Types of Financial Aid

The Pell Grant is a federally funded need-based program designed to assist students in attending college. To determine your eligibility for Pell Grant, you must complete the FAFSA at https://fafsa.gov. The U.S. Department of Education will calculate a Student Aid Index (SAI) based on the data you report.

A Pell Grant, unlike a loan, does not have to be repaid. However, you must be an undergraduate student who has not already earned a bachelor or professional degree. The award you receive depends on the number of credits for which you are enrolled, the cost of your program, the number of semesters you attend per year, and your SAI.

The Federal Work-Study (FWS) program provides jobs for students with financial need who would like to earn money to help pay for educational expenses. Students are eligible to apply for a work-study position if they are enrolled at least half-time (6 credit hours).

To arrange a job and determine the number of hours per week that a student may work under this program, the Financial Aid Office considers the students:

1. Financial need
2. Class schedule
3. Academic progress

Eligibility is based on the information provided on the FAFSA which determines the SAI, as well as other assistance the student may be receiving. Federal work-study awards may vary each semester, depending on student financial need and available funds. Awards are made on a first-come, first-served basis. Students interested in work-study should contact the Financial Aid Office to apply.

The Federal Supplemental Educational Opportunity Grant (FSEOG) program is for undergraduates with exceptional financial need. Pell Grant recipients will be considered for FSEOG first. As in the case with Pell, FSEOG does not have to be repaid.

Belmont participates in the Federal Direct Loan Program. Funds for your Direct Loan will come directly from the U.S. Department of Education to the college. There are two types of Federal Direct Loans, subsidized and unsubsidized. You may receive a subsidized loan and an unsubsidized loan for the same enrollment period as long as you have eligibility and don’t exceed the annual or lifetime loan limits. To be eligible for a Direct Loan you must complete a FAFSA, be enrolled in at least six eligible credit hours, not in default or overpayment of Title IV funds, and be enrolled in a Belmont College degree or certificate program. Students must also complete entrance counseling and a Master Promissory Note (MPN) when applying for their first loan. Returning borrowers need to complete the Annual Student Loan Acknowledgement each term they borrow along with a Federal Direct Student Loan Request Form.

Subsidized Direct Loan

A subsidized loan is awarded on the basis of financial need. If you are eligible for a subsidized loan, the government will pay (subsidize) the interest on your loan while you are enrolled in school for at least six credit hours, for the first six months after you leave school, and if you qualify to have your payments deferred. Depending on your financial need and enrollment status, you may borrow subsidized funds for an amount up to the annual loan borrowing limit for your grade level. Freshmen (0-29 earned hours) may be eligible to borrow up to $3,500 per year and sophomores (30+ earned hours) may be eligible to borrow up to $4,500 per year. Students pursuing a certificate program are only eligible for freshman loan eligibility. Because Belmont is a two-year school, we are not permitted to offer the Junior/Senior Direct Loan amounts.

Unsubsidized Direct Loan

Unlike a subsidized loan, you are responsible for the interest from the time the unsubsidized loan is disbursed until it is paid in full. You can choose to pay the interest while you are in school or allow it to accrue (accumulate) and be capitalized (that is, added to the principal amount of your loan). Capitalizing the interest will increase the amount you have to repay. A dependent freshman student (0-29 hours earned) without financial need may be eligible to borrow up to $5,500 per year and sophomores (30+ hours earned) may be eligible to borrow up to $6,500 per year.

Dependent students can also borrow up to an additional $2,000 in unsubsidized Direct Loan funds. Dependent students whose parents apply for and are denied a Federal PLUS Loan can also borrow up to an additional $2,000 in unsubsidized loan funds. Check your budget on MyFAO to see if you have eligibility or check with the Financial Aid Office.

Entrance Counseling for Direct Loans

Entrance counseling will help you understand your rights and responsibilities as a student loan borrower. All first-time loan borrowers are required to complete Entrance Counseling. Returning borrowers must complete the Annual Student Loan Acknowledgement (ASLA) each term. Both are available online at https://studentaid.gov.

The Financial Aid Office will automatically receive notification after you have completed the required counseling process online. Once all required paperwork has been submitted, the loan will be processed.

Master Promissory Note for Direct Loans

A Master Promissory Note (MPN) is a legally binding contract you sign, agreeing to repay the Direct Student Loan you have borrowed.

The MPN describes your rights and responsibilities as a student loan borrower. It is extremely important to read everything included on your MPN. By signing it, you not only agree to repay the money you borrow, but you also agree to all terms and conditions included.

To complete the MPN you will need to go to https://studentaid.gov. The MPN can be signed electronically with your Department of Education FSA ID.

The Financial Aid Office will automatically receive notification after you have completed the required Master Promissory Note online. Once all required paperwork has been submitted, the loan will be processed.

Repayment of Federal Direct Student Loans

Repayment begins after the six month grace period after the student graduates, drops below half-time (six credit hours), withdraws from the College, or ceases to re-enroll in the next standard term. Students may be granted up to 10 years to repay the loan, more with Federal Consolidation. However, consolidation will increase the interest paid. The monthly payment amount depends on the size of the debt, with a minimum monthly payment of $50. Students may estimate their repayment amount by using the loan calculators at https://studentaid.gov.

Student Loan Exit Counseling

All borrowers are required to complete the online Student Loan Exit Counseling after they graduate, drop below half-time, withdraw from the College, or fail to re-enroll in the next standard term. This is available at https://studentloan.gov.

Federal PLUS Loan

Parents of undergraduate dependent students may borrow funds to cover the cost of education. The maximum amount of the loan cannot exceed the student’s cost of attendance minus other financial aid received during the loan period.  Repayment begins as the money is disbursed.  Some lenders will defer payment until after the student graduates or drops below half-time.

You must apply online at https://studentaid.gov and complete a Federal PLUS request form.

Annual Reapplication Process (FAFSA)

Students must reapply for financial aid each academic year. The academic year encompasses the three semesters of summer, fall and spring. Financial aid usually continues at the same level each academic year unless there is a change in the student’s resources, SAI, or the Federal and/or State laws governing financial aid. You can complete the next year’s FAFSA at https://fafsa.gov.

The Nurse Education Assistance Loan Program (NEALP) was created by the Ohio General Assembly in 1990. The purpose of NEALP is to assist the state in meeting nursing shortages by providing financial assistance to Ohio students enrolled for at least half-time study (or accepted for enrollment) in an approved Ohio pre-licensure nurse education program who intend to serve as nurses after graduation.  In exchange, to qualify for loan cancellation, recipients must be employed full-time as a registered nurse or licensed practical nurse in the State of Ohio for a minimum of five years after graduation. Recipients must also:

• Be an Ohio resident.
• Be a U.S. citizen or a permanent resident.
• Be enrolled in or be accepted for enrollment in an approved nurse education program in an Ohio college, university, hospital, or vocational school.
• Not be in default or owe a refund to any Federal Financial Aid program.
• Maintain an academic record which places the student in good academic standings within the institution.

Students may apply after January 1 and before July 15 of each year. Notification of acceptance or denial for NEALP funding will be sent by the first week in September. Go to https://www.ohiohighered.org/nealp for more details.

The Ohio War Orphans and Severely Disabled Veterans Children Scholarship Program awards tuition assistance to the children of deceased or severely disabled Ohio veterans who served in the armed forces during a period of declared war or conflict.

To receive War Orphans Scholarship benefits, a student must be an Ohio resident and enrolled for full-time undergraduate study and pursuing an associate degree at an eligible Ohio college or university. Applicants must apply between the ages of 16 and 24. Scholarship benefits cover a portion of instructional and general fee charges. The benefits are determined each year and based on the number of eligible applications.

Applications should be submitted to the Ohio Department of Higher Education. Applications are available from the Ohio Department of Higher Education (www.ohiohighered.org), high school guidance offices, and Veteran’s Service Offices. The application deadline is May 15 of each year.

For more information visit www.ohiohighered.org.

Each state maintains a Vocational Rehabilitation Agency. The purpose of these agencies is to assist clients in training or re-training in order to overcome various disabilities. It may be possible that all or part of the educational expenses will be covered under such programs. Students are encouraged to consult with their local Vocational Rehabilitation Office serving their county of residence.

WIOA and TAA programs, funded by the Department of Labor, help assist students seeking career paths that lead to in-demand jobs. Students who are displaced workers, homeless, or receive other assistance such as food stamps or Temporary Assistance for Needy Families (TANF) may be eligible for these programs. To apply for WIOA or TAA funding, visit your local American Job Center (OhioMeansJobs in Ohio and Northern Panhandle Workforce Development Board in West Virginia). WIOA and TAA have academic and attendance requirements that depend on county and program.