tied more closely to market rates, capping at 8.25%.
• Direct Unsubsidized Loans — for loans first disbursed on or after July 1, 2016, but before July 1, 2017, the interest rate is fixed at 3.76% for undergraduate students and 5.84% for graduate students. Each year a new rate will be set based on the 10-year Treasury note index and be tied more closely to market rates, capping at 8.25% for undergraduate students and 9.50% for graduate students.

There is also a net origination fee on all Direct Subsidized and Unsubsidized Loans. For Loans first disbursed on or after October 1, 2015, and before October 1, 2016, the loan fee was 1.068%. For Loans first disbursed on or after October 1, 2016, and before October 1, 2017, the loan fee will be 1.069%. The loan fee will be deducted proportionately from each loan disbursement. Origination fees are subject to change for the 2017-2018 award year.

Students receiving Title IV educational loans will have their loan information submitted to the National Student Loan Data System (NSLDS). This information will be accessible to guaranty agencies, lenders and institutions determined to be authorized users of the data system. If you currently have a Direct Loan and would like to check the interest rate, servicer information, and other financial aid histories, go to the National Student Loan Data System (NSLDS) at www.nslds.ed.gov.

Master Promissory Note

Federal regulations require borrowers of a Federal Direct Loan to complete a Master Promissory Note (MPN). This promissory note is your promise to repay the loan under the terms detailed within it. Before the Office of Financial Aid is able to disburse loan funds, it must have a record that you have completed an MPN for each type of loan you accepted.

To complete the MPN:

• Go to www.studentloans.gov.
• Click the green “Log In” button on top right.
• Enter your FSA ID username and password (if you do not have an FSA ID, follow the click here icon to create one).
• Click “Complete a Master Promissory Note” at the center OR left of the page.
• Select the type of loan you have been awarded. Follow the instructions and read the information carefully to sign your MPN.

If you have any questions, contact the Office of Financial Aid at 252-399-6323.

Entrance Counseling

If you are a first-time Direct Loan borrower at Saint Augustine’s University, you must complete Entrance Counseling to be informed of your rights and responsibilities. Federal Direct Loan counseling is done on the web. Loan funds cannot be disbursed until counseling is completed. For first-time borrowers on or after July 1, 2013, 150% Direct Subsidized Loan limits apply.

To complete Entrance Counseling:

• Go to www.studentloans.gov.
• Click the green “Log In” button on the top right. Enter your FSA ID Username and Password (if you do not have an FSA ID, follow the click here icon to create one).
• Click “Complete Counseling” at the center OR lower left of the page.
• Click on “Start Entrance Counseling” at the top of the page.
• Follow the instructions, read the information carefully and answer the questions.

If you have any questions, contact the Office of Financial Aid at 252-399-6323.

Exit Counseling

All students who borrow a Federal Direct and/or Graduate PLUS Loan are required to complete an exit interview before graduation or if enrollment falls below half-time status. Exit Counseling provides useful tips and information to help you manage your loans. The online counseling will walk you through your rights and responsibilities as well as provide useful information regarding repayment options, debt management strategies, forbearance, deferment, cancellation options, consolidation, and tax benefits.

To complete Exit Counseling:

• Go to www.studentloans.gov.
• Click the green “Log In” button on the top right.
• Enter your FSA ID Username and Password (if you do not have an FSA ID, follow the click here icon to create one).
• Click on Complete Counseling.
• Click on Start Exit Counseling.
• Follow the instructions and read the information carefully.

If you have any questions, contact the Office of Financial Aid at 252-399-6323.

Federal Direct Parent PLUS Loan

The Direct Parent Loan for Undergraduate Students (PLUS) is designed to assist the parents of dependent undergraduate students enrolled at least half-time in meeting educational expenses. The Federal Direct Parent PLUS Loan is a non-need-based program and the lender is the U.S. Department of Education. However, the parent borrower must pass a credit check. A completed current year Free Application for Federal Student Aid (FAFSA) must be on file for the student before a Parent PLUS loan can be processed. A parent may borrow up to the student’s full cost of attendance for educational expenses including tuition and fees, room and board, books and supplies, transportation and living allowance, less any other financial aid the student receives.

Parent PLUS Loans have a fixed interest rate of 6.31% for loans first disbursed on or after July 1, 2016, but before July 1, 2017. Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full. Repayment begins within 60 days after the final loan disbursement or parent borrowers may choose to defer payments on a Parent PLUS loan until six months after the date the student ceases to be enrolled at least half-time. Accruing interest can either be paid monthly or quarterly or be capitalized quarterly.

The Federal PLUS Loan has a 4.276% origination fee for loans first disbursed on or after October 1, 2016, and before October 1, 2017. This fee reduces the amount that disburses to the student’s account, so the parent needs to take that into consideration when determining the amount to borrow. Loan fees are subject to change for the 2017-2018 award year.

Dependent students whose parents have applied for but were unable to get a PLUS Loan are eligible to receive additional Direct Unsubsidized Loan funds.

Parent PLUS Loan Instructions
To apply and complete the MPN:

• Go to www.studentloans.gov.
• Click the green “Log In” button on the top right. Enter your FSA ID Username and Password (if you do not have an FSA ID, follow the click here icon to create one).
• Click “Complete a Master Promissory Note” at the center OR left of the page.
• Select Parent PLUS for the type of loan you would like to receive.
• Follow the instructions and read the information carefully to sign your MPN.

If you have any questions, contact the Office of Financial Aid at 919.516.4307 .

The Federal PLUS Loan has a 4.276% origination fee for loans first disbursed on or after October 1, 2016, and before October 1, 2017. This fee reduces the amount that disburses to the student’s account, so the student needs to take that into consideration when determining the amount to borrow. Loan fees are subject to change for the 2017-2018 award year.

If you have any questions, contact the Office of Financial Aid at 919.516.4307 .

An alternative student loan (also referred to as a private student loan) is not a federal student loan, but one through a private bank or other lending institution. Generally, alternative loans have interest rates, repayment terms, and deferment options that are substantially less favorable than those of the Direct Stafford, Perkins, Parent PLUS and Loan programs. We encourage all students and parents to first consider and apply for federal student loans before applying for private loans.

Selecting a private/alternative education loan can be a daunting task. The link below will provide information to help you make an informed decision. In addition to being informative, this link will provide a list of just some of the lenders who offer alternative/private student loans. We suggest you research the loans and the lender to find the best interest rate and terms of your loan. While you may choose any lender, our goal is to do the research for you, simplify the process, and propose lenders with the best products, technology, and benefits available. Saint Augustine’s University uses a comprehensive process for developing its lender list. A Request for Information is sent to all interested lenders, and information received back is used to evaluate the best options for students. Lenders are evaluated on a number of factors including options for less than half-time students, non-degree seeking students, international students, students not making satisfactory academic progress, prior semester balances, no origination fees, and back-end benefits offered to borrowers. After the data is collected, a committee meets to review the information and selects the preferred lenders. Choice of a lender is never denied nor is the processing of a loan from a lender outside of our lender list delayed.

The information contained on this link is accurate as of the date it was collected. Because these loans are private loans, lenders can change the terms and conditions of these loans without notifying Saint Augustine’s University. We suggest, therefore, that you verify this information with any lender on this site prior to applying for a loan with that company. We strongly encourage you to review each of the lender’s information to determine which benefits and terms are best for you. Take into consideration repayment terms, interest rates, and deferment options before choosing an alternative loan. Some lenders may require a co-signer for credit reasons.

Please be aware that when viewing the alternative lender web pages below that you will be leaving the Saint Augustine’s University web site. For 2016-2017 alternative loan information (fall 2016, spring 2017, summer 2017), visit www.finaid.org.

Federal Perkins Loan

A Federal Perkins Loan is a low-interest (five percent) loan for undergraduate students with exceptional financial need. To meet eligibility requirements, students must complete the Free Application for Federal Student Aid (FAFSA). Federal Perkins Loans are made through a school’s financial aid office. Your school is your lender, and the loan is made with government funds. You must repay this loan to your school. Saint Augustine’s University awards up to $3,000 for each year of undergraduate study and will apply your loan to your school charges. The amount you receive depends on when you apply, your financial need, and the funding level at the school. Entrance Loan Counseling and a signed Master Promissory Note (MPN) must be on file prior to the disbursement of funds. The Office of Financial Aid notifies students to sign a Master Promissory Note. There are no origination fees. If you are attending school at least half-time, you have nine months after you graduate, leave school, or drop below half-time status before you must begin repayment. If you skip a payment, if it’s late, or if you make less than a full payment, you might have to pay a late charge plus any collection costs. Students receiving Title IV educational loans will have their loan information submitted to the National Student Loan Data System (NSLDS). This information will be accessible to guaranty agencies, lenders and institutions determined to be authorized users of the data system.

Loan Deferment Information:

To learn more about loan deferment, visit https://studentaid.ed.gov/sa/repay-loans/deferment-forbearance.

Loan Repayment Information:

For details about loan repayment, visit http://www2.ed.gov/offices/OSFAP/DirectLoan/RepayCalc/dlindex2.htm.

Ombudsman:

The Federal Student Aid (FSA) Ombudsman of the Department of Education helps resolve disputes and solve other problems with federal student loans. The FSA Ombudsman encourages borrowers to make every effort to resolve their student loan problems. When a solution cannot be reached, the FSA Ombudsman has a process and the resources to assist borrowers.

FSA Student Loan Ombudsman’s Office
U.S. Department of Education Contact Information
FSA Ombudsman
830 First Street, N.E.
Washington, D.C. 20202-514
202-377-3800
877-557-2575 (toll-free)
202-275-0549 (fax)
fsaombudsmanoffice@ed.gov
www.ombudsman.ed.gov

Saint Augustine’s University supports and complies with the Higher Education Opportunity Act’s (HEOA) provisions regarding the Code of Conduct required to be adopted and enforced by institutions participating in the Title IV loan program. All Saint Augustine’s University employees with responsibilities for the administration of student educational loans are informed annually of the provisions of the Student Loan Code of Conduct.

Student Loan Code of Conduct Purpose

Saint Augustine’s University recognizes that ensuring the integrity of the student financial aid process is critical to providing fair and affordable access to higher education. Therefore, the University has formalized the following guiding principles that shall be effective immediately. These guidelines are designed to avoid any potential for a conflict of interest between the University and its students or their parents in the student financial aid process. For purposes of this Code of Conduct, a “Lending Institution” is any entity (other than an institution of higher education or a governmental entity such as the U.S. or Kentucky Department of Education) involved in the making, holding, consolidating or processing of any student loans.

Policy

1. University employees shall receive no personal benefit. No employee or officer of the University shall accept or solicit anything of more than nominal value on his or her behalf or on behalf of another person or entity from any Lending Institution. Specifically, no employee or officer of Saint Augustine’s University shall accept or solicit, from any Lending Institution: (i) payment for entertainment expenses or any lodging, rental, transportation or other gratuities related to lender-sponsored activities; (ii) payments for registration, transportation or lodging at lender-sponsored conferences and trainings; and (iii) solicitations or invitations to serve on lender advisory boards and/or payments related to such service. Additionally, Saint Augustine’s University employees and officers shall not accept or solicit, from any student loan guarantee agency: (i) payments for entertainment expenses or any lodging, rental transportation or other gratuities related to activities sponsored by the guarantee agency.
2. University employees shall not serve on lender advisory board for remuneration. No officer or employee of the University who makes financial aid decisions for the University  or who is employed in, supervises or otherwise has responsibility or authority over the University ’s financial aid office shall receive any remuneration for consulting services and/or serving as a member or participant of a student loan advisory board of a Lending Institution or any reimbursement of expenses for such service. Any officer or employee of the University who serves as a member or participant of a Lending Institutions board shall recuse himself or herself from any board discussions regarding the University ’s financial aid operations.
3. University shall not provide any advantage to a Lending Institution. The University shall not accept anything of value from any Lending Institution in exchange for any advantage or consideration provided to the Lending Institution related to its student loan activities, including but not limited to revenue-sharing, printing costs or below-cost computer hardware or software.1 Likewise, the University  shall not allow any Lending Institution to (a) staff the University ’s financial aid office at any time; or (b) communicate with the University ’s students or their parents in such a manner as to create the impression that the Lending Institution is an employee or agent of the University  in connection with the University ’s student financial aid operations, including through the use of mascots, logos, and other marks. Finally, the University shall not enter into any agreement with a Lending Institution to provide alternative (i.e., private, non-federal or “opportunity”) student loan programs if the provision of such alternative loan programs prejudices other students or parents, or if the acceptance of such funds by the University is conditioned on the University providing concessions to the Lending Institution.
4. The University shall make appropriate use of any Preferred Lender Lists. If the University decides to promulgate a list or lists of preferred or recommended lenders for student loans or similar ranking or designation (“Preferred Lender List”), the selection of Lending Institutions for inclusion on the Preferred Lender List shall be based on the best interests of the University ’s students and their parents without regard to the financial interests of the University. In addition, any Preferred Lender List shall clearly indicate:
   • That the University shall not steer borrowers to particular lenders. Nor shall it refuse to certify, or delay the certification, of any loan based on the borrower’s selection of a particular lender or guaranty agency. Students and their parents are free to select the Lending Institution of their choice and will suffer no penalty imposed by the University for using a Lending Institution that is not a “preferred lender.” Further, for any first-time borrower, the University shall not assign, through the award packaging or other methods, the borrower’s loan to a particular lender
   • That student and their parents are not required to use any of the “preferred lenders”
   • Where to find information on their Lending Institutions for student loans
   • That the University will promptly certify any loan from any Lending Institution selected by a borrower, in accordance with U.S. Department of Education Regulations
   • The process the University utilized to select “preferred lenders,” including but not limited to the criteria used and the relative importance of such criteria.

The University shall review any Preferred Lender List on an annual basis to determine that the information appearing on the list is accurate and that any website links are still available.

Students Convicted of Possession or Sale of Drugs The Higher Education Act of 1965 as amended (HEA) suspends aid eligibility for students who have been convicted under federal or state law of the sale or possession of drugs, if the offense occurred during a period of enrollment for which the student was receiving federal student aid (grants, loans, and/or work-study). The student self-certifies in applying for aid that he is eligible. Convictions only count against a student for aid eligibility purposes if they were for an offense that occurred during a period of enrollment for which the student was receiving federal student aid— they do not count if the offense was not during such a period, unless the student was denied federal benefits for drug trafficking by a federal or state judge. Also, a conviction that was reversed, set aside, or removed from the student’s record does not count, nor does one received when he/she was a juvenile unless he/she was tried as an adult. The chart below illustrates the period of ineligibility for FSA funds, depending on whether the conviction was for sale or possession and whether the student had previous offenses. (A conviction for sale of drugs includes convictions for conspiring to sell drugs.)

If the student was convicted of both possessing and selling illegal drugs, and the periods of ineligibility are different, the student will be ineligible for the longer period. Saint Augustine’s University must provide each student who becomes ineligible for Federal Student Aid funds due to a drug conviction a clear and conspicuous written notice of his loss of eligibility and the methods whereby he/she can become eligible again. A student regains eligibility the day after the period of ineligibility ends or when he/she successfully completes a qualified drug rehabilitation program that includes passing two unannounced drug tests given by such a program. Further drug convictions will make him/her ineligible again. Students denied eligibility for an indefinite period can regain eligibility after completing any of the following three options:

1. Successfully completing a rehabilitation program (as described below, which includes passing two unannounced drug tests from such a program)
2. Having the conviction reversed, set aside, or removed from the student’s record so that fewer than two convictions for sale or three convictions for possession remain on the record
3. Successfully completing two unannounced drug tests which are part of a rehab program (the student does not need to complete the rest of the program)

In such cases, the nature and dates of the remaining convictions will determine when the student regains eligibility. It is the student’s responsibility to certify to the Office of Financial Aid that he/she has successfully completed the rehabilitation program. When a student regains eligibility during the award year, Saint Augustine’s University may award Pell Grant, and Campus-based aid for the current payment period and Direct loans for the period of enrollment. Standards for a qualified drug rehabilitation program A qualified drug rehabilitation program must include at least two unannounced drug tests and satisfy at least one of the following requirements:

• Be qualified to receive funds directly or indirectly from a federal, state, or local government program
• Be qualified to receive payment directly or indirectly from a federally or state-licensed insurance company
• Be administered or recognized by a federal, state, or local government agency or court
• Be administered or recognized by a federally or state-licensed hospital, health clinic, or medical doctor

The Federal Student Aid (FSA) Ombudsman of the Department of Education helps resolve disputes and solve other problems with federal student loans. The FSA Ombudsman encourages borrowers to make every effort to resolve their student loan problems. When a solution cannot be reached, the FSA Ombudsman has a process and the resources to assist borrowers.

FSA Student Loan Ombudsman’s Office
U.S. Department of Education Contact Information
FSA Ombudsman
830 First Street, N.E.
Washington, D.C. 20202-514
202-377-3800
877-557-2575 (toll-free)
202-275-0549 (fax)
fsaombudsmanoffice@ed.gov
www.ombudsman.ed.gov

Saint Augustine’s University is committed to providing access to information that will allow students, parents, counselors, and other constituents to make informed decisions about postsecondary education. This webpage is a single access point to consumer information noted in the Higher Education Act of 1965 and amended by the Higher Education Opportunity Act of 2008 (HEOA).