It is the goal of Aspen University to assist every eligible student in procuring financial aid that enables the student to attend school. The school participates in various federal and state student financial assistance programs. The financial aid programs are designed to provide assistance to students who are currently enrolled or accepted for enrollment, but whose financial resources are inadequate to meet the full cost of their education.
The majority of financial aid available to students is provided by the Federal Government and is called federal Student Financial Aid (SFA). This includes the Federal Pell Grant, Federal Direct Student (FDSL) Program (Subsidized and Unsubsidized Stafford and Federal Parent Loans for Undergraduate students).
The primary responsibility for meeting the costs of education rests with the individual student and their families. All financial aid is awarded on the basis of need, regardless of sex, age, race, color, religion, creed, or national origin. Need is defined as the difference between the cost of education for one academic year and the amount a student’s family can be reasonably expected to contribute to this cost of education for the same period.
Most of the information dissemination activities required by the Higher Education Amendments of 1986 have been satisfied within our catalog. However, student finance personnel are available, in accordance with federal regulations, to discuss consumer information in more detail with current and prospective students.
To be eligible for financial aid, a student must:
All Title IV financial aid funds received by the institution will be credited to the student’s account with the exception of requirements set forth in Section 6.82.604 of current federal regulations. The different types of financial aid programs available to those who qualify are discussed in detail below.
This grant is designed to assist needy students who desire to continue their education beyond high school. Federal Pell Grants are only awarded to undergraduate students who have not earned a bachelor’s or professional degree and students who are enrolled in an eligible Post-baccalaureate teacher certification program if they meet certain requirements. Each student is entitled to apply for a Federal Pell Grant. Eligibility is determined by the student’s need, the cost of attendance, and the amount of money appropriated by Congress to fund the program. The amount of the grant is determined by a standard formula used by the Department of Education. The amount of the grant available to the student will depend on the Expected Family Contribution (EFC) and the cost of attendance.
For many students, the Federal Pell Grant provides a “foundation” of financial aid to which other aid may be added to defray the cost of college education. Students or prospective students may secure an application (FAFSA) to participate in the Federal Pell Grant program from the student finance office of the school or from a high school counselor. A student may also apply online at https://fafsa.ed.gov/ . The application will be transmitted electronically through a federally approved need analysis system, which will determine the applicant’s Expected Family Contribution (EFC).
Direct Loan programs are low-interest loans for eligible students to help cover the cost of education. Eligible students borrow directly from the U.S. Department of Education. The loan is then sent to the U.S. Department of Education’s Common Origination and Disbursement Center (COD) and disbursed to the school electronically through the G-5 website. The loans are serviced by the Direct Loan Servicing System. Direct loans include Direct Subsidized, Direct Unsubsidized and Direct PLUS loans.
Direct Subsidized Stafford Loans
Direct Subsidized Stafford Loans are loans available to students with financial need. Undergraduate students may borrow up to $3,500 for their first academic year, and $4500 for their second academic year, and $5,500 for their third or fourth year at a fixed interest rate established annually by the U.S. Department of Education. The interest is paid by the federal government while students are in school and for six months after students cease their enrollment. For “First time borrowers” as of 7/1/13 there is a 150% loan limit provision. A first time borrower is an individual who has no outstanding balance on a Direct loan or a FFEL Program loan 7/1/13 or the date the borrower obtains a Direct loan after 7/1/13. A student may not received Direct Subsidized Stafford loans for more than 150% of the published length of the student’s program of study.
Regular payments begin six months after students cease enrollment or fail to carry at least one-half the normal full-time school workload. Deferments after the student drops below half-time status are not automatic and the student must contact the lender concerning their loan. Applications can be obtained from the college’s student finance office or from the Federal Direct Loan program. Total Indebtedness for an independent undergraduate student is $57,500. (No more than $23,000 of this amount may be subsidized loans.)
There is an origination fee of 1.068% charged as an expense of borrowing one of these loans (for loans first disbursed on/after 10/1/15 and before 10/1/16). The loan fee is a percentage of the amount of each loan the borrower receives, and is subtracted proportionately from each loan disbursement. This must be repaid. The loan interest rate is fixed and set on July 1st of each year.
Direct Unsubsidized Stafford Loans
Direct Unsubsidized Stafford Loan programs are available for students to borrow for additional education costs regardless of family income who do not qualify in whole or in part, for a Subsidized Stafford loan. An unsubsidized Stafford loan is not awarded based on need. The term “unsubsidized” means that interest is not paid for the student. The student is charged interest from the time the loan is disbursed until it is paid in full.
Independent and Dependent students whose parents are unable to obtain a PLUS loan can borrow up to $9,500 for their first academic years as a combined total with the Federal Subsidized Stafford loan, and up to $10,500 for their second academic year, at a fixed interest rate established annually by the U.S. Department of Education. Dependent students whose parents are approved for a PLUS loan are limited to a combined total of $5,500 for the first Academic year and $6,500 for the second academic year. With the exception of demonstrating financial need, borrowers must meet all eligibility criteria of the Direct Subsidized Stafford Loan program. Graduate students may borrow up to $20,500 each year. Interest payments begin immediately after the loan is fully disbursed or may be added to the principal balance. The Government does not pay interest on the student’s behalf on an Unsubsidized Federal Stafford Loan. Regular payments begin six months after students cease enrollment or fail to carry at least one-half the normal full-time school workload.
There is an origination fee of 1.068% charged as an expense of borrowing one of these loans (for loans first disbursed on/after 10/1/15 and before 10/1/16). The loan fee is a percentage of the amount of each loan the borrower receives, and is subtracted proportionately from each loan disbursement. This must be repaid. The loan interest rate is fixed and is set on July 1st of each year.
The Federal Direct PLUS loan is available to parents of dependent students to help pay for the educational expenses of the student. PLUS loans are not based on need, but when combined with other resources, cannot exceed the students cost of education.
Parents may borrow up to the cost of attendance minus other aid per eligible dependent student. There is an origination fee of 4.272% charged as an expense of borrowing one of these loans (for loans first disbursed on/after 10/1/14 and before 10/1/15). The loan fee is a percentage of the amount of each loan the borrower receives, and is subtracted proportionately from each loan disbursement. This must be repaid. The loan interest rate is fixed and is set on July 1st of each year.
Repayment begins within 60 days of the final disbursement unless the parent qualifies for and is granted a deferment by the lender. There is no grace period for these loans. Interest begins to accumulate at the time of the first disbursement is made, and parents will begin repaying both the principal and interest while the student is in school. Although, the minimum payment amounts is $50 with at least five years but no more than 10 years of repayment, the actual payment and schedule is determined by the total amount borrowed. Applications can be obtained from the college’s student finance office or from the Federal Direct Loan Program.
For deferment information, contact the Office of Financial Aid.