Preparing for a college/university education requires a great deal of advance planning. To assist students in making appropriate financial arrangements, this fact sheet presents a number of important topics for your consideration.
Note: In order to have eligibility determined for any of the federal and state need-based grants and/or federal loan programs, students must complete the Free Application for Federal Student Aid (FAFSA), listing Bluffton as one of the recipients. The Federal school code number for Bluffton is 003016. Students are encouraged to file the FAFSA electronically at www.fafsa.ed.gov. A FAFSA web application worksheet is available at www.fafsa.ed.gov or from the Bluffton Office of Adult and Graduate Education. Financial aid (grants or loans) which require the FAFSA to determine eligibility are marked with an asterisk (*).
Details on loan information and how to apply are available here.
GRANT ASSISTANCE
Federal and state grants are awarded based upon a variety of factors, but most often on the basis of the program rules and/or demonstrated financial need.
Federal Pell Grant* - Provided by the federal government and administered by the college/university; this grant is based upon financial need.
Federal Supplemental Educational Opportunity Grant* - Pell eligible students with the greatest financial need will also qualify for the Federal Supplemental Educational Opportunity Grant (FSEOG). Grant levels are determined annually by the college/university based on the amount of funds allocated by the Federal Government.
Ohio Instructional Grant (OIG)* - Funds are awarded by the State of Ohio to qualified Ohio residents who demonstrate financial need based on the state's formula. Students must file the FAFSA by October 1, 2008 in order to be eligible for an OIG from the state for any term in the academic year.
Ohio Student Choice Grant - Funds are automatically awarded by the State of Ohio to full-time students who are residents of Ohio and who have not enrolled as full-time students (for any period of time) in any institution of higher education prior to July 1, 1984. No application is required. If eligibility is determined and if funds are available, a grant of $660 per year is applied to the student account on a pro-rated basis at the beginning of each term. The state requires that these funds be used for tuition only at private colleges/universities in the State of Ohio. Male students must be able to certify that they have met registration requirements for selective service.
EDUCATIONAL LOAN PROGRAMS - Federal Family Education Loans
Loan applications:
Loan applications are certified in a timely manner by a Bluffton Financial Aid Administrator (FAA) in relation to the enrollment periods of students. Certification occurs only after a student is fully accepted into the program and only after required applications and documentation are on file in the Financial Aid Office. Documentation may include verification of the information provided on the FAFSA. An entrance interview, coordinated and documented by the Financial Aid Office, is required for all Stafford loan recipients the first time they borrow at Bluffton before disbursement of loan money. This can be completed on line at:www.bluffton.edu/admission/financialaid/loans/adulted
Loan disbursements usually occur at the beginning of each semester if all requirements are met and all documentation is on file.
1If your application for aid (FAFSA) is selected by federal edits for verification, we will contact you to complete a verification worksheet and you (and your spouse if married) will be required to send a signed copy of your federal income tax return and other related documents (W2s, etc.).
Loan fees:
For 2008-2009, a federally mandated origination fee of 1% is charged unless covered by the lender. Also, a mandated 1% federal default fee will be assessed. The result is that students can expect that fees of 2% will be withheld from the actual disbursement (e.g., $5500 - $110 [2%] = $5390 or $2695 disbursed per semester).
Stafford Loan Repayment and Interest Rates:
Repayment
Repayment of both subsidized and unsubsidized Stafford loans begins 6 months after the student graduates, withdraws, or drops below half-time enrollment status.
Interest Rates
Subsidized Stafford loans disbursed between July 1, 2008, and June 30, 2009, will have a fixed interest rate of 6.0%.
Unsubsidized Stafford loans disbursed after July 1, 2008, will have a fixed interest rate of 6.8%.
Interest rates on existing loans
All Stafford loans disbursed before July 1, 2008 but after July 1, 2006, will continue to have a fixed interest rate of 6.8%.
Any existing Stafford loans that were disbursed before July 1, 2006, maintain a variable rate with a cap of 8.25 percent. These variable rates are calculated on a 91-day Treasury Bill plus 1.7% (for in school and grace periods) or 2.3% (in repayment). The current variable rate through June 30, 2009, is 3.61% for students in school or in their grace period and 4.21% for students in repayment. Variable rates are adjusted each July 1.
Subsidized Federal Stafford Student Loan* (formerly GSL-Guaranteed Student Loan) This is a need-based student loan. Eligibility is determined by the Bluffton Financial Aid Office based on the results of the FAFSA. The maximum borrowing limit is set by the federal government at $5500 per year and $23,000 total through the first Bachelor’s degree. The interest is paid by the federal government while the student is enrolled in school at least half-time. Repayment and interest begin after a six month grace period when the student graduates, drops below half-time status, or withdraws.
Unsubsidized Federal Stafford Loan Program* This is a non-need based student loan. Eligibility is determined by the Financial Aid Office based on the results of the FAFSA. The maximum borrowing limit is set by the federal government at $5500 per year minus any subsidized loan that is awarded. The interest begins to accumulate as soon as the loan is initially disbursed. Students may make “interest-only” payments while in school or may have interest added to the principal at the time of repayment, which begins six months after the student graduates, drops below half-time status, or withdraws.
Additional Unsubsidized Federal Stafford Loan*Independent undergraduate students can borrow an unsubsidized Stafford loan of up to $7,000 per year over and above a base Stafford loan of $5,500, subsidized or unsubsidized (see previous descriptions). Federal regulations prohibit a student from borrowing more than the Cost of Education minus all financial aid, which includes the base $5,500 Stafford loan.
Alternative Education Loans Non-federal alternatives do exist for students who are unable to cover the cost of attendance with traditional Federal Stafford loans. Alternative loans generally have higher interest rates, which are based on credit history and these rates are often variable and have no cap. Lenders offer a number of repayment options (total deferment during school, interest-only payments during school, interest and principal payments during school). Contact the Financial Aid Office to receive information regarding alternative educational loans.
Employer Assistance An increasing number of employers provide educational assistance benefits to their employees. Students should check to see if their employer provides educational assistance.
Students could also check with their bank or other lender for possible home equity loans that may be available with tax-deductible interest.
GENERAL INFORMATION
Bluffton programs are approved for Veteran's Benefits with the Bluffton Registrar appointed as certifying officer. Contact the Registrar's Office for application forms and for more information.
Students with questions concerning financial assistance should contact the Financial Aid Office at (419) 358-3266. Personel in the Financial Aid Office are available to help estimate your eligibility for financial assistance. Office hours are Monday through Friday, 8:00 a.m. to 12 noon and 1:00 p.m. to 5:00 p.m. Meeting times other than regular business hours can be arranged. The Financial Aid Office can also be contacted via email at: finaid@bluffton.edu
Students have access to financial information from many, many sources. Some of this information is helpful; some of it can be misleading and confusing. For an accurate and current understanding of the financial aid process and for helpful information, the Bluffton Financial Aid Office recommends the following web sites:
www.studentaid.ed.gov www.finaid.org www.projectonstudentdebt.org
