UNDERGRADUATE CATALOG - UMUC Europe

Federal direct Plus loan Program
This loan program enables parents of undergraduate
dependent students to borrow directly from the Department
of Education at a fixed rate of 7.9 percent. There is a 4.0
percent origination fee that is subject to reduction by the
Department of Education. Loan amounts may cover the cost
of attendance, less any other financial aid, per academic year
and grade level. Parents must undergo a credit check. Students
whose parents are denied a PLUS loan may be eligible for
additional unsubsidized loan funds. The repayment for a
PLUS loan begins on the date the loan is fully disbursed.
Deferments (granted by the Department of Education)
may allow for a delay in payment until after the period of
enrollment, although interest will continue to accrue.
UMUC requests students and their parents to complete the
FAFSA and take all necessary steps to apply for financial aid
through UMUC Europe. Parent borrowers must complete the
additional federally required Federal Direct PLUS Loan Data
Sheet available on the Web site.
Federal Perkins loan Program
The Federal Perkins Loan program provides long-term federal
loans for undergraduate students with the greatest financial
need. Students may borrow up to $2,000 per academic year
at a 5 percent annual interest rate with UMUC acting as the
lender.
Students wishing to apply for a Federal Perkins Loan must
complete the Free Application for Federal Student Aid (FAFSA).
Because of federal budgetary constraints, funding for the
Federal Perkins Loan program is very limited. Repayment of
the loan begins nine months after the student ceases to be
enrolled on at least a half-time basis. Perkins recipients must
also complete entrance and exit counseling.
disbursement of Funds
The UMUC Europe Business Office disburses (applies)
funds to the student’s account based on federal and UMUC
guidelines. In general, funds (loans, Pell, ACG, FSEOG,
and SMART) are authorized by the Financial Aid Office to
the Business Office after the Pell census date, and/or once
confirmation of enrollment has taken place.
Awards applied to the student’s account in excess of tuition
and fee charges are refunded to the student within UMUC
Europe and federally mandated time frames. The Business
Office prepares refund checks and mails them directly to the
student. In general, this refund process requires 7 to 14 days
from the date the credit balance is created on the student’s
account at UMUC Europe.
sAtisFACtoRy ACAdEmiC
PRogREss
Financial aid is intended to meet the financial needs of
students who otherwise could not or would not consider
continuing their education. Students who receive financial
aid must not only demonstrate financial need but must also
make satisfactory progress as determined by UMUC Europe
in accordance with federal regulations.
Financial aid recipients are required to be in good academic
standing and to maintain satisfactory academic progress
toward their degree requirements each term they are enrolled.
Academic progress is evaluated three times each year, in
January, June, and August. Failure to maintain satisfactory
progress, as described below, may result in cancellation of
financial aid awards and the student may have to repay funds
already received.
Satisfactory academic progress cannot be determined until
enrollment and grades have been submitted. As a result of
late grade reporting and seminars, students may be notified
of their probationary or denied status after the next term has
begun. Failure to receive written notification does not mitigate
the probationary or denied status. Students receive a copy of
the Satisfactory Academic Progress Standards with their award
letter. Students are responsible for knowing these requirements
and requesting clarification when necessary.
basic standards for undergraduate
students
UMUC’s institutional requirements for minimum satisfactory
performance for financial aid recipients are defined as follows:
G Minimum cumulative grade point average. The student
must maintain a minimum cumulative GPA of 2.0
G Minimum completion rate. A minimum cumulative
completion rate of 66 percent of credits attempted must
be met
G Federally mandated maximum time frame to complete
the program/degree. The student must complete his or her
educational program within a time frame no longer than
150 percent of the published length of the educational
program (e.g., complete his or her program after
attempting a maximum of 180 credits for a 120-credit
program)
www.ed.umuc.edu 13
FinAnCiAL Aid