SUNY Orange, "If you have the dream, we have the way!"

Federal Financial Aid Programs

PLEASE NOTE: All students must make academic progress in order to receive Federal Aid. Academic standings are reviewed at the end of the Spring Semester. Please refer to the SUNY Orange catalog to view the Federal Standards of Progress Eligibility Chart.

External links below are marked with this symbol †. Clicking on these links will take you out of the SUNY Orange Web site. The college cannot be responsible for the content on these pages, although the links on this page have been reviewed and are recommended by the staff of the Office of Financial Aid.

Federal Pell Grant

The Federal Pell Grant provides grants ranging from $278 to $5,550 a year to all eligible applicantsfor the 2010-2011 aid year.  The Maximum EFC for Pell Grant eligibility is 5273.  Students should file a Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov† after January 1.  Be sure to enter our school code for the FAFSA: 002876. Approximately one month after filing, the Financial Aid Office will receive the FAFSA information electronically in the form of an Institutional Student Information Report (ISIR) which will be used to determine eligibility for all Federal Aid.

The student must be enrolled at the time the ISIR is received at the Office of Financial Aid in order for payment to be made to the student.  Even though the student may file the FAFSA after the semester has started, a payment cannot be made if the student ceases to be enrolled.  The FAFSA is available on line at www.fafsa.ed.gov†.  There is no fee for processing this form.  For students who are required to take developmental courses, Federal Aid funds will only pay for the first 30 attempted credits of developmental study. Students holding a bachelor degree are ineligible for the Federal Pell Grant, but they must file the FAFSA to receive consideration for other aid.

New Policies for Year Round Pell

Eligibility Limit and Disbursement

  • Students who receive their first Pell Grant on or after July 1, 2008 may receive Pell Grants for as many as 18 semesters (or the equivalent)
  • Effective July 1, 2009, students enrolled in a certificate, associate, or baccalaureate program may to receive up to two Pell Grants in one award year to accelerate their program.

NOTE: This is new legislation. We continue to receive additional clarification and implementation guidance from the Department of Education, so please continue to check this page for the latest updates BEFORE you make any academic decisions.

How Year round Pell will work for the 2009-2010/2010-2011 Aid Year

The first critical concept revolves around the definition of an academic year.

For purposes of federal financial aid programs at SUNY Orange, an academic year is a period of time (normally a minimum of 30 weeks or fall plus spring semester) during which a full - time undergraduate student is expected to complete a minimum of 24 credit hours.

Annual grant limits are tied to the completion of an academic year.

Award year refers to the specific enrollment period. The "normal" award year at SUNY Orange is the fall and spring semesters (currently the 2009-2010 year). Award years run from July 1 to June 30.

Summer enrollment is attached as a "trailer" to the preceding award year. SUNY Orange offers a number of summer sessions of differing lengths in an effort to be responsive to the needs of the student body. For the purposes of federal financial aid programs, the separate sessions are combined into one term.

The new regulations allow a student to receive funds from a second scheduled award within an award year if the student is enrolled for credit hours attributable to a second academic year within that award year. The student need not have completed a full academic year's worth of coursework prior to the payment period in which the second scheduled award funds are paid. For example, a student earned 9 credits in the fall semester and 9 credits in the spring semester. Since SUNY Orange uses 24 credits to define the academic year and places summer in the concluding award year, the student would need to enroll for more than 6 credits in the summer term to be paid funds out of the second scheduled award (6 credits to finish the first academic year's worth of work, plus some additional number of credits that count toward the second academic year). This student would be paid any remaining first scheduled award funds plus the amount of second scheduled award funds needed to make up the payment for the term as calculated under the appropriate Pell formula. See some examples

Impact on Summer Aid Awards

The Office of Financial Aid will begin accepting applications for aid for summer 2010 tuition and fee expenses on April 1, 2010. Your initial aid eligibility will be calculated based on your projected enrollment as noted on your summer application.

Currently enrolled students who plan to enroll for courses during the 2010 summer session to take advantage of this change should file their 2010-2011 Free Application for Federal Student Aid (FAFSA) † as soon as possible after February 15, 2010 so that we will receive your processed form before April 1, 2010.

We will then have the ability to look at both your 2009-2010 AND 2010-2011 applications and determine which we should use to maximize your eligibility for additional Pell Grant funds.

  • As we need to concentrate on processing awards for the academic year, students who enroll in summer courses but who submit the 2010-2011 FAFSA AFTER receiving their initial summer award letters, will need to notify the financial aid office that they have submitted new information which should be reviewed. While we will make every effort to watch for new information, this is a new program so students will need to actively help us help them maximize their eligibility for these funds.
  • IMPACT ON INCOMING UNDERGRADUATES AND TRANSFER STUDENTS: Students in this group who plan to enroll for classes during the 2010 summer semester should submit the 2009-2010 Free Application for Federal Student Aid (FAFSA) † to the Office of Financial Aid so that we will be able to calculate their maximum eligibility for federal aid for their summer expenses.
  • View some examples of how we think this will work (subject to further guidance from the Department of Education)

Maximum Award Increase

For the 2009-10 award year (July 1, 2009 to June 30, 2010), the maximum award is $5,350. The maximum amount can change each award year and depends on program funding. The amount you get, though, will depend not only on your financial need, but also on your costs to attend school, your status as a full-time or part-time student, and your plans to attend school for a full academic year or less.

The PROPOSED maximum Pell Grant award for 2009-2010 is $5,350.

The maximum annual Pell Grant award for the 2008-2009 year was $4,731.

Special Adjustments for children of deceased service members

Eligibility Exclusions

Effective July 1, 2009, an individual subject to involuntary civil confinement or civil commitment upon completion of a period of incarceration for a forcible or non-forcible sexual crime is ineligible for a Pell Grant.

We are awaiting further implementation guidance from the Department of Education on this new regulation.

The National Association of Student Financial Aid Administrators ("NASFAA") contacted the National Center for Missing and Exploited Children and that organization indicated that, to their knowledge, 20 states had such programs: Arizona, California, Florida, Illinois, Iowa, Kansas, Massachusetts, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Dakota, Pennsylvania, South Carolina, Texas, Virginia, Washington, and Wisconsin.

References:

Updated December 6, 2009

Examples

Two Pells

Background:

The Higher Education Opportunity Act changed Federal Pell Grant program guidelines † to support students who are attempting to accelerate the completion of their degree program.

These guidelines will be effective on July 1, 2010. This is our current understanding as to how the program will work.

This can be fairly complicated. All of these examples assume that the student entered SUNY Orange for the first time during the 2009 fall semester.

Some Examples:

For the purposes of all Title IV federal financial aid programs an academic year is defined as a minimum of 24 earned credit hours.

An award year is a specific period of time (normally July 1 - June 30). There is one scheduled award for an award year. For example, for the 2009-2010 award year, the scheduled award for a full-time student is $5,350 for a student with an expected family contribution of $0.

These examples assume that students will be continuously enrolled during the fall, spring, and summer semester.

1. Assume student is enrolled full time each semester

Fall 2009 Spring 2010 Summer 2010

Student Uses 50% of the First Scheduled Pell Grant for the 2009-2010 year

Student Completes 12 hours

Student second 50% of the 2009- 2010 Award

Student Completes 12 hours

Student Enrolls for 6 hours

Eligible for 1st Award from the 2010-2011 academic year.

2. Assume student is NOT enrolled full time each semester

Fall 2009 Spring 2010 Summer 2010

Student Uses 50% of the First Scheduled Pell Grant for the 2009-2010 year

Student Completes 15 hours

Student second 50% of the 200- 2010 Award

Student Completes 9 hours

Student Enrolls for 6 hours

Eligible for 1st Award from the 2010-2011 academic year.

3. Assume student is NOT enrolled full time each semester

Fall 2009 Spring 2010 Summer 2010

Student Uses 50% of the First Scheduled Pell Grant for the 2009-2010 year

Student Completes 12 hours

Student second 50% of the 200- 2010 Award

Student Completes 9 hours

Student Enrolls for 6 hours

Eligible -award allocation split between the 2009-2010 and 2010-2011 academic year**

** 12 hours completed in the fall + 9 hours completed in the spring = 21 earned hours

** An academic year = 24 completed credit hours. Therefore 3 hours of the award for the 2010 Summer Session will be attributed to the 2009-2010 academic year and 3 hours will of the award will be attributed to the 2010-2011 academic year.

Duration of Eligibility (Another Example)

Academic Year Enrollment Status BY Semester Enrollment Status By Semester Enrollment Status By Semester Enrollment Status By Semester % of Scheduled Award Utilized
2008-2009 2008 Fall -Full Time (FT) 2009 Spring- Full Time (FT) not enrolled not enrolled 100% used
2009-2010 2009 Fall - 3/4 Time (3QT) 2010 Spring - 3/4 Time (3QT) not enrolled not enrolled 75% used
2010-2011 2010 Fall -FT Not Enrolled Summer 2011- Half Time (HT) withdraws 75% used
2014-2015 2014 Summer -FT 2014 Fall - FT 2015 Spring - FT 2015 Summer -FT 200% used
2015-2016 2015 Fall - FT 2016 Spring -FT 2016 Summer- FT   150% Used
2016-2017 2016 Fall - FT 2017 Spring - FT 2017 Summer- FT   150% Used

NOTES

  • The Higher Education Opportunity Act (HEOA) limits a student's Pell eligibility to 9 Scheduled Awards
  • Applies only to first-time Pell recipients starting with the 2008-2009 award year
  • Remaining eligibility is assessed at percentage of award used . Using this example, the student has utilized 750 % of the lifetime Pell eligibility (900% = maximum).
  • The student must enroll on at least a half-time basis to receive a 2nd award during an award year.
  • The Department of Education † will track student percentage used in the Common Origination and Disbursement System (COD) and the National Student Loan Data System (NSLDS) † beginning July 2009

Programs for Dependents of Veterans

New Program for 2009-2010

The Higher Education Opportunity Act of 2008 † grants an automatic zero EFC for the Pell Grant Program† ONLY to Pell Grant eligible students whose parent or guardian was a member of the Armed Forces and died in Iraq or Afghanistan after September 11, 2001. Eligibility guidelines

A student must have been twenty-four years of age or less or enrolled at least part-time at an institution at the time of the parent's death.

Legislators do not believe that this should be an additional question on the FAFSA, † rather the Secretaries of Defense and Veterans Affairs should provide the Secretary of Education with the information necessary to determine which students meet the requirement. Because the question is not on the FAFSA, students will need to notify the Office of Financial Aid concerning their eligibility for this additional benefit.

The Higher Education Opportunity Act's Technical Corrections Bill † was signed it into law on July 1, 2009.

This bill:

  • Sets the "Expected Family Contribution" (EFC) at zero for children of soldiers killed in Iraq or Afghanistan after 9/11/01, if the student was under 24 years old at the time or enrolled in an institution of higher education at the time, and is Pell-eligible - effective 7/1/09 NOTE: This is a change to the original policy noted at the top of this page
  • Creates the "Iraq and Afghanistan Service Grants" - effective July 1, 2010 - for students whose parent or guardian died as a result of military service in Iraq or Afghanistan after 9/11/01, if the student was under 24 years old at the time or enrolled in an institution of higher education at the time. This program is for students who do not qualify for a Federal Pell Grant.

The awards will be: Equal to the maximum Pell Grant available for the award year. Awards will be proportionally reduced for students enrolled on a part-time basis.

These awards will not be counted as "estimated financial assistance" in determining a student's eligibility for other Title IV federal financial aid funds. However, this award and all other aid received cannot exceed the "cost of attendance" at the student's school.

References

Provision Added to War Funding Bill Covers Cost of College Education for All Surviving Military Children

The final 2009 Supplemental Appropriations bill (H.R. 2346) † which funds U.S. military operations in Afghanistan and Iraq, includes a provision to expand GI Bill benefits to children of fallen U.S. soldiers. The provision, authored by Congressman Chet Edwards (D-TX), expands the Post-9/11 GI Bill education benefit † to cover the full cost of a college education for all children of fallen soldiers. The new benefit will be known as the Marine Gunnery Sergeant John David Fry Scholarship † in honor of a fallen soldier with three young children from Edwards' district. President Obama signed the bill into law on June 24, 2009.

Post 9/11 G.I. Bill

Parents can transfer their educational benefits under the Post 9/11 G.I. Bill † to their dependent children.

[top]

Federal Academic Competitiveness Grant (FACG)

An Academic Competitiveness Grant provides up to $750 for first-year undergraduate students and up to $1,300 for sophomores.  Both full-time and part-time students are eligible for the award.  Students eligible for this grant are those 1) who are US citizens or Eligible Non-Citizens, 2) who receive a Federal Pell Grant, and 3) who had successfully completed a rigorous high school program, as determined by the state or local education agency and recognized by the Secretary of Education. Second-year students must also have maintained a cumulative grade point average (GPA) of at least 3.0.

The program was available for the first time for the 2006-07 school year for first-year students who graduated from high school after January 1, 2006 and for second-year students who graduated from high school after January 1, 2005. 

[top]

Federal Perkins Loan

Students who demonstrate exceptional need may be eligible to receive up to $27,500 as an undergraduate ($5,500 maximum per year).  However. loans generally range from $500 to $5,500 a year, at 5% interest with approximately 10 years to repay.

As of 1987/88, new borrowers have nine months after termination of their studies to begin repayment. FAFSA is required.

Perkins Promissory Note

If you accept a Perkins Loan award, you are required to complete a Perkins Promissory Note in the Student Accounts Office every year. You may complete the Perkins Promissory note as early as five days after you accept your Perkins award. You must visit the Student Accounts Office to complete the paper Promissory Note and an Entrance Interview; no earlier than July 1st. Please call 845-341-4911 to make an appointment. You will need to bring copies of your driver’s license and Social Security card for processing.

Your failure to complete the Promissory Note will result in the cancellation of your Perkins loan.

All Campus-Based-Aid programs are subject to the federal government’s allocation to the school.When all the funds are exhausted, awarding and disbursement of this aid program stops.

[top]

Federal Supplementary Education Opportunity Grant (FSEOG)

High-need students may be eligible to receive FSEOG grants ranging from $300 to $500 a year. Money for this program is extremely limited. Students who have earned a bachelor's degree are not eligible. FAFSA is required. All Campus-Based-Aid programs are subject to the federal government’s allocation to the school.When all the funds are exhausted, awarding and disbursement of this aid program stops.

[top]

Federal College Work-Study (FCWS)

Eligible students may work part-time while in college to help defray their educational cost. Students are paid an hourly rate and receive a paycheck every two weeks for the hours worked.  Students cannot earn more than the amount of their work-study award.  Salary is $8.00 per hour (subject to change) for 10 to 15 hours work per week. All students awarded work-study are placed on the job by the college's Placement Office.  (The College Work-Study Manual provides further information.) FAFSA is required. Work-Study funds are allocated each year by the Federal government. The Financial Aid Office will award work-study to eligible students until the funds for the year are exhausted.

[top]

Direct Loans

William D. Ford Federal Direct Loan

ed.gov/offices/OSFAP/DirectLoan/index.html †

Overview

Direct Loans† are especially designed to meet the student needs with features like low interest rates which are capped, no requirement for a co-signer or other security, choice of repayment plan, and other accommodations.

Lender of Student Loans:

As of July 2010, student loans will be made, not with banks, but with the Federal Government. 

Type of Loans:

There are two kinds of loans: unsubsidized loans with an interest rate of 6.8%, and subsidized loans with a reduced rate of 4.5%.  After the student submits financial information on the FAFSA, the Financial Aid Department determines whether a student is eligible for a reduced-rate loan. 

Limits on Loan Amounts: 

There are yearly maximums on both subsidized and unsubsidized loans which limit the amount you can borrow each year.  Your budget -- estimated living expenses plus the cost of college minus your family’s expected contribution and any other income you may receive-- will determine the amount you are eligible for (not necessarily the maximum). 

Direct Loan Service Center:

This is available to you online so you can access your account day and night for information and for making payments.

Loan Repayment:

Initially you might commit to one particular loan-repayment plan out of several options, although later you will be able to choose another method.

Consolidation of Loans:

Several student loans can be compiled into one loan with one monthly payment, even if from different colleges. 

Timeline for Financial Aid:

  • Before you enter college, you file the FAFSA to apply for financial aid.  After assessing your financial information in the FAFSA, the Financial Aid Office assembles your Award Package, based on your expected income and your anticipated expenses during college.
  • After you have carefully evaluated the Award Package, you can accept it as it is or request changes. 
  • When you graduate, withdraw, or drop below six credit hours, the repayment period will begin immediately at the end of a six-month grace period.

APPLYING FOR A STUDENT LOAN

www.direct.ed.gov/applying.html †

APPLYING FOR AID

After you file a FAFSA, the Financial Aid Office draws up your projected budget to determine what your need for funds will be and what kind of aid you qualify for.  If you qualify as a ‘student in financial need’, you will be eligible for additional types of aid.  Based on your need, the Financial Aid Office compiles a list of grants and loans for which you qualify.  Their recommendations will be sent to you in an Award Letter.

WHEN THE AWARD PACKAGE IS OFFERED

The Award Package will include loans as well as other kinds of state and federal aid.

All students are eligible to apply for an Unsubsidized Loan (current interest rate of 6.8%).  Interest on these loans will be charged during your college years; and during the six-month grace period after you graduate, withdraw, or drop below six credits; and also during periods of loan deferment.  You  choose whether to pay interest during college years as it is being charged or to delay payment and simply include it with the rest of the borrowed money to be repaid after leaving school.

Students with financial need are eligible for a Subsidized Loan with a reduced interest rate of 4.5%.  Interest on a Subsidized Loan will not be charged until the student graduates, withdraws, or drops below six credits.  If necessary, a student getting a Subsidized Loan may supplement their loan with an Unsubsidized Loan.

Another type of loan available is the Consolidation Loan with which a student can combine several student loans (even at different colleges) into one loan, repayable with  one monthly payment.

LIMITS ON LOAN AMOUNTS

The following table shows the maximum amount of money you may borrow each academic year in Direct Subsidized and Unsubsidized Loans:

  Dependent student1 Independent student2
1st-year undergraduate $5,500 --but subsidized maximum $3,500 $9,500--but subsidized maximum $3,500
2nd-year undergraduate $6,500--but subsidized maximum $4,500 $10,500--but subsidized maximum $4,500
  1. Except those whose parents are unable to borrow a PLUS loan. 
  2. These limits apply to dependent students whose parents are unable to borrow a PLUS loan.

Total ‘lifetime’ limits for Direct Unsubsidized and Subsidized Loans are:

  • $31,000 for dependent undergraduate students excluding those whose parents are unable to borrow a PLUS Loan, but no more than $23,000 may be subsidized.
  • $57,500 for independent undergraduate students and dependent undergraduates whose parents are unable to borrow a PLUS loan--but no more than $23,000 may be subsidized.

EVALUATING YOUR AWARD PACKAGE

You should evaluate the award package carefully. Remember: loans must be paid back.

  • Be sure to check whether or not your living expenses will be as high as the estimated allowance projected by your school; if they aren’t, you may not need to borrow as much money as the amount in the award package.
  • To get an idea of your college expenses, use the Budget Calculator† on the government website.
  • To get an idea of your monthly loan payments after you graduate, see the Repayment Calculator† on the government website. 
  • You have the right to decline the loan or to request a smaller loan than the amount given in the award letter. 
  • Remember that loan money must be paid back with interest.  You should only borrow as a last resort.

ACCEPTING YOUR STUDENT LOAN

When you are satisfied with the awards package, you will need to

  • Accept the award package on Banner
  • Take a Loan Test at the Financial Aid Office..

If you are a first-time borrower of a student loan:

  • You must undergo Entrance Counseling† online to clarify your responsibilities regarding the loan. 
  • You must complete a Master Promissory Note (MPN)†.  After you file your MPN, you will receive a disclosure statement, noting the amount of the loan, fees for loan origination, and the expected disbursement dates and amounts.  Additional loans can be made with this one MPN for a period of ten years. 

WHILE YOU ARE IN SCHOOL

direct.ed.gov/inschool.html†

HOW LOANS ARE DISBURSED

  • Generally, your loan will cover costs for one year, and the school will make two disbursements, one at the beginning of the year and the other half-way through the year.  You will be notified in writing of each disbursement. 
  • Usually, the school will disburse the loan money by crediting it to your school account to pay for tuition and fees. 
  • If there is money remaining, the school will pay the money directly to you. 
  • If the loan disbursement is more than you need, the school will tell you how to cancel all or part of the disbursement. 
  • If you drop to less than half-time enrollment or completely withdraw from college, your loan money will be returned to the federal government.
  • Be sure to carefully keep all correspondence regarding your loan.

EDUCATION EXPENSES DEFINED

Student loans are to be used only for “education expenses” which include tuition, fees, books, supplies and equipment, living expenses, cost of care for a dependent child, transportation, and the cost to rent or buy a computer.

CHANGES IN ENROLLMENT STATUS

You are responsible for keeping the Direct Loan Servicing Center† and the Financial Aid Office up-to-date on any changes in your status, such as:

  • You changed your name and/or address
  • You did not enroll at least half-time for the loan period certified by the school
  • You did not enroll at the school which certified your loan
  • You stopped attending or dropped below half-time enrollment
  • You transferred from one school to another
  • You changed your enrollment (which can have a negative impact on the amount of your loan and could cause a reduction in disbursements)
  • You graduated

At the time you graduate, withdraw, or drop below half-time enrollment, you will begin the six-month grace period for your subsidized and/or unsubsidized loans.  Immediately after the grace period ends, you must begin to repay your loan.

PAYING INTEREST WHILE IN SCHOOL

You can choose whether to make interest payments while you are in school or to defer these payments by adding them to the rest of the loan to be repaid later.  You can determine how much more it will cost to defer interest payments with the loan calculator†. 

WHEN YOU LEAVE SCHOOL

http://www.direct.ed.gov/leaving.html†

GRADUATING, WITHDRAWING, OR DROPPING BELOW HALF-TIME ENROLLMENT

Before you leave school or drop below half-time, you must complete an online exit Interview†. 

Whether you are graduating, withdrawing, or dropping below half-time enrollment, you will begin a six-month grace period, after which your repayment period will begin.  Be sure to notify the Financial Aid Office and as well as the Direct Loan Service Center when you are no longer enrolled. 

NOTE:  You must begin repayment at the end of the grace period.  However if your loan repayment has already been deferred and you have used up one grace period, there will be no additional grace period and repayment must begin as soon as your leave school.  If you do not begin making payments when required, there is a possibility you will lose repayment incentives you have received or even go into default.

GRACE PERIODS

Your grace period begins the day after you graduate, withdraw, or drop below half-time enrollment.  If you re-enroll in school at least half-time before the end of your grace period, you will receive the full 6-month grace period when you graduate or withdraw from school.  During the grace period, you are not required to make loan repayments.

RESERVISTS CALLED TO ACTIVE DUTY

If you are called up for military service for more than 30 days, notify the Direct Loan Service Center† of your status, so loan accommodations can be made.

CHOOSING A REPAYMENT PLAN

You will have a choice among several repayment plans:

  • Standard ten-year repayment 
  • Repayment extended to 25 years for those with over $30,000 worth of student loans
  • Graduated repayment with payments increasing over the years
  • Repayment based on income

You are free to change your plan at any time during the loan process.

CONSOLIDATION OF MULTIPLE STUDENT LOANS

Even if you have taken out student loans at other colleges, they can all be consolidated, along with your current loan, into one loan with one monthly payment.  Consolidation will usually extend the loan-repayment period, but note that such an extension results in additional interest costs.  For additional information on loan consolidation, see the consolidation website†.

THE REPAYMENT PERIOD

www.direct.ed.gov/inrepayment.html†

The length of the repayment period varies with the plans.  If you don’t select any particular repayment plan, you will automatically be put in the standard plan with fixed monthly payments for up to 10 years.  This plan saves you the most money over time because it doesn’t have interest added during an extended repayment period.  Another plan starts with low repayment amounts and slowly increases the amount over time.  No matter what plan you are in, you can change your plan at any time.  Click on ‘Your Account’ at www.dl.ed.gov/borrower†.

MAKING PAYMENTS ELECTRONICALLY

Instead of mailing in a check every month, carefully timed to meet the due date, you can opt for an electronic debit account in which your bank automatically make your monthly payments directly out of your checking or savings account.  Your first repayment bill will explain how to sign up for this option.  A big advantage of making automatic repayments is that there will be a reduction in your interest rate of 0.25% during any period in which your payments are made electronically.

DIFFICULTY MAKING PAYMENTS

If you have trouble making your loan payments, contact the Direct Loan Servicing Center.  You may be able to arrange for deferment or forbearance on your account.

‘Deferment’ can postpone loan repayment for a given time period if the student meets the following qualifications:  Student is enrolled at least half-time in college, or student is unemployed and/or is eligible for ‘economic hardship’, or student is in military service.  In the case of a Subsidized Loan, interest does not accrue during deferment.

‘Forbearance’ is for those who do not qualify for deferment, yet are temporarily unable to make loan repayments.  Arrangements can be made with the Direct Loan Service Center to extend the time to make repayments, or stop making payments, or temporarily make smaller payments.

Deferment and forbearance are two kinds of arrangements you can make with the Direct Loan Service Center.  Unless you make such an arrangement, you risk going into ‘default’—which has serious consequences.  (Students who are already in default are not eligible for deferment or forbearance.)

To apply for deferment or forbearance†, Click on Contact Us, then Manage Your Account, then Deferment Request or Forbearance Request.

Your loan becomes ‘delinquent’ when your payment is not received by the due date.  The Service Center will send you a reminder if your payment is late, and, if your payment is still not received, warning notices will be sent to you.

NOTE: If you are delinquent, contact the Direct Loan Service Center immediately to learn how to bring your account current.  Late fees may be added and your account reported to one or more credit bureaus—but this is better than going into default.

THE FAR-RANGING CONSEQUENCES OF DEFAULT

If you default,

  • You will be required to immediately repay the entire balance owed on your loan.
  • The government may sue you, appropriate all your federal and state tax refunds, and/or garnish your wages so your employer will be required to send the government part of your salary to pay off the loan.  If sued, you will have to pay attorney fees and court costs.
  • You may be denied a professional license.
  • In addition you will lose eligibility for federal student aid and loan deferments, and your default will be reported to credit bureaus.  

CANCELLATION OF LOANS

You may be able to have part or all of your loan cancelled if:

  • Your school closed down before you completed your program.
  • Your school forged your signature and falsely certified you were eligible to get the loan.
  • Your loan was falsely certified because of identity theft.
  • You withdrew from school but the school didn’t pay you the refund it owed you.

In general, however, you must repay your loan even if you don’t graduate, can’t find work in your field of study, or are dissatisfied with the education program.

DISABILITY, BANKRUPTCY, OR DEATH

  • Your loan may be cancelled if you are certified totally and permanently disabled, and in addition if you meet certain conditions.
  • Your loan may be cancelled if it is discharged by a bankruptcy court.
  • Your loan will be cancelled if you die and if the Direct Loan Service Center is given a certified copy of the death certificate.

Code Of Conduct

Students must be completely free of influence by the college as they select a lender for their private education loan. 

SUNY Orange plays no role in the students’ selection of lenders, and to avoid even the appearance of a conflict of interest, the college and its employees commit to the following principles as regards lenders, guarantors, or servicers of student loans: 

  • SUNY Orange will not  participate in revenue-sharing arrangements with lenders
  • SUNY Orange will not  accept staffing assistance from lenders
  • SUNY Orange will not accept  money or any other benefit from a lender in exchange for the school granting favors to the lender, or for any consulting services provided to the lenders, or for serving on an advisory board in the lender’s organization

[top]

Parent Plus Loans

THE  BORROWER

The borrower of a Parent Plus loan can be a biological or adoptive parent of a dependent student, or a step-parent if the parent has remarried.  (A dependent student is one who is under 24 years of age, has no dependents, and is unmarried.  Exceptions will be made for veterans, wards of the court, or other special cases.)

THE LENDER

The lender is the US Government's Direct Loan program†.  The interest rate is somewhat lower than it was under the earlier program, known as the "FFEL program".

Prior to the 2010-2011 school year, banks and other financial institutions were the lenders of Parent Plus loans under the FFEL program.  Parents who already have Parent Plus loans under the FFEL program cannot transfer those loans into the government's Direct Loan program, but any new loans they make for dependent students will now be made in the Direct Loan program.)

ELIGIBILITY REQUIREMENTS

  • Parent and student must be US citizens or eligible non-citizens
  • Parent and student must not be in default on any federal education loans
    or owe an overpayment on a federal education grant
  • Parent must have a favorable credit history,
    or must be able to explain circumstances that created their credit problems,
    or must have a credit-worthy co-signer who will pay off the loan, if necessary

NOTE: The co-signer cannot be the student who will be assisted by the loan

AMOUNT OF LOAN

The maximum amount of a Parent PLUS loan is 'the cost of attendance' minus any other financial aid received (such as Direct Subsidized or Unsubsidized Loans).  The 'cost of attendance' is the total amount of tuition and fees paid directly to the college, books and supplies, transportation, and personal expenses--including the cost of a computer.  The Financial Aid Office will determine the actual amount that can be borrowed, based on 'the cost of attendance'.

INTEREST RATE AND FEES

The interest rate for Parent PLUS loans is fixed at 7.9%.  In addition, there is also a loan origination and default fee of 4% of the amount of the loan, deducted proportionally each time a disbursement is made. Interest will begin to accrue as soon as the first disbursement is made.

HOW TO APPLY FOR A LOAN AND SIGN THE PROMISSORY NOTE

Parents can apply for a Parent PLUS loan at the Financial Aid Office.  Those who have never before taken out a Direct Loan for the student will need to sign a Master Promissory Note (MPN), a legal document in which the borrower promises to repay the loan plus any accrued interest and fees to the US Government's Education Department.  The MPN will explain the terms and conditions of the loan.

Parents who are borrowing for more than one student will need to complete a separate MPN for each student (unless they already have an MPN for the second student). 

To complete the MPN on-line, parents will need the Personal Identification Number (PIN)  assigned to them by the Education Department..  If they do not have a PIN, they can request one from the official PIN website†.  (The student's PIN cannot be used.)  Once MPNs have been submitted and accepted, each MPN will stay in effect for up to ten years for additional loan activity.

WHEN THE PARENT'S APPLICATION IS DENIED

If students' parents applied for but were denied a PLUS Loan, the students are then eligible receive additional Direct Unsubsidized Loan funds themselves.

LOAN DISBURSEMENT

The US Department of Education sends the money directly to the school.  Generally each loan will cover a full academic year, and the school will make two disbursements, one at the beginning of each semester.    The school will credit the money against the student's costs for tuition and fees, and any excess money will be sent to the student in the form of a check. 

The parent will receive a disclosure statement specifying the loan amount, the loan fees, expected disbursement and disbursement dates, and information about the loan servicer to whom repayments will be made.  The loan servicer will issue regular updates on the status of the loan. 

ONSET OF REPAYMENT

Once the loan has been fully disbursed, the repayment period will begin 60 days after final disbursement, although the parent may defer repayment if the student continues to be enrolled at least half time and for an additional six months after the student ceases to be enrolled at least half time.  At that time, the parent begins repayment on the loan.

REPAYMENT PLANS

The Direct Parent PLUS Loan Program offers three repayment plans--standard, extended, and graduated--that are designed to meet the varying needs of borrowers.  The terms will differ, but in general, borrowers will have between 10 and 25 years to repay the loan.

OPTIONS WHEN THE PARENT HAS DIFFICULTY REPAYING THE LOAN

After parents have begun repayment in one kind of repayment plan, they are free to switch to another, more manageable plan, by arrangement with the loan servicer.

If necessary, the parent can apply to the loan servicer for a 'deferment' to temporarily reduce or stop payments due to certain circumstances: either because they are unemployed, re-entering school, going into the military, or experiencing economic hardship.  However, interest will continue to accrue during a deferment. (While waiting for deferment approval, parents must continue making payments so they do not go into default on the loan.)

If parents do not qualify for deferment, they can request 'forbearance'--a temporary postponement or reduction in the amount of the payment, due to hardship.  However, interest continues to accrue during forbearance.

CAUTIONS

  • The funds disbursed in the Parent Plus Loan program cannot be used for any other purpose than the student's costs of education.
  • Parents should pay particular attention to the very high penalties they will have to pay if they should default on their loan.

[top]

Veterans Benefits

All certificate and degree programs are approved for members of the Selected Reserve and National Guard, G.I. Bill veterans, eligible dependents, and disabled veterans. Veterans should inquire at the Veterans Office in the Counseling and Guidance Center, located on the third floor, College Commons.

For information on benefits in the G.I. Bill, go to www.gibill.va.gov †

[top]

Aid for Native Americans

The Federal Bureau of Indian Affairs gives educational grants directly to the various Native American tribes.  Students should contact their tribal office to see if federal funds are available.

Aid for Native Americans may be also be available through the New York State Education Department. The website is www.nysed.gov †and, by sending an email to acooke@mail.NYSED.gov†, students can get additional information.

[top]

Middletown

SUNY Orange
Office of Financial Aid
115 South Street 
3rd floor
Middletown NY 10940

Telephone: 
845-341-4190

Office Hours:
Mon-Fri: 8am to 5pm
Wed Evening: to 8pm

Newburgh

SUNY Orange
Office of Financial Aid
One Washington Ctr
Newburgh NY 12550

Telephone: 
845-341-9502

Office Hours:
Mon-Fri: 8am to 5pm
Tue Evening:to 8 pm