Catalog 2010 - Naugatuck Valley Community College - Connecticut ...

18 finAnciAl Aid informAtion
• Academic competitiveness grant are need-based grants
that are available to student who qualify for the Pell Grant
and who have completed a rigorous high school curriculum
as determined by the U.S. Department of Education. An
eligible student may receive up to $750 for the first year and
up to $1300 for the second year.
• federal supplemental Educational opportunity grant
(sEog) This is a federal grant for undergraduate students
who have completed high school and have a financial need.
The minimum amount a student may receive is $100 per year
and the maximum is $4,000.
• connecticut Aid for Public college students (cAPs) This
state grant is for Connecticut residents who demonstrate financial
need. Annual awards may not exceed the recipient's
unmet financial need.
• naugatuck Valley grant Connecticut law provides for a
waiver of tuition at each of the state colleges of over 12 percent
of the tuition and fees collected from students enrolled in any
given semester. Dependent students whose parental contribution
is less or independent students whose own contribution
is less than one-half of the student’s school expenses for the
whole semester may be eligible.
Awards and scholarships
Students are recognized for academic excellence, citizenship, and
service to the College at a variety of college functions, including
the College’s Annual Honors Night and the Student Activities
Leadership Banquet. Numerous scholarships are offered through
the Office of Financial Aid and the NVCC Foundation. Applications
are available for some scholarships, while other recipients
are selected by faculty and staff. These funds are not required
to be repaid.
A complete list of credit scholarships and awards is available in
the Office of Financial Aid. A separate application is required for
scholarships. Scholarships for non-credit programs are limited.
For information and applications call the Financial Aid Office.
loans: These funds must be repaid.
• need Based loans
the federal family Education loan Program (ffElP) the
federal stafford loan Program (fslP) is a loan guaranteed
by the federal government. The loan is given by a lender such
as a bank, credit union, or a savings and loan association. It is
the responsibility of the borrower to choose the lender. Based
on the criteria of need, the Financial Aid Office awards the loan.
The loan must be used for reasonable educational expenses.
The maximum grace period before payment becomes due is
six months after graduation or withdrawal from school. Effective
7/1/06, the interest rate is 6.8 percent fixed on new federal
student loans.
A total of up to two percent of the loan may be deducted as
a processing fee by the lender before the check is issued. All
students applying for a loan must fill out a FAFSA in order for
the Financial Aid Office to determine the need. The borrower
has up to 10 years to repay this loan.
The loan can be canceled only if the borrower becomes totally
and permanently disabled, or if he or she dies. Borrowers
who do not repay their loans go into default. If this occurs, the
guarantee agency can require the borrower to repay the entire
amount immediately, including all interest and penalty charges
or it can sue to collect the amount of the loan. Credit bureaus
will be notified of the default, and this may adversely effect
the borrower’s future credit rating. Also, the Internal Revenue
Service can withhold the borrower’s income tax refund and
apply it to the loan. If the borrower has difficulty repaying the
loan, he or she should notify the lender immediately.
The borrower must notify the school if he or she graduates
or withdraws from school, transfers to another school, drops
below half-time status, or changes name, address, or social
security number.
Three branches of the military offer repayment plans for
Federal Stafford Student Loans as an enlistment incentive: the
Army, the Army Reserve, and the Army National Guard.
• non-need Based loans
unsubsidized federal stafford loan
The annual and aggregate loan limits, as well as the interest
rate calculation for the Unsubsidized Federal Stafford Loan,
are identical to the Federal Stafford Loan.
Borrower eligibility is determined by subtracting the financial
aid package from the cost of attending the College (including
any Federal Stafford Loan the borrower will receive). Family
contribution is not included.
The first payment is due six (6) months after the month in
which the borrower ceases to be enrolled on at least a half-time
basis at an eligible institution.
Interest accrues during the in-school period and the period
of authorized deferment. The interest may be paid monthly or
quarterly or, if agreed to by the borrower, capitalized no more
frequently than quarterly.
Entrance and exit counseling are required for both the
Subsidized and Unsubsidized Stafford Loan.
federal Parent loan to undergraduate students
(fPlus)
Federal Parent Loan to Undergraduate Students (FPLUS)
provides additional funding for educational expenses. The
FPLUS loan is for parent borrowers. The maximum interest
rate changes periodically. The interest is set annually at 3.10
percent above the T-Bill rate with a nine percent cap. Like the
Federal Staffor Loan, these loans are made by a lender such
as a bank, credit union, or savings and loan association. The
current rate for the PLUS loan is 8.5 percent fixed.
FPLUS enables the parents to borrow up to the cost of attendance
less other financial aid for each child who is enrolled
at least half-time and is a dependent student. Parents apply for
this loan in the same way students apply for the Stafford; however,
the borrower does not have to show need. The borrower
will undergo a credit analysis. Payment begins 60 days after
disbursement; however, the principal can be deferred while
the student is enrolled by applying for a deferment with their
lender. A FASFA Application is required for a PLUS Loan.
federal Perkins loan
The Federal Perkins Loan Program is for students who are
enrolled at least half-time (six credits or more) and who need
a loan to meet educational expenses. Students may borrow up
to $2,000 per academic year for a total of $4,000 while attending
Naugatuck Valley Community College. Repayment begins
after a six-to-nine month grace period following graduation or
upon leaving the College for other reasons. Students may be
allowed up to 10 years to repay the loan.
• work-study
federal
The Federal College Work-Study Program (FCWSP) is part
of the “Financial Aid Package” which provides jobs for undergraduate
students who need help earning funds for some of
their educational expenses. Awards vary according to financial
need and the availability of funds. Generally, a student will
work 10 to 20 hours weekly at the prevailing rate. Students
must be enrolled at least part-time (six credits).