Financial Aid FAQ for Undergraduates
Q. Do I have to file loans every year? When are the deadlines?
A. Yes. The deadlines are posted each year.
Q. What determines what type of loan I will receive?
A. The type and amount of loans is based on financial need. Financial need is computed by determining the educational costs (tuition and fees, room and board, books and supplies, and a personal allowance) less family contribution (based on federal and institutional formulas). The difference between these is the need for financial assistance.
Q. What are some of the mistakes people make about financial aid?
A. Four of the most common are:
- Not applying early enough
- Not reading the instructions
- Not fully completing the applications
- Not using the correct Social Security number
Q. Why does my federal award change each year?
A. At the Graziadio School, eligibility for financial aid is based on federal and institutional estimates of your family's ability to contribute to the cost of education. Keep in mind that your award is likely to change each year for one or more of the following reasons:
- The cost of education will go up.
- Your family's income may change.
- The number of people in college in your family may change.
Q. Once I have filed my Free Application for Federal Student Aid (FAFSA), how do I know it has been processed? How can I verify that the Graziadio School
will receive the results?
A. About four weeks after you have filed your FAFSA, you should receive a multiple-page Student Aid Report (SAR). This is verification that you filed the FAFSA and that it has been processed. Check to make sure Pepperdine's Graziadio School is one of the schools listed in Section H. Questions about FAFSA processing can be directed to the Federal Student Aid Information Center at (319) 337-5665.
Q. My Student Aid Report (SAR) is not accurate. Do I need to correct it?
A. Yes. Students who want corrections sent to schools other than the Graziadio School which are listed on the SAR should process the corrections through the Federal Student Aid Information Center at (319) 337-5665. Students who are concerned only with the Graziadio School receiving corrections can submit the corrected SAR directly to the Graziadio School.
Q. The Graziadio School isn't listed on my SAR. Is there any way the Graziadio School
can request the record?
A. Yes. If you give us the DUN number listed on the SAR, we can get a copy of it electronically.
Q. How much CAN I borrow?
A. Cost of attendance less any other financial aid (grants, scholarships).
One loan period generally covers two terms and is delivered in two disbursements. Consider origination fees when estimating the amount to borrow. Loan disbursements are sent directly to the school via Electronic Funds Transfer (EFT).
Q. How much SHOULD I borrow?
A. Please use the Loan Amount Estimator.
Q. What kinds of loans are available?
A. We offer Federal Stafford Loans and Alternative Education Loans.
Q. What is a Stafford Loan?
A. The Federal Stafford Loan is a loan provided by private lenders and guaranteed by the federal government. Interest rates are low.
Q. What is the difference between the Subsidized and Unsubsidized Stafford Loans?
A. With the Subsidized Stafford, the interest is paid by the government while you are in school. The interest on the Unsubsidized Stafford is not paid by the government while you are in school. You have the option of paying the interest or deferring it on the Unsubsidized Stafford until after you graduate, at which time it will be added to the principal of the loan.
Q. What is EFT?
A. EFT is Electronic Funds Transfer, which is used by lenders to transfer loan proceeds from the lenders to the schools without the need for individual checks. This method of disbursing loan funds does speeds up the time between receiving funds in the Financial Aid Office and the student actually having access to the funds. Using EFT eliminates the need for endorsing loan checks at registration or at the Student Accounts Office.
Q. It's likely I will have to borrow every year to pay for my college expenses. How
much should I borrow so that I know I can afford to pay it back?
A. Planning ahead is essential to managing debt. If you plan to borrow each year you are in school, estimate the total amount you will borrow. Then use a sample loan repayment table to calculate how much you will have to pay each month. To decide how much to borrow, you can use the criteria lenders use when they consider an applicant's ability to repay: The total monthly payment for all student loan debts should not exceed 8% of your gross monthly salary.
Q. What happens to my financial aid if I drop all my classes for the term?
A. Withdrawal from all classes on or prior to completing 60% of the term may result in losing eligibility to keep the full amount of the disbursed federal funds. The Graziadio School returns unearned Title IV funds (Direct Stafford Loan Program, Federal Perkins Loan Program, Federal Direct PLUS and Graduate PLUS programs, Federal Pell Grant Program, Federal Supplemental Education Opportunity Grant Program) as stated in Federal Regulations, 34 CFR parts 668, 682, and 685, Return of Title IV Aid. All unearned financial aid funds will be returned and might result in unpaid school charges. The refund amount is determined by Federal Return of Title IV Funds Program calculations. Any additional information regarding return of federal funds can be obtained from the Financial Aid Office.
Federal Direct Unsubsidized Stafford Loan
Federal Direct Subsidized Stafford Loan
Federal Direct PLUS or Graduate PLUS
Federal Plus Loan
Federal Pell Grant
Federal Supplemental Educational Opportunity Grant
Student who complete more than 60% of the term do not lose eligibility for disbursed federal funds.
The withdrawal date is is the date the student notifies the respective Program Office regarding his or her withdrawal from the trimester or from the University.
Q. Why isn't my loan for the full amount I was awarded?
A. Federal regulations require that schools disburse no more than one-half of the loan for each term of the two-term loan period. The second half of the loan can then be disbursed at the beginning of the next trimester. In the case of one-term loans, the second disbursement may not be made until halfway through the trimester.
Q. What about the fees that are taken from my loan funds?
A. Each portion of your loan check will have fees deducted from it. An origination fee goes to the U.S. Department of Education to help offset program costs.
Q. I am applying for a loan for the final trimester of my program. Why can't I get
the full amount I have requested?
A. If the budget for one term is less than the loan amount you applied for, you can only receive the amount equal to the budget. Refer to Sample Budgets.
Q. How do I repay my loans if my educational or career plans change or something happens
to my job after I am out of school?
A. A change in career goals, the loss of a job, or other unexpected changes in your situation could make repaying your loan more difficult than you expected. In some cases, and at the lender's option, you may be permitted to temporarily stop making your payments or your lender may accept smaller payments than scheduled. This is called a forbearance. In addition, for some loans, you may defer repayments temporarily which may help. The promissory note for each loan you borrow outlines the specific terms under which you may be granted a deferment.
Q. What happens if I do not pay back my loan?
A. Not paying back your student loan can have serious consequences. If you go into default, your lender can require you to repay the entire amount immediately, including all interest plus collection and late payment charges. The lender can sue you and can ask the federal government for help in collecting from you. The Internal Revenue Service may withhold your income tax refund and apply it toward your loan. You cannot get any additional federal student aid until you make satisfactory arrangements to repay your loan. Also, the lender will notify credit bureaus of your default. This may affect your credit rating which will make it difficult to obtain any future type of credit, for example: credit cards, home mortgages, and/or car loans.
Q. If I borrow from more than one loan program, I may have to pay several different
lenders at the same time. May I consolidate my payments?
A. If you have borrowed from more than one type of loan program, you may be able to consolidate some of the loans and use one payment plan to repay the loans. In general, federal loans may be consolidated into one new loan at an interest rate of the weighted average of the original interest rates of the loans being consolidated. The length of the extension depends on the total amount of the loans consolidated. Alternative education loans such as Signature Loans, Private MBA Loans, or CitiAssist Loans are not eligible for consolidation.
Q. How can I find out about my credit history?
A. Since approval of some non-need-based student loans is based upon credit history, you may want to order a credit report if you will need these loans to finance part of your family share. Check the report closely for accuracy and resolve any erroneous information prior to applying for education loans. The following agencies can provide you with a credit report: Equifax Credit Information Services, (800) 685-1111; TRW Consumer Assistance, (800) 682-7654; Trans Union Corporation, (601) 933-1200.