Applications must be received by Federal Student Aid Programs by June 30 of the current academic year. A valid Institutional Student Information Record (ISIR) must be received by Career Institute by your last date of attendance.

Federal Pell Grant

FAFSA must be electronically received by the Financial Aid Office by the last date of attendance, WHICHEVER COMES FIRST, with a valid Expected Family Contribution (EFC). The FAFSA is available at www.fafsa.ed.gov (external link). Required verification information must be received for processing by the last date of enrollment for each start.

Federal Loans

The Federal Stafford Loans and Federal PLUS Loans must be certified by the Office of Financial Aid by your last date of attendance. Applicable documents and acceptance of loan(s) should be completed at least 15 business days prior to your last date of attendance to allow time for processing.

Verification

Verification must be completed no later than 90 days past the last day of your enrollment for each academic year. Note that Federal Aid cannot be disbursed and Federal Stafford Loans may not be certified until verification is complete. Verification must be complete before the Office of Student Employment will meet with you for job placement.

The Career Institute Office of Financial Aid is here to assist students and their families with the challenge of financing post-secondary education. It is important that you read all available information carefully and keep up-to-date on policies. Staff is available for immediate assistance at both Garden City and Brooklyn Campuses.

Application Process

The Free Application for Federal Student Aid (FAFSA) is the only required application. The federal formula is used to determine eligibility for financial aid, but please remember you must reapply each year you are seeking assistance. We encourage you to file online at www.fafsa.ed.gov (external link) to speed the process.

If you are offered a Federal Stafford Loan, and it is your first loan with Career Institute, you will be required to complete an entrance interview explaining the aspects of the loan program before the funds can be released. In addition, you must complete a master promissory note (MPN) with your lender. The offer of a Federal Stafford Loan will be sent to you via your Financial Aid Acceptance Agreement. You should log on to the CAREER INSTITUTE Online Information System to accept or decline your awards. New students will accept or decline on the award notice. Processing of the Stafford Loan will take 2-3 weeks at least to complete, so please do not delay.

Determining Eligibility

General Eligibility Requirements are the following:

• Be enrolled as regular student in an eligible program of study on at least a half-time basis...
• High school graduate or GED holder or must pass the ability to benefit (ATB) test.
• U.S. citizen or eligible non-citizen and have financial need determined by the cost of attendance and expected family contribution.
• Not in default or owe a repayment to any federal program.
• Maintain satisfactory progress determined by the grade point averaged and progress towards program completion.

Independent Student Status:

You will be considered independent if you:

• are born before January 1, 1987
• are married
• are currently serving on Active Duty in the U.S. Armed Forces
• are a veteran of the U.S. Armed Forces
• have children who receive more than half of their support from you
• have dependents (other than children or spouse) that live with you and receive more than half of their support from you
• are an orphan or ward of the court, both parents are deceased, or in foster care
• are an emancipated minor as determined by a court in your state of legal residence
• are in legal guardianship as determined by a court in your state of legal residence
• were determined by your high school or school district homeless liaison that you were an unaccompanied youth who was homeless
• were determined by a director of an emergency shelter or transitional housing program funded by the U.S. department of Housing and Urban Development that you were an unaccompanied youth who was homeless
• were determined by a director of a runaway or homeless youth basic center or transitional living program that you were an unaccompanied youth who was homeless or were self-supporting and a risk of being homeless

Need-Based Awards

Eligibility for need-based financial aid is derived from the Need Analysis calculation from the FAFSA form. A formula established by Congress is applied to the information you provide on your application resulting in an expected family contribution (EFC). The difference between the annual costs of attending school (COA) and the EFC is your need (COA-EFC=Need).

Cost of Attendance

Because there is more to pay for a student than tuition, the COA includes more than just tuition and fees. The elements that are included are:

• Tuition & Fees
• Room & Board
• Books & Supplies
• Transportation
• Personal Expenses
• Expenses to assist a disabled student attend classes (if applicable).

Available Financial Aid Programs

The financial aid awarded by the Financial Aid Office consists of the general categories: grants, scholarships, loans and work awards. All programs are awarded based on the eligibility criteria established by federal or state law or School policy.

Grants

Federal Pell Grant is a federal grant that does not have to be repaid. It is awarded based on the EFC calculated by the federal processor. Grants may be made to students enrolling for as few as one class if eligible.

Federal Supplemental Educational Opportunity Grant (FSEOG) is a federal grant awarded by the School based on exceptional need from an annual allocation. First consideration must be given to those students eligible for Pell grant.

Loans

Federal Stafford Loans are low fixed interest rate federal loans made for students. Students are offered 2 types of Stafford loans (Subsidized and Unsubsidized - interest rates vary depending on subsidized versus unsubsidized) and enter repayment 6 months after graduation. Students are eligible for the following levels of awards: freshman $3,500, sophomore $4,500, junior $5,500, senior $5,500. They are also offered an additional 2,000 in unsubsidized funds.

PLUS loans are low 7.9% fixed interest rate loans available to the parents of dependent undergraduate students to help with educational expenses. Parents may borrow up to an amount equaling the COA minus any other aid received. Repayment of these loans begins within 45-60 days after disbursement.

Scholarships

Scholarships are generally awarded by CAREER INSTITUTE and other organizations for academic or other merit. When you apply for admission, your school credentials are evaluated for scholarships. As you continue through your program with the School, scholarships are possible based on academic excellence.

Continuing students can pick up a Scholarship application at the Office of Financial Aid. Students can also contact their Major department chairperson to inquire about scholarship opportunities. Please refer to the Scholarship Award letter for the renewal conditions for each award.

• FastWeb (external link)
• FinAid (external link)

Verification

The federal processor uses a system of edits, or flags, which produces a selection of certain applications for verification. If a student's application is selected for verification, this may mean that a date element in his or her application does not fit generally recognized patterns (not necessarily that the element is incorrect; it merely must be verified), or that the student was simply selected at random.

The Office of Financial Aid may also select files for verification if there appears to be a conflict of information. If a student is selected for verification, the student is notified on the Student Aid Report.

Satisfactory Academic Progress

Students must maintain satisfactory academic progress to receive funds under the Federal Work-Study, Federal Supplemental Educational Opportunity Grant, Federal Pell Grant or Federal Stafford Loan.

Students not meeting these guidelines will not be renewed for additional assistance. The appeals process is handled by the Academic Records Committee. These are the guidelines for satisfactory academic progress.

The federal processor uses a system of edits, or flags, which produces a selection of certain applications for verification. If a student's application is selected for verification, this may mean that a data element in his/her application does not fit generally recognized patterns (not necessarily that the element is incorrect; it merely must be verified), or that the student was simply selected at random.

CAREER INSTITUTE Student Financial Assistance Office also has the authority to select files for verification if there appears to be a conflict of information. If a student is selected for verification, the student is notified on the Student Aid Report (SAR).You will be notified by the Office of Financial Aid to submit the following:

Please Keep in Mind:

Corrections will be made for information that is not accurately provided by you could affect your ability to receive aid. You will be notified of any adjustments that need to be made. Most corrections that need to be made can be done electronically by our office. If they cannot be made electronically you will need to send your Student Aid Report (SAR) to the Federal Processor for corrections.

If the corrections are done electronically, you will be sent an updated Student Aid Report (SAR) from the Federal Processor.
Verification must be completed no later than 90 days past the last day of your enrollment for the each academic year, or by August 31 following each academic year, whichever comes first.
Corrections involving the Federal Processor must be made prior to mid-August.
Verification documentation in support of Federal Stafford Loans must be provided at least 45 days prior to the end of the quarter.

How to Choose a Loan and Evaluate a Student Loan Lender

We offer these suggestions to help students and families consider their choices and review the options available to them. We do not offer financial or professional advice on these matters, and individual circumstances vary greatly. If appropriate you should consult a professional of your choice to assist you in making these decisions.

There are several different types of education loans for which a student borrower may be eligible. Among the list are the following:

• Stafford
• PLUS
• Alternative/Private Educational Loans

Each type of loan has different costs and terms.

Stafford loans and Perkins loans (if eligible, please see below) are among the least expensive educational loans and often have the most flexible repayment options. Private education loans are among the most expensive, with the highest fees and interest rates, although they are generally less expensive than credit card debt or non-secured private consumer loans. We recommend that families explore their eligibility for other types of loans only after they exhaust their Stafford loan limits.

Families should evaluate the various terms and features associated with each loan, and make selections based on their best interests. Among the terms and features to consider are the following:

• Repayment terms
• Interest rates
• Loan benefits
• Deferred payments
• Rate reductions
• Principal reductions
• Auto debit rate reductions

Direct Loan (DL) (Stafford, PLUS, and GRAD PLUS) loans are provided by private lenders, such as banks, credit unions and savings & loan associations and are guaranteed against default by the federal government. Students may select any lender that participates in the FFELP program. Please see drop-down box selection below reflecting lenders available at Career Institute with HESC.

FEDERAL STAFFORD LOANS:

Unsubsidized Stafford Loans are not based strictly on demonstrated need. Independent undergraduates, graduates, and professional students can borrow additional money through this program. Amounts that may be borrowed annually vary by class level. Currently as of July 1, 2006, loans contain a fixed interest rate of 6.8 percent. Unpaid interest accrues from the start and compounds, increasing the total amount to be repaid. Repayment begins at disbursement unless you tell your lender to capitalize your loan. Students may be eligible to receive a combination of Unsubsidized and Subsidized Stafford Loans. For additional more specific information regarding Stafford Loan eligibility and loan aggregates, please go to Student Aid on the Web, or Mapping Your Future.

FEDERAL PARENT LOANS FOR UNDERGRADUATE STUDENTS (PLUS):

PLUS loans provide a fixed rate of 8.5% and are made available to the parents of dependent undergraduate students to assist with educational expenses. The maximum amounts that parents may borrow are equal to Career Institute cost of attendance minus other aid. Loans require credit checks by the lending institution, and require completion of a Master Promissory Note (MPN) by the parents. Repayment of both principal and interest commences from the start, while students are attending school. ALTERNATIVE LOANS

The Career Institute recognizes that after all other financing options have been exhausted, students may also need to use alternative sources of financing to help offset the costs of attendance and living. Various lenders offer alternative loan programs to students. Students should be educated consumers and carefully compare the programs and terms offered. Alternative Loans are not subsidized by the federal government. Students must be at least 18 years old and creditworthy, or have a creditworthy co-signer to apply. Interest rates for these loans are largely based on the credit scores of the borrower and/or co-signer. For additional information, please see the information below on choosing a lender.

Frequently Asked Questions

Do I have to file for Federal Student Aid every year?

When are the deadlines?

Yes, you must apply each year! FAFSA applications are available for processing starting January 1st of the upcoming year.

What determines whether or not I will receive financial aid?

The Primary factor is financial need. Financial Need is based on determining the educational cost (tuition & fees, room & board, books & supplies and a personal allowance) minus the Estimated Family Contribution (based on federal and institutional formulas). The result of these two factors determine the need for federal financial assistance.

What are some of the common mistakes people make while filing for financial aid?

Some of the most common are:

• Not filing early enough
• Not reading the instructions
• Not fully completing the applications
• Not using the correct social security number
• Not signing it properly either electronically or on paper

• The cost of education goes up
• Your family's income changes
• The number of children in college changes

What should I do if I decide to attend another institution?

You must officially drop your CAREER INSTITUTE classes to avoid being charged for classes that you do not attend.

What happens if I fail to complete the application process?

Failure to complete the application process in a timely manner may result in loss of aid and an immediate demand for payment of tuition and other debts.