/Institutions/Marymount-Manhattan-College/json/2022-2023/Catalog-local.json

/Institutions/Marymount-Manhattan-College/json/2022-2023/Catalog.json

Federal Aid

1. Federal Pell Grant

Eligibility is determined based on the EFC as derived from the FAFSA. The U.S. Congress sets the maximum Federal Pell grant annually. For 2022-2023 academic year the Federal Pell Grant range is from $692 to $6,895 based on the student’s enrollment status and EFC. The amount of Federal Pell Grant funds a student may receive over his or her lifetime is limited by a new federal law to be the equivalent of six years of Pell Grant funding. Since the maximum amount of Pell Grant funding a student can receive each year is equal to 100%, the six-year equivalent is 600%. The calculation of the duration of a student’s eligibility will include all years of the student’s receipt of Federal Pell grant funding. A student who is not eligible for a Federal Pell Grant may be eligible for other federal aid.

2. Federal Supplemental Educational Opportunity Grant (FSEOG)

The Department of Education allocates limited FSEOG funds each academic year to help Federal Pell Grant recipients who show exceptional financial need based on their FAFSA information.

3. Federal Work-Study (FWS)

The FWS Program funds part-time employment opportunities for both on and off-campus jobs. These programs provide students with the ability to earn money to offset a portion of their educational expenses. Students are offered a specific work-study grant allocation to indicate the total wages they are eligible to earn during their employment and cannot exceed this allocated amount. Students can work up to 19.5 hours per week. The number of hours worked weekly is determined by the student’s schedule and the number of hours required by the employer. Awarding of FWS does not guarantee job placement. There are a limited number of jobs available, so placement is on a first-come, first-served basis. FWS students must be paid at least the federal minimum wage rate. Students must complete a hiring form and submit all other required paperwork before their employment can begin. Federal Work-Study funds cannot be applied to a student’s account balance. Students can view job listings posted at MMC Career Connection.

4. Federal Direct Loans

The subsidized and unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education at a four year college. Federal Direct loans are either subsidized or unsubsidized based on federal eligibility.  Information on loan types and current interest rates are available at https://studentaid.gov.

a. Federal Direct Subsidized Loan

A Federal Direct Subsidized loan is awarded on the basis of financial need. A student will not be charged any interest while enrolled in school for at least half-time status (6 credits or more). Repayment begins six months after a student graduates, is no longer enrolled or has dropped below half-time status. Subsidized loans first disbursed on or after July 1, 2012 and before July 1, 2014, will not have the interest subsidy provided during the 6 month grace period. Students receiving a subsidized loan during this time-frame will be responsible for the interest that accrues on the loan during the grace period. If a student does not pay the interest accrued, the interest will be added (capitalized) to the principal amount of their loan when the grace period ends.

b. Federal Direct Unsubsidized Loan

A Federal Direct Unsubsidized loan is not based on financial need. Interest is charged from the time the loan is disbursed until it is paid in full. Interest accumulates while the student is in school and during grace and deferment periods. If a student does not repay the interest while in school it will be capitalized - that is, the interest will be added to the principal amount of the loan.

150% Direct Subsidized Loan Limit

As of July 1, 2013 first time borrowers may only receive Subsidized loans for 150% of the published time of the academic program, which equals 6 years of subsidized loan eligibility at Marymount Manhattan College. Students who continue enrollment on at least a half-time basis in the same program or enroll in another program of the same or shorter length will no longer be eligible to receive additional subsidized loans. Furthermore, students will lose the interest subsidy on all prior subsidized loans. Borrower responsibility for interest will be triggered from the date of continued or subsequent (at least half-time) enrollment in an eligible undergraduate program of equal or lesser length. All unpaid accrued interest is capitalized in the same manner as unsubsidized loans. Eligibility on lost interest subsidy cannot be regained.

Federal Direct Loan Fees

Federal Direct Loans are assessed an origination fee on the total loan. The net disbursement will reflect these fees; the amount credited to the student’s account will be the gross amount of the loan less the origination fee. This fee is determined by the U.S. Department of Education.

Loans first disbursed on or after October 1, 2020 and before October 1, 2023 will be assessed an origination fee of 1.057%.

How a Direct Loan is Disbursed

Generally, a loan will be for a full academic year and MMC will make at least two disbursements. Disbursements will be applied each semester of the academic year at the end of the add/drop period. MMC will disburse the loan money by crediting it to the student’s account to pay tuition, fees, room, board, and other authorized charges. If the loan disbursement amount exceeds the student’s school charges, the school will pay the remaining balance of the disbursement directly to the student borrower. MMC will notify the borrower in writing each time a disbursement of loan funds is made and will provide information about how to cancel all or part of the disbursement.

Direct Loans for Study Abroad

Students attending the Study Abroad program will have their loan funds disbursed in two equal disbursements each semester. Disbursements will be applied each semester of the academic year at the end of the add/drop period and at the midpoint of each semester.

Interest rates

The Department of Education publishes current loan information at https://studentaid.gov.

The rate for loans disbursed prior to July 1, 2006 is variable (subject to change each year) but does not exceed 8.25%. Variable interest rates for these loans are adjusted each year on July 1. You will be notified of variable interest rate changes throughout the life of your loan.

See the Federal Direct Loan charts at the end of this section for the Annual Direct Loan Limits effective July 1, 2022.

c. Federal Direct Parent Loan for Undergraduate Students (PLUS)

The Federal Direct PLUS Loan is a loan from the U.S. Department of Education for parents of dependent undergraduate students enrolled at least half-time with a valid FAFSA on file. The maximum amount a parent may borrow will be the cost of attendance minus all other financial assistance and will be indicated on the MMC financial aid award letter. Parents often elect to limit the amount they borrow to the difference between annual direct costs and other financial aid the student has received. Direct costs are those paid directly to MMC including tuition, fees, and room and board for resident students. Indirect costs consist of all other expenses that relate to attendance at MMC.

PLUS Loan Eligibility Requirements

Parent PLUS loan borrowers cannot have an adverse credit history (a credit check will be done). In addition, parents and their dependent child must be U.S. citizens or eligible non-citizens, must not be in default on any federal education loans or owe an over-payment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid programs. You can find more information about these requirements in Funding Education Beyond High School: The Guide to Federal Student Aid available at: https.//studentaid.gov.

See the Federal Direct Loan charts at the end of this section for the Annual Loan Limits for Dependent Students, effective July 1, 2022.

Credit Check & Endorser Alternative

When you apply for a Direct PLUS Loan, the Department will check your credit history. To be eligible for a PLUS Loan, you must not have an adverse credit history.

Definition of PLUS Adverse Credit History

No adverse credit if total outstanding balance is not greater than $2,085 for debts that are:

• 90 or more days delinquent;
• Placed in collections;
• Charged off (written off).

$2,085 can be increased by ED based on CPI if the change would be less than or equal to $100.

If you are found to have an adverse credit history, you may still have one of the following options:

• Appeal the credit decision – Contact the Department of Education to see if you are eligible to appeal the reason you were declined. Documentation must be submitted directly to the Department and reviewed. You will receive an answer regarding your appeal within 7-10 business days of all required documentation for the appeal being received. If the credit decision is overturned, you must notify the financial aid office so that processing can continue.
• Add an endorser to your application – A credit worthy endorser, which is essentially a cosigner, may be added to your PLUS loan application. An endorser is someone who agrees to repay the Direct PLUS Loan if the borrower becomes delinquent in making payments or defaults on the loan. The endorser may log onto https.//studentaid.gov and click on the link “Endorse a PLUS loan”. Once the credit has been approved and the endorser addendum completed you must notify the financial aid office so processing can continue.
• Special loan counseling will be required for any PLUS Loan applicant who has an adverse credit history but who qualifies for a PLUS Loan through the process for reconsideration due to extenuating circumstances or by obtaining an endorser for the loan. The counseling is mandatory and borrowers will be required to complete the special PLUS Loan Counseling at https.//studentaid.gov.

PLUS Loan Fees

Federal Direct PLUS loans, are assessed an origination fee on the total loan. The net disbursement will reflect these fees; the amount credited to the student’s account will be the gross amount of the loan less the origination fee. This fee is determined by the U.S. Department of Education

Loans first disbursed on or after October 1, 2020 and before October 1, 2023 will be assessed an origination fee of 4.228%.

How a PLUS loan is disbursed

Generally, a loan will be for a full academic year and MMC will make at least two disbursements. Disbursements will be applied each semester of the academic year at the end of the add/drop period. MMC will disburse the PLUS loan money by crediting it to the student’s account to pay tuition, fees, room, board, and other authorized charges. If the loan disbursement amount exceeds the student’s school charges, the school will pay the remaining balance of the disbursement directly to the borrower. The parent can give written permission to MMC to disburse the remaining balance of the PLUS loan money directly to the student. MMC will notify the borrower in writing each time a disbursement of loan funds is made and will provide information about how to cancel all or part of the disbursement.

Students attending the Study Abroad program will have their PLUS loan funds disbursed in two equal disbursements each semester. Disbursements will be applied each semester of the academic year at the end of the add/drop period and at the midpoint of each semester.

Death of Parent PLUS Loan Borrower

Federal regulations do not permit disbursement of Title IV funds when there is no possibility of repayment. Therefore, if a parent borrower dies before the loan is disbursed, the school must return up to the full amount of the loan to the U.S. Department of Education.

Students are required to notify Marymount Manhattan College as soon as possible if a parent borrower dies. Failure to do so will result in the student being held liable to repay the loan funds and any balances incurred to MMC.

Grace Period and Deferment for Parent PLUS Borrowers

Beginning July 1, 2008, parents can request to defer payments on a PLUS loan until six months after the date the student graduates, is no longer enrolled or has dropped below half-time status. Accrued interest is capitalized and can either be paid by the parent borrower monthly or quarterly.

5. Alternative Loan Programs

We strongly encourage you to carefully evaluate the terms offered by lenders for your alternative loan. Many lenders require that you utilize the Direct Student Loan prior to applying for an alternative loan. Review the rates for both the Direct Student and Direct Parent PLUS loans as these interest rates are set by the government. It is essential that you educate yourself about the relative terms and benefits offered by lenders to ensure the best possible terms for your personal circumstances.

Families should evaluate the various terms and features associated with each loan. Among the terms and features to consider are the following:

• Loan Requirements
• Repayment terms (may occur while student is currently enrolled)
• Interest rates
• Loan benefits before and during repayment
• Deferred payments
• Rate reductions
• Principal reductions
• Auto debit rate reductions

Parents should consider borrowing from the Direct Parent PLUS loan program since it is generally a less expensive loan as compared to a private educational loan. However, parents should be clear that PLUS loans obligate the parent, not the student. Private loans, while more expensive, obligate the student for repayment. However in most cases parents may be required to co-sign a private student loan, thereby obligating them as well.