Federal Pell Grants (PELL) are basic entitlements funded by the federal government that do not need to be repaid. This program is designed for undergraduates who do not have a bachelor's degree, and it serves as the foundation, or base, for other forms of aid. Eligibility is based on need. The amount of the Pell grant is determined by a federal funding formula, the student's cost of education, and the number of credit hours for which the student enrolls each term. The maximum award for the 2016-2017 year is $5,815. Pell grants are available for eligible students who are enrolled in an eligible program.
Federal Supplemental Educational Opportunity Grants (FSEOG) -- are basic entitlements funded by the federal government and the college that do not need to be repaid. Eligibility is based on need and availability of funds. FSEOG funds are campus-based; and therefore, limited funds are available. Institutions participating in the FSEOG program are responsible for formulating a policy regarding distribution of FSEOG. Barton awards FSEOG in annual amounts of $400 annually to those applicants showing the greatest need as long as funds are available.
Federal Direct Loans are low interest loans that are either subsidized or unsubsidized. A Subsidized Federal Direct Loan and an Unsubsidized Federal Direct Loan can be borrowed for the same enrollment period.
Students that have been awarded Federal Direct Student Loans can accept the loans through their student PAWS account. They can find the "Accept Award Offer" tab by first clicking on "Financial Aid" and then "Awards" and selecting the aid year for which they are currently attending. All student borrowers must have completed Loan Entrance Counseling and have an active Master Promissory Note on file with the Department of Education. If a student has not completed these previously, they can be done at any time but must be done before the loan can be disbursed.
Federal Direct Subsidized Loans are "need based" loans. This means that the federal government will pay the interest that accumulates on your loan as long as you're enrolled at least half time and also during the six-month grace period.
Federal Direct Unsubsidized Loans are not "need based". The federal government does not pay the interest on the Federal Direct Student Loans. If you accept a Federal Direct Student Unsubsidized Loan, you will be responsible for the interest as it accrues and compounds, starting from when the first disbursement is made.
Federal Additional Direct Unsubsidized Loans enable independent students to borrow additional money, up to $6,000 annually, to help meet exceptional educational expenses and dependent students to borrow up to $2,000 annually.
Federal Direct Parent Plus Loans - Federal Direct Parent PLUS Loans enable your parents to borrow money for educational expenses. An eligible parent may borrow up to the COA (Cost of Attendance) minus any estimated financial aid you are eligible to receive. These loans are approved based upon credit. Repayment begins 60 days after all loan funds are disbursed. For more information please contact the Financial Aid Office. To apply for a Federal Direct Parent Plus Loan please complete application on the Studentloans.gov website. Select the "Parent Borrowers" option and log into the site with the parent FSA user ID and password.
Eligibility - Your FAFSA application must be completed and a Federal Direct Student Loan awarded prior to completing any loan paperwork. You must be enrolled in at least six credit hours during the term that you receive a student loan. You also must maintain SAP (Satisfactory Academic Progress).
Amounts - You must complete at least 32 hours to advance to be eligible for the second year Federal Direct Student Loan amount. Barton can refuse to certify a Federal Direct Student Loan application or can certify it for an amount less than you would otherwise be eligible for.
|Year In School||Federal Direct Subsidized Loan Amounts|
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The maximum Federal Direct Student Loan amount that you are eligible for can be viewed in your student PAWS account. The amount of your Federal Direct Student Loan or ratio between Subsidized and Unsubsidized Federal Direct Student Loan may change if you receive any additional aid or your COA (Cost of Attendance) is adjusted.
|Academic Year||Federal Direct Subsidized Loans||Federal Direct Unsubsidized Loans|
Federal Direct Parent PLUS loans for the 2016-17 academic year have a 6.31% interest rate.
Loan Usage - Your student loan money may be used for educational expenses.
Entrance Counseling - First time borrowers are required by law to attend an entrance loan counseling session prior to receiving their first loan check. As part of the College's default management policy, Barton requires loan counseling for every Federal Direct Student Loan certified. Additional information concerning rights and responsibilities regarding Federal Direct Student Loans is provided at entrance and exit loan counseling.
Master Promissory Note - A Master Promissory Note (MPN) is a legal document that you need to sign to agree to all of the terms and conditions of the Federal Direct Student Loan. First time Federal Direct Student Loan borrowers will be required to complete a MPN with the lender they select. If you have taken out a Federal Direct Student Loan in the past and have already completed a MPN with that lender, you may not be required to complete another one. A valid MPN is good for a period of up to 10 years. Complete an MPN for your Direct Loan.
Processing Your Loan - Barton will certify your Federal Direct Student Loan and send it to Direct Loans. Direct Loans will let us know if they have an valid MPN for you on file. If they do not, there will be a link on your PAWS account, under Financial Aid and Student Requirement, giving you instructions on how to fulfill this requirement. Barton will apply your loan funds to your account on the appropriate payout date. If your loan exceeds your account balance, the Business Office will cut you a refund check. Checks will be available for students to pick up at the Business Office on the dates outlined in our Disbursement Policies and Procedures. The Financial Aid Office will contact you when you need to complete Loan Exit Counseling. If you do not have access to the internet or need assistance please contact us at 866-257-2574.
Lenders - The lender is the institution from which the money is actually borrowed, but the interest rates and terms of the loan are set by the U.S. Department of Education. Barton participates in the Federal Direct Loan Program. If you would like to work with another lender, please provide us with the lender’s name and code. The lender will be able to help you with loan questions until you go into repayment, at which time you will contact the loan servicer. Lender incentives are subject to change without notice.
Guarantors - The guarantor guarantees the loan and provides repayment assistance to prevent students from defaulting.
Servicers - Most lenders choose to outsource the administration of loans. Once you go into repayment, you will probably have to direct all loan questions to your servicer.
Fees - The origination fee is another expense of borrowing a Federal Direct Student Loan. The loan fee is subtracted proportionately from each loan disbursement. The loan origination fee for the Federal Direct (Subsidized and Unsubsidized) Student Loans will be reduced annually.
Disbursements and Deadlines - Federal Direct Student Loans will be disbursed in two equal payments that will be determined by your loan period and enrollment status. Funds will not be disbursed until you are enrolled in at least six credit hours. You will receive a disclosure notice from the Department of Education once your loan has been accepted and all requirements for the loan completed.
Loan Repayment - You are required to begin repaying your Federal Direct Student Loan six months after you graduate, leave school, or drop below half time attendance. Your lender/servicer may offer flexible repayment options; we recommend you research your options before repayment begins. You may also wish to use the loan calculators available on the FINAID! website to compute the potential savings of different repayment options. The terms and conditions under which you receive a FFELP or Federal Direct Student Loan may make you eligible for a deferral of repayment of the principal or interest of your loan if you have service under Peace Corps Act, Domestic Volunteer Service Act of 1973, or comparable service as a volunteer for a tax-exempt organization of demonstrated effectiveness in the field of community service.
Students taking preparatory coursework, for a program at another college/university or to enter a program at Barton may be eligible for Federal Direct Student Loans while completing the prerequisites at Barton. Preparatory coursework cannot exceed one consecutive 12 month period. Please read the Prepwork section on the Receiving Financial Aid webpage for more information.
Annual Maximum Loan Amounts for Preparatory Coursework
- Federal Direct Subsidized & Unsubsidized Loans - $2,625
- Additional Unsubsidized Federal Direct Student Loan limit for independent students or dependent undergraduates whose parents do not qualify for a Federal Direct Parent PLUS loan - $6,000
Federal Work Study (FWS) provides employment opportunities that enable students to earn money to fund their education. Also campus-based, FWS awards are based on documented need and availability of funds. This program encourages community service employment and work related to the student's course of study. To the extent possible, Barton will attempt to provide employment that complements and reinforces the student's educational and vocational career goals. FWS salaries will be paid at the current federal minimum wage and earnings are restricted to the amount of the award. Students employed through FWS will be paid on a monthly basis.
Barton also provides Student Employment opportunities for students who would not otherwise qualify for Federal Work Study. These jobs are available to students with the approval of Barton's Human Resources office and are funded by Barton. Salaries are paid at current federal minimum wage. Students employed through Barton's Student Employment program will be paid on a monthly basis.