Federal Family Education Loan Program

Amount

Up to $8500 subsidized; Up to $12,000 unsubsidized

Criteria

  • Must be enrolled in an eligible degree or diploma program.
  • Must be enrolled in a minimum of 6 units in a semester.
  • Must meet satisfactory academic progress standards as described in policy, click here for SAP policy
  • U.S. citizen or permanent resident
  • Completion of the Free Application for Federal Student Aid, FAFSA. MBBS' code for step 6 of the FAFSA loan application is G10368
  • Specific details and other criteria are available at http://www.fafsa.ed.gov

Description

The United States government insures an ever-increasing loan pool for undergraduate and graduate students. Students who are U.S. citizens or permanent residents and demonstrate financial need may receive subsidized loans. Additionally, unsubsidized loans are available to graduate students. This information is subject to change authoritative information can be found at studentaid.ed.gov.

Subsidized Loans

Subsidized Loans are available to students who demonstrate financial need. The Federal government pays interest that accrues while the student is in school. Repayment begins 6 months after the student graduates, withdraws, or attends school less than part-time (part-time = 6-8 units). You must complete the FAFSA to determine your eligibilty for a federal subsidized loan.

Unsubsidized Loans

Unsubsidized Loans do not require a demonstration of financial need. Interest begins accruing immediately. Student is responsible for payment of interest while in school. Payment of interest may be deferred until after student graduates, withdraws, or attends less than part-time (part-time = 6-8 units). Deferred interest is added to principle, increasing the amount on which future interest is calculated.

Steps to Apply for a Stafford Loan

  1. Complete a Free Application for Federal Student Aid (FAFSA). The forms need to be filled out online. Complete the online application after January 1. If you are filing a renewal application which was mailed to you, you do not need to also file a new FAFSA application. Note: The MBBS' code for Step Six of the FAFSA application is G10368. If you do not have access to a computer there is a computer lab on campus.
  2. In 3-4 weeks after submitting your application you will receive a Student Aid Report (SAR). This will tell your Expected Family Contribution, which is necessary to calculate your eligibility. The school also receives this information electronically, which speeds up the loan process. Call the financial aid office to find out if your information has been received electronically and set up an appointment to work out your loan eligibility. You do not need to wait until you receive the SAR. To find out if your FAFSA has been processed, or to order a duplicate SAR, call 1-800-4FED-AID (1-800-433-3243), the Federal Student Aid Information Center.
  3. Complete a seminary Federal Family Education Loan Data Sheet, which is available at the Financial Aid Office or download form online
    and fax to financial aid director at 559-251-7212.
  4. If you have been selected for verification, you must submit a copy of your most recent income tax return with all schedules and W-2 forms.
  5. All students who are borrowing Federal Loans through MB Biblical Seminary must complete an Ed Test and a Master Promissory Note. Please complete an Ed Test on line by visiting this link. Once you complete your Ed Test please visit an Ed Fund Loan Portal to complete your Master Promissory Note.
  6. Before you graduate, withdraw, or drop below 6 units in a semester, you will be asked to complete an exit interview at the following link. You will have a six-month grace period before repayment begins. Be sure to keep all documents, promissory notes, and correspondence from your lender in an accessible file.

Return of Loans upon withdrawal per Title IV Policy:

If you are a recipient of Federal Title IV Financial Aid and you are thinking about withdrawing from ALL of your classes, or if your units taken falls below half-time (6 units), you should contact the Financial Aid Office personnel to see how your withdrawal from school will affect your financial aid.

Students who withdraw from ALL classes prior to completing more than 60% of the term will have their eligibility for aid recalculated based on the percentage of the term completed.

For example, a student who withdraws after completing only 20% of the term will have “earned” only 20% of any Title IV aid received. The remaining 80% of Title IV funds received is considered as unearned aid and must be returned by Mennonite Brethren Biblical Seminary and/or the student.

The Return to Title IV policy shall apply to all students who withdraw, dropout, fail all classes or are expelled from MB Biblical Seminary.

A student’s withdrawal date is determined based on the following:
·The date the student officially withdraws from class
·The midpoint date of the term for a student who leaves without officially withdrawing. (Faculty will be contacted to find out the last date classes were attended.)
·The student’s last date of attendance at a documented academically related activity

The Percentage of Title IV Aid Earned Shall Be Calculated As Follows:

Number of days enrolled divided by the Total number of days in the enrollment period = % of aid earned

Using this formula, the percentage of the semester completed is considered as the percentage of aid earned. The amount of financial aid earned will be applied towards your tuition and fees.

Unearned Aid

The student is responsible for repaying the amount of unearned aid which is greater than the amount returned by MBBS from the student’s account.

Unearned Title IV aid shall be returned to the following Programs in the following order:
· Federal Stafford Loan (Unsubsidized)
· Federal Stafford Loan (Subsidized)

Loan amounts are returned according to the terms of the promissory note.

Before withdrawing from classes, all students are encouraged to stop by the Financial Aid Office.

Internet Resources for Students with FFELP Loans

  • Department of Education – This site offers a wide range of links to frequently requested information. Topics include FAFSA, Title IV School Codes, Student Financial Assistance, Publications, and Products.
  • Corrections on the Web – On this site a student with a PIN number can make corrections on the FAFSA.
  • NSLDS Web Site for Students – A student with a PIN number can access the NLSDS web site and make inquiries about Title IV loans.
  • Register for a PIN Number – A student can register for a PIN number that may be used to access some of the web sites listed above. In addition, the PIN may be used as an electronic signature for FAFSA on the Web.
  • Student Aid Ombudsman – This site offers the student and/or FA Administrator a contact when questions or concerns regarding federal financial aid cannot be handled through the usual methods. Individuals may also call 877-557-2575.
  • EdFund – EdFund is a non-profit public benefit corporation that provides all loan guarantee services for the California Student Aid Commission.
  • EdWise – This site offers an online financial planning guide to help students manage their finances. Once the appropriate information is entered, EdWise does the calculating.
  • California Student Aid Commission (CSAC) – Information about California State Aid.