Federal Programs

Federal Pell Grants:

Application Procedures: The completed Web application takes a maximum of two weeks to process. A processed Student Aid Report (SAR) will be sent to the applicant via email. The amount of the applicant's award is determined from the SAR by the office of Student Financial Services. Upon enrollment, funds are paid directly to the applicant or applied to the students' tuition bill.

Selection of Recipients and Allocation of Awards: The Federal Pell Grant is an entitlement program. Eligibility and award amounts are based on financial need. Financial need is determined by a formula applied to all applicants. It was developed by the U.S. Department of Education and is reviewed annually by Congress. The Expected Family Contribution (EFC) is calculated by this formula.

Award Schedule: 2011-2012 awards range from $277.50 to $2,775.00 per semester. The amount of the award will be affected by costs of attendance and full-or part-time enrollment status. The Federal Pell award does not duplicate State awards.

Rights and responsibilities of Recipients: Students must continue to make satisfactory academic progress each term in the degree program in which they are enrolled to receive funds. Students must not owe any refunds on Federal Pell Grants or other awards paid, or be in default on repayment of any student loan.

Award payments made by checks are mailed to the student's address on file with the Financial Aid Office. Payment Schedules are also available in the office of Student Financial Services.

Students must attempt 24 credits during the academic year in order to earn the full Federal Pell award. Therefore, enrollment status for Federal Pell is as follows:

 Full-time 12 credits (or equivalent); 3/4 time 9 through 11.5 credits (or equivalent); 1/2 time 6 through 8.5 credits (or equivalent); and less than half time 1.0 through 5.5 credits (or equivalent).

Federal Supplemental Educational Opportunity Grants (FSEOG)

Selection of Recipients and Allocation of Awards: The applicants must:

1) have exceptional financial need and
2) be enrolled at least half-time (6 credits minimum).

Award Schedule: The awards range from $200.00 to $400.00 in 2011-2012.

Rights and Responsibilities of each term Recipients: The student must continue to make satisfactory academic progress each term, and meet all the requirements for the Pell Grant.

Federal Perkins Loan (FPL)

Selection of Recipients and Allocation of Awards: Loans are available to students enrolled at least half-time (6 credits) in a degree program and in approved post-secondary institutions. LaGuardia students must be enrolled at least half-time in their current session in order to receive the Direct Loan funds. Online pre-loan entrance and exit counseling is required.

Award Schedule: Awards range from $1,000.00 to $1,800.00 for each year of undergraduate study. The total debt cannot exceed $20,000 as an undergraduate.

Rights and Responsibilities of Recipients: Continued eligibility is dependent on maintenance of satisfactory academic progress. The current interest rate of 5% is payable during the repayment process and begins six months after graduation or leaving school and may extend over a period of 10 years. Payment is not required for up to three years of active U.S. military service or service in the Peace Corps, VISTA, or similar national program.
 

Eligibility of Defaulted Borrowers: 674.2, .9(i) A borrower who defaults on a loan made under the Federal Perkins Loan Program is ineligible for further assistance until he or she has:
 

• voluntarily made six consecutive monthly payments; (payments obtained by income tax offset, wage garnishment, income or asset execution, or pursuant to a judgment are not "voluntary".)
   
• voluntarily made all payments currently due;
   
• repaid the full amount due, including any accrued interest, late fees, and collection costs;
   
• received a deferment or forbearance based on a condition that predates the borrower reaching a 240 or 270-day past due status;
   
• had the loan cancelled due to permanent and total disability;
   
• had the loan discharged in bankruptcy;
   
• had the loan forgiven due to a closed school situation; or
  repaid the loan in full under the compromise repayment provision under 674.33(e).
  A defaulted Perkins borrower may use satisfactory repayment arrangements ( i.e., the making of six consecutive monthly payments on time) to regain Title IV eligibility only once.

  
  Federal Perkins Loan Rehabilitation Program 674.39, .47(e)(5): Effective July 1, 2000

  
   
• Once a borrower has made twelve on-time, consecutive monthly payment (as defined by    the institution), a defaulted loan is rehabilitated. A borrower may rehabilitate a defaulted    loan only once.
   
• Within 30 days of receiving a borrower's twelfth payment,
   
• the borrower returns to regular repayment status;
   
• the borrower's 12 payments are consider as the first year's payment under the 10-year    repayment maximum; and
   
• credit bureaus to which the defaulted loan was reported are notified to remove the default from the borrower's credit history.

Under a rehabilitation program, collection costs charged to a borrower may not exceed 24% of the unpaid principal and accrued interest.

NOTICE: If you have been awarded a Federal Perkins Loan for the 2011-2012 academic year, and accept this loan, you are required to bring to the office of Student Financial Services (C-107) proof that you have completed pre-loan counseling on-line. Log on to the Financial Aid Office’s web page, http://www.lagcc.cuny.edu/sfs/ click on Resources, then click on the link for Entrance & Exit for Perkins Loan.

Pre-loan counseling will give you the opportunity to review the terms of your loan and your rights and responsibilities once you have received the loan.

You will not receive your Perkins Loan check until you have completed the pre-loan counseling session and have completed the necessary forms.

Please call (718) 482-5191 to speak to the Perkins Loan Coordinator if you have any questions.

Federal Work-Study Program (FWS)

Selection for Recipients and Allocation of Awards: The applicant must be enrolled at least half-time (6 credits or tuition units).
Employment is reasonably available to all eligible students who are in need of financial aid in the institution. In the event that more students are eligible for FWS than there are funds available, preference is given to students who have greater financial need and who must earn a part of their educational expenses.

Award Schedule: The office of Student Financial Services arranges jobs on campus or off-campus, with public or private nonprofit agencies, such as hospitals, for up to 20 hours a week, based on the availability of funds.

Factors considered by the office of Student Financial Services in determining whether, and for how many hours, the recipient may work under this program are:

 - financial need, class schedule, and academic progress.
The minimum wage is $8.00 for 2011-2012. Awards range from $900.00 to $2,000.00.

Rights and Responsibilities of Recipients: Satisfactory academic progress must be maintained, and all the requirements of the Pell Grant must be met.
 

Federal Direct Loan Program (FDL)

http://www.ed.gov/DirectLoan  

Interest Rate Update 2011 - 2012
Fixed Interest Rates for Federal Student Loans disbursed on/after July 1, 2011 are:

• 3.40 % Subsidized Loans  
• 6.80 % Unsubsidized Loans
   
• 7.90 % Plus Loans for Parents 

General information about Direct Loan interest rates 

All Direct Subsidized, Direct Unsubsidized, and Direct PLUS loans first disbursed on or after July 1, 2006 have a fixed interest rate for the life of the loan.

Interest rates for Direct Subsidized Loans for undergraduate borrowers have a fixed interest rate as follows:

If first disbursed on or after July 1, 2012 - 6.8%.

All Direct Subsidized, Direct Unsubsidized, and Direct PLUS loans first disbursed before July 1, 2006 have a variable interest rate. The interest rate on these variable rate loans is changed on July 1st of each year.

The interest rate on Direct Subsidized and Direct Unsubsidized Loans is determined using the 91-day Treasury bill rate that was auctioned before June 1st and adding a certain fixed percentage to it.

The interest rate on Direct PLUS Loans is determined by using either the weekly average of the 1-year constant maturity yield published by the Federal Reserve on or before June 26 or the 91-day Treasury bill rate that was auctioned before June 1st.

Direct PLUS Loans that were disbursed before July 1, 1998 use the weekly average of the 1-year constant maturity yield.

Direct PLUS Loans that were disbursed on or after July 1, 1998 use the 91-day Treasury bill rate.

Consolidation Loans disbursed under the Direct Loan Program can have either a fixed or variable interest rate depending on when the application was received.

The amount of interest that accrues on your loan from month to month is determined by using what is called the Simple Daily Interest formula. This method is a simple formula that multiplies your loan balance by the number of days since the last payment times the Interest Rate Factor. The Interest Rate Factor is determined by dividing your interest rate by the number of days in a year (365.25).

Application Procedures: Application is made through the office of  Student Financial Services by completing a Loan Origination Request Form. The applicant is required to first file and receive a response from a FAFSA.

When the loan is requested, a counseling session and, the completion of a Direct Loan Entrance Interview Quiz are required. When the loan is approved, a promissory note is signed by the student ( The Direct Loan Entrance Counseling Quiz can be completed on the internet at Entrance Counseling for Borrowers ) follow by an online master promissory note at http://dlenote.ed.gov 

Selection of Recipients and Allocation of Awards: To be eligible for a Federal Direct Loan, a student must be:

• a U.S. Citizen or permanent resident alien.
   
• enrolled in or admitted as a matriculated, at least half-time in their current session, six (6)credits or tuition units. 

Loan Schedule: The loan amounts vary and are based on class year: for example, $3,500.00 during the student's freshman year, $4,500.00 during the sophomore year, etc. All students are eligible to receive interest benefits on their loans unless they choose to waive them. Some students are eligible for a full interest subsidy on a subsidized loan during the time He/She is enrolled in school at least half-time, and for a following six month grace period before repayment must begin. An "Origination Fee" of 3% of the loan amount is subtracted in full at the time the check is issued.

Rights and Responsibilities for Recipients: Students may borrow at a relatively low interest rate (currently 4.50%) with no repayment as long as they remain enrolled at least half-time, and for six months after they cease to be at least a half-time students. Payment of the principal may further be deferred during study under a graduate fellowship program approved by the U.S. Commissioner of Education, during up to three years as a full-time Peace Corps or VISTA or similar national program volunteer.

Six months after ceasing to be at least a half-time student, the borrower must make formal arrangements with the loan service to begin repayment. The following regulations apply: 

• Depending on the amount of the loan, the minimum monthly payment may be at least    $50.00 plus interest. Under unusual and extenuating circumstances the loan service, on    request, may permit reduced payments.
   
• The repayment period varies and is dependent upon the repayment plan chosen. For    example, the Standard Repayment Plan has a maximum period of ten years, and the    Income Contingent Payment Plan has a maximum period of 25 years.
   
• Repayment in whole or part may be made at any time without penalty.

Federal Direct Parent Loan for Undergraduate Student (FDPLUS)  

• The fixed interest rates for FDPLUS disbursed between July 1, 2011 and June 30, 2012 is  7.90 %

Federal Direct Loan for Undergraduate Students (FDPLUS)

Enables either natural or adoptive parents of dependent undergraduate students to borrow per child up to the cost of education, for each academic year at federally approved schools. The amount borrowed in any year cannot be greater than the cost of going to school during that year, minus all other financial aid received for the period of the loan. Costs that may be covered include tuition and fees, room and board, books, transportation, and an allowance for personal expenses. FDPLUS loans for which the first disbursement was made on or after July 1, 1993 have no aggregate loan limit. Interest rates are variable and change every July 1st.

Repayment of the loan must begin within 60 days after the date funds are distributed. Borrowers have 10 years to repay. The loan servicer may charge an Insurance Premium of up to 4% on the loan principal. This premium is deducted from each loan disbursement. Application is made through the office of Student Financial Services by completing a Loan Origination Request Form. Parents will be eligible for the same authorized deferments described in the Federal Direct Loan Program.

Please call (718)482-5181 if you wish to speak to the Federal Direct Loan Coordinator.

Satisfactory Academic Progress Requirements for Federal Aid (Title IV)

Federal regulations stipulate that a student at LaGuardia Community College may remain eligible to receive Title IV assistance upon achieving at least a "C" average, or its equivalent according to the College’s retention policy, and accumulating credits towards the degree according to the following standards:

1) a student's earned credits are equal to or greater than
two-thirds of the credits the student has attempted at the institution;

2) the credits a student has attempted are not more than
150 % of the credits normally required for completion of the degree. If the standard in:

If 1) and 2) are not met, eligibility may be retained by meeting the following conditional standard.

the credits the student has earned are equal to or greater than .875 of the total amount of credits attempted minus 21.
Students who fail to meet the conditional status will lose Title IV eligibility. They may file a Financial Aid Waiver Appeal through the Academic Standing Committee. The decision of the committee is final.

Special Value Courses: To be eligible to receive Title IV, you must, according to Federal guidelines, be "making significant progress toward your degree", meaning that you must be earning credits at a sufficient rate. The federal guidelines for achieving full-time status in a semester do allow you to include, along with credits, the tuition units of the "special value" courses, but there is a limit: after you have registered (and received Title IV money) for thirty or more "special value" tuition units, Title IV programs will not pay for any additional "special value" courses. For example, if you register for Basic Writing 099 and Math 095, those two courses count for a total of 10.0 "special value" tuition units. If those units are used in calculating your Title IV award for the semester, you will have 20.0 "special value" tuition units remaining in your account.

If, however, you register for other, "non-special value" courses which make you full-time without using the "special value" tuition units, you would still have 30 "special value" tuition units in your account.
 

Once you have used up your 30 "special value" tuition units, you can only receive Title IV money for "non-special value" courses. Any future awards will be based on the credit values of regular courses only. It is therefore to your advantage to try to take "special value" courses along with regular courses, if you have met the prerequisites.

Note: Although ESL courses are listed as "special value" courses, those courses do not count toward the Title IV maximum.

Probation: Satisfactory academic progress is monitored each term. Students who do NOT meet Satisfactory Academic Progress Standards are NOT eligible for aid. Students can file an appeal. Appeals are reviewed by the Academic Standing Committee and their decision is final. If the appeal is granted the student will be eligible for aid.

Financial Aid Satisfactory Academic Progress Appeal Form 2012-2013

Additional Regulations: For Federal Pell awards, students under 24 years old as of January 1st must prove their independence if they claim to be independent of their parents. They must also have unusual circumstances which must be documented.

Students are reminded that attendance is a requirement for receiving financial aid. Failure to attend classes could result in a reduction or loss of financial aid. If students charge tuition and/or books and attend classes, they are still liable for the costs and will be billed accordingly.

Permanent residents who have not had their status confirmed by INS/DOH must also submit a copy of their permanent resident card. Students who have an I-94, with the following endorsements, are no longer eligible for Title IV Aid:

a) Adjusted Applicant
b) 245
c) 245 Applicant
d) Applicant for Permanent Residence
e) Voluntary Departure and
f) Deferred Action.

Total Withdrawals and The Return of Title IV Funds:

The Higher Education Act of 1965 as amended in 1998 (Public Law 105-244) revised the rules to return Title IV funds (e.g. federal Pell ) for students who completely withdraw from a term of enrollment. The rules require that students earn their Financial Aid based on the period of time they remain enrolled.

During the first 60% of the term, students earn Title IV funds in proportion to the time they are enrolled. If a student received more aid than he/she earned, the unearned portion must be returned to the Department of Education. If a student received less aid than the amount earned he/she may be eligible for a late disbursement.

The portion of aid the student is entitled to receive is based on a percentage by comparing the total number of days in the semester to the number of days completed before the withdrawal. For example if you completed 20% of the semester, you would have earned 20% of your Title IV aid. If you received 100% of your Title IV aid you would have to return the unearned portion. The regulation stipulates that the amount to be returned is to shared by the college and the student in proportion to the aid that each possessed. The college's share of the excess funds is the lesser of:

• the total amount of unearned aid or, 
• institutional charges multiplied by the percentage of aid that was unearned. 

The college's share is allocated to the Title IV programs as determined by statute. The student's share is the difference between the total unearned amount and the college's share. This is also allocated to the Title IV programs as determined by statute. The law provides that any amount that the student returns to a grant program be reduced by half. The amount to be returned is also considered an overpayment and must be returned within 30 days to the Department of Education. If the student does not repay the overpayment in full or make a satisfactory payment arrangement within 45 days from the date of notification, the student will become ineligible for future Title IV funds.

Students who remain enrolled beyond the 60% point of the term are considered to have earned all their aid and do not have to return any Title IV funds.

Effects of Withdrawing on your Title IV Aid:

Federal Pell Grant - If you withdraw from one or more of your classes after the first day of classes but before the official withdrawal date listed in the schedule of classes and remain with at least 1.0 tuition unit through 5.5 tuition units, the amount of Pell funds you receive for the session will be reduced. If this amount is less than the amount you charged or credited towards tuition/fees and a book voucher, you will immediately have to pay the difference to the Bursar's Office.

Federal Supplemental Educational Opportunity Grant (FSEOG), Federal Perkins Loan (FPL), Federal Work Study (FWS) -If the class or classes you withdraw from by the official withdrawal date reduce (s) your enrollment status to less than half-time status (as described in the Schedule of Classes) you will not receive any funds for the session from these programs. If you work in the Federal Work Study Program, you must stop working the day you withdraw-officially or unofficially - to below half-time status.

Federal Direct Loan Program (FDL) - You must maintain at least a half-time enrollment status (as described in the Schedule of Classes) throughout the semester, otherwise you are not eligible for funds from the above loan programs. If you drop to less - than a half -time status, you immediately start using your grace period and must contact your loan service for an Exit Interview and repayment information.

Use the following examples to help determine your eligibility for Financial Aid.

Example I. Withdrawing from all classes. 

Student originally registers as a full-time student. After the last day of the tuition refund period, the student withdraws from all of the classes. Students is currently receiving payment #2 from TAP.

Title lV Aid-Pell Grant - During the first 60% of the term your award will be pro-rated based on the number of days completed before the withdrawal.

FSEOG, FPL, FWS, FDL - Same as Pell Grant.

College Discovery - not eligible for C.D. funds because student withdrew from all classes and dropped below full-time status.

TAP - will pay for the session from which all classes have been withdrawn since it is after the last day of the tuition refund period. The student will be seeking TAP payment #3 when the student returns the following semester.

In order to receive TAP payment (#3), the student would have to have earned 9 credits or more, have a GPA of at least 0.75 and complete 50% of the courses in the semester the student received TAP in the prior term.

Therefore, since the student withdrew from all classes and did not complete 50% of the courses in the semester for which the student received TAP
payment #2, the student would not be eligible for TAP payment #3. (See Progress and Pursuit Chart.)

Example II. Withdrawing From One Class After the Last Day of the Tuition Refund Period.
Student originally registers as a full-time student and withdraws from a class after the last day of the tuition refund period. The student becomes 3/4 time with 9 credits/9 tuition units. Student is currently receiving payment #3 from TAP.

Title IV Aid - Pell Grant would be reduced from full-time to 3/4 - time payment. If Session II brings student back up to full-time, remaining payment then could be received.

FSEOG, FPL, FWS, FDL - would remain okay to pay.

College Discovery - not eligible for C.D. funds because student dropped below full-time status. If Session II brings student back up to full-time, payment then could be received.

TAP - will pay for the semester since it is after the last day of the tuition refund period. When the student returns he or she will be seeking TAP payment #4 the following semester.

In order to receive TAP payment (#4), the student would have to have18 credits or more and with GPA of at least 1.30 and complete 75% or 9 credits. (See Progress and Pursuit Chart).