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Financial aid application procedures Long Island Business Institute - Flushing
Branch Through individualized counseling sessions, the Financial Aid Office considers the specific needs of each student and prepares a personalized guide appropriate to those needs. This guide identifies the financial options available through Federal and state programs. The amount of financial aid available is based, in part, upon the financial need of the student. This need is determined by deducting the amount of family contribution for college expenses from the estimated cost of attending college. Eligibility for all financial aid programs is determined by the filing of a comprehensive financial statement called a Free Application for Federal Student Aid (FAFSA) and a Tuition Assistance Program (TAP) application for New York State grant aid. Financial aid application procedures Applicants to LIBI are personally interviewed by a Financial Aid counselor who explains the aid programs, determines eligibility, assists in the completion of financial aid applications, and prepares an estimated financial plan. A final financial aid determination will be made upon receipt of tax returns and other required information.Federal financial aid programs The following descriptions are based on current statutes and regulations
and are subject to change by the passage of new legislation or the
issuance of new regulations. This is an entitlement program with eligibility based on financial
need. The applicant must: The amount of an individual award is determined by the Estimated
Family Contribution, cost of attendance and enrollment status. LIBI
also participates in the Supplemental Education Opportunity Grant
Program (SEOG) and Federal Work-Study Programs (FWS) which uses specific
criteria for extended assistance. Subsidized Federal Stafford Loan Prospective borrowers may file the Free Application for Federal Student Aid (FAFSA) and obtain an application form from a participating New York State lending institution or from the Financial Aid Office at LIBI. The Federal Stafford Loan Program is an entitlement program through which all eligible applicants can obtain a loan. To be eligible for a loan a student must: 1. be a U.S. citizen or permanent resident alien; Loan checks are disbursed directly to the student's account by the Bursar in two payments. A Federal loan origination fee will be deducted from the amount disbursed. An additional insurance premium is payable in full at the time the loan check is issued. An undergraduate may borrow up to $2,625 per academic year for the
first year of study and up to $3,500 for the second year of study. After ceasing to be at least a half-time student, the borrower must make formal arrangements with the lending institution to begin repayment. The following regulations apply: 1. depending on the amount of the loan, the minimum monthly payment must be $50 plus interest. Under unusual and extenuating circumstances, the lender, on request, may permit reduced payments; 2. repayment period is ten years; 3. pre-payment may be made at any time without penalty. Federal Unsubsidized Stafford Loans A loan program is available for students who do not qualify, in whole, or in part, for a subsidized Stafford Loan. The terms for an unsubsidized loan are the same as for subsidized Stafford Loans except for interest accrual. The government does not pay interest on the student's unsubsidized Federal Stafford Loan. Interest accrues on this loan during the time that the student is enrolled in school, during the grace period, and during periods of authorized deferment and forbearance. Accrued interest must either be paid or capitalized. There are two ways to pay interest during these periods. You may make monthly or quarterly payments to your lender, or you and your lender may agree to add your interest to the principle of your loan, but no more often than quarterly. This is called capitalization. If you do not make an interest payment as scheduled, your interest will be capitalized. You will be charged a 6.5 percent origination fee/insurance premium on each disbursement of your unsubsidized Federal Stafford Loan. This fee will be deducted from each disbursement and paid to the Federal government. Federal Parent Loans for Students (Federal PLUS) Application forms are available from participating lenders or from the Financial Aid Office at LIBI. A borrower must be the parent of a financially dependent undergraduate student. Student eligibility criteria are comparable to those for Federal Stafford Loans, except that Federal Plus loans require no financial needs test. PLUS loan borrowers are subject to credit checks. Federal Work/Study Program Qualified students may apply for part-time work paid for, in part, by the Federal Work/Study program. Jobs are at LIBI and are generally 20 hours of work per week or less. Inquire at the Financial Aid Office. Supplemental Educational Opportunity Grant (SEOG) The Federal government provides funds to supplement the Pell grant program. These are used according to school-established criteria to provide some coverage for educational expenses not covered by other forms of aid. New York State Tuition Assistance Program (TAP) This is an entitlement program. There is neither a qualifying examination nor a limited number of awards. The applicant must: 1. be a New York State resident; 2. be either a U.S. citizen, permanent resident alien, refugee, paroled refugee, or a conditional entrant; 3. be enrolled full-time and matriculated in an approved program at a post secondary school in New York State; 4. be in good academic standing; 5. if financially dependent on parents or independent with spouse or dependents, have a family net taxable income below $50,000 for the prior tax year; if independent of parents and single without tax dependents, have a net income below $10,000 (the rules for being considered independent of parents are detailed in the TAP Student Payment Application booklet); 6. be charged tuition of at least $200 per year; 7. not be in default on any of the State or Federal Guaranteed Student Loans. The Higher Education Services Corporation determines an applicant's eligibility, the amount of the grant awarded, and issues to the applicant an Award Certificate which should be presented to the school. The school certifies to HESC the student's attendance and eligibility for an award. The certification process usually begins after the tuition refund period ends. For TAP eligibility, students taking developmental education courses must also be enrolled in credit-bearing courses that total at least 6 credits. The only exception to this requirement is that freshmen in their first semester of study must take at least 3 credits in non-developmental credit-bearing courses. For example, first semester freshmen taking a total of 12 credits and/or equated credits must have included at least 3 college credits (not equated credits) in their program.
A student may make a written request to withdraw from one or more courses before the end of the semester. Once this request is submitted and processed, the student will receive a refund as indicated in the schedules listed below. The refund calculation will be based on the last day of attendance. Certain fees are not refundable. These include fees for services used before withdrawal or for materials and equipment purchased.
In addition to the above calculation, if a student receives SFA grant or loan funds and withdraws from the college after beginning attendance, the amount of Title IV funds actually earned by the student for the calendar days of attendance prior to withdrawal is calculated. The earned Title IV percentage is calculated by dividing the number of calendar days the student attended by the number of calendar days in the school's payment period. If this percentage is greater than 60%, the student earns 100% of the Title IV funds for that payment period. This calculation may result in the student owing money to the school based on the college refund policy listed above.
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