Statements of Policy - UMUC Europe

Financial Aid
census date that class will not be counted as enrolled and will not
be eligible for Pell or FSEOG grants. Any courses students register
for AFTER the Pell census date will NOT result in an increase of
their Pell Grant award.
Federal Supplemental Educational
Opportunity Grant (FSEOG)
FSEOG grants, which do not have to be repaid, provide up to
$200 per term to eligible students with the greatest financial
need. Students must be eligible for and already be awarded a
Federal Pell Grant. Eligibility for the FSEOG is determined by
the Financial Aid Office in compliance with strict federal
requirements. Funding for the FSEOG program is very limited.
Students do not formally apply for them but rather are notified
of the FSEOG award during the academic year by the Financial
Aid Office.
The William D. Ford Federal Direct
Subsidized Loan Program
This subsidized loan program allows eligible students to borrow
directly from the Department of Education. Interest does not
begin to accrue on this loan until the student goes into repayment.
Freshmen may borrow up to $2,625; sophomores, $3,500; and
juniors and seniors up to $5,500 per academic year and per grade
level. Aggregate loan limits may also apply. Transfer students must
have an Official Evaluation before sophomore-, junior-, or senioryear
grade levels can be confirmed.
Students seeking a Direct Loan must complete the Free Application
for Federal Student Aid (FAFSA), submit a completed Data Form
to the Financial Aid Office, and take all steps necessary to apply
for financial aid through UMUC-Europe. First-time borrowers
must also complete entrance loan counseling.
Following federal guidelines, the Financial Aid Office determines
eligibility for a Direct Loan. Students will be awarded maximum
eligibility based upon grade level, loan period, and need. Students
can accept all or part of their awards.
Students select their own loan period within the 2004-2005
academic year and must successfully complete a minimum of
half-time enrollment each term during the loan period. Students
must be continuously enrolled at least half time during the
designated loan period or the loan will be cancelled, either in part
or in full. Loan periods are calculated based on enrollment in
either regular 8-week terms or 16-week distance education terms.
Enrollment in both types of terms cannot be combined for the
purpose of the half-time enrollment necessary for a student loan.
The annual interest accrued is assumed by the federal government
while the student is enrolled at least half time and until the
repayment period begins. The interest is variable annually but is
capped at 8.25 percent. There is a 3 percent origination fee that
is subject to reduction by the Department of Education. However,
to encourage timely repayment, the Department of Education
has created a 1.5 percent interest rebate that the student receives
up front.
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Deadlines for a student loan require that it be initiated with the
federal processor, via the Financial Aid Office, no later than the
last day of the eligible enrollment period. Please see the Guide for
additional application deadlines.
The William D. Ford Federal Direct
Unsubsidized Loan Program
This student loan program has the same terms, conditions,
deadlines, and interest rates as the subsidized Direct Loan except
the student borrower assumes responsibility for payment of the
accrued interest while in school and during the loan period. The
unsubsidized program is available to students who do not qualify,
or qualify only in part, for the subsidized loan. It is also aimed at
students whose financial need exceeds the subsidized loan limits.
For dependent students supported by their parents, the combined
total of a subsidized and unsubsidized loan may not exceed the
loan limits noted previously. Independent adult students are
eligible for amounts equal to the Direct Loan limits plus $4,000
per academic year as freshmen and sophomores and $5,000 per
academic year as juniors and seniors.
Federal Direct PLUS Loan Program
This loan program enables parents of undergraduate dependent
students to borrow directly from the Department of Education
at a variable interest rate not to exceed 9 percent. Loan amounts
may cover the cost of attendance, less any other financial aid, per
academic year and grade level. Parents will undergo a credit check.
Federal regulations require dependent students to be considered
for all types of federal financial aid before a Federal Direct PLUS
loan may be processed. UMUC requires students and their parents
to complete the Free Application for Federal Student Aid (FAFSA)
and take all necessary steps to apply for financial aid through
UMUC-Europe. Parent borrowers must request the additional
federally required Federal Direct PLUS Loan Data Sheet available
from the Financial Aid Office. A credit check will be made by the
federal loan processing agency.
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 $4,000 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 first
complete the UMUC-Europe Financial Aid Data Form and
then 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.
2004-2005 Undergraduate Catalog