Student Financial Aid

In order to receive federal or state financial aid, students must file a Free Application for Federal Student Aid (FAFSA) each year and be making satisfactory academic progress as defined in this Catalog. (A FAFSA is required for each applicant. When more than one student from the same family plans to attend college, a FAFSA must be filed yearly for each student. To file the FAFSA, go online at http://www.fafsa.ed.gov/. Financial assistance is awarded without regard to race, color, sex, religion, sexual orientation, or politics.

NOTE: Information about the various types of financial aid is subject to change when federal regulations change. Please see the explanation of Graceland's Refund Policy for charges and for return of federal, state and institutional aid.

Table of Contents

Evaluating Financial Need
Procedures in Applying for Financial Aid
Renewal of Financial Assistance
Types of Financial Aid
Financial Aid - Graduate, Distance and Online Programs

Evaluating Financial Need

Students applying for federal and state financial aid must file a Free Application for Federal Student Aid (FAFSA) to determine financial need. Indicate on the FAFSA that you want the results of this analysis sent to Graceland University, code #001866.

When documents are received, all related factors in combination with this analysis are considered in granting aid and an award letter is sent to the student.

 

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Procedure in Applying for Financial Aid

The Free Application for Federal Student Aid (FAFSA) should be submitted at least 3 weeks after electronically filing taxes. All Financial Aid processes must be completed 2 weeks prior to the start date of the classes. Any student who has not completed their Financial Aid processes before the 2 week deadline will need to secure their classes with an alternate payment method until Financial Aid is completed.

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Renewal of Financial Assistance

All forms of financial assistance are granted for a period of one academic year providing the student is making satisfactory academic progress at the beginning of each term. Students who wish to receive assistance in subsequent years must file the Free Application for Federal Student Aid (FAFSA) each year so that their eligibility may be reviewed annually.

Returning students may file a renewal FAFSA online at http://www.fafsa.ed.gov/. Renewal of most types of financial aid is based upon continuing financial need and academic achievement.

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Types of Financial Aid

Federal Perkins Loans: Loans are provided to students who show exceptional financial need, have filed a FAFSA and are making satisfactory academic progress. The loan funds are “reasonably available” to all students who meet the federal eligibility requirements. The repayment period is up to ten years at an interest rate of five percent per annum, and begins nine months after the student ceases to be enrolled at least half-time as a regular student. Payments are to be made monthly, but may be deferred during periods when the borrower is pursuing at least a half-time course of study at an institution of higher education, and during other periods described in the regulations. Additional benefits of partial or complete loan cancellation are available to those who enter certain areas of service, relative to the regulations in effect at the time the promissory note is signed. Examples are full-time teaching service with the handicapped or special education students, Head Start, or in designated low-income school districts published in a federal directory; law enforcement; nursing (loans issued after 7/23/92 only), and other specified areas.

TEACH Grant: The Teacher Education Assistance for College and Higher Education (TEACH) Grant Program provides grants of up to $4,000 per year to students who agree to teach a high need field in a public or private elementary or secondary school that serves students from low-income families.  As a recipient of a TEACH Grant, you must teach for at least four academic years within eight calendar years of completing the program of study for which you received a TEACH Grant. IMPORTANT: If you fail to complete this service obligation, all amounts of TEACH Grants that you received will be converted to a Federal Direct Unsubsidized Stafford Loan. You must then repay this loan to the U.S. Department of Education. You will be charged interest from the date the grant(s) was disbursed. Note: TEACH Grant recipients will be given a 6-month grace period prior to entering repayment if a TEACH Grant is converted to a Direct Unsubsidized Loan. Application is made by completing the Free Application for Federal Student Aid (FAFSA) and signing the TEACH Grant Agreement to Serve and completing the counseling.  The student must meet certain academic achievement requirements (generally, scoring above the 75th percentile on a college admissions test or maintaining a cumulative GPA of at least 3.25). The student must maintain satisfactory academic progress.

William D. Ford Direct (Unsubsidized) Student Loan Program: Borrowing is subject to annual and aggregate loan limits. Borrowers begin repaying loans six months after ceasing at least half-time enrollment in postsecondary education, unless borrower qualifies for deferment. Cancellation of loans is available for employment in certain designated fields, under certain conditions. This is a loan from the federal government. While eligibility for the subsidized Direct Loan requires proof of financial need, financial need is not a consideration for the unsubsidized Direct Loan. The student must file a Free Application for Federal Student Aid (FAFSA) annually to determine eligibility for participation in this program, and be enrolled at least half-time. The fixed interest rate is 6.8% for unsubsidized loans, first disbursed between July 1, 2012 and June 30, 2012. The interest rate is determined on July 1st for the succeeding academic year. Borrowers of a Direct Loan are charged a 1% loan origination fee, which will be subtracted from the loan proceeds at disbursement.  Graduate and professional students may borrow up to $20,500 per year, if the student’s cost of attendance allows,

Federal Direct Unsubsidized Loan only: Repayment on the principal amount of the loan does not begin until six months after the student leaves school or drops below half-time status, BUT the student is responsible for the interest from the date of the last disbursement of the loan. The student may pay the interest monthly or quarterly, or may defer interest payments during school or the six-month grace period. Arrangements for payment are made by the student with the Department of Education.

William D. Ford Federal Direct Graduate PLUS Loan (for graduate students): The Federal Direct Grad PLUS Loan is available to graduate students who file a FAFSA. Graduate students may borrow up to the cost of attendance minus other financial assistance received. Graduate students are encouraged to utilize their Federal Direct Stafford Loan eligibility prior to borrowing Federal Direct Grad PLUS Loans. The interest rate is fixed at 7.9% with interest accrual beginning at disbursement. Repayment of principal and interest begins after the six month grace period. The U.S. Department of Education charges a 4.0% loan origination fee which will be subtracted from the loan proceeds at disbursement. Depending upon the amount borrowed, parents may have up to 10 years to repay.

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Financial Aid - Graduate, Distance and Online Programs

Graceland offers undergraduate and graduate degree programs through a variety of delivery methods including off-campus classroom, on-line and correspondence, and sometimes a blended model of two or more methods. All of these degree programs are eligible for financial aid, either Title IV federal student aid or private loans. Graceland University has chosen to establish a reasonable tuition rate rather than offer institutional aid for these degree programs.

To apply for Title IV federal student aid, students must file a Free Application for Federal Student Aid (FAFSA) as described in the Student Financial Aid section of this catalog.

To establish eligibility for private loans, students apply directly to the lender of choice. Graceland's Financial Aid Advisors can assist with this process.

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