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WORKSTUDY QUESTIONS
HOW DO I QUALIFY FOR WORKSTUDY?
The first step in qualifying for workstudy is filling out the FAFSA. If you qualify for workstudy an award amount will be included on your award letter. If you are not awarded workstudy but would still like to be considered, you should go to the
Office of Financial Aid in 241 North Hunter and request workstudy. If you are eligible you will be placed on the waiting list. As funds become available students
on the waiting list will be considered.
HOW DO I FIND A WORKSTUDY JOB?
Students who are awarded workstudy will be sent letters which explain how to
obtain a workstudy position. In the fall semester a Job Fair is conducted for workstudy students. Throughout the year a schedule is posted outside of the
Office of Financial Aid which details the times that you can receive referrals for workstudy positions. For your convenience workstudy positions are posted on
this Financial Aid Website.
WHAT DO I DO IF I CANNOT WORK AT MY JOB ANYMORE?
If you are no longer able to keep your workstudy position, you should speak with
your supervisor. A written letter of resignation should be provided to your supervisor with a copy to the Workstudy Coordinator at the Office of Financial
Aid. If you request a different workstudy position, your written resignation must first be on file with the Workstudy Coordinator.
LOAN QUESTIONS
WHAT IS A DIRECT LOAN?
The Direct Loan Program provides funds for your education through the William
D. Ford Federal Direct Loan (Direct Loan) Program. The source of loan funds for Direct Loans is the U.S. government. There are two types of Direct Loans - the
subsidized and the unsubsidized. A subsidized loan is awarded on the basis of financial need. You will not be charged any interest before you begin repayment or
during authorized periods of deferment. The federal government "subsidizes" the interest during these periods. An unsubsidized loan is not awarded on the basis of
need. You'll be charged interest from the time the loan is disbursed until it is paid in full. If you allow the interest to accumulate, it will be capitalized-that is, the
interest will be added to the principal amount of your loan and additional interest will be based upon the higher amount.. For more information on Direct Loans, see http://ed.gov/offices/OPE/DirectLoan/.
HOW MUCH CAN I BORROW?
The amount students can borrow each year for Direct Subsidized and Direct
Unsubsidized Loans depends on whether they are dependent students or independent students.
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Dependent Student
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Independent Student
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1st year undergraduate
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$2,625
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$6,625
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2nd year undergraduate
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$3,500
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$7,500
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3rd and 4th year undergraduate
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$5,500
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$10,500
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Graduate/professional
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N/A
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$18,500
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The amount a student can borrow is also limited by the student's school costs, other financial aid the student may receive, and (in the case of Direct Subsidized
Loans), the student's Expected Family Contribution.
These are the overall limits for all subsidized and unsubsidized loans (including a
combination of FFELs and Direct Loans):
$23,000 for a dependent undergraduate student
$46,000 for an independent undergraduate student
$138,500 for a graduate or professional student (including loans for undergraduate study)
Note: The unsubsidized loan limits may be higher for health professions students who are enrolled in certain degree programs at a school that participated in the Health Education
Assistance Loan Program.
WHAT IS THE INTEREST RATE?
The interest rates for both Direct Subsidized and Direct Unsubsidized Loans are
variable and are adjusted once a year, on July 1. The rate will never exceed 8.25 percent for students. For parents the maximum rate is 9 percent.
The interest rate is equal to the July 1st, 91-day Treasury bill rate plus 2.8 percent
for loans disbursed since 7/1/1998.
HOW MUCH WILL I HAVE TO PAY BACK?
The Direct Loan Program offers four repayment plans that are available to
borrowers of Direct Stafford Loans. The repayment plans will be explained in more detail during entrance and exit counseling sessions at your school. In some
cases it may be beneficial for you to consolidate one or more of your Direct Stafford Loans into a Consolidation Loan. You may choose one of the following repayment plans:
The Standard repayment plan requires you to pay a fixed amount each month--at
least$50--for up to 10 years. The length of your actual repayment period may be less than 10 years if you qualify for the minimum monthly payment of $50, based
on your total loan amount.
The Extended Repayment Plan allows you to extend loan repayment over a
period that is generally 12 to 30 years, depending on your loan amount. Your monthly payment may be lower than it would be if you repaid the same total loan
amount under the Standard Repayment Plan,but you will repay a higher total amount of interest over the life of your loan because their payment period will be
longer. The minimum monthly payment is $50.
Under the Graduated Repayment Plan, your payments will be lower at first and
then increase generally every two years. The length of your repayment period will generally range from 12 to 30 years, depending on your loan amount. Your
monthly payment may range from 50 percent to 150 percent of what it would be if you were repaying the same total loan amount under the Standard Repayment
Plan, starting with lower payments and ending with higher payments. However, you'll repay a higher total amount of interest because their payment period is
longer than it is under the Standard Repayment Plan.
The Income Contingent Repayment Plan bases your monthly payment on your
yearly income, family size, and loan amount. As your income rises or falls, so do your payments. After 25 years, any remaining balance on the loan will be
forgiven, but you may have to pay taxes on the amount forgiven.
Loan payments are made to the U.S. Department of Education. For more
information on repayment options, you can get a copy of the Direct Loans Repayment Book by contacting the Federal Student Aid Information Center.
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