Procedures For Obtaining a Federal Loan

Monthly Payment | Scholarship Resources|
Family Program | Basic Eligibility | Stafford Loan |
Repayment | Rights & Responsibilities | Related Policies |
Database Match | Private Loan Programs | Tax Benefits |
Postscript - Using Home Equity Loans |

Required Documents
The following documents must be submitted in order to process your request for a Stafford Loan:

• 2008-2009 Free Application for Federal Student Aid (FAFSA) or 2008-2009 Renewal FAFSA
• Federal Student Loan Request Form (Fax to (860) 548-2419)
• Complete Stafford Loan Entrance Counseling online at:
  www.mappingyourfuture.org (This session must only be completed once while attending Rensselaer at Hartford. Loan counseling completed at other schools does not qualify.)

The Student Loan Request Form is available online or from the Hartford Financial Aid Office.

Please note that the Loan Request Form should be sent directly to the Hartford Financial Aid Office. The FAFSA or Renewal FAFSA can be completed online by going to the Department of Education's FAFSA on the Web site below: (NOT fafsa.com!)

To submit a FAFSA online and sign it electronically, follow these steps.

• Go to the web site and click on "Get Your PIN" if you don't already have one or have misplaced it. (A Personal ID Number or PIN is automatically generated and sent to students who already have complete a FAFSA or Renewal FAFSA and whose name, date of birth, and SSN have been verified by the Social Security Administration.) Use of a PIN helps ensure the privacy of the information you are submitting online and allows you to sign the form electronically. When you apply for a PIN you will be asked how you want it to be sent to you. You can choose to receive an e-mail with a link to your PIN on the Web, or you can request that the Department of Education send a paper PIN mailer to your permanent address. If you choose the former and do not access the link in the PIN e-mail message within 14 days of receiving it, your PIN will be removed from the Web and a paper mailer sent to your permanent mailing address.
• Prior to completing the FAFSA online you might want to print a Pre-Application Worksheet since the order of the questions on the 2007-08 version of FAFSA on the Web differs from the paper FAFSA. To do this, click on "Worksheets" and then select the Pre-Application Worksheet.
• Next, complete your FAFSA online by clicking on "Fill Out a FAFSA." Follow the online instructions and save the data whenever you are prompted to do so. This way your responses will be saved in a secure, temporary server for 45 days from the time the application was last accessed. To bring up your application to work on it again, click on "Continue Working on a Saved Application" on the FAFSA home page. FYI, by clicking on a command button called "View FAFSA Summary" at any point during data entry, you can see a summary of all of the responses you've provided so far. When you are done, you can print the summary page for your records. Then click on "Submit my FAFSA Now" and either print or note your confirmation number.
• Finally, click on "Electronically Sign My Application" (if that is the method you have chosen) to complete the process. You will be asked to confirm your identity by providing information (including your PIN) and then click on "Submit Request."
• An e-mail notification will be sent to you once the FAFSA has been successfully processed with instructions on how to access your Student Aid Report (SAR) online. If you did not provide a valid e-mail address, a paper SAR will be mailed to you. If you need to make corrections, go to "Make Corrections to a Processed FAFSA" on the FAFSA home page.

Once you have completed a FAFSA on the Web, please be sure to mail or fax the Federal Student Loan Request Form to the Hartford Financial Aid Office.

Helpful Tips

• When completing the FAFSA, please note that our school code is "E01127."
• Students may request Stafford Loans semester-by-semester or for up to three consecutive semesters at a time (four if you are in our Weekend M.B.A. or other accelerated program). You must be continuously enrolled for at least six credit hours during each semester included in your loan period.
• Federal Stafford Loans are not only for tuition, you can also borrow for other educationally related expenses such as books, supplies, transportation, a personal computer, housing, etc.

In addition to allowing you to sign and correct a FAFSA online, your PIN also will provide access to:

• The National Student Loan Data System (NSLDS) web site (www.nslds.ed.gov) for a history of the federal financial aid you have received.

Determining Eligibility: Basic Eligibility Requirements
The Financial Aid Office confirms your eligibility using the U.S. Department of Education's analysis of your completed FAFSA. Official results of this analysis are retrieved electronically in an Institutional Student Information Record (ISIR). Students receive this information by mail or the Internet in a slightly different format: the Student Aid Report (SAR). The ISIR contains your official Expected Family Contribution, as well as results of the database matches the Department conducts to confirm that other eligibility requirements are met. These database matches include: verification of a valid Social Security Number; Selective Service Registration compliance; and U.S. citizenship or eligible non-citizenship status. In addition, the database matches verify that you are not in default on any student loan; you do not owe an overpayment on any Student Financial Assistance grant or loan; and you have not inadvertently exceeded the annual or aggregate loan limit allowed for the Federal Direct Loan Program.

Determining Eligibility: Calculation of Financial Need
By law, your eligibility for a Federal Subsidized Loan, which is interest-subsidized, must first be determined. This is to your advantage, since you would incur less debt through a subsidized loan than through an unsubsidized loan. The Federal Subsidized Loan Program is need-based, thus you must demonstrate financial need according to federal criteria in order to qualify for funding. Financial need is calculated as follows:

Cost of Attendance
- Expected Family Contribution (from your SAR)
- Other Financial Assistance Received
= Financial Need

Cost of Attendance
The Financial Aid Office will calculate your Cost of Attendance based upon your requested loan period and anticipated enrollment during that period. You will note that Cost of Attendance includes not only tuition, books and supplies, but also living, transportation, and incidental expenses. In addition, a reasonable allowance for the documented rental or purchase of a personal computer may be included in the Cost of Attendance. Some examples of calculations for Cost of Attendance are shown below:

Award Year: 2008-2009

Sample calculation for a half-time (six credit hours each term) student enrolled fall 2008, spring-summer 2009, requesting $20,500 :

Expected Family Contribution
Expected Family Contribution (EFC) is the amount the U.S. Department of Education determines you and your family are expected to contribute toward your education with your own resources. Using the information submitted on the FAFSA, your EFC is calculated using federally mandated methodology. This methodology assumes that at least some of your household income and assets will be applied toward your educational expenses. Two EFC formulas apply to Rensselaer at Hartford students: (1) for the (single or married) independent student without dependent(s) other than a spouse; and (2) for the (single or married) independent student with dependent(s) other than a spouse. Your Student Aid Report (SAR) will state your EFC for a nine-month period.

There is a simplified version of these formulas which does not consider an independent student's assets when calculating the EFC. This version would obviously increase your eligibility for financial aid. You can qualify for the simplified EFC formula if the following is true: Neither you nor your spouse (if applicable) was required to file an IRS Form 1040; and you and your spouse's (if applicable) combined AGI (for taxfilers) or income earned from work (for nonfilers) was less than $50,000.

Generally speaking, you (and your spouse) are eligible to file a 1040A or 1040EZ if your taxable income is less than $50,000, you do not itemize deductions, do not receive income from your own business or farm, and do not receive capital gains or alimony. (Please visit the FinAid web site for a simplified needs test chart: www.finaid.org/educators/needs.phtml.) Very often, tax preparers will file a Form 1040 for you, even though you may be eligible to file a form 1040A or 1040EZ. The 2006-2007 FAFSA gives you the opportunity to state you were eligible for the short forms even though you filed a 1040, thereby allowing you to take advantage of the simplified EFC formula. If you use FAFSA on the Web and qualify for the simplified needs test you will have the option to skip the student asset net worth questions.

In addition, some independent students with dependents other than a spouse will automatically qualify for a zero EFC (i.e., they will not be expected to contribute toward their education with their own resources) if: neither the student nor spouse (if applicable) was required to file an IRS Form 1040 (please see above); and the student's and spouse's (if applicable) combined AGI (for taxfilers) or combined income earned from work (for nonfilers) is $13,000 or less.

Other Financial Assistance Received
Other sources of financial assistance-- such as scholarships or tuition reimbursement through your employer--are considered awards of aid and are used in determining Financial Need. All forms of financial assistance should be reported on your Federal Student Loan Request Form.

Pursuant to the 1998 amendments to the Higher Education Act, Veterans Administration education benefits received under Title 38 Chapter 30 of the Montgomery GI Bill (active duty) and AmeriCorps benefits are excluded as sources of financial assistance when determining Federal Subsidized Loan eligibility. These education benefits are, however, treated as a form of financial assistance when determining eligibility for Federal Unsubsidized Loans.

Financial Need
Your Expected Family Contribution and Other Financial Assistance Received are subtracted from your Cost of Attendance. The remaining amount represents your Financial Need--in other words, your eligibility (within annual loan limits) to receive a Federal Subsidized Loan. If the remaining amount is 0 or less, you are ineligible for funding under the Federal Subsidized Loan Program. In this case, you can borrow through the Federal Unsubsidized Loan Program. If you qualify for some funding through the Federal Subsidized Loan Program, but not as much as your requested loan amount, you can borrow simultaneously through both programs, within annual loan limits. The total amount you borrow cannot exceed your Cost of Attendance less Other Financial Aid Received or $20,500, whichever is less.

If you have unusual financial circumstances, please contact the Financial Aid Officer. Special circumstances such as recent unemployment of a family member (or other changes in a family’s income or assets), elementary or secondary tuition expenses, medical/dental expenses not covered by insurance, or unusually high child care costs, can be the basis for exercising professional judgment. Financial aid administrators are authorized to use their judgment to better reflect a student’s current financial need when warranted and documented.

Notification of Eligibility
The Financial Aid Office will inform you in writing of your level of eligibility for a Subsidized Loan and a Unsubsidized Loan, based upon your Cost of Attendance, Expected Family Contribution, and Other Financial Assistance Received. You also will be informed of any database match problem, along with information on how to resolve the problem.

A number of federal aid applicants are selected by the U.S. Department of Education for verification. If you have been selected, the Financial Aid Office will inform you of this requirement and will include a Verification Worksheet with your loan eligibility notification. If you are selected for verification, you are required by federal regulation to accurately complete and return the Worksheet to the Financial Aid Office and submit signed copies of your Federal Tax returns and all W-2s.

Federal law also mandates that educational institutions advise students in writing of their loan confirmation process. Due to its unique student culture, Rensselaer at Hartford has opted for a passive confirmation process. Therefore, in your notification of eligibility you will be given two business days (from receipt of the e-mail) to notify the Financial Aid Office if you wish to either refuse the loan or adjust the loan amount. Otherwise, your loan request will be transmitted to American Student Assistance (ASA) and you either can sign a promissory note online using your PIN or receive a printed note in the mail for signing.

Choosing a Lender
Choosing a student loan lender is an important decision.  The Financial Aid Office can not recommend a lender but will be happy to answer your questions in order for you to make the best decision.  Although, all Federal Stafford loans have the same interest rates and fees, lenders may offer an interest reduction for signing up for auto debit or after a borrower makes a certain number of on-time payments.  The web may be an ideal place to review borrower benefits and other terms and conditions a lender offers.  Search engines, such as http://www.simpletuition.com may also proof helpful. Also, phone a lender’s Customer Service Center. Not only will you get answers to your questions, it may also give you an idea of how their customer service is. 

Completing a Loan Master Promissory Note (MPN)
Your loans are processed through our loan guarantor, American Student Assistance (ASA). Rensselaer electronically submits all information required to originate your loan using the loan period and loan amount you requested on your Federal Student Loan Request Form. Please note that multiple loans for a period up to ten years can be made against the Master Promissory Note (MPN). It is not necessary for you to sign a separate note for each new loan. Log into: www.amsa.com/direct and click on: "Take me to ASA Direct" to e-sign the MPN.

The Electronic Signatures in Global and National Commerce Act, recently signed into law, makes it possible to recognize your Personal ID Number (PIN) as a legally binding signature. This allows ASA to utilize the electronic signature option, thereby making the student-loan process completely paperless. To protect the privacy of your personal information, this Web-based process uses Secure Sockets Layer encryption.

You can use your PIN to electronically sign your MPN once the loan has been originated. Please note that the MPN does not show the subsidized and/or unsubsidized loan amounts you are agreeing to borrow, nor does it indicate anticipated disbursements. Instead, this information is mailed to you in a separate Disclosure Statement approximately 30 days prior to the anticipated disbursement dates. If you wish to borrow less than the amount listed on the Disclosure Statement, please contact the Financial Aid Office immediately so that adjustments can be made. If you wish to cancel the authorization for subsequent loans to be made under your MPN, you will need to send written notification. Please see the brochure, "The Inside Scoop for Borrowers," for additional information regarding the MPN.

Once your note has been received and the first disbursement is made your loan is booked. At that point you will have access via your PIN to your account at the American Student Assistance Web site. Remember that your loan will not be processed unless (and until) they have received your signed MPN.

Entrance Interview
Every student who borrows through the Federal Family Education Loan Program for the first time at Rensselaer is required to participate in an Entrance Interview. To do this, please log into www.mappingyourfuture.org. By law, no student can have access to loan proceeds prior to this Entrance Interview.

An additional purpose of the Entrance Interview is to make sure you fully understand your responsibilities as a borrower. When you sign the MPN you promise to pay to the U.S. Department of Education all sums disbursed under the terms of the note plus interest and other charges and fees that may become due as provided in the note.

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