Financial Aid Handbook
Self-help aid may be need or non-need-based. Students apply for these funds by completing the FAFSA. Once awarded, the Office of Financial Aid will provide any additional paperwork that may be necessary. Self-help aid requires work for compensation or repayment of low- interest student loans. Eligibility for these programs is determined yearly and requires that the FAFSA be filed each year.
Coe's work-study program provides part-time employment primarily on campus. Awards are based upon calculated financial need as determined by information provided on the FAFSA. Need-based employment is funded by the Federal Work Study program. Students awarded Federal Work Study will be given priority in filling work-study positions.
Many students are offered employment as part of their financial aid packages. Employment awards generally range between $1,300 to $2,000 per year, with the average student working 5-9 hours per week. The wage rate is $8.25 per hour. The work-study award is not a guarantee of employment.
First-time work study students - The Office of Financial Aid manages the work study program for first-time students. All first-time Coe students who have been awarded Work Study as part of their financial aid package are eligible to apply for employment. First-time work study awardees will be emailed instructions about how to apply for a work study position by the end of June. It is important to apply for a position in order to be hired.
Students returning to their previous position - The hiring process for returning students is the responsibility of the student and their supervisor. Typically, students will be notified if they are being retained in their current position from the previous academic year. If they are not being retained, but remain eligible for work-study, they may search for positions on Handshake, accessible at coe.joinhandshake.com.
As a part of Coe's requirement for participating in the Federal Work Study program, we have established a number of community service positions. These positions include work at area non-profit agencies and in local schools. Students may apply for a community service position in Handshake.
It is not possible for Coe to make up any award that is not earned. Students may use work study earnings to cover the corresponding portion of their balance due. However, students will be required to pay any shortfall at the end of the academic year. Coe will not make up a declined work award with other aid.
Federal law requires that students complete standard federal and state employment forms (W-2, I-9) before they may begin working. The Coe Human Resources Office will make this paperwork available during Summer and Fall orientation. Forms are also available on my.coe.edu. Two forms of identification are required, generally a valid driver's license and social security card or a passport. Time sheets must be completed, signed by a supervisor and submitted to the Coe College Payroll Office for all hours worked. The first payroll month is October. Students are paid on the 10th of each month for hours earned the previous month. Work study wages are taxable income and should be included on a tax return if you are required to file. If you wish to apply your student employment earnings directly to your Coe student account to pay your tuition and fees, etc. you must complete a Student Employment Payroll Deduction form. If you want your student employment earnings to be direct deposited into your personal bank account, you must complete a Student Employment Direct Deposit form.
Federal Perkins Loans
This program was discontinued on October 1, 2017. After this date no new loans will be made.
Coe utilizes ECSI to provide loan servicing for outstanding Federal Perkins Loans. Loan servicing includes management of your loan repayments and/or forgiveness if applicable. An exit interview is required for Perkins loan borrowers graduating or ceasing enrollment at Coe. Students can complete their entrance/exit interview at www.ecsi.net.
Repayment and accrual of interest begins nine months after you graduate or drop below half- time study (half-time enrollment is defined at 2 course credits at Coe). A fixed interest rate of 5% is charged on the unpaid balance. Interest begins to accrue at the time of repayment. Deferments are available if you enter the military, volunteer service in a private nonprofit organization, VISTA, or Peace-Corps type organization, serve as an officer in the U.S. Public Health Service Commissioned Corps, serve in an internship preceding a professional practice or change schools and continue to be enrolled on at least a half-time basis.
Upon entering repayment status on your Federal Perkins Loan, certain cancellation provisions are available. The standard repayment period is 10 years. Institutions may extend the repayment period for the Federal Perkins Loan up to 10 additional years for low-income individuals. Additional details regarding repayment obligations can be found on the Federal Perkins Loan promissory note.
|Total loan amount:||Number of payments:||Approximate monthly payments:||Approximate total interest charges:||Approximate total repaid:|
Direct Loan Limits and Federal Loan Interest Rate Comparison:
|Federal Loan Program||Interest Rate*||Grace Period|
|Federal Perkins||5.00% Fixed||9 months|
|Direct Subsidized/Unsubsidized Stafford Loan||4.45% Fixed||6 months|
*Interest rate is determined annually and will apply to loans from July 1 through June 30 of the following year. Each loan will have a fixed interest rate for the life of the loan. Additional information about interest rates can be found at StudentAid.gov.
A Federal Perkins loan may be consolidated. A Federal Direct Loan Consolidation can simplify payments, but it can also result in the loss of some benefits.
Advantages of Consolidation:
- Combine multiple loans into one
- Can lower monthly payments
- Up to 30 years to repay
- Fixed interest rate
- Access to forgiveness programs such as Public Student Loan Forgiveness (PSLF) and Teacher Loan Forgiveness (TLF). See #12 below
- Access to alternative Income Driven Repayment plans such as Pay As You Earn.
Disadvantages of Consolidation:
- A longer repayment period may result in more payments and more interest
- Possible loss of some deferment and forbearance benefits
- Possible loss of some cancellation benefits
- Possible loss of grace period
- Possible loss of the interest subsidy
- Possible increase in the interest rate
There are loan forgiveness provisions under both the Federal Perkins Loan program and the Direct Loan program. There are specific repayment and forgiveness benefits available to borrowers of the Direct Loan program that are not available to Perkins Loan borrowers.
William D. Ford Federal Direct Stafford Loan
This loan must be repaid by the student. The Federal Direct Stafford (FDS) loan program allows students to borrow low-interest loans directly from the federal government. To qualify for a FDS loan, a student must file the FAFSA, be admitted to a degree or certificate program, and be enrolled at least half-time (two course credits).
There are two types of Federal Direct Stafford loans (FDS): subsidized and unsubsidized. The interest rate for both subsidized and unsubsidized loans processed during the 18-19 academic year will be fixed at 5.045 percent. A 1.066% origination fee is subtracted from the loan funds. Please note, interest rates, subsidies, and origination fees may change. Updated information will be published as it becomes available.
A student must have financial need to receive a subsidized loan. Financial need is not required to be eligible for an unsubsidized loan. During the time that a student is enrolled on at least a half- time basis (two course credits in Fall and Spring terms) and during grace and deferment periods the federal government will pay the interest on a subsidized FDS loan. Interest will accrue during all periods on an unsubsidized FDS loan. A student has the option of paying the interest during in-school periods or adding the interest to the principal of the loan. Principal payments begin after the six-month grace period.
The Office of Financial Aid will use the following progression for determining the maximum undergraduate annual loan limits for student loans:
|Course credits earned:||Grade level:||Federal Direct Stafford Loan amount:|
|16.0 and above||Junior/Senior/5th Year||$7,500|
A minimum $2,000 of the annual FDS loan limit is unsubsidized. Graduate students may borrow up to $20,500 in unsubsidized FDS per year.
Independent students and dependent students whose parents were denied for a parent PLUS loan due to adverse credit are eligible to borrow additional funds under the unsubsidized loan program. Freshman and sophomores may borrow an additional $4,000 and juniors and seniors may borrow an additional $5,000.
These annual FDS loan limits are the maximum yearly amount a student can borrow in both subsidized and unsubsidized loans. Contingent upon a student’s cost of attendance and other financial aid, a student may not qualify for the maximum annual amount.
Dependent undergraduate students can borrow a cumulative maximum of $31,000 (maximum $23,000 subsidized). Independent undergraduate students and dependent students whose parents were denied a parent PLUS loan can borrow a cumulative maximum of $57,500 (maximum $23,000 subsidized). Graduate students can borrow a cumulative total of $138,500 (as of July 1, 2013 new graduate loans are no longer subsidized).
Effective July 1, 2013, the law limits the benefits of the Direct Loan subsidy to an aggregated period of no more than 150% of program length for new borrowers. Once that limit has been reached, the borrower will begin to incur interest charges on outstanding subsidized loans if the borrower is enrolled at least half time in a program (including preparatory coursework) that would otherwise qualify the borrower for a Direct Subsidized Loan. Note: Six years is 150% of Coe’s program length.
There are three circumstances in which a borrower becomes responsible for accruing interest on outstanding Direct Subsidized Loans received for the current program and, with certain exceptions, outstanding subsidized loans received for previous programs:
- A borrower who has no remaining eligibility period for subsidized loans continues enrollment in the program for which the borrower received the loans.
- A borrower who has no remaining eligibility period for subsidized loans for a program and, after withdrawing or transferring, enrolls in a different program that is equal to or shorter in length than the prior program.
- In certain circumstances, a borrower who previously received subsidized loans and who still has some remaining eligibility period for that program withdraws or transfers from that program to a program of a shorter duration that the prior program. If the enrollment in another program results in the sum of the borrower’s subsidized usage periods equaling or exceeding the new program’s maximum eligibility period, the borrower has no remaining eligibility period and is responsible for accruing interest.
Under these circumstances, attendance in an eligible undergraduate program causes a borrower to become responsible for accruing interest even if the borrower does not request or receive a new loan.
A borrower who has reached the 150% Subsidized Loan limit will not be responsible for accruing interest if the borrower is enrolled:
- In a graduate or professional program;
- On a less than half-time basis; or
- In a program at an institution that does not participate in the Title IV loan programs.
These exceptions are in place because borrowers in those programs, or enrolled less than half-time, are not eligible for Direct Subsidized Loans.
An additional exception specifies that if a borrower completes an undergraduate program without becoming responsible for accruing interest, attendance in a subsequent program will not cause borrower responsibility for accruing interest on previously received loans, even if the borrower has no remaining eligibility period. In the preamble, the Department of Education states that this exception is in place because of its belief that the law was intended to encourage borrowers to complete their programs in a timely manner. In addition, without this exception, the regulations would create a disincentive for borrowers who completed their programs on time but are nevertheless unemployed or underemployed and need to return to a short-term program for retraining.
Borrowers who become responsible for accruing interest on outstanding subsidized loans will be responsible for such interest for the life of the loans, including periods of in-school status, grade periods, deferment periods, and certain periods of repayment under the Income-Based Repayment and Pay As You Earn Repayment plans.
If a borrower is determined to be responsible for accruing interest, the borrower is responsible only for the interest that accrues from that point forward (i.e., the borrower is not responsible for interest that accrued prior to the date on which the borrower became responsible for accruing interest). Borrowers have the option of paying the interest or allowing interest to be capitalized.
A borrower who lost eligibility for the interest subsidy can regain eligibility for new subsidized loans by enrolling in a longer program. (The borrower’s eligibility period would become 150% of the length of that longer program.) However, that borrower would not regain eligibility for the interest subsidy for previous Direct Subsidized Loans on which interest has begun to accrue, because the borrower is responsible for interest on those previous loans even during deferment periods.
If a borrower previously became responsible for accruing interest on a subsidized loan and then receives a Direct Consolidation Loan that repays that loan, the borrower continues to be responsible for the accruing interest on the portion of the consolidation loan that repaid the subsidized loan.
Acceptance of Loan
While the financial aid award letter will list a student’s maximum annual eligibility, students
are encouraged to borrow wisely. Borrowing the unsubsidized portion of the FDS loan can significantly increase a student’s loan debt because interest will be charged from the time the loan proceeds are disbursed. A student can contact the Office of Financial Aid to reduce or decline the loans offered in the financial aid award letter or complete and submit the Financial Aid Awards Adjustment Form to our office.
- First-time borrower
- A first-time borrower must complete loan entrance counseling and sign a master promissory note (MPN). Students can complete their MPN and entrance counseling at any time on the Department of Education Direct Loan website at: www.studentloans.gov. In addition, the Office of Financial Aid will provide information to first-time borrowers in mid-June that will guide them through this process.
- Previous borrower
- A MPN can cover up to 10 academic years of FDS loans. Generally, a student is only required to sign a single MPN for any FDS loans processed by Coe College. Unless a previous borrower informs the Office of Financial Aid of their wish to decline or cancel a loan that was offered to them in their financial aid award letter, the Financial Aid Office will process the FDS loan for the amount listed on the award letter.
A disclosure statement will be sent from the Direct Loan Origination Center to the student for each FDS loan originated on the student’s behalf by the Office of Financial Aid. The disclosure statement provides information about the type of FDS loan, the loan amount, and the disbursement dates. Once the loan has been disbursed, the student will be contacted by the servicer. The loan servicer manages the repayment of the FDS loan on behalf of the federal government.
Full academic year loans will be disbursed in two equal installments, one at the beginning of each term. All loan proceeds must first be applied to any outstanding balance on a student’s account. Excess funds will be refunded to the student borrower by the Coe College Business Office.
A student will be notified by the Coe College Business Office via email when a disbursement has been applied to the student’s account. A student can 'opt out' of electronic notifications (in favor of paper) via my.coe.edu. A FDS loan disbursement can be reduced or canceled upon request of the student. The Office of Financial Aid can return loan funds on the student’s behalf up to 60 days after the funds were disbursed.
Upon graduating, withdrawal, or enrollment of less than half-time, a FDS loan borrower must complete exit counseling. A student will receive information about the rights and responsibilities as a borrower, including payment and deferment options and the contact information for the servicer of the loan(s). An exit interview can be completed electronically on the Department of Education Direct Loan website at: www.studentloans.gov or in person at the Office of Financial Aid.
Once a student is no longer enrolled at least half-time, repayment begins after a six months grace period. During the grace period, the student will receive repayment information from the loan servicer, including the first payment due date. Information on the servicer assigned to a student’s loans can be found on the National Student Loan Data System (NSLDS) at: www.nslds.ed.gov.
The FDS loan program offers several repayment plans that are designed to meet the different needs of individual borrowers. Generally, students have 10 to 25 years to repay their loan, depending on the repayment plan that they choose. Detailed information on repayment options is provided during the mandatory entrance and exit counseling sessions and on the Department of Education Direct Loan website: StudentLoans.gov.
Deferment options may be available to students who are: at least half-time enrollment, serving in a graduate fellowship, in a rehabilitation training program, serving under the Peace Corps Act, serving under the Domestic Volunteer Service Act of 1973, serving as a volunteer for a tax-exempt organization, conscientiously seeking but unable to find employment, or experiencing economic hardship. Contact the Office of Financial Aid for additional information and assistance. Repayment Chart
Federal Student Loan Statistics of Student Borrowers at Coe College
- Median total borrowing (Federal Direct Stafford and Perkins Loans): $28,105
- Median payment monthly payment: $291
- Percentage of borrowers (3-year cohort) who default on their Federal Direct Stafford loan: 1.9
Repayment of Your Student Loans
The timely repayment of student loans is an important part of your student responsibilities. If
you decide to borrow you should only borrow what you need. The Office of Financial Aid at Coe College provides you with comprehensive information about your loans during your enrollment at Coe in order for you to make the most informed decisions regarding borrowing. Before borrowing you should estimate the amount of debt you may be able to afford and use available online loan calculators to determine monthly repayments. For quick access, sample loan repayment schedules are also available.
Borrowing is a responsibility – take it seriously!
Consolidate Your Federal Student Loans
If you have multiple federal student loans (Perkins and Stafford) you can consolidate them into a single Direct Consolidation Loan. Consolidation of your loans may help simplify repayment. However, there are tradeoffs so be sure to learn about the potential advantages and disadvantages before you consolidate.
Federal Direct Parent Loan for Undergraduate Students (PLUS)
This loan must be repaid by the parent who signed the promissory note. The PLUS loan is available to parents of dependent undergraduate students who filed a FAFSA and are enrolled at least half- time in a degree granting program. The interest rate is variable to be adjusted July 1 each year. The rate for the 2018-19 school year is 7.595%, and an origination fee of 4.24% is subtracted from the loan funds. Please note, interest rates do change yearly and origination fees are also subject to change due to federal sequestration. Updated information will be published as it becomes available. Repayment begins 60 days after the loan is fully disbursed unless the borrower requests to defer payment while the student is enrolled.
There may be tax benefits available to parents in repayment on a PLUS loan. For additional information parents can contact their accountant or they may access the information at the Internal Revenue Service link at www.irs.gov.
Eligibility for the PLUS loan depends on a modest credit check that determines whether the parent has any adverse credit history. In addition, parents and their dependent child must be U.S. citizens or eligible noncitizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid programs as outlined on page 4 of this handbook.
A parent who has adverse credit may still borrow a PLUS loan by completing required loan counseling and securing an endorser who does not have any adverse credit history. In some cases, a parent may be able to obtain a PLUS loan if there are extenuating circumstances related to the adverse credit history.
If a parent is denied a PLUS loan and opts not to secure an endorser or appeal the credit decision, the student becomes eligible for increased unsubsidized federal Direct Stafford loan limits (add $4,000 for Freshmen and Sophomores; add $5,000 for Juniors and Seniors). Only one parent needs to apply and be denied a PLUS loan. However, if one parent is denied and the other parent applies and is approved for the loan, the student is not eligible for increased Unsubsidized Direct Stafford loan limits.
Parents who can demonstrate good credit may borrow the difference between the student’s costs of attendance less financial assistance. Both custodial and non-custodial parents can borrow through the PLUS loan program in order to meet their obligation to the student’s costs at Coe.
The PLUS loan application can be completed electronically on the Department of Education Direct Loan website at: www.studentloans.gov. Parents must complete a PLUS loan application every academic year. As an alternative to the electronic application, a paper PLUS loan request form is available from the Office of Financial Aid upon request. The parent that completed the application or request form must also sign the Master Promissory note (MPN).
First-time borrowers must complete a MPN. The MPN can be completed electronically on the Department of Education Direct Loan website at: www.studentloans.gov.
Generally, a parent will be required to complete a MPN only once, when the parent first borrows a PLUS loan for a dependent student. In most cases, the parent may then receive additional loans for a student in subsequent years by submitting an electronic PLUS loan application or a paper PLUS loan request form. A parent who wants to borrow a PLUS loan for more than one dependent student must complete a separate MPN for each student. In addition, if both parents want to borrow a PLUS loan for the same student, thus splitting the costs, each parent must complete a separate PLUS loan request form and MPN.
To ensure that funds are available at the beginning of the fall term, an electronic or paper PLUS loan request form should be submitted by July 31, 2018.
A disclosure statement will be sent from the Direct Loan Origination Center to the parent for each PLUS loan originated on the student’s behalf by the Office of Financial Aid. The disclosure statement lists the loan amount and the anticipated disbursement dates. Once the loan has been disbursed, the parent will be contacted by the servicer of the loan. The loan servicer manages the repayment of the PLUS loan on behalf of the federal government.
Full academic year loans will be disbursed in two equal installments, one at the beginning of each term. All loan proceeds must first be applied to any outstanding balance on the student’s account. Excess funds will be refunded by the Coe College Business Office to the parent borrower or, if authorized by the borrower, to the student.
The Office of Financial Aid will mail a disbursement notice to the parent when PLUS loan funds have been applied to their child’s account.
A PLUS loan disbursement can be reduced or canceled upon request of the borrower. The Office of Financial Aid can return loan funds on the borrower’s behalf up to 60 days after the funds were disbursed.
The repayment period for a Direct PLUS Loan begins at the time the PLUS loan is fully disbursed, and the first payment is due within 60 days after the final disbursement. However, parents may defer repayment while the student is enrolled on at least a half-time basis.
Generally, parents have 10 to 25 years to repay their loan, depending on the repayment plan that they choose. Additional information on available repayment options can be requested from the servicer of the parent PLUS loan.
Information on the servicer assigned to a parent’s PLUS loans can be obtained on the National Student Loan Data System (NSLDS) at: www.nslds.ed.gov.
Additional information about the PLUS Loans can be found here.
Federal Direct PLUS Loan Program for Graduate Students
This loan must be repaid by the student. The terms and conditions applicable to the Parent PLUS Loan (made to parents of dependent students) also apply to PLUS Loans made to graduate students.
Unlike Parent PLUS applicants, graduate students must file a Free Application for Federal Student Aid. In addition, graduate students must have their annual maximum loan eligibility under the Federal Direct Stafford program determined by the school before they can apply for a PLUS Loan.
Federal Loan Servicers
The "servicing" of Federal loans (Stafford and Parent Loans) are managed by several different entities. Contact and general information about federal loan servicers is available online. It is important that you familiarize yourself with the name of the company servicing your federal loans so you can read and respond if necessary to any correspondence. The Office of Financial Aid will provide you with the name of your loan servicer annually or you can contact our office at any time for that information.
Canfield, Crimson and Gold and McElroy Loans
These institutional loans have limited availability. If you are eligible for an institutional loan it will be listed on your financial aid award letter.
Canfield, Crimson and Gold, and McElroy funds are loans and must be repaid. Interest accrues on the unpaid balance from the date the funds are credited to the student account. The interest rate will be determined each June for new loans for the upcoming award year. Each loan will have a fixed rate for the life of the loan. The interest rate for the Canfield and McElroy loans has been set at 4% for the 2018-19 academic year.
These loans are serviced by ECSI on behalf of Coe College. ECSI will initiate the online signing of promissory notes by contacting the student directly at their Coe College email address. ECSI will also manage the repayment of your loan which will begin six months after graduation or after you cease to be enrolled in college at least half-time in a degree or certificate program.
Alternative Loan Programs
Coe understands that in exceptional cases families need to pursue alternative loans to help bridge the gap between the actual cost of your education and your financial aid package as offered by Coe. Our office is not able to recommend a specific lender to you. However, for your convenience we are able to provide you information about historical borrowing trends at Coe College.
Private loans tend to cost more than the loans offered by the federal government. Interest rates and origination fees can vary by lender. Approval of an alternative loan is contingent upon credit approval by the individual lenders. Most traditional age students will be required to secure a co-signer.