All students must complete a Free Application for Federal Student Aid (FAFSA) to be eligible for the Direct Loan program. Completion of the FAFSA determines a student’s Expected Family Contribution (EFC). There are several steps required to complete applications for financial aid.
Visit www.pin.ed.gov and apply for a PIN number. A student must have a PIN number to complete the FAFSA form.
Sometime after January 1st of each calendar year, a new FAFSA application must be completed. The FAFSA can be completed at www.fafsa.ed.gov. If a 2012 federal tax return has been completed, the FAFSA will allow a student and/or parent to link to the IRS website. Neumann’s federal school code is 003988.
All eligible students will receive a Financial Aid Award Letter from Neumann University that lists all pertinent awards. Please return the award letter to the Office of Financial assistance, only if the student wishes to reject or adjust an award amount, with a notation and your signature or send an email to firstname.lastname@example.org from your Neumann email address with the change. If the student’s FAFSA is selected for verification, please submit all requested documents as soon as possible. Starting with the 2013-2014 award year, the Department of Education has established several tiers of verification. Be sure to read the verification request carefully as there are only certain items required for each verification tier. Copies of tax return transcripts are only required with certain tiers of verification. If your FAFSA is selected for verification, please submit all requested documents as soon as possible. Your financial aid award cannot be finalized until those documents have been received and reviewed. Keep in mind that a review may result in an adjustment of any or all awards.
The federal government is only allowing unsubsidized federal Direct Loans (DL) to graduate students as of July 1, 2012. An unsubsidized DL accrues interest while a student is enrolled at least half-time during all grace and deferment periods. As of July 1, 2013, due to the new Loan Certainty Act all Graduate Federal Direct Loans have a 5.41% fixed interest rate with a 1.051% loan origination fee.*
In order for a student to accept a DL, there are two requirements that you must complete at www.studentloans.gov.
Entrance Counseling – is a process that is to be completed by you that will provide useful tips and tools to help the student understand your loan rights and responsibilities. This process only needs to be completed once by the student for each school.
Master Promissory Note (MPN) – a legally binding agreement or promise to repay your loan to the Department of Education. This process only needs to be completed once by the student for each school. In some cases, the MPN is effective for a term of ten years.
Federal GRAD PLUS Loan – a federal loan based upon credit with a fixed interest rate of 6.41% as of July 1, 2013 due to the new Loan Certainty Act and a 4.204% loan origination fee.* An application may be filled out by a graduate student only at www.studentloans.gov. It is complete when signed with student’s FAFSA PIN.
Private Alternative Loan – students can compare lenders’ rates and apply for a loan at www.elmselect.com. Please note several of these lenders are offering both fixed and variable interest rate loans without any fees. The better your credit is, the better your rate will be. Several lenders also give a discount on the interest rate for existing customers, be sure to call and ask your lender if this option applies to you. It is in your best interest to research all your options to ensure you are getting the most competitive product to meet your educational expenses.**
Payment Plans – a 10-month plan through Higher Education Services (HES) or a 4-month semester plan through the university that carries a non-refundable set-up fee. The HES plan may be established by calling 1-800-422-0010 or visiting www.highereducationservices.org. The 4-month semester plan may be arranged by contacting the Neumann University at 610-558-5505.
*Federal/state award amounts, federal interest rates, and origination fees are all contingent upon the final budget for both the federal and state governments.
**Interest rates are subject to change at the discretion of the lender.
Please contact the Office of Financial Assistance at email@example.com
or 610-558-5521 with any questions and accept our wishes
for a successful academic year.