The Solution Center

1. The Solution Center The Financial Aid Award Package Part 3: Non-Need Based Financial Aid Programs

2. Objective What you will learn? • Need-Based vs. Non-Need Based Financial Aid • Tuition/Fee Waivers • Tuition/Fee Waivers Categories • State Scholarships • Merit Scholarships • Student/Parent Loans • Private/ Alternative Loans

3. Need-Based vs. Non-Need Based Aid • Need-Based Aid: • Student must have demonstrated financial need (COA-EFC = Need) • May consist of grants, scholarships, waivers, student employment and subsidized student loans • Non-Need Based Aid: • Does not require a student to have demonstrated financial need • May consist of scholarships, waivers, and unsubsidized loans • These awards are added to the award package after student is considered for all other types of aid

4. Tuition/Fee Waivers • What are Tuition/Fee Waivers? • An award that will lessen the amount of students in state tuition and fees • The Massachusetts Office of Student Financial Assistance (OSFA) administers the majority of state tuition/fee waivers • May come from a variety of sources • While a student may receive multiple tuition waivers, they will only be able to use an amount up to, but not exceeding, the cost of tuition (UML is $1454/yr.) • Fee waivers generally cover university operating fees • Eligibility Requirements for Most Waivers: • FAFSA Required • Must meet Satisfactory Academic Progress (SAP) • Legal resident of Massachusetts • U.S. Citizen or Eligible Non-Citizen • Compliance with Selective Service • Not in default on any federal student loans or owe a refund for any previously received financial aid

5. Tuition/Fee Waivers • The Tuition and Fee Waiver Program consists of several categories: • State Tuition and Fee Waivers • Categorical Waivers • Graduate Tuition and Fee Waivers • Employee Tuition and Fee Waivers

6. Tuition/Fee Waiver Categories • State Tuition and Fee Waivers: • Administered by OSFA for Massachusetts residents. Waivers include, but not limited to: • John and Abigail Adams Scholarship • Stanley Z. Koplik Certificate of Mastery Tuition Waiver • DCF Foster Child Tuition and Fee Waiver • DCF Adopted Children Tuition and Fee Waiver • Valedictorian Program Tuition Waiver • Washington Center Program Tuition Waiver • Categorical Tuition Waivers: • Veteran: Individuals who served in the army, navy, marine corps, coast guard, air force of the United States • Native American: As certified by the Bureau of Indian Affairs • Senior Citizen: Persons over the age of 60 • Armed Forces: An active member of the Armed Forces (Army, Navy, Marine, Air Force or Coast Guard) stationed and residing in Massachusetts • Massachusetts Rehabilitation Commission: As certified by commission • Commission for the Blind: As certified by the respective commission For a full list of waivers & descriptions visit www.osfa.mass.edu/default.asp?page=aidprograms

7. Tuition/Fee Waiver Categories • Graduate Tuition Waivers: • Teaching Assistantships & Research Assistantship (TA/RA) • Coordinated by the Office of Student Financial Services • Graduate students must be enrolled in at least 9 credits • A full-time assistantship waiver covers full tuition & operating fees • A half-time assistantship waiver covers half tuition & operating fees • Employee Tuition and Fee Waivers: • Coordinated by the Office of Student Financial Services • For Benefitedfull-time and part-time employees • For courses taken at community or state college and any UMass campus • The waiver covers tuition and fees for undergraduate and graduate courses

8. State Scholarships • What are State Funded Scholarships: • Scholarships awarded based on need, academics, special ability, or other factors to students who are Massachusetts residents • Some examples of State Scholarships include: • Massachusetts High Demand Scholarship • Agnes M. Lindsay Scholarship • Christian A. Herter Memorial Scholarship • Paul Tsongas Scholarship • GEAR UP Scholarship • Eligibility Requirements for most state scholarships include: • Must be a Legal resident of Massachusetts • FAFSA Required • U.S. Citizen or Eligible Non-Citizen • Compliance with Selective Service • Not in default on any federal student loans or owe a refund for any previously received financial aid • Must not have a prior undergraduate degree • Meet minimum GPA requirements Detailed Information and specific scholarship requirements are found on the OSFA web site at http://www.osfa.mass.edu/default.asp?page=aidPrograms

9. Merit Scholarships • What are Merit Scholarships: • Gift aid that does not need to be repaid • Most scholarships are awarded to students based on merit, financial need or both • Eligibility Requirements: • Although not required for all scholarships, we recommend that all students fill out the FAFSA • Student must be enrolled at least half time (6+ credits) • Student must be enrolled in a degree seeking program • Award Amounts: • The specific amounts and number of scholarships offered to students are based on available funding each year • The University of Massachusetts Lowell does not use applications for the selection of most merit and need-based scholarships Please Refer to FA_13A-E_Merit_Scholarships_ for more detailed information

10. Student/ Parent Loans • Federal Direct Unsubsidized Student Loan • Federal Direct GRAD PLUS Student Loan • Federal Direct Parent PLUS Loan

11. Federal Direct Unsubsidized Student Loan • What is the Federal Direct Unsubsidized Loan: • Federally Funded • Loan that must be repaid • Student is the borrower • Administered by school • Fixed low interest rate • The U.S. Department of Education Does not pay interest on the Loan • Interest is paid by student while enrolled in school • Eligibility Requirements: • Must file the FAFSA • Meet the general eligibility requirements(Ref: FA_02_General_Eligibility) • Student must be enrolled at least half time (6+ credits) • Student must be enrolled in a degree seeking program • Awarded to both Undergraduate and Graduate students

12. Federal Direct Unsubsidized Student Loan • Award Amount: • Awards range based on Dependency and Grade level • Award limits are as follows: • $2,000 For Dependent • $4,000 For Independent • Dependent students whose parent has been denied a Federal Direct Plus Loan may apply for an additional Unsubsidized Loan of up to: • $4,000 for freshmen and sophomores and • $5,000 for juniors and seniors • First Time Borrowers of a Direct Unsubsidized Loan: • Apply for a PIN at www.pin.ed.gov, for student and at least one parent • Students Must complete: • Entrance Counseling, a tool to ensure students understand their obligation to repay the loan • Master Promissory Note (MPN), agreeing to the terms of the loan • Both requirements can be completed at www.studentloans.gov

13. Federal Direct Unsubsidized Student Loan • When does a student have to pay back their Unsubsidized Loan: • Repayment starts six months following graduation, a student’s withdrawal from school, or when a student drops to less than half-time enrollment • During this period, a student will receive repayment information from loan servicer, and will be notified when first payment is due • Can a loan be cancelled or reduced? • Yes • Before loan money is disbursed, a student may cancel all or part of the loan at any time by notifying the Financial Aid Office • After loan is disbursed, a student may cancel all or part of the loan within certain time frames

14. Federal Direct GRAD PLUS Student Loan • What is the Federal Direct Grad Plus Loan: • Federally Funded • Loan that must be repaid • Student is the borrower • Administered by school • Fixed low interest rate • Credit Based Loan • The U.S. Department of Education is the Lender • Eligibility Requirements: • Must file the FAFSA • Meet the general eligibility requirements(Ref: FA_02_General_Eligibility) • Student must be in a Graduate or Professional degree seeking Program • Student must be enrolled at least half time (6+ credits) • Complete the Federal Direct Graduate Plus Pre-Application, available on the financial aid office website

15. Federal Direct GRAD PLUS Student Loan • Award Amount: • The maximum GRAD PLUS loan amount a Grad student can borrow is the cost of attendance (COA) minus any other financial assistance received • First Time Borrowers of a Direct GRAD PLUS Loan: • Apply for a PIN at www.pin.ed.gov • Must sign an online Master Promissory Note (MPN), agreeing to the terms of the loan at www.studentloans.gov

16. Federal Direct GRAD PLUS Student Loan • When does a student have to pay back their GRAD Plus Loan: • Repayment starts six months following graduation, a student’s withdrawal from school, or when a student drops to less than half-time enrollment • During this period, a student will receive repayment information from loan servicer, and will be notified when first payment is due • Can a loan be cancelled or reduced? • Yes • Before loan money is disbursed, a student may cancel all or part of the loan at any time by notifying the Financial Aid Office • After loan is disbursed, a student may cancel all or part of the loan within certain time frames

17. Federal Direct Parent PLUS Loan • What is the Federal Direct Parent PLUS Loan: • Federally Funded • Parent is the borrower • Loan that must be repaid • Administered by school • Fixed low interest rate • Credit Based Loan • The U.S. Department of Education is the Lender • Eligibility Requirements: • Be the step/parent of a dependent undergraduate student • FAFSA Required • Complete the Federal Direct Parent Plus Pre-Application • Parent and student must meet the general eligibility requirements(Ref: FA_02_General_Eligibility) • Student must be enrolled at least half time in an degree seeking Program

18. Federal Direct Parent PLUS Loan • Award Amount: • The maximum PLUS loan amount a parent can borrow is the cost of attendance (COA) minus any other financial assistance received • First Time Borrowers of a Direct Parent PLUS Loan: • Parent must apply for a PIN, if they don’t already have one (www.pin.ed.gov) • Must sign an online Master Promissory Note (MPN), agreeing to the terms of the loan (www.studentloans.gov)

19. Federal Direct Parent Plus Loan • When does a parent have to pay back their PLUS Loan: • Direct PLUS Loan enters repayment once the loan is fully disbursed • Parent can contact loan servicer and request a deferment • If your loan is deferred, interest will accrue on the loan during that time • During this period, parent will be notified when first payment is due • Can a loan be cancelled or reduced? • Yes • Before loan money is disbursed, a parent may cancel all or part of the loan at any time by notifying the Financial Aid Office • After loan is disbursed, a parent may cancel all or part of the loan within certain time frames

20. Private Alternative Loans • What are Private/ Alternative Loans: • Privately Funded • Student is the borrower, parent usually co-signer • Loan that must be repaid • Credit based loans • Lenders usually a bank or credit union • University is not affiliated in any way with any of the private lenders • Eligibility Requirements: • Application Required • Self-Certification Form Required • FAFSA Recommended

21. Private/Alternative Loans • Award Amount: • The maximum loan amount borrowed is the cost of attendance (COA) minus any other financial assistance received • Summary of Private/Alternative Loan Requirements: • Many private loans require payments while student is still in school • Some may not offer forbearance or deferment options • May have variable interest rates • May require an established credit record • Students may need a co-signer