Understanding Your Financial Aid Awards

Federal Pell Grant – is awarded on the basis of eligibility determined from a completed Free Application For Federal Student Aid (FAFSA). To receive payment, a student must be enrolled and be maintaining satisfactory academic progress as defined by the University. The grant may be renewed on a yearly basis. The grant is considered estimated until the student establishes eligibility through enrollment.

Academic Competitiveness Grant (ACG) - To be eligible for the 2008-2009 academic year, a student must be: a U.S. citizen; be a Federal Pell Grant recipient; be enrolled full-time in a degree program; be enrolled in the first or second academic year of his or her program of study; have completed a rigorous secondary school program of study (after January 1, 2008, if a first-year student, and after January 1, 2007 if a second-year student); if a first-year student, not have been previously enrolled in an undergraduate program; and if a second-year student, have at least a cumulative 3.0 grade point average on a 4.0 scale for the first academic year.

National Science & Mathematics Access to Retain Talent (SMART) - To be eligible for each academic year, a student must: be a U.S> citizen; be a Federal Pell Grant recipient; be enrolled full-time in a degree program; be enrolled in a four-year degree-granting institution; major in physical, life or computer science, engineering, mathematics, technology, or a critical foreign language; and have at least a cumulative 3.0 grade point average on a 4.0 scale in the coursework required for the student's major.

Teacher Education Assistance for College and Higher Education (TEACH) Grant – is a  new grant for 2008-2009 for current and prospective teachers.  Eligible students may receive up to $4,000 per academic year.  Aggregate amounts are $16,000 for students on their first undergraduate or post-baccalaureate program and $8,000 for graduate students.  Eligible students must complete the FAFSA, be currently completing coursework necessary to begin a career in teaching, or plan on completing coursework necessary to begin a career in teaching.  Academic requirements include having at least a 3.25 GPA and a score above the 75th percentile on an admissions test, such as the SAT or ACT.  The TEACH Grant also requires an “agreement to serve/promise to pay”.  Students must sign an understanding of terms to certify that they understand the terms of the grant and the terms of their teaching service requirements.  The student must teach full-time for at least four years within eight years of completing their program as a highly qualified teacher at a Title I school in a specified subject area (mathematics, science, a foreign language, bilingual education, special education, as a reading specialist, and other “high-need" fields).  If service is not met, the grant must be repaid as an unsubsidized Direct Stafford Loan, with interest from the
date(s) of original disbursement. 
PLEASE NOTE:  The 2008-2009 FAFSA includes a new question asking students if they plan to become teachers. Interested students should carefully review the eligibility requirements of this grant and consider how likely they are to meet them. Although TEACH Grants will be available to students for 2008-2009, the U.S. Department of Education has not yet issued the final regulations that will govern this program.  Once those regulations are available, LHU will automatically provide additional information about this grant to eligible students.  For more information about the TEACH Grant, please visit www.teachgrant.ed.gov.

Pennsylvania Higher Education Assistance Agency Grant (PHEAA) – is a grant awarded to the residents of the Commonwealth of Pennsylvania. If an estimated state grant appears on the award letter, the estimated amount is based on current information available to the university. The actual amount of your state grant is determined when you and the university receive official notification from the state agency. PLEASE NOTE: If you are a recipient of the Pennsylvania State Grant and have been selected for Validation, the funds will not be released to the university until you have completed the necessary paperwork with Pennsylvania Higher Education Assistance Agency.

State Grants – from states other than Pennsylvania include grants from CT, DE, MA, ME, OH, RI, VT, and WV. Students must contact the appropriate state grant agency for further information.

Federal Supplemental Educational Opportunity Grant (SEOG) – is provided by the Federal Government for distribution by Lock Haven University and does not require repayment. The Student Financial Services Office automatically considers every Pell eligible student for SEOG and will award it to those with the greatest demonstrated financial need. The grant may be renewed on the basis of continued eligibility (with certain exceptions). To receive payment, a student must maintain satisfactory academic progress as defined by the University.

Federal Work Study (FWS)
– is a program that allows students to partially meet educational expenses through employment on campus. The money is available on the basis of actual hours worked, and earnings are not guaranteed. Wages are generally paid at the prevailing minimum wage rate and are paid directly to the student via a bi-weekly paycheck as they are earned.  The earnings will not be deducted from the student’s bill. Students are responsible for finding their own jobs. For additional information about student employment procedures and current job postings, please click here.  The FWS award represents the maximum amount of wages the student is permitted to earn during the academic year. Work is limited to a maximum of 20 hours per week when school is in session and 37 ½ hours per week at other times. Continued employment through FWS is contingent upon the student’s maintaining Satisfactory Academic Progress as defined by the University.

Federal Perkins Loan – is a long-term, low interest (5%) student loan. The Student Financial Services Office automatically considers every eligible student for the Federal Perkins Loan and will award it to those with the greatest demonstrated financial need. Repayment of the loan is required and begins nine (9) months after graduation or after a student drops to less than half-time enrollment. If a Federal Perkins Loan is part of your financial aid award, completion of an entrance interview and Master Promissory Note may be required.  If so, you will receive further instruction from Student Financial Services about completing those items.

Federal Stafford Loan – is a long-term, low interest student loan. The amount of this loan, in combination with other financial aid, cannot exceed the cost of attendance as determined by the University. Other aid received after the loan application is processed may result in a reduction of the loan eligibility, and a requirement that a portion of the loan be repaid immediately. Beginning with the 2008-2009 academic year, dependent students can borrow up to $5,500 at the freshmen level, $6,500 at the sophomore level, and $7,500 at subsequent levels. The aggregate total of loans as a dependent undergraduate may not exceed $31,000. Repayment of the loan is required and begins six (6) months after graduation or after a student drops to less than half-time enrollment. Students must also meet the satisfactory academic progress requirements as defined by the University. PLEASE NOTE: If you plan to borrow a Federal Stafford Loan, completion of an entrance interview and Master Promissory Note is required.

Federal PLUS Loan – is a loan available to graduate students and the parents of dependent undergraduate students. The maximum amount that may be borrowed for a given loan term is limited to the cost of attendance minus any other financial aid.  Although no income verification is required, the borrower's credit history is evaluated.

Alternative Loans – are non-federal student loans. Student borrowers are typically required to apply along with a creditworthy co-signer.  Interest rates and terms of these loans vary depending on the loan program the student wishes to utilize. More information regarding alternative loan programs can be found within this planner.
 


                         Important Information You Should Know

Financial Aid Definition of an Academic Year:  For financial aid purposes, at Lock Haven University an academic year is defined as one in which a student completes a minimum of 30 weeks of instruction and in which an undergraduate student completes 24 semester hours.  At Lock Haven University an academic year consists of two 15-week (fall and spring) semesters.  Summer is a trailer to the academic year and consists of three terms:  Summer Session 1; Summer Session 2; and Summer Extended.

Revisions – The financial aid award made by this letter is valid to the extent that the information upon which it is based is accurate at the time of the award and remains accurate throughout the award period. Any change in student circumstances, as noted above, will void this award letter and require that a revision be made. Revisions may also be necessary due to changes in funds made available to the University by governmental or other sources or due to any other circumstances, including errors in the award itself, in order to prevent overawards and to maintain the integrity of the financial aid programs according to governing laws and regulations. Lock Haven University does not guarantee substitution of funds for any portion of the award which is declined by the student or reduced by government agencies. Students who withdraw and return to the University at a later date will be reevaluated for financial aid eligibility.

Overawards - Federal and state regulations require SFS to consider all sources of financial assistance when awarding aid. Those sources include things like scholarships (LHU or private), athletic grants, tuition waivers, VA educational benefits, and alternative loans. If your Financial Aid Award Letter did not include all of the assistance you are receiving, chances are SFS was not aware of all your awards when your financial aid was packaged.  The addition of other aid sources may cause an overaward, which means that SFS may have to reduce one or more of your awards. For example, if SFS awarded you your maximum eligibility of $15,800 in financial aid, and then you receive a $2000 scholarship, SFS may be required to reduce the aid awarded by $2,000 to keep you within the $15,800 limit. You can help prevent an overaward by informing SFS of all sources of financial assistance as soon as you know about them.

The Financial Aid Award Shall be Void if:

• you default on Federal Perkins, Stafford, GradPLUS, or National Direct Student Loan;
• you owe a repayment on any Title IV federal student aid funds received previously;
• you do not report changes listed below to Student Financial Services;
• you do not make Satisfactory Academic Progress;
• incorrect information is revealed on the FAFSA and/or;
• you intentionally make false statements or misrepresent information on any financial aid application materials. Students who do so may be subject to fines or imprisonment, or both, under provisions of the U.S. Criminal Code.

Payment of Financial Aid – Financial aid awards (except Work Study) will be credited to the student's account each semester. Where the total aid credited exceeds the charges, the student will receive a refund of the amount which is in excess of charges. Funds are usually disbursed during the first few weeks of each semester. Payment of financial aid funds will not be made until all eligibility requirements have been met. PLEASE NOTE: Students should plan to have cash available to meet individual expenses (including books) at the beginning of each semester.

Part-Time Enrollment – Students who enroll for less than 12 credits in a semester may have their financial aid adjusted. Such students may still be eligible for all or partial payment from certain programs. A student considering less than full time enrollment should discuss the effect on his/her financial aid with the Student Financial Services staff.

Federal Verification – A number of FAFSA applications are selected for a process called Federal Verification. This process is used to determine that the information provided on the FAFSA is accurate. Students who are selected will be notified and certain additional information will be requested. No aid payments will be made nor will loans be processed until all of the verification process is completed.  If the required information or other steps in the Verification process are not completed according to the establishment schedule, all federal financial aid for the academic year will be canceled.

Changes in Student Circumstances – The student agrees to notify the Student Financial Services Office of any changes in financial or other circumstances which could affect financial aid eligibility. This includes, but is not limited to, changes in:

• a student's academic and/or enrollment status;
• housing status;
• receipt of an outside scholarship or other awards;
• the number of family members attending a university in 2007-2008.

Satisfactory Academic Progress – In order to receive federal financial aid, an undergraduate student must meet the following progress requirements: earn 21 new credits in each two semesters of full-time attendance; maintain a grade average consistent with the requirements of the "Probation and Retention Standards" published in the University Catalog; have a minimum accumulated grade point average of 2.00 after two years of enrollment; and complete his educational program within a maximum time frame not to exceed 150% of the length of the program. This includes all semesters of enrollment even if no financial aid was received. For more information about Satisfactory Academic Progress, click here. PLEASE NOTE: Students are responsible for knowing and meeting these requirements.

Tax Credits for Education – Tax credits may be available for families who are seeking additional university financing options. These include the Hope Tax Credit and Lifetime Learning Tax Credit. Your family may benefit from one of these programs depending on its financial circumstances. For more more information about educational tax credits, please contact a tax advisor or consult the web at www.irs.gov.

Taxable Income – Under certain conditions portions of grants and scholarships must be reported as taxable income. You should consult your tax advisor or the IRS to determine specific requirements that may apply to you. The University cannot give tax advice.