UMET Financial Aid
 

FEDERAL LOANS
Unlike scholarships or the Work-Study Program, the student loan is money that must be repaid to the Department of Education with interest.  Student loans are a legal obligation to pay. This though has not completed their studies, not are satisfied with the education or get a job once you graduate.  The Direct Loan Program of the Department of Education has the following loans available.   Direct Loan Subsidized and Unsubsidized and PLUS Loan. Factors such as the level and years of study and financial need will determine the amount of loan which the student qualifies. This program offers several advantages, among these are: low interest rates, various payment options, among others.

ELIGIBILITY REQUIREMENTS
To be eligible for Federal Direct Loan Program, the undergraduate and graduate students must meet federal level and Institutional requirements.  It should not be in default of a federal student loan or owe excess money received by the Department of Education, you must have Satisfactory Academic Progress and not be in Academic Probation (unless it has been approved an appeal and is serving successfully when you apply). You must complete the Free Application for Federal Student Aid and complete at www.studentloans.gov Master Prommisory Note Join and the Entrance Counselling. You also need to be enrolled for at least at the requirement amount of credits (6 credits undergraduate, 3 graduate credits and one doctoral credit). Other requirements may be required.

DIRECT LOAN SUBSIDIZED
The Direct Subsidized Loan is based on financial need, so the Department of Education of the United States pays the interest while you are enrolled, during the grace period or in periods of deferment (Loans granted between July 1, 2012 and July 1, 2014 will not be subsidized interest during the grace period).
 
DIRECT UNSUBSIDIZED LOAN
The Direct Unsubsidized Loan is not based on financial need, so interest accrues from the time it is disbursed until the debt is paid in full. The borrower has the option to pay the interest as it accrues or allow them to be added to principal. This loan is available for Undergraduate students and graduate level.

DIRECT PLUS LOANS
Direct Plus Loan is available to graduate level students and for parents of children as dependents under the criteria used by the Department of Education.  This is not based on financial need, so interest accrues from the time it is disbursed until it is paid in full. The borrower has the option to pay the interest as it accrues or allow them to be added to principal. Responsibility for payment of a Parent PLUS Loan cannot be transferred to the student, so that the applicant or co-signer will be responsible for payment.

The first payment for a Plus Loan is due within 60 days of disbursement of the loan in full. There is no grace period for this type of loan. You or your parents must begin repaying both principal and interest while you are still enrolled.  However, their willingness to defer payment of principal while is enrolled at least half time.

ANNUAL LOAN LIMITS

Undergraduate Dependent Student

Independent Student Undergraduate

Graduate Student Professional

1st Year

$3,500 s subsidized
$2,000 unsubsidized

$3,500 subsidized
$6,000 unsubsidized

$20,500

2nd year

$4,500 s subsidized
$2,000 unsubsidized

$4,500 subsidized
$6,000 unsubsidized

3rd and 4th year

$5,500 subsidized
$2,000 unsubsidized

$5,500 subsidized
$7,000 unsubsidized

Loan maximum total debt upon graduation

$31,000
. No more than $ 23,000 of this amount in subsidized loan

$57,500
No more than $ 23,000 of this amount in subsidized loan

$138,500
No more than $ 65,500 of this amount in Subsidized .This loan amount includes subsidized loans to undergraduate

INTEREST RATES AND COSTS OF ORIGINATION
The Direct Loan Program has fixed interest rates and origination costs which are determined and changed annually. Here are the percentages for the academic year 2014-2015.


Type of Loan

Interest Rate

Origination Costs

Subsidized loan undergraduates

4.66%

1.073%

Unsubsidized Loan level subgradudado

4.66%

1.073%

Unsubsidized Loan graduate level

6.21%

1.073%

Plus Loan

7.21%

4.292%

DISBURSEMENT OF THE LOAN
After 30 days of beginning of the enrollment at least half time and if you do not owe any documents that prevent the disbursement, the institution is going to apply first to the student's account.  If there is any excess or surplus, it will be sent to the parent or student (as appropriate), unless the student authorizes the institution holding the funds. Any remaining funds must be used for education expenses. For more information you may contact the Financial Aid Office of your Study Centre.

LIMITATION DIRECT SUBSIDIZED LOAN BORROWERS A NEW UNDERGRADUATE LEVEL
As of July 1, 2013, if you are a first time borrower and you receive a Subsidized Direct Loans have a maximum time limit to be eligible for subsidized interest loans. In general you should not receive Direct Subsidized Loan by more than 150% of their program of study. This is called maximum eligibility period. (SULA) for its acronym in English.
The period of eligibility is based on the term of your program of study. So your maximum eligibility could be modified if the program is changed. Generally, Direct Subsidized Loans received in their previous program of study will be counted against your new eligibility period.

Once you lose your eligibility to receive Direct Subsidized Loans may receive no Subsidized Direct Loans. In addition, if you continue enrolled after losing eligibility under certain circumstances the Department of Education will pay the interest on subsidized loans received. Any accrued unpaid interest will be added to your principal balance, either at the end of your grace period, deferment, among others.

SEPARATION OF STUDIES / GRACE PERIOD
After the first separation from his studies occur, for example:  graduates, discontinue studies or reduce your enrollment  to less than half time, you will begin the six months prior to the payment of the principal of the student loan, this is known as the period of grace. Subsidized loans processed before July 1, 2012 and after July 1, 2014 did not accumulate interest. Plus unsubsidized loans accrue interest and during these months, so you will have the option to pay or let them be added to the principal.

If you are active in the Armed Forces could have a longer period of grace to those listed here, and have additional options to postpone the payment of your loan.

REPAYMENT PLANS
The Department of Education provides several options for payment plans,  conform to the economic situation of the borrower. The following payment plans available:
• Basic - Fixed payments up to 10 years to repay.
• Extended - For loans more than $ 30,000 balance, with up to 25 years to repay.
• Gradual - Monthly fees are comfortable at first, and then they usually increase every two years up to 10 years pay.
• Income Contingent (ICR), Income Based and Pay as You Earn (PAYE) - Payments are calculated annually and is based on annual income (and the spouse if married), number of household members and the total loan amount. The remaining loans could be forgiven after 20 to 25 years.

LOAN CONSOLIDATION
Allow the borrower, both students and parents combine multiple federal student loans into one loan with one monthly payment. Consolidation loans are worked under the Direct Loan Program, plus the interest rate will be fixed. Information on this loan is available at www.studentloans.gov.

POSTPONE PAYMENT
Under certain circumstances it might postpone for specific and limited time payment of a student loan.  This options are known as Deferrments and / or Forbearances. If you are unemployed, facing economic difficulties, receives aid from the government, is enrollment at least half time, you may qualify. You should contact the Service Agency loan. For additional information go www.studentaid.ed.gov.

LOAN DISCHARGE
There are circumstances where you can cancel the debt of the federal student loan whenever it is not in default of the loan. The cancellation releases you from any obligation to repay the loan debt. Among these are:
• Sudden closure of their institution before completing their program of study.
• Your school falsify your signature on your promissory note or falsely certified your loan was eligible.
• Identity Theft
• You withdraw from school but the establishment did not pay a refund owed as its written the Institution policy.
• Bankruptcy, provided they check in bankruptcy court that repaying the loan would cause undue hardship. To access detailed information www.studentaid.ed.gov.

FORGIVENESS
The Department of Education offers several types of forgiveness for borrowers who work full time and meet other requirements:
• Teaching Service - If you teaches in a low-income school or educational service agency, you may qualify for this benefit. This provision is not available for PLUS loan borrowers. The amount of forgiveness could range from $ 5,000 to $ 17.500 depending on the specialty. For more information, visit www.studentaid.ed.gov  or the Servicer of your loan.
• Public Service - If you work full time in a public entity and has made 120 payments on his or her Direct Loan Program (after October 1, 2007), the remaining balance may qualify for this cancellation. For more information, visit www.studentaid.ed.gov

DEFAULT
Do not make your loan payments for 270 days or more, according to the terms and conditions of your Note will cause your loan is declared in default. The consequences include, but are not limited to:
• Be asked to pay the balance amount and accrued interest immediately.
• Lose eligibility to apply Deferments and Forbearances.
• Not be eligible to receive financial assistance for their studies.
• Will be reported to credit agencies, which will affect your credit score.
• Balance costs increase by late payments, interest, costs of collection.
• Your employer at the request of the Federal Government may hold a portion of their salary.
• The Federal Government may take legal action against you.

RIGHTS AND RESPONSIBILITIES
By getting a student loan, you will have certain rights.  This a brief summary of them:
• Receive written and verbal information about my rights and responsibilities.
• Receive a grace period of six months after the first separation from their studies occur. • Receive an accounting of all information regarding student loan.
• Right to obtain a deferment or forbearance period if requested and qualified.
• Pay off the loan before the repayment period begins, without any penalty.
• Receive copy of (Note) before or during the period of loan disbursement.
• Receive documentation certifying the loan balance pay once finished.
As a borrower will have responsibilities both to the institution. This a brief summary of them:
• Receive advice out once the first separation occurs. You will receive the same in www.studentloans.gov  or your institution.
• Pay your student loan with interest that accrues and / or capitalized, although not complete my program of study, you are not satisfied with the education or cannot get a job after I graduate.
• Report to the University and the Agency of any changes in service or academic demographic information that may affect your student loan.
• Make monthly payments on my loan after parting with the University.
• Notify the Service Agency if any factor that may affect the period of deferment or forbearance that is.

 Additional Information
For additional information about the Direct Loan Program access links the links listed or call the Office of Federal Service of the Department of Education.

Common Origination and Disbursement
For you clarify specific questions about your rights, responsibilities and / or terms of your loan you may contact Service Applicant.

  • 1-800-848-0978

  • codsupport@acs-inc.com

    StudentLoans.gov
    Federal Department of Education to assist you in managing your student loans under the Loan Program page. You can enter the site to complete your FAFSA to the junction of the Note, including interest.
    1-800-433-3243
    www.studentloans.gov

    Federal Student Aid Page
    Department of Education, which covers all the necessary information about the types of financial assistance.
    1-800-433-3243
    www.studentaid.gov

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