- Student Responsibilities
- Student Employment Terms & Conditions
- Federal Direct & Perkins Loans Terms & Conditions
- Satisfactory Academic Progress
- Financial Aid Consortium Agreements and Study Abroad
- Important Financial Aid Updates for 2012-2013
- Important Financial Aid Update for 2013-2014
I understand the financial aid office reserves the right to review or modify my award in determination of my eligibility at any time due to changes in my status, inaccuracies in information in my records, or because of availability of funds. I understand that any form of aid offered through the college is made in good faith. Aid, however, may be canceled or reduced if funds become unavailable.
I understand that I must notify the financial aid office of any changes in my status with respect to the receipt of additional educational funding from other sources. This includes scholarships, tuition waivers, agency benefits and third-party payments. I must notify (in writing) the University Registrar or local campus official of any changes in name or address, enrollment status or major program of study. I understand these changes may result in an adjustment to my financial aid award.
I understand that I am required to be enrolled in an eligible degree, diploma, or certificate program offered by the college. I also understand I must be enrolled for a minimum number of credits in order to receive financial aid funding. Financial aid may be reduced based on the number of credits for which I am enrolled.
I understand that I must maintain satisfactory academic progress as defined in the financial aid Satisfactory Academic Progress policy.
I understand if I receive an overpayment of funds, withdraw, drop or stop attending class I may be subject to repayment of financial aid funds. A portion of the tuition refund will be returned to the appropriate financial aid fund or to the lender if funds were received through the Federal Stafford Loan programs. I understand I am responsible for reading and understanding the financial aid Policy on Return of Title IV Funds.
I also understand and agree that the college has the option of withholding grade reports and transcripts if any repayment remains unpaid.
Typically, student aid disbursements are credited to student accounts by the Business Office in the third week of each semester. Understand that in order for these funds to post to your account you must continue to meet all of the eligibility requirements (i.e.// enrolled for the number of credit hours upon which your award was determined, maintain Satisfactory Academic Progress, etc.) Additionally, you may need to sign a Promissory Note before loan funds will be sent to the university. The Business Office will process, and make available to you, any subsequent credit balance on your account within 10 business days.
In the event that a student's application for financial aid is not completed prior to the start of the term, disbursements will be scheduled shortly after the date on which the Financial Aid Award letter is developed and mailed to the student. In this case the actual disbursement date may well be beyond the second or third week of the semester depending upon when the application for financial aid was completed.
Federal regulation requires us to schedule at least two disbursement dates for each loan that we certify. Normally, the first is scheduled so that funds can be applied to the student's account on the first day of the second week of the school term, which begins the loan period. The second is scheduled for at least halfway through the loan period. Realize also that your lender will deduct origination and processing fees from your loan disbursements before remitting them to the university. These fees normally total approximately four percent of the principal amount.
There are two methods by which your lender may send student loan funds to Webster University. The first method is to send a check co-payable to the borrower and the school. This requires both borrower and institution endorsement in order to negotiate the check. The second method is a process called Electronic Funds Transfer (EFT). Under this arrangement money is wired into a university account and does not require endorsement. Note that students must provide their authorization for the school to utilize EFT and that this can be done on the loan application itself. Furthermore, not all lenders can or will provide this service to their customers. Please refer to the recommended lender list for those banks that have agreed to provide EFT service to their Webster borrowers. This list is included in the application packet.
Regardless of the method by which student loan funds are disbursed, the school has a very limited amount of time to process this for you. You must be registered properly and be making satisfactory academic progress before we can process your loan funds. You must endorse your check, and Webster must deposit your check within this time frame. Because of the mail time required to deliver these disbursements to extended campuses, we strongly recommend that you consider using a lender which has agreed to participate in EFT with Webster.
Deferment of fees may be arranged with the Business Office for Stafford and PLUS loans that have been processed; however, students should arrive with sufficient funds to cover the cost of their books and personal expenses for the first 30 days of the semester.
When does payment begin?
- For Subsidized Stafford Loans, repayment of principal and interest begins six months after you leave school or fall below half-time hours.
- For Unsubsidized Stafford Loans, repayment of principal begins six months after you leave school or fall below half-time hours. Interest begins accruing immediately.
- For PLUS Loans, repayment begins immediately after disbursement of funds. Parents must check with their lender to obtain information on repayment procedures.
A financial aid consortium agreement is an arrangement between two schools that participate in the federal student aid programs. If a student enrolled at one of the schools wants to take classes at the other school, a consortium agreement is necessary to determine how that student's aid will be processed. The following definitions are important to understand regarding consortium agreements:
- Home school: The school where the student is enrolled in a degree program.
- Host school: The school where the student is taking part of his or her program requirements.
The home school typically processes aid and assumes responsibility for compliance with governing federal regulations. When the student aid funds arrive at the home school they are forwarded to the host school.
Webster University will participate in financial aid consortium agreements as the host school but two conditions must be met in order for us to participate as the home school. Those conditions are:
- The coursework is required for the student's degree program and there are no other substitutes.
- The coursework is not offered by Webster University.
Webster University students that wish to study at another eligible institution should submit a letter of appeal requesting a consortium agreement to their Financial Aid Counselor. This appeal should demonstrate that the conditions cited above have been satisfied. In the event that the conditions listed above cannot be met, students may wish to contact their Financial Aid Counselor for information on private loans that do not require school certification as an alternative to a consortium agreement.
Students that wish to take coursework at an institution that does not participate in the federal student aid programs will need to work out arrangements with several offices to do so. Federal regulations require:
- that the university establish a contractual relationship with the ineligible school
- that the credits earned at the ineligible school or study abroad program must be acceptable toward graduation at the home school
- that no more than 25% of the degree program can be taken at the ineligible school without written confirmation from the home school's accrediting agency that the arrangement meets its standards for contracting out educational services
- that the student be enrolled at the home school
- that the home school approve the program of study abroad for academic credit
Students that wish to study abroad at a school that is ineligible for federal student aid should plan for this well ahead of the term they wish to do so. Private loans that do not require school certification are another option to consider as a funding source for Study Abroad in the event that the requirements cited above cannot be fulfilled.
- The federal government is eliminating its subsidized loan program for graduate students. This change will impact loans with a start date on or after Fall 1 2012. Loans for graduate students that start in Summer 2012 will not be affected. Please note that total loan eligibility through the Federal Direct Loan program will remain unchanged and the maximum annual loan amount will still be $20,500.
- Students selected for verification by the federal processor in 2012-2013 must supply income documentation from the IRS. Copies of federal income tax returns are no longer acceptable. Documentation can be obtained in one of two ways:
- Request an IRS tax return transcript and forward it to the Financial aid office. To request a tax return transcript, you will need to complete IRS form 4506-T or call the IRS at (800) 829-1040.
- Use the IRS data retrieval tool when completing the FAFSA, or to update your FAFSA after being selected for verification.
- The Satisfactory Academic Progress (SAP) policy changed in 2011-2012 and will impact students following the conclusion of the Spring 2012 semester. Students will no longer be placed on probation after failing SAP requirements. Please review the SAP policy for information about the financial aid office's SAP policy.
Please note that the Satisfactory Academic Progress policy applies to both undergraduate as well as graduate students.
Important Financial Aid Updates for 2013–2014
United States Department of Education releases sequestration update regarding Federal Direct Loan fees on Friday, April 5, 2013. The loan fee for Direct Subsidized Loans and Direct Unsubsidized Loans is increased from 1.0 percent to 1.051 percent and the loan fee for Direct PLUS Loans is increased from 4.0 percent to 4.204 percent. According to the U.S. Department of Education, Direct Subsidized Loans, Unsubsidized Loans and Direct PLUS Loans (for both parent and graduate student borrowers) the increased loan fee percentages required by the sequester must be applied to any loan disbursement for which the first disbursement of the loan will be made on or after July 1, 2013. The date of the first disbursement is the determining factor of the loan fee amount, not the loan period.
Friday, August 9, 2013, President Barack Obama signed into law the student loan interest deal. The interest rates for the Federal Direct Loan Program for 2013-2014 originated on or after July 2013 to June 30, 2014 are as follows:
- Undergraduate Students
- Direct Subsidized Loans – 3.86%
- Direct Unsubsidized Loans – 3.86%
- Graduate Students
- Direct Unsubsidized Loans – 5.41%
- Direct PLUS Loans – 6.41%
- Parents Direct PLUS Loans – 6.41%
United States Department of Education releases sequestration update regarding Federal Direct Loan Fees on October 1, 2013. The loan fee for Direct Subsidized Loans and Direct Unsubsidized Loans is increased from 1.051 percent to 1.072 percent and the loan fee for Direct PLUS Loans is increased from 4.204 percent to 4.288 percent. According to the US Department of Education, Direct Subsidized Loans, Unsubsidized Loans and Direct PLUS Loans (for both parent and graduate student borrowers) the increased loan fee percentages required by the sequester must be applied to any loan disbursement for which the first disbursement of the loan will be made on or after December 1, 2013. The date of the first disbursement is the determining factor of the loan fee amount, not the loan period.