Has there ever been a time in your life where you had an educational goal that you wanted to reach but felt that those goals were unattainable due to personal financial reasons? Time and time again, students who are capable of attending and succeeding at their trade school of choice give up on the idea of continuing their education and expanding their knowledge due to financial hardships. As far as they are concerned, money creates obstacles and shuts down opportunities.
Before you knock those opportunities away and decide that you can’t afford your trade school of choice, take a few minutes to reconsider and find out what sources of aid is available to you.
There is a Financial Aid Officer (FAO) here at the Fab School who can assist you in applying for federal student aid. Any questions you may have regarding policies, procedures, Federal rules and regulations, should be forwarded to the Financial Aid Officer. You can reach the Financial Aid Officer on the number made available on the Fab School website (
www.thefabschool.com
).Eligibility Requirements for Federal Financial Aid include the following:
Students must be a U.S. citizen or an eligible noncitizen. Acceptable visas would be the I-551 or I-94, if it is stamped “Refuge,” “Indefinite Parole,” “Asylum Granted”, or “Cuban-Haitian Entrant”. If you have another visa type, the financial aid officer will be able to help you in determining whether or not you are eligible.
Student must have a valid Social Security number.
Student must be enrolled in an eligible program of study.
Student must possess a high school diploma or general education development (GED) credential or prior to July 1st, 2012, have met the Ability to Benefit (ATB) testing admission requirements consistent with The Fab School policies.
Student must not be in default on any Federal student loans or owe money on any Federal student grant.
Student can’t be enrolled in elementary or secondary school.
Student must meet the enrollment requirements.
Student must meet Satisfactory Academic Progress (SAP.)
Student must register for Selective Service if you are male, at least 18 years old and born after 12/31/1959.
Student who currently holds a Bachelor’s degree will not be eligible for Pell or FSEOG (If applicable) grants but can still apply for Federal Direct Loans or FFELP.
The Fab School takes part in federal financial aid programs such as:
FEDERAL PELL GRANT PROGRAM
The Federal Pell Grant is a need-based grant that generally does not have to be repaid. For eligible students, the Federal Pell Grant is the foundation upon which all other financial aid awards are built. Current award year amounts range up to $5,550. The amount a student may receive depends on financial need as determined by the student’s EFC, the student’s cost of attendance and the percentage of the student’s enrollment at The Fab School that is within the current federal award year.
IRAQ AND AFGHANISTAN SERVICE GRANT PROGRAM
A student who is not eligible for a Federal Pell Grant but whose parent or guardian was a member of the U.S. Armed Forces and died as a result of service performed in Iraq or Afghanistan after Sept. 11, 2001, may be eligible to receive a grant under the Iraq and Afghanistan Service Grant Program. The grant award is equal to the amount of a maximum Pell Grant for the current federal award year. Additionally, the student must be either:
Under the age of 24, or
Enrolled into college at least part-time at the time of parent’s or guardian’s death.
WILLAM D. FORD FEDERAL DIRECT LOAN PROGRAM
Federal Direct Student Loans are made by the U.S. Department of Education. Federal Direct Student Loans may be subsidized (need-based) or unsubsidized (non-need-based). Depending on financial need, students of The Fab School can receive a combination of both subsidized and unsubsidized loans each academic year. It is important that each student realizes if they chose to obtain a loan to pay for their tuition, he or she will be obligated to repay the full amount of the loan plus interest, less the amount of any refund.
SUBSIDIZED FEDERAL DIRECT STUDENT LOANS
The interest rate for new subsidized Federal Direct Student Loans first disbursed after July 1, 2012, is fixed at 3.4%. Subsidized Federal Direct Student Loans remain interest-free while the student is enrolled in school at least half-time. Loan repayment follows a six-month grace period that starts the day after the borrower graduates, drops below half-time or withdraws from school. Repayment will start at the end of the six-month grace period.
UNSUBSIDIZED FEDERAL DIRECT STUDENT LOANS
Upon completion of the financial aid application process, The Fab School recommends that the Federal Direct Student Loan amounts to be borrowed based on a student's need. A student may choose to borrow an amount up to financial need but not more than the annual maximum eligible loan amount based on student grade level and dependency status. Other terms and conditions for Federal Direct Student Loans can be reviewed online at http://www2.ed.gov/offices/OSFAP/DirectLoan/student.html/ or with the school’s Financial Aid Officer.
FEDERAL DIRECT PLUS LOAN PROGRAM
The Federal Direct PLUS Loan is designed for parent borrowers of dependent students and provides additional funds for educational expenses. PLUS loans are made by the U.S. Department of Education. Parent borrowers who apply do not have to show financial need, however they must complete the FAFSA to ensure all potential federal grant aid is first determined and will go through a credit check by the Department of Education. Currently, the interest rate for new PLUS loan is fixed at 7.9%. Interest is charged during all enrollment, deferment and forbearance periods. Repayment begins within 60 calendar days of disbursement, with deferments available under certain conditions. Federal Direct PLUS loans cannot exceed the cost of education minus other financial aid. Parents may request to borrow up to this amount. More information, including other terms and conditions, can be reviewed at
http://www2.ed.gov/offices/OSFAP/DirectLoan/parent.html/ or with the school’s Financial Aid Officer. Assistance from the federal financial aid programs are available to those who qualify. Depending on the program, student eligibility may be need-based, non-need-based, credit-based or dependent on other specific conditions. The Fab School does not participate in any state grant programs; however, The Fab School is an approved vendor recipient of third-party tuition funding from the agencies below:
Vocational Rehabilitation Services
Workforce Investment Act (WIA)
Veterans Administration
Native American Tribes
PRIVATE ALTERNATIVE LOANS
Currently, the Fab School does not participate in any private alternative loans program.
VETERANS AFFAIRS CHAPTER 33 BENEFITS GRANTS
VERIFICATION
Federal regulations that have been established through procedures state that an applicant who has applied for financial aid may get selected for verification by the U.S. Department of Education. The reason for this verification is to maintain the integrity of federal financial aid by verifying the
information provided by students and parents on the FAFSA. For those selected, The Fab School requires verification to be completed prior to the award and disbursement of federal student aid funding. If an applicant is selected for verification, The Fab School will request appropriate documentation, which may include an IRS tax transcript from the student and parent and spouse if applicable, and a completed verification worksheet. Effective in the 2012-13 award years, a copy of an IRS tax return is acceptable for verification in very limited circumstances. The Fab School must record why a copy of an IRS tax return transcript or record of account was not available and why it accepted the copy of the federal tax return; also any additional documents may be requested by The Fab School to complete the verification process. The Fab School will notify the selected student of the verification requirements and deadlines for completion of the process. Failure to consent with any document request to complete the
verification process can lead to disqualification for federal financial aid.
PROFESSIONAL JUDGMENT
The Fab School may use “professional judgment “to exercise discretion to accommodate special
circumstances with respect to some aspects of eligibility for federal financial aid. Professional judgment allows The Fab School to address each student with special circumstances individually not by the normal standard procedures. The Fab School uses professional judgment strictly on a case-by-case basis and requires precise documentation to support decisions made. Special circumstances include conditions that differentiate an individual student from a whole class of students, The Fab School will not accept professional judgments made for a student by another school, but will review the circumstances and, if appropriate, document the professional judgment decision. The decision made by The Fab School regarding professional judgment is final and cannot be appealed to the U.S. Department of Education. Where applicants have also been selected for verification, The Fab School will complete the verification before processing the professional judgment.
FINANCIAL AID AWARDING
Before any student can apply for a private non-federal loan, The Fab School requires the exhaustion of all financial aid available to the student to assist in debt management. In no case will a combination of federal, state and private aid be permitted to exceed the student’s cost of attendance as determined by The Fab School. Federal grants and loans are processed in academic year increments. An academic year is divided into two payment periods during which financial aid funds are normally disbursed. A student is generally eligible to receive funds shortly after attendance has begun during the first payment period at the beginning of the academic award year and during the second payment period after the midpoint of the academic award year. An estimated disbursement schedule is provided in an award notification. To meet eligibility standards for second and following federal aid disbursements, the student must
successfully complete both the hours attempted and the instructional weeks in the first payment period of the academic award year as well as maintain satisfactory academic progress (SAP) according to The Fab School policy. Leaves of absence (LOA) as well as course failures can postpone the timing of scheduled disbursements.
FEDERAL STUDENT LOAN COUNSELING ENTRANCE COUNSELING
The Fab School requires students who borrow through the Federal Direct Loan program to complete loan entrance counseling before their student loan disbursement. Entrance counseling generally consists of the following:
The importance of student loan repayment
‘Explanation of the use of the Master Promissory Note (MPN)
Consequences of student loans that go into default
Borrower’s rights and responsibilities
Samples of student loan repayment schedules
Other terms and conditions
EXIT COUNSELING
The Fab School requires that every student who has borrowed loans through the Federal Direct Loan program has to attend Exit counseling with the school’s Financial Aid Officer. Exit counseling will include the follow:
The importance of student loan repayment
Consequences of student loans that go into default
Borrower’s rights and responsibilities
Samples of student loan repayment schedules
Deferment and forbearance options
In addition, the Financial Aid Office is responsible to collect the following information as part of the exit counseling and provide the information to the Secretary of Education within 60 days of receipt:
Name
Address
Social Security Number
References
Driver’s License Number and State
Expected Permanent Address
Name and address of nearest relative
Name and address of the student’s employer or expected employer
