Bulletin 2007-2008 - Austin College

Federal Supplemental Educational Opportunity Grants (SEOG)* and Federal PellGrants* are available to students with exceptional need. All students who desirefinancial aid must complete the Free Application for Federal Student Aid (FAFSA)at www.fafsa.ed.gov.Tuition Equalization Grants (TEG) and other grants from the State of Texas maybe available to Texas residents who qualify. The availability of these funds may beaffected by the number of eligible students, the level of institutional allocation,and the timeliness of a student’s application for financial aid.Grant/LoanThe Austin College Grant/Loan, a combination grant/loan program, is an effortby Austin College to provide essential need-based assistance to full-time studentspursuing a bachelor’s degree. Fifty percent of the grant/loan will be forgiven forstudents maintaining continuous full-time enrollment and graduating within fiveyears of admission. Students withdrawing before graduation will be obligated torepay the full amount. Repayment and interest charges (set at 3 percent over the91-day Treasury bill rate on January 2 of each year) will begin six months aftergraduation or withdrawal. The maximum period for repayment is 10 years. Thisprogram may be used to assist students from middle-income families who do notqualify for aid according to the federal-based calculation but that the Office ofFinancial Aid determines are good candidates for some measure of financialassistance. A grant/loan also may be used to meet a student’s level of demonstratedneed. It is the college’s policy to withdraw the offer of a grant/loan if a studentrejects any need-based student loans.LoansLoans are available from a variety of sources listed below. Loans carry interest and alegal obligation for repayment. Evidence of the importance students attach to theircollege education is shown by their willingness to invest in themselves through aproper loan program.Federal Perkins Loan*: The maximum loan available through the Federal PerkinsLoan program is $20,000 for an undergraduate education normally four years inlength. The Office of Financial Aid determines the exact amount to be made availablein individual cases for each academic year.Repayment of this federal loan begins nine months after the borrower ceases to beat least a half-time student and must be completed within 10 years. Interest accruesat the rate of 5 percent per year, effective nine months after the borrower ceases tobe a full-time or half-time student. In the event the borrower becomes a full-timeteacher in an economically deprived school as determined by the federal government,up to 100 percent of the loan is canceled after teaching five years. Cancellationprivileges also are available for certain career services in other education areas,specified social services and armed forces, and also some areas of criminal justiceand probation.Federal Stafford Loan*: Stafford Loans provide up to $3,500 for freshmen, $4,500 forsophomores, and $5,500 per year for juniors and seniors, not to exceed $23,000* Subject to federal regulationsADMISSION AND FINANCIAL INFORMATION| 37