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Federal College Work Study Program
Federal College Work Study awards average $1,250 per academic year and are awarded based on demonstrated financial need
and time of application. Students work an average of seven hours per week and are placed at approved work places throughout
campus. Student performance will be monitored by the Human Resources Office for a determination of continued employment.
Students are paid bi-weekly only for actual hours worked. Students may use these funds to help pay personal expenses or apply the
earnings to their student billing account.
The student must complete and submit the Free Application for Federal Student Aid (FAFSA) to be considered.
William D. Ford Direct Loan Program – For Students
A Free Application for Federal Student Aid (FAFSA) must be filed in order for a student to receive loan funds from the
Federal Direct Loan Program. Eligible students will receive a Financial Aid Award letter indicating loan amounts and instructions on
how to apply.
To be eligible for a Federal Direct Loan, a student must (1) be a United States citizen or permanent resident alien; (2) be
enrolled at least as a half-time student; (3) show compliance with applicable Selective Service requirements; (4) not be in default on a
Title IV (federal) loan or owe a refund on any Title IV grants; and (5) make satisfactory academic progress.
An undergraduate student may borrow up to $3,500 as a freshman, $4,500 as a sophomore, and $5,500 as a junior and senior.
In addition, the Department of Education allows a student to borrow $2,000 in an unsubsidized loan each year, in addition to the
base amount. The Department of Education will deduct a 1.051% percent origination fee from the total amount received by the
student.
There are two types of Federal Direct Loans for undergraduate students. If the student has a need-based Federal Direct
Subsidized Loan, the Federal government pays the loan interest while the student is in college. If the student has a non-need based
Federal Direct Unsubsidized Loan, the student is responsible for paying the interest while in college.
For the 2013-14 academic year, a student may borrow at a relatively low interest rate of 6.8 percent with no repayment of
principal while enrolled at least half-time, and for six months after program completion or departure. Payment of principal may
further be deferred (1) serving on active duty during a war or other military operation or national emergency, or performing
qualifying National Guard duty during a war or other military operation or national security (this deferment is available only for
Direct Loans first disbursed on or after July 1, 2011.); or (2) a period of up to three years when the student is unemployed or
experiencing economic hardship. After ceasing to be at least a half-time student, the borrower must make formal arrangements with
their loan servicer to begin repayment.
The following regulations apply:
1. Depending on the amount of the loan, the minimum monthly payment will be $50 plus interest. Under unusual and
extenuating circumstances, the loan servicer may be able to offer an alternative plan.
2. Repayment periods are typically 10 years.
3. Repayment in whole or part may be made at any time without penalty.
The amount of each payment depends upon the size of the student’s debt. The student should ask the Enrollment Services
Center what the approximate monthly payments will be prior to processing the Federal Direct Loan promissory note.
If the student fails to repay a loan, it will go into default. If a student defaults, the Federal government can sue the student to
collect the loan, and the student may be required to repay the entire amount immediately.
Credit bureaus will be notified of the student’s default and this will affect his or her future credit rating. Also, the Internal
Revenue Service may withhold the student’s federal income tax refund and apply it toward the loan. The Federal Government may
also garnish the student’s wages.
Typical Repayment Plan
Total Loan Amount Monthly Payment Total Repaid
$3,500 50 $4,471
$5,500 63 $7,595
$7,500 86 $10,357
$10,500 121 $14,500
$15,000 173 $20,714
$18,000 213 $25,548
The student will be required to complete an electronic Master Promissory Note and Entrance Counseling session at
http://www.studentloans.gov prior to their Direct Loan funds being disbursed to the College. When the student ceases to be
enrolled at least half time at the College, he/she will be required to complete an Exit Counseling session at
https://www.studentloans.gov to review rights and responsibilities and repayment information.
Academic Catalog | Cazenovia College | www.cazenovia.edu 23