Student Loans FINANCIAL AID OFFICE KNOW WHO YOU OWE AND YOU GOING???

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FINANCIAL AID OFFICE

Student Loans

KNOW WHO YOU OWE AND

HOW MUCH

and

……WHERE ARE

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Note

You MUST READ this complete presentation to be

able to answer the related questions on the

Federal Direct Loan Worksheet.

The purpose of this information is to benefit to YOU!

We want you to have the information needed to be a

responsible borrower and to understand your repayment

obligations.

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G o t o

h t t p : / / w w w . b l a c k r i v e r t e c h . o r g / f i n a n c i a l - a i d / l o a n s

f o r t h e f o r m s :

1 . L o a n A p p l i c a t i o n

2 . F e d e r a l D i r e c t L o a n W o r k s h e e t

3 . U p d a t e d C o n t a c t s L i s t

G o t o

w w w . s t u d e n t l o a n s . g o v

) t o C o m p l e t e :

4 . D i r e c t L o a n E n t r a n c e C o u n s e l i n g

5 . M a s t e r p r o m i s s o r y n o t e ( M P N )

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Do you really need a loan?

Almost 60% of BRTC students qualify for a Pell grant - if you qualify for at

least $1700 Pell/semester, it is enough to cover Tuition, Fees, and

$500 books for 12 credit hours -- No loans needed

Loans are NOT free! You have to pay them back.

Borrow conservatively….think ahead…..plan ahead!

.

Create a budget…and stick to it!

Review the loan payment schedule later in this presentation. Can you afford

payments??

Can you decrease any of your current expenses?

Try ALL other options before taking loans.

Pell

Scholarships

Family/Friend Loans

Working at least one job!! (go to school 2 days/nights a week) (depending on program

demands)

CREATE A

BUDGET!!

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Authorized Educational Expenses

Authorized educational expenses include:

Tuition

Room and board

Institutional fees

Books

Supplies

Equipment

Dependent child care expenses

Transportation and commuting expenses

Rental or purchase of a personal computer

Loan fees

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What is your goal??

Think ahead and plan so that you are proactive in your own success!

Are you planning on obtaining a Bachelor’s? Are you getting your college“BASICS”?

Do your courses at BRTC transfer to ???? Go to

acts.adhe.edu/

Visit the

Registrar of the school you plan to attend and make sure they accept.

How much will I need to complete Bachelor’s ($20,000) and/or Master’s

($20,000)? What will the total be if I take loans for a Technical

Certificate/Associates????

If you have over 60 hours, get a degree audit NOW!! How close are you to

graduating?

Am I close to reaching my 150% max hours limit at BRTC for my Financial Aid?

Will every class I take transfer? MAKE EVERY CLASS COUNT toward your

final educational goal!

Will I have Pell when I transfer?? CAN I PAY THE LOANS BACK with the

education I am getting????

* Visit with a Financial Aid Officer or your Advisor if you can not answer

these questions.

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Where are you going and how do you get there?

acts.adhe.edu is the Arkansas Transfer Coursework

Website

Bachelors degree programs in today’s educational

fast tracks….

General Education requirements for your Bachelor’s

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Degree Plans

Know what you want to do.

- KUDER test information is available in the Career Pathways Office in Administration Building.

- DiscoverArkansas.net

has occupations and salaries to help you decide what you want to do.

Know what degree you are working on and take ONLY the courses that will lead to

completion of that program.

Don’t waste loan money on classes you don’t need! You are limited to how many credit

hours you may attempt toward your chosen degree and still maintain Financial Aid eligibility.

Get advice from Financial Aid when changing degree plans, transferring to a university,

dropping a class or getting close to 100 hours to understand the effects this will have on

your eligibility to Title IV Funds. (Pell and Loans)

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BRTC STUDENT EMAIL

We communicate with students primarily by BRTC email. Make sure you have set up your

GMAIL account. Go go

www.blackrivertech.edu

and access Current Students to activate your

account.

Make sure your inbox doesn’t fill up. Email cannot be delivered to a full inbox.

Check this EMAIL weekly, if not daily. This is how you will be notified of dates that

Financial Aid REFUNDS are mailed.

Other departments will also expect you to check this account

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Campus Connect

https://connect.blackrivertech.org/cc3_scripts/cc_server.exe

Link is at bottom of BRTC

homepage

Student account access.

Use it to:

View mid-term and final grades

Register for classes

View your Student Account and financial aid

View your award letter

View Holds

If a new user, Log in using your

* Userid – SSN

* Password - 1111

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Subsidized

Unsubsidized

For students with financial

need.

No interest is charged

while:

in school at least half time

during your grace period

during deferment periods.

Don’t have to make

payments while you are

attending school at least

half time and during your

grace period.

Not based on financial

need.

Interest is charged

during all periods.

Don’t have to make

payments while you are

attending school at least

half time and during

your grace period.

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Requesting

a

LOAN

At BRTC, you must submit a

LOAN APPLICATION and

request a specific amount.

The form must be submitted

along with the previously

mentioned documents:

- Direct Loan Worksheet

- Updated Contacts List

- AND –

Complete Online:

- Entrance Counseling

-

Master Promissory Note

View this Presentation!!!

You accept or decline loans by clicking these boxes. If

you want to decrease the amount, you click accept and

the amount under the offered tab will allow you to type

into it. When you are done, click submit.

2013-2014 BRTC STUDENT LOAN APPLICATION

PO BOX 468 ● POCAHONTAS, AR 72455 ● (870) 248-4000 ● FAX (870) 248-4100

___________________________________________

_______________________

Name

SSN

*** STUDENT LOANS ARE

OPTIONAL

***

STEP 1: Entrance Loan Counseling is required to be completed ONLY once under the Direct Lending program. You must

complete ELC at the following web address www.studentloans.gov.

STEP 2: The Master Promissory Note or MPN is required before submitting your loan request to the FA Office. To complete an

MPN online, you will be required to use your Department of Education-issued PIN that you used to complete your FAFSA. You must

complete the Promissory Note via electronic signature at the following web address www.studentloans.gov. If you do not have a PIN

or do not remember yours, you may request one from

http://www.pin.ed.gov/PINWebApp/pinindex.jsp

.

*** This box MUST be COMPLETED, or the loan will NOT be processed. ***

SEMESTER LOAN LIMITS

DEPENDENT INDEPENDENT

Subsidized & Unsubsidized Subsidized & Unsubsidized Freshman $1,750 $1000 $1,750 $3,000 Sophomore $2,250 $1000 $2,250 $3,000

*You may request any amount but may not exceed the above maximum limits*

Amount Requested $______________________ /

PER SEMESTER for

Fall ONLY

Spring ONLY

Fall AND Spring

Signature_____________________________________________ Date Requested_______________________________

Financial Aid Office Use ONLY

Loan Period: ___________________________________________

D________ I________ SAP Status ___________ Budget: $__________________________________________

-EFC ___________________________________________ Sub: ____________________________________________ -Pell Grant ___________________________________________ Unsub: ____________________________________________ -WIG ___________________________________________ Grade Level:_________ First-Time Borrower: Y or N -WIA ___________________________________________

-Pathways ___________________________________________ Loan Worksheet: ________________________ -TAA ___________________________________________ Contacts List: ________________________

-Rehab ___________________________________________ Entrance Loan Counseling: ________________________ -Other ___________________________________________ Master Promissory Note: ________________________

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NSLDS

www.nslds.ed.gov

View information about every loan you have ever

had, including:

Lender/Servicer contact information

Amount of loan

Amount of interest accrued to date

When you received this loan

KNOW WHO YOU OWE AND

HOW MUCH

and

……WHERE ARE

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NSLDS

Click on the numbers

beside each loan to view

Loan Details.

This is also one of

the pages you will

need to print out for

your homework.

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NSLDS

Here you can see details

about your loan,

including contact

information for your

Lender.

It is very important

to know who you

owe and how much!

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Common Servicers

Get your student account set

up with your servicer NOW!!

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Entrance Counseling

www.studentloans.gov

log in, then click “Complete

Entrance Counseling”

A requirement for student loans

Explains:

borrower responsibilities

interest rates

grace periods

when to pay

how much you’ll pay

how/why to go into deferment or forbearance

what happens if you don’t pay (default)

Takes about 30-45 minutes

Log in with your

name, SSN, DOB,

and PIN from FAFSA

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Master Promissory Notes

www.studentloans.gov

log in, then click “Complete

Master Promissory Note”

A legal document!

When you sign it, you promise to repay your loan(s)

and any accrued interest and fees.

It includes the terms and conditions of your loan.

It is required!

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Borrower Responsibilities

It is your responsibility to contact your loan servicer and your school if

you:

Change your name, address, or phone number

Stop attending school or drop below half-time enrollment

Graduate

Fail to enroll at the school that determined you were eligible to receive your loan

Do not enroll at least half time for the loan period certified by your school

Transfer to another school

You must complete exit counseling before you withdraw, graduate, or

drop below half-time attendance (regardless if you plan to transfer to

another school), regulations require that you complete an exit counseling

session. When BRTC contacts you to do this, DO NOT IGNORE it.

Also, if you transfer to another school, you may have to redo the counseling

for each school. The counseling session provides information about how to

manage your student loans after college.

KNOW WHO YOU OWE AND HOW MUCH and Where you are

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Grace Period

Begins when you graduate, withdraw, or drop to less than

half-time status

You only get one, and it only lasts 6 months.

You will receive your repayment obligation, which

includes:

Date payments are to begin

(Payment is expected even if you do not receive a payment booklet or

monthly statement.)

Monthly payment amount

Repayment terms

Current principal balance

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Things That Affect Eligibility for

Financial Aid at BRTC

Completed Financial Aid file- do the FAFSA

www.fafsa.ed.gov

Submitting ALL required documents to BRTC Financial Aid Office.

Financial Aid Office will notify you by mail of missing documents and then you

must remember to submit them to us. This may be veiwed on

Campus Connect under the “Review Aid” option.

Previous attendance at other

institutions-

Must have ALL official transcripts from previously attended schools before

Financial Aid awards will be approved

Satisfactory Academic Progress-(SAP) -- maintaining a 2.00 term &

cumulative GA and completing required minimum amount of courses each

term

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SAP-REVIEW AND CHANGES

Must be enrolled in an

approved degree or

certificate program.

Must be enrolled in a

minimum of six (6)

credit hours per semester

for loan eligibility.

Minimum Cumulative

GPA is 2.00.

Maximum Hours Example:

Required Allowed Attempted Hrs

Must complete your program in

the 150% timeframe allowed for

Financial Aid

Associate

of Arts Degree

60 credit ours

90 hours

AAS

Registered

Nursing

69 credit hours

104 hours

AAS

Business

Technology

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SAP-REVIEW AND CHANGES

Must maintain and complete

the semester with the

following number of credit

hours:

To view the entire

SAP policy, see packet

provided or see our website.

Final grades for a semester of 0.00

GPA – either by “ALL F’s” or “All F’s

& W’s” – are a SUSPENSION status

An option to APPEAL the

Suspension is available ONLY IF

extenuating circumstances have

occurred. Must fully document the

circumstance for the committee to

consider for approval. APPEAL

applications are available on BRTC

website or in the Financial Aid

Office.

On 11

th

day of

enrollment

Must Complete

12 or more

9

6-8

5

1-5

All attempted

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Budget Allocation of Awards

Cost of Attendance Budget determines your loan amount

available. Your TOTAL aid package may not exceed your

cost of attendance.

Example:

$6, 800 budget for each semester - Fall/Spring

- 2, 865 Pell for full time status/semester

- if qualified for maximum Pell award/amt could be less

-

1,000 AR Challenge Scholarship each term

-

2,250 Sub loan each term

(sophomore level loan)

-

685 Unsub loan each term

$ 0 need remaining

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PELL Lifetime Limits

Federal guideline-600% Pell allowed

6 years of full-time Pell

For years 2009-10 & 2010-2011, the regs were different

for Summer Pell – you may have used extra those years

Review your Pell used on

www.nslds.ed.gov

Do not take unnecessary classes (like let’s take this one

so I can get full pell) and

Conserve your Pell refunds (FREE MONEY)……SAVE it

for Bachelor’s program, if able. Use your Pell refund

wisely!

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150% Time Limit

on Subsidized Loans

You have LIFETIME Limit on borrowing Subsidized Loans!

Maximum eligibility period to receive Direct Subsidized Loans

There is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized

Loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your

program. This is called your “maximum eligibility period”. You can usually find the published length of any program of

study in your school’s catalog.

For example, if you are enrolled in a 4-year bachelor’s degree program, the maximum period for which you can

receive Direct Subsidized Loans is 6 years (150% of 4 years = 6 years). If you are enrolled in a 2-year associate degree

program, the maximum period for which you can receive Direct Subsidized Loans is 3 years (150% of 2 years = 3

years).

Your maximum eligibility period is based on the published length of your current program. This means that your

maximum eligibility period can change if you change programs. Also, if you receive Direct Subsidized Loans for one

program and then change to another program, the Direct Subsidized Loans you received for the earlier program will

generally count against your new maximum eligibility period.

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150% Time Limit

on Subsidized Loans

(continued)

Periods that count against your maximum eligibility period

The periods of time that count against your maximum eligibility period are periods of enrollment (also known

as “loan periods”) for which you received Direct Subsidized Loans.

For example, if you are a full-time student and you receive a Direct Subsidized Loan that

covers the fall and spring semesters (a full academic year), this will count as one year

against your maximum eligibility period.

If you receive a Direct Subsidized Loan for a period of enrollment that is shorter than a full academic year, the

period that counts against your maximum usage period will generally be reduced accordingly.

For example, if you are a full-time student and you receive a Direct Subsidized Loan that

covers the fall semester but not the spring semester, this will count as one-half of a year

against your maximum eligibility period.

With one exception, the amount of a Direct Subsidized Loan you receive for a period of enrollment does not

affect how much of your maximum eligibility period you have used. That is, even if you receive a Direct

Subsidized Loan in an amount that is less than the full annual loan limit, that lesser amount does not reduce

the amount of your maximum eligibility period you have used. The one exception applies if you receive the full

annual loan limit for a loan period that does not cover the whole academic year. In that case, the loan will

count as one year against your maximum eligibility period regardless of your enrollment status (half-time,

three-quarter time, or full-time).

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150% Time Limit

on Subsidized Loans

(continued)

Regaining eligibility for Direct Subsidized Loans

If you become ineligible for Direct Subsidized Loans because you have received Direct

Subsidized Loans for your maximum eligibility period, you may again become eligible to

receive Direct Subsidized Loans if you enroll in a new program that is longer than your

previous program.

If you regain eligibility to receive additional Direct Subsidized Loans because you enrolled a

program that is longer than your prior program and you previously became responsible for

paying all of the interest that accrues on your Direct Subsidized Loans, we will pay the

interest that accrues on your new loans..

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Multiple Disbursements

ALL student loans will be made in multiple

disbursements each semester

-2 equal disb’s for Fall

2 equal disb’s for Spring

2 equal disb’s for Summer

(1 in Summer I /1 in Summer II)

*** Disbursement Date Schedules are always posted on the FA page of BRTC website ***

Will not get full amount all at once.

Loans and Pell are based on ATTENDANCE. If you do not

attend, you will not earn the funds.

If you take the funds and did not earn them…….you will owe a

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Repaying Your Loans

1

1

The estimated payments were calculated using a fixed interest rate of 6.80%.

2

This repayment plan is available only to borrowers who have an outstanding balance on Direct Loan Program loans that exceeds $30,000, and who had no outstanding

balance on a Direct Loan Program loan as of October 7, 1998 or on the date they obtained a Direct Loan Program loan on or after October 7, 1998.

3

These amounts are fixed, rounded to the nearest dollar, and calculated based on a 25-year repayment term.

4

This is your beginning payment, which may increase during your 10-year repayment term.

5

Assumes a 5% annual income growth (Census Bureau).

6

The estimated payments were calculated using the formula requirements in effect during 2006.

7

HOH is Head of Household; assumes a family size of two.

You can also estimate what your monthly loan payments will be after you graduate by using our

repayment calculator

.

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Student Loan Repayment

Income-Based Repayment (IBR)---

A repayment plan available to a

borrower who has partial financial hardship. The IBR monthly payment

amount is determined by income, family size, and applicable loan debt

and may be adjusted annually depending on these factors.

Income-Sensitive Repayment---

Payments are based on a percentage

of your gross monthly income but must cover the interest that accrues

each month.

Income-Contingent Repayment (ICR)---

Eligibility is based on

income (or combined income with spouse, if married), family size, and

total federal Direct Loan debt.

Loan Consolidation

Reduce your monthly payments by extending your repayment period.

Combine all of you student loans with various lenders into one monthly payment.

Benefit from a fixed interest rate.

Do your homework to determine what repayment option is most beneficial for you!

Go to www.Studentloans.gov and click Complete IBR/Pay as you earn/ICR Repayment

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Student Loan Forgiveness

Loan Forgiveness Programs

Loan forgiveness programs promote employment in certain fields by forgiving part or all of

you loan debts, provided you fulfill certain work-related requirements.

Federal Loan Forgiveness Programs

Teacher Loan Forgiveness Program – 5 years - $5,000 or $17,500

Public Service Loan Forgiveness Program – 10 years – remaining principal & interest

Federal Employee Student Loan – Minimum 3 years required service – up to $10,000

annually – up to $60,000 maximum

State loan forgiveness programs vary. Please check with the

individual state

.

*** For Arkansas residents, you may go to

ADHE.edu

and inquire the detail of a loan

forgiveness program.

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WHAT IS DELINQUENCY??

Delinquency

Failing to make your scheduled monthly loan payments will negatively

affect your credit.

Late payments stay on your credit history for 7 years.

Your lender, loan servicer, and school will begin contacting you via

letters and phone calls, which will continue until you resolve the

delinquency.

KNOW WHO YOU OWE AND HOW MUCH

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WHAT IS DEFAULT???

Default

If a loan remains delinquent, you will default. If you default, the entire unpaid balance and any

accrued collection fees on the applicable loans will become immediately due and payable.

Consequences of default may include any or all of the following

:

Damage to your credit rating

Garnishment of your wages

Legal action against you

Collection charges (including attorney fees) being assessed against you

Loss of deferment eligibility

Loss of your professional license

An increase in the interest rate on your loan

Withholding of your federal and state income tax refunds

Loss of eligibility for state and federal financial aid

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Can’t make your payment?

If you're having trouble making payments on your loans, contact your loan

servicer or your school loan advisors

(Drew Garland, BRTC Default Management

Coodrinator)

as soon as possible to discuss options that may help you.

Options include:

Changing repayment plans

Deferment

, if you meet certain requirements (for example, if you are unable to find

full-time employment, or are experiencing an economic hardship). A deferment allows you to

temporarily stop making payments on your loan.

Forbearance

, if you don't meet the eligibility requirements for a deferment but are

temporarily unable to make your loan payments. Forbearance allows you to temporarily stop

making payments on your loan, temporarily make smaller payments, or extend the time for

making payments.

If you stop making payments and don't get a deferment or forbearance,

your loan could go into default, which has serious consequences!

You must be aware that a deferment or forbearance is for

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Deferment Criteria

Types of Deferment

In-School

Graduate Fellowship

Rehabilitation Training

Program

Unemployment

Economic Hardship

Military

Length of Deferment

No time limit

No time limit

No time limit

Up to 36 months

Up to 36 months

No time limit

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Forbearance Criteria

Discretionary Forbearance

For discretionary forbearances,

your lender decides whether to

grant forbearance or not.

You can request a discretionary

forbearance for the following

reasons:

Financial hardship

Illness

Mandatory Forbearance

in a medical or dental internship or

residency program & meet

requirements

Total owed is 20% or more of your total

monthly gross income

National service position which you

received a national service award

Teaching service that qualifies for

teacher loan forgiveness

Qualify for partial payment under U.S

Department of Defense SLRP

National Guard but not activated by

governor, but not eligible for a military

deferment

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Financial Literacy

Come to the financial aid office for additional

information on Pell and Loans.

Prepare yourself for repayment!

Start making a habit of good finances now by making

better financial decisions regarding your student loans.

Set a budget and stick to it.

Plan your educational goals and be looking at what your total student

loans may be when completed.

Do not get loans just to support you and your family!

KNOW WHAT YOU ARE DOING HERE AND PLANS FOR FUTURE

KNOW WHO YOU OWE AND HOW MUCH!!

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Resources

www.nslds.ed.gov

www.direct.ed.gov

www.studentloans.gov

www.npcc.edu/FinancialAid/fa_conditions.htm

http://www.consumerfinance.gov/payingforcollege/costcomp

arison/

http://www2.ed.gov/offices/OSFAP/DirectLoan/BudgetCalc/

budget.html

http://studentaid.ed.gov/PORTALSWebApp/students/englis

h/IBRPlan.jsp

https://studentloans.gov/myDirectLoan/viewSamplePaymen

tsTable.action

www.discoverar.net

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R E M E M B E R : Y O U A R E O U R S T U D E N T E V E N I F

Y O U G O T O A N O T H E R S C H O O L O R S T O P

A T T E N D I N G . W E A R E H E R E T O H E L P Y O U !

Questions about your LOANS?

Drew Garland

Default Management Coordinator

Pocahontas Campus

drew.garland@blackrivertech.edu

(870) 248-4000, Ext. 4022

For

For other Financial Aid questions, contact the BRTC Financial Aid Office @ (870) 248-4000.

Misty Bradley

Misty.Bradley@blackrivertech.edu

Ashley Conrey

Ashley.Conrey@blackrivertech.edu

Jenny Weaver

Jenny.Weaver@blackrivertech.edu

(Paragould Campus)

Figure

Updating...

References

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