Federal Loans and Work-Study

Federal Programs

Federal Loans and Work-Study Programs For U.S. Citizens and Permanent Residents

The Graduate School currently participates in several federally funded programs including the Federal Work-study (FWS), the Federal Perkins Loan, and the Ford Federal Direct Loan programs. These programs are available to citizens and permanent residents of the US who demonstrate financial need to meet their cost of graduate study.

Applicants for any of these Federal programs must provide the following documents:

the GSAS Statement of Financial Resources
the Free Application for Federal Student Aid (FAFSA) available online
the GSAS Supplement to the FAFSA
a budget of expected resources and expenses for the current academic year
the Teaching Fellow Salary Title IV Transfer Form

Students should be aware that processing time for the application for Federal financial aid can take several weeks. It is best to begin the process well in advance of when the loan proceeds or Federal Work-study will be needed.

Eligibility is based on financial need as stipulated by the Federal Methodology. This method is a federal need calculation system used to determine a student's expected contribution. All graduate students are considered independent from their parents. Therefore, parental income and assets are not a factor in determining Federal eligibility.

Students' budgets may be increased for allowable expenses above those included in the single student's standard budget which include (but are not limited to):

medical/dental expenses not covered by insurance
degree-related travel and research expenses
dissertation expenses
child care expenses

Students who believe they have allowable expenses which could be used to increase their budgets, should document these expenses and request an appointment with their financial aid officer. Students should be prepared to provide receipts.

To receive any federal financial aid, the student must complete the Statement of Educational Purpose and Certification Statement on Refunds and Default printed on the FAFSA application. Males between the ages of 18 and 25 must register with Selective Service.

Students should be aware that providing false or misleading information can result in either a fine of up to $10,000 or imprisonment for up to five years, or both.

Resource Agreement

Applicants must also sign a copy of their GSAS Financial Aid Worksheet and Resource Agreement stating:

"As a recipient of US Department of Education Title IV funds (Ford Federal Direct Student Loans, Federal Perkins Loan, Federal Work Study), I agree to monitor carefully my resources so as not to exceed the allowable budget as calculated. I agree to inform the GSAS Admissions and Financial Aid Office of any additional resources I earn or otherwise receive during the academic year. I understand that additional resources may result in a revision of my loan and/or work-study eligibility. Such revision could necessitate repayment of all or part of the Title IV funding I previously received in this academic year."

National Student Loan Data System

When a student files the Free Application for Federal Student Aid (FAFSA), the NSLDS will complete an electronic match to ensure that students are in good standing on past financial aid they have received from schools previously attended.

Satisfactory Progress

Government regulations require that students must be registered and making satisfactory academic progress to be eligible for federal loans and work-study. Satisfactory progress guidelines may be obtained from your academic department and are published in the 2012-2013 GSAS Handbook.

Verification

Federal regulations require the Financial Aid Office to verify students' eligibility for federal financial aid by comfirming the accuracy of the information provided by the applicant.

University Refund Policy

Registered students who formally withdraw from Graduate School are charged tuition according to the following schedule (the Active File Fee is not prorated):

Fall - On or before

October 2: 1/4 tuition for the term
November 9: 1/2 tuition for the term
December 17: 3/4 tuition for the term
After December 17: Full Tuition

Spring - On or before

February 23: 1/4 tuition for the term
March 25: 1/2 tuition for the term
April 25: 3/4 tuition for the term
After April 25: Full Tuition

Department of Education Refund and Distribution Policy

According to federal regulations, a special refund and repayment policy applies to students who receive Federal Loan assistance toward tuition, fees, and living expenses. In the following events, a refund to the Department of Education must be distributed:

a student fails to register for the period of enrollment for which s/he was charged and aid was awarded or;
a student withdraws, drops out, takes an unapproved leave of absence, fails to return from an approved leave of absence, is expelled, or otherwise fails to complete the period of enrollment for which s/he was charged and aid was awarded.

The refund must be distributed in the following order:

Federal Direct Graduate Plus Loan
Ford Federal Direct Unsubsidized Loan (formerly Federal Direct Subsidized Stafford Loan);
Federal Perkins Loan.

If a student meets one of the above conditions and has received a Federal Perkins Loan for living expenses only, then a repayment may be required.

Students should contact their financial aid officer for specific details.

Federal Work-Study Program (FWS)

The Federal Work Study program, open to US Citizens and Permanent Residents, provides eligible students with employment opportunities. Eligibility for work study is based on financial need. Federal work study is a cost sharing program whereby the government pays 70 percent of the student’s hourly wage while the remaining 30 percent is paid by the employing agency.

Employment is possible both on- and off-campus. On-campus employment includes such jobs as research assistant, laboratory assistant, library aid, clerical, or any campus job which involves work related to the operation of the University. Off campus employment is ordinarily with public or private nonprofit organizations whose work performance requirements are not political or sectarian in nature. Hospitals, public schools, youth centers, day care centers, community development centers, consumer affairs agencies, and city and state agencies are examples of such organizations. In addition, some off campus employment can be arranged in business and industry. For these positions the employer pays approximately 30 percent of the wages.

If you currently hold a work-study job, your 2012–2013 FWS “ceiling” expires June 30, 2013. You may not continue working after June 30, 2013 until your 2013–2014 eligibility has been determined and you obtain a new referral card. Please note: June 15, 2013 is the last date to submit time sheets for work study done during the 2012–2013 academic year.

Graduate students earn an hourly wage in the range of $9.50 to $18.15 (2012–2013 rates) and may work an average of 20 hours per week during the academic year and 40 hours per week during the summer and school vacation periods. Pay rates vary depending upon the type of job performed. There is no compensation for legal or religious holidays or lunch hours. Payments are made each Friday for work performed the previous week.

Participation in this program is a helpful source of financing. There are, however, strict financial limitations which cannot be ignored. You may not earn more than the dollar ceiling established by your financial aid officer. If the earnings limit is exceeded, you may be asked to relinquish other aid. Earnings will be monitored so that total resources do not exceed the cost of education. It is your responsibility to report receipt of any financial resources not noted at the time the original earnings limit was set.

Students interested in obtaining a work-study job should contact their financial aid officer to discuss eligibility. Once a Notice of Financial Support with a dollar amount of work-study eligibility is issued, you must complete a work-study referral card on the Student Employment Office website. This website also has listings of available work-study jobs.

Federal Loans

First-time borrowers to any Federal loan program must complete a Direct Loan Master Promissory Note prior to the first disbursement of their loan. The Master Promissory Note includes an entrance interview that states the borrower's rights and responsibilities as well as consequences of default. Upon receipt of the degree, approval of leave of absence for more than one term, or withdrawal from the Graduate School, students are required to complete a loan exit interview. Both entrance and exit interviews are required to be completed online. Personalized exit interviews can be arranged with a financial aid officer.

Traveling Scholars may apply for loans. Because long distance transactions may be cumbersome, students are advised to complete the application process early. If possible, apply for a loan three months prior to the departure. Traveling Scholars should provide budgets of projected travel expenses with their loan materials.

Federal Perkins Loan
The Federal Perkins Loan is a low-interest loan available to students who demonstrate the greatest financial need. Selection for this loan program is made by the Financial Aid Office. Unfortunately, because Perkins Loan funds are limited, students are not guaranteed to receive funding from this program. Eligibility is determined from information provided on the FAFSA. The maximum annual Federal Perkins Loan for a graduate student at GSAS is $8,000 and varies according to need. A Perkins Loan borrower is not charged an origination fee. Generally, Federal Perkins Loans are disbursed in two equal installments.

The Federal Perkins aggregate loan limit is $60,000 (including undergraduate Perkins Loan borrowing). According to federal regulations, total resources of Federal Perkins Loan recipients must be strictly monitored. If a student's resources increase during the year to exceed the allowable federal budget, other aid must be reduced, the Federal Perkins loan reduced, or cancelled. Interest is 5 percent per annum, and the grace period is nine months. Cancellation provisions are available for borrowers who teach in certain geographical areas, who teach handicapped children, or who engage in specified military duty.

Ford Federal Direct Student Loan Program

Harvard University processes loans through the Direct Loan Program. The US Department of Education is the lender and the federal government provides the loan capital for the Ford Federal Direct Student Loan Program, the borrower must complete and sign a Master Promissory Note (MPN) which requires two references.

Loan repayment usually begins six months after the degree is granted, study is terminated, leave of absence approved or the student enrolls for less than half-time study.

A student may obtain a loan deferment if one or more of the following conditions are met: at least half-time study at a post-secondary institution; study in an approved graduate fellowship program; participation in a rehabilitation training program for the disabled; unemployment (for up to three years); or economic hardship (for up to three years).

A borrower can choose any of the available repayment plans:

Standard Repayment -- With the standard plan, you'll pay a fixed amount each month until your loans are paid in full. Your monthly payments will be at least $50, and you'll have up to 10 years to repay your loans.

Extended Repayment -- Under the extended plan, you’ll pay a fixed annual or graduated repayment amount over a period not to exceed 25 years. You must have more than $30,000 in outstanding Direct Loans.

Graduated Repayment -- With this plan, your payments start out low and increase every two years. The length of your repayment period will be up to 10 years. Although your monthly payment will gradually increase, no single payment under this plan will be more than three times greater than any other payment.

Income Contingent Repayment -- Your monthly payments will be calculated on the basis of your adjusted gross income, family size, and the total amount of your Direct Loans. The maximum repayment period is 25 years.

Income Based Repayment – The required monthly payment is capped at an amount that is intended to be affordable based on income and family size. You are eligible for IBR if the monthly repayment amount under IBR will be less than the monthly amount calculated under a 10-year standard repayment plan. If you work in public service and have reduced loan payments through IBR, the remaining balance after ten years in a public service job could be cancelled.

Additional information for all types of Federal Loan repayment options is available at http://studentaid.ed.gov

Ford Federal Direct Unsubsidized Loan
(formerly Federal Direct Unsubsidized Stafford Loan)

A student can borrow up to $20,500 per year from this loan program. Total borrowing under the Ford Federal Direct Loan Program (including both Unsubsidized and Subsidized Ford Federal Direct Loans for both undergraduate and graduate education) cannot exceed $138,500.

Beginning July 1, 2006 the Ford Federal Direct Unsubsidized Loan has an annual interest rate of 6.8 percent. the borrow is responsible for interest that accrues while s/he is in school. While a student is in school, grace period or period of deferment, s/he may make interest payments or request the inteest to be accrued.

A 1 percent loan origination fee will be deducted from the face value of the direct loan which is required to be disbursed in two equal parts, normally in September and February. Each disbursement equals half the amount borrowed minus loan origination fees.

Direct GradPLUS Loan
Beginning July 1, 2006, graduate students may borrow from the Direct GradPLUS loan program. This loan is unsubsidized, at an interest rate of 7.9 percent, and is credit-based. A 4 percent loan fee will be deducted from the face value of the loan which will be disbursed in two equal parts, normally in September and February. There are no aggregate limits on this loan, nor is there an annual limit; the limit is dictated by the student’s cost of attendance. The application process for this loan is the same as for the Ford Federal Direct and the Perkins. The loan goes into repayment (and begins accumulating interest) 60 days after the second disbursement, but is deferrable throughout attendance of at least half-time study at a post-secondary institution. There is no grace period for this loan.

Master Promissory Note has the option for Direct Loans 10-year
A student has the option to sign a 10-year Master Promissory Note which should be valid while registered at GSAS. Students will be required to sign a budget and Notice of Support awarding Title IV funding. Confirmation of the signed Master Promissory Note must be made before any funds are disbursed to the student. The electronic Master Promissory Note is at https://studentloans.gov

Office of the Ombudsman
Established in 1998 amendments, the OSFA Ombudsman works with student loan borrowers to informally resolve loan disputes and problems involving Direct Loans, Federal Family Education Loans, Guaranteed Student Loans, SLS Loans, and Perkins Loans. For additional information contact: http://ombudsman.ed.gov, or 877-557-2575.

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