St. Francis Xavier University

How to Apply For Federal Stafford & PLUS Loans to Study Outside of the United States

The 2010-2011 Guide to Federal Student Aid www.FederalStudentAid.ed.gov/guide

St. Francis Xavier is recognized as a participant by the US Department of Education for the Stafford Loan Programs. Go to http://studentaid.ed.gov/PORTALSWebApp/students/english/index.jsp for more information. If you have dual American/Canadian status you may be able to access either program. Be sure to read loan regulations carefully.

Notice To All U.S. Student Borrowers: Participation in the Direct Loan Program Begins July 1, 2010

St. Francis Xavier University will participate in the William D. Ford Federal Direct Loan (Direct Loan) Program beginning July 1, 2010. Students from the United States (U.S.) who attended our school previously received loans through the Federal Family Education Loan (FFEL) Program. However, all U.S. students will now borrow through the Direct Loan Program. The Direct Loan Program offers the same types of loans as the FFEL Program, and Direct Loans generally have the same terms and conditions as FFEL Program loans. However, instead of a bank lending the money, the U.S. Department of Education lends the money directly to students through the student’s school. There are also some differences in the names of the loans. The FFEL Program’s Federal Stafford Loans (subsidized and unsubsidized) are called Direct Subsidized Loans and Direct Unsubsidized Loans in the Direct Loan Program.

How to apply for a Direct loan (only when all 4 steps are completed will loan money be issued)

q Complete the FAFSA electronically via the FAFSA on the Web site at http://www.fafsa.ed.gov. You will need a pin number for your signature. If you do not have one you can apply on line at www.pin.ed.gov. If you are a dependent student your parent will need to sign the FAFSA with a pin number as well. They can obtain this pin number at www.pin.ed.gov.

q Complete a Master Promissory Note at www.studentloans.gov. You will need your pin number from the FAFSA to complete this step.

q Complete a Request letter indicating how much you would like to borrow up to the maximum of the academic level you are at (eg. Sophomore - $4,500 + $2,000). Pease email me at lodonnel@stfx.ca to request this letter be forwarded to you. You can either scan & email it to me at lodonnel@stfx.ca or fax it to me at 1-902-867-4947.

q An Entrance Interview is required. This can be done at www.studentloans.gov

Parent Plus Loan

Parents of dependent students may apply for a Parent Plus loan to help their son/daughter through post secondary education. This is the parent’s loan but made available to the student for college costs. A credit check is done on the parent applying for the loan. Parents may borrow the amount of what it costs the student to attend a year at St. Francis Xavier University minus any grants, scholarships, Direct loans.

Note: If your credit check results in an adverse credit history determination, you will receive information from the US Department of Education about the endorser and extenuating circumstance options. If you are a parent and neither of these is a viable option, your dependent student will be eligible to receive additional Direct Unsubsidized Loan funds in the amount of $4,000 for freshmen and sophomores and $5,000 for juniors and seniors.. However, students cannot go beyond the aggregate amount as shown in the chart below.

To apply for the Parent Plus loan go to: www.studentloans.gov Sign in with your pin number and then follow the directions for doing the Master Promissory Note for a Parent Plus loan.

Loan Limits

The federal government sets limits on the amount of money a student can borrow. The annual limit applies to the most a student can borrow in one academic year, while the aggregate limit applies to the maximum a student can borrow in a lifetime.

Grade in School	Annual Loan Limits		Aggregate Loan Limits
	Base Amount	Additional Unsubsidized	Subsidized Limit	Overall Limit
Undergraduate Dependent*			$ 23,000	$ 31,000
First Year	$ 3,500	$ 2,000
Second Year	$ 4,500	$ 2,000
Third Year and beyond	$ 5,500	$ 2,000
Undergraduate Independent			$ 23,000	$ 57,500
First Year	$ 3,500	$ 6,000
Second Year	$ 4,500	$ 6,000
Third Year and beyond	$ 5,500	$ 7,000

*Undergraduate Dependent students whose parents are unable to borrow a PLUS loan will be eligible for the Undergraduate Independent loan limits.

Additional Information

In order to keep in the Direct Loan Program, students need to be full time or at least half time status. They must also meet and maintain Satisfactory Academic Progress (SAP) as explained in the 2010 – 2011 catalogue and below.

The MPN is the legal document through which you promise to repay your Direct Loans and any accrued interest and fees to the Department. It also explains the terms and conditions of your loans. You will need to complete a new Direct Loan MPN each academic year that you receive a Direct Subsidized Loan and/or a Direct Unsubsidized Loan at our school.

Exit Counseling

The federal government requires that students participate in loan counseling prior to leaving, withdrawing or graduating from the school at which they received a Direct Loan. To complete the Exit Counseling go to www.mappingyourfuture.org: Exit counseling: Stafford Exit: Select country: Select school and then proceed thru the next steps. You will need your FAFSA pin number to get into this website.

Consolidating FFEL Program Loans into the Direct Loan Program

If you already have FFEL Program loans and will now be receiving Direct Loans, consolidating your FFEL and Direct Loan program loans together into a Direct Consolidation loan may make loan repayment easier. If you consolidate, you will have just a single monthly payment. Consolidating your FFEL Program loans into a Direct Consolidation Loan may also allow you to take advantage of certain benefits that are offered only in the Direct Loan Program, such as Public Service Loan Forgiveness and the Income Contingent Repayment Plan.

To learn more about when you may consolidate, the pros and cons of doing so, and the application process, visit www.loanconsolidation.ed.gov or call 800/557-7392 (TDD/TTY: 800/557-7395).

Bethany Bible College looks forward to participating in the Direct Loan Program and offering the benefits of Direct Loans to our U.S. students. For additional information about Direct Loans, visit http://www.direct.ed.gov/student.html or contact us at muscroftr@bbc.ca for more information

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SATISFACTORY ACADEMIC PROGRESS
All students applying for or receiving US Federal Aid (subsidized/unsubsidized Stafford Loans and Parent Plus Loans) at St. Francis Xavier University must make satisfactory academic progress towards completion of their chosen academic program.

StFX is required by US Federal Law to define and enforce standards of Satisfactory Academic Progress (SAP). These guidelines have been established to encourage students to successfully complete their academic programs for which aid is received.

A student is considered to be making satisfactory academic progress when they:

successfully complete 75% of attempted credit hours each semester
meet minimum grade point average requirements each semester
complete their program of study within the maximum allowable time frame
not repeat any course more than twice

MINIMUM REQUIREMENTS FOR DEGREE STUDENTS

SEMESTER	% OF ATTEMPED CREDIT HRS.SUCCESSFULLY COMPLETED	SEMESTER GPA
First Sem.	75%	1.5
Second Sem.	75%	1.7
Third Sem.	75%	1.9
Fourth & subsequent semesters	75%	2.0

MAXIMUM ALLOWABLE TIME FRAME FOR FULL-TIME STUDENTS
A student is entitled to receive aid for 150% of the length of their academic program.

2 year degree = 3 years of eligibility
4 year degree = 6 years of eligibility

EVALUATION AND NOTIFICATION
Satisfactory Academic Progress (SAP) will be assessed for each student by the Director of Financial Aid at the end of each academic semester to determine their eligibility for continued Financial Aid. Students will be notified in writing or by email within five business days of the semester grades being released if they are placed on Financial Aid probation or if their Financial Aid eligibility has been suspended.

FINANCIAL AID PROBATION AND SUSPENSION
Students who fail to achieve the required minimum standards of academic progress will be placed on Financial Aid Probation for one semester. If, during that semester, students meet the required minimum standards of academic progress and meet with the Director of Financial Aid, they will be removed from probation and be eligible for US Federal Aid.

Students on probation who do not meet the required minimum standards during that semester will be place on Financial Aid Suspension. They will be ineligible for any further US Federal Aid until such time as they achieve the required minimum standards of academic progress. When suspended students achieve the required minimum standards they must notify the Financial Aid Director and they will be eligible again for US Federal Aid.

Students who have exceeded their Timeframe Eligibility will be ineligible for any further US Federal Aid. Students who repeat a course more than two times will be ineligible to receive any further US Federal Aid for that course.

FINANCIAL AID APPEALS
In certain circumstances, students whose US Federal Aid eligibility has been suspended may appeal the suspension if at least one of the following criteria is met:

Death of an immediate family member (parent, caregiver, spouse, sibling, dependant child etc.).
The extended illness of the student – documented chronic or recurring medical or emotional illness that causes the student to be absent from class at least 15 days or more.
Family difficulties, such as divorce or illness.
Mitigating circumstances as determined by the Director of Financial Aid.

Appeal Process:

Submit a written appeal letter to the Financial Aid Director within five business days of the receipt of the notification of suspension. This letter must outline the reasons for the failure to meet SAP requirements and include all documentation supporting the appeal.
The appeal will be reviewed by the Director of Financial Aid, Academic Dean, and Chief Financial Officer who together will decide to uphold or reverse the suspension.
A written response to the appeal will be provided to the student within ten business days.

Students’ Union Health and Dental Plans

A change in StFX University Policy for the 2010 – 2011 year requires all International Students to take the Students’ Union Health and Dental Plans. The only persons eligible to opt out of the plan are those Canadian Students who demonstrate they have medical or dental coverage available from another insurer. This does not include coverage by a provincial plan (i.e. MSI, OHIP, BC Health). Therefore, to ensure that all students have comprehensive coverage, International students must be covered by the Union Health and Dental Insurance Plans regardless if he/she has alternate coverage from his or her country of residence.

The coverage includes benefits specifically designed for student needs. Information concerning both the Health and Dental plans and associated benefits can be found at www.studentbenefits.ca Additional questions can be directed towards the Health and Dental Administrator, Linda MacDonald, via email lmamacdo@stfx.ca or by phone at 1.902.867.2495.