Financial Aid » Financial Aid FAQ's
Financial Aid FAQ's
Frequently Asked Questions
Is there a deadline to file for Financial Aid?
The simple answer is no; however, the Institute has established a priority deadline of March 15th for students to apply for loans and institutional aid. Continuing students are expected to comply with this deadline. Applicants and students in the admissions process are encouraged to apply by March 15th to ensure their best chance to receive the maximum amount of institutional aid money.
For federal loans and institutional aid students must file a Free Application for Student Financial Aid (FAFSA) at www.fafsa.ed.gov.
Where do I place the money I received from my parents or from donor organizations to help support my education (at IPS or at another school) or education tax credit money on the FAFSA?
Part of filling out the FAFSA is completing the accompanying worksheets. Having completed worksheets may be important if your FAFSA is selected for the verification process. There are three worksheets. Worksheet A provides for earned income, child tax, social security and other government benefits for those who qualify. Worksheet B provides for a number of sources of unearned income, such as the support/gift money your family may provide. Worksheet C provides the space to account for education tax credits, taxable earnings from need-based employment programs and the like. So, specifically, the answers to your questions are most likely provided in Worksheets B and C.
Who is eligible to apply for Federal Stafford Subsidized, Unsubsidized Loans and Grad-PLUS loans?
Full-time and half-time enrolled students may apply for Federal Loans. The program is limited to U. S. citizens and permanent residents. Students must be enrolled in a degree-granting program.
How much can a student borrow?
Graduate students may borrow up to the total cost of attendance less their EFC and other financial aid received. The maximum annual limit for Stafford Subsidized and Unsubsidized loans is $20,500 for the 2007-2008 academic year, and the aggregate loan limit for graduate students is 138,500.
Students also have the option of taking out a Grad Plus loan if the subsidized loans do not cover their cost of attendance
What is the interest rate?
With the passage of the Higher Education Reconciliation Act of 2005 (HERA) the fixed interest rate for Subsidized and Unsubsidized Stafford loans is 6.8% beginning July 1, 2006. The fixed interest rate for Grad-PLUS loans is 8.5% beginning on July 1, 2006.
The interest rate for existing unconsolidated Subsidized and Unsubsidized Stafford Loans remains variable, but it will never exceed 8.25%. The interest rate is adjusted each year on July 1.
Is there a charge for Federal Loans?
Normally, yes, lenders do charge servicing fees of up to four percent on the loan. Most lenders currently waive origination and guarantee fees, If you are unsure regarding the policies of your lender please check with the financial aid office.
What options are available for repayment?
Standard Repayment Plan: Requires fixed monthly payments of at least $50 per month for up to 10 years. The repayment period depends on the loan amount borrowed.
Extended Repayment Plan: Allows for repayment to extend from 12 to 30 years, with monthly payments of at least $50 per month.
Graduated Repayment Plan: Monthly payments begin at a low rate and increase every two years. The monthly payments must start at least half of what you would repay under the Standard Repayment Plan. The repayment period will vary from approximately 12 to 30 years, depending on the total amount borrowed.
Income Contingent Repayment Plan: Monthly payments are based on adjusted gross income (AGI) and the total amount borrowed. Payment amounts are based on each year’s income and are adjusted as income changes. The monthly payments will not exceed 20 percent of discretionary income and the repayment period may not exceed 25 years.
When are Federal Loans Repaid?
Normally, repayment of Federal Loans begins after the grace period, namely, six months after: graduation, withdrawal, or when a student's enrollment status drops below half-time, unless the student has waived their grace period through the loan consolidation process. Different lenders provide different benefit packages to borrowers; each of our suggested lenders has offers that are well worth considering for federally backed loans. The length of repayment and monthly payment amounts depends on the outstanding loan balance, the interest rate and repayment policies.
Federal Unsubsidized and Grad-PLUS loan borrowers with deferred interest will have the interest capitalized at the end of the in-school or grace period. A student has only one six-month grace period in which to begin repayment of his or her loans. If a student stops attending for six months or more and then returns to school, the student has already used his or her grace period and payment on the loans begins immediately after graduation.
Can loan payments be deferred?
Payment may be deferred if the borrower enters into a deferrable situation and requests deferment of payment by submitting appropriate documentation to the loan servicer. Deferrable situations may include but are not limited to:
* Active duty and teacher-shortage deferment options are not applicable to new borrowers (no outstanding FFEL balance and first disbursement on or after July 1, 1993).
Frequently Asked Questions
Is there a deadline to file for Financial Aid?
The simple answer is no; however, the Institute has established a priority deadline of March 15th for students to apply for loans and institutional aid. Continuing students are expected to comply with this deadline. Applicants and students in the admissions process are encouraged to apply by March 15th to ensure their best chance to receive the maximum amount of institutional aid money.
For federal loans and institutional aid students must file a Free Application for Student Financial Aid (FAFSA) at www.fafsa.ed.gov.
Where do I place the money I received from my parents or from donor organizations to help support my education (at IPS or at another school) or education tax credit money on the FAFSA?
Part of filling out the FAFSA is completing the accompanying worksheets. Having completed worksheets may be important if your FAFSA is selected for the verification process. There are three worksheets. Worksheet A provides for earned income, child tax, social security and other government benefits for those who qualify. Worksheet B provides for a number of sources of unearned income, such as the support/gift money your family may provide. Worksheet C provides the space to account for education tax credits, taxable earnings from need-based employment programs and the like. So, specifically, the answers to your questions are most likely provided in Worksheets B and C.
Who is eligible to apply for Federal Stafford Subsidized, Unsubsidized Loans and Grad-PLUS loans?
Full-time and half-time enrolled students may apply for Federal Loans. The program is limited to U. S. citizens and permanent residents. Students must be enrolled in a degree-granting program.
How much can a student borrow?
Graduate students may borrow up to the total cost of attendance less their EFC and other financial aid received. The maximum annual limit for Stafford Subsidized and Unsubsidized loans is $20,500 for the 2007-2008 academic year, and the aggregate loan limit for graduate students is 138,500.
Students also have the option of taking out a Grad Plus loan if the subsidized loans do not cover their cost of attendance
What is the interest rate?
With the passage of the Higher Education Reconciliation Act of 2005 (HERA) the fixed interest rate for Subsidized and Unsubsidized Stafford loans is 6.8% beginning July 1, 2006. The fixed interest rate for Grad-PLUS loans is 8.5% beginning on July 1, 2006.
The interest rate for existing unconsolidated Subsidized and Unsubsidized Stafford Loans remains variable, but it will never exceed 8.25%. The interest rate is adjusted each year on July 1.
Is there a charge for Federal Loans?
Normally, yes, lenders do charge servicing fees of up to four percent on the loan. Most lenders currently waive origination and guarantee fees, If you are unsure regarding the policies of your lender please check with the financial aid office.
What options are available for repayment?
Standard Repayment Plan: Requires fixed monthly payments of at least $50 per month for up to 10 years. The repayment period depends on the loan amount borrowed.
Extended Repayment Plan: Allows for repayment to extend from 12 to 30 years, with monthly payments of at least $50 per month.
Graduated Repayment Plan: Monthly payments begin at a low rate and increase every two years. The monthly payments must start at least half of what you would repay under the Standard Repayment Plan. The repayment period will vary from approximately 12 to 30 years, depending on the total amount borrowed.
Income Contingent Repayment Plan: Monthly payments are based on adjusted gross income (AGI) and the total amount borrowed. Payment amounts are based on each year’s income and are adjusted as income changes. The monthly payments will not exceed 20 percent of discretionary income and the repayment period may not exceed 25 years.
When are Federal Loans Repaid?
Normally, repayment of Federal Loans begins after the grace period, namely, six months after: graduation, withdrawal, or when a student's enrollment status drops below half-time, unless the student has waived their grace period through the loan consolidation process. Different lenders provide different benefit packages to borrowers; each of our suggested lenders has offers that are well worth considering for federally backed loans. The length of repayment and monthly payment amounts depends on the outstanding loan balance, the interest rate and repayment policies.
Federal Unsubsidized and Grad-PLUS loan borrowers with deferred interest will have the interest capitalized at the end of the in-school or grace period. A student has only one six-month grace period in which to begin repayment of his or her loans. If a student stops attending for six months or more and then returns to school, the student has already used his or her grace period and payment on the loans begins immediately after graduation.
Can loan payments be deferred?
Payment may be deferred if the borrower enters into a deferrable situation and requests deferment of payment by submitting appropriate documentation to the loan servicer. Deferrable situations may include but are not limited to:
- Active duty in the U. S. armed forces*
- Services in a full-time volunteer organization such as the Peace Corps or Vista
- Temporary total disability
- Teaching full-time in a teacher shortage area*
- Unemployment
- Pursuing full-time course of study.
* Active duty and teacher-shortage deferment options are not applicable to new borrowers (no outstanding FFEL balance and first disbursement on or after July 1, 1993).