Planning

Any student who wishes to apply for federal Title IV financial assistance must complete the Free Application for Federal Student Aid (FAFSA). Students can complete the FAFSA online at www.fafsa.gov. The FAFSA information is electronically transmitted to the U.S. Department of Education’s Central Processing Service (CSP). Once processed, the school will receive an Institutional Student Information Record (ISIR) that is used to determine the student’s eligibility for financial assistance. To be eligible for federal aid an applicant must:

• Be enrolled in an eligible program
• Have a valid Social Security Number
• Be a U.S. citizen or eligible non-citizen
• Demonstrate need (need is the difference between the cost of education and the amount that you or your family can afford to pay). Need is determined by the information that is supplied on the FAFSA.
• Not be in default on any Federal Title IV student loan
• Not owe a Pell refund at any school
• Have a high school diploma or its equivalency
• Be registered with Selective Services (males only)
• Maintain satisfactory progress towards completion of the course of study 5

You can check your eligibility and/or apply by visiting www.studentaid.gov School Code: 042769
Federal Pell Grants are awards of Federal Aid funds, which do not have to be paid back. This grant is available for undergraduates that have not earned a bachelor’s or professional degree. The amount awarded is determined by the U.S. Department of Education, based on the student’s needs. A Federal Pell Grant is an entitlement, which means if a student qualifies for an award, he or she will receive it as long as the student meets the SAP requirements.

You can check your eligibility and/or apply by visiting www.studentaid.gov. School Code: 042769
A Direct loan is a low-interest loan directly from the U.S. Department of Education (ED).
Federal Direct Subsidized loan is a low-interest (4.45% for loans first disbursed on or after 7/1/17 and before 7/1/18), fixed-rate loan that MUST be paid back. Interest does not accrue while students are attending school, during the grace period, and during periods of deferment. Federal Direct Unsubsidized loan is a low-interest (4.45% for loans first disbursed on or after 7/1/17 and before 7/1/18), fixed-rate loan that MUST be paid back. Interest will accrue on this loan while the student is in school, during the grace period, and periods of deferment. A student can choose to pay the interest while in school.
Federal Direct PLUS loan is a low interest (7.00% for loans first disbursed on or after 7/1/17 and before 7/1/18) fixed rate loan that MUST be paid back. This loan is only available for parents of dependent students and the parent must complete a credit check prior to obtaining the loan. Loan Fees: Most federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You’re responsible for repaying the entire amount you borrowed and not just the amount you received. Direct Subsidized and Unsubsidized Loans first disbursed on or after 10/1/16 and before 10/1/17 have a loan fee of 1.069%. Direct PLUS Loans first disbursed on or after 10/1/16 and before 10/1/17 have a loan fee of 4.276%.

The institution ensures that student loan borrowers of a Federal Direct Loan will receive entrance counseling prior to the first disbursement of the loan. The counseling will include:

• An explanation of the use of the Master Promissory Note
• The effect of the loan on the borrowers eligibility for other forms of aid
• The importance of repayment obligation
• Obligation to repay the full amount of the loan regardless of completion of the program or completing within regular time, inability to obtain employment, or is otherwise dissatisfied with or does not receive the educational or other services the borrower purchased from the school
• Information on accrual and capitalization of interest
• Option of paying unsubsidized loan interest while in school
• Information on the Borrowers Right and Responsibilities
• Sample of monthly repayment amounts
• Consequences of Default
• Information about NSLDS and how the borrower can access their loan records
• Definition of half-time enrollment and consequences of not maintaining half-time enrollment
• Contact information for individuals the borrower may contact with questions about the borrower’s rights and responsibilities or other terms and conditions of the loan.

The Master Promissory Note (MPN) is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s).You may receive more than one loan under an MPN over a period of up to 10 years to pay for your or your child’s educational costs, as long as the school is authorized to use the MPN in this way and chooses to do so. The school will tell you which loans, if any, you are eligible to receive. https://studentaid.gov/mpn/

Entrance counseling ensures you understand the terms and conditions of your loan and your rights and responsibilities. You’ll learn what a loan is, how interest works, your options for repayment, and how to avoid delinquency and default. When you’re finished, a record of your completion will be sent to the schools you selected, and you can then receive your loan money. Keep in mind that you cannot save and leave an incomplete session; you must complete entrance counseling in one sitting.

https://studentaid.gov/entrance-counseling/

You must complete exit counseling when you leave school or drop below half-time enrollment. The purpose of exit counseling is to ensure you understand your student loan obligations and are prepared for repayment. You’ll learn about what your federal student loan payments will look like after school. We’ll recommend a repayment strategy that best suits your future plans and goals. https://studentaid.gov/exit-counseling/

VA Benefits are only available to those who qualify. Brown Beauty Barber School Accepts the Following Benefits Chapters: Post 9/11 (Chp 33), Chapter 30, Chapter 35, Chapter 1606, Chapter 1607 and Chapter 32. If you served on Active Duty, you might be eligible for education benefits offered by the Department of Veterans Affairs.

The Post-9/11 GI Bill provides financial support for educational and housing expenses to individuals with at least 90 days of aggregate service after September 10, 2001, or individuals discharged with a service-connected disability after 30 days. You must have received an honorable discharge to be eligible for the Post-9/11 GI Bill.If you are currently serving in the military, you might be eligible for funding offered through the Department of Defense Tuition Assistance Program.

Check your eligibility status by contacting your Education Counselor or the Education Call Center 888-442-4551, prior to enrolling, to request your Certificate of Eligibility to provide to our Institution.

If you are the spouse or child of a service member who is serving on active duty Title 10 orders in the paygrades E1-E5, O1-O2, or W1-W2, you may be eligible for financial assistance from the Department of Defense for education, training, and/or the occupational license and credentials necessary for a portable career.If you are the spouse or child of a service member, you may be eligible for transfer of the service member’s Post-9/11 GI Bill benefits to you.Borrowers may qualify for Title IV student financial aid. Terms and conditions of Title IV loans may be more favorable than private education loans. Veterans receiving VA Benefits must maintain a 80% GPA and Attendance record.

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School Code 042769 https://studentaid.gov/exit-counseling/

The institution will provide counseling to borrowers of Federal Direct Loans shortly before the student ceases at least half-time enrollment. The exit counseling will provide information on:

• Average anticipated monthly repayment amount
• Repayment plan options
• Options to repay or pay on a shorter schedule
• Debt management strategies
• Use of Master Promissory Note
• Importance of student’s repayment obligations
• Terms and conditions for forgiveness or cancellation
• Terms and conditions for deferment or forbearance
• Consequences of default
• Options and consequences of loan consolidation
• Tax benefits available to borrowers
• Obligation to repay the full amount of the loan regardless of completion of the program or completing within regular time, inability to obtain employment, or is otherwise dissatisfied with or does not receive the educational or other services the borrower purchased from the school
• Availability of the Student Loan Ombudsman’s office
• Information about NSLDS

Students and parents who willfully submit fraudulent information will be investigated to the furthest extent possible. All cases of fraud and abuse will be reported to the proper authorities (CPS, Judicial Services, IRS and including the Office of Inspector General https://oig.hhs.gov).
A federal or state drug conviction can disqualify a student for FSA funds.Convictions only count if they were for an offense that occurred during a period of enrollment for which the student was receiving Title IV aid—they do not count if the offense was not during such a period. Also, a conviction that was reversed, set aside, or removed from the student’s record does not count, nor does one received when the student was a juvenile, unless the student was tried as an adult.The school will provide a timely notice to each student who has lost eligibility for any grant, loan, or work-study assistance as a result of drug law violations.

The chart below illustrates the period of ineligibility for Federal Student Aid funds, depending on whether the conviction was for sale or possession and whether the student had previous offenses. (A conviction for sale of drugs includes convictions for conspiring to sell drugs.) If convicted of an offense involving:

If the student was convicted of both possessing and selling illegal drugs, and the periods of ineligibility are different, the student will be ineligible for the longer period.A student regains eligibility the day after the period of ineligibility ends or when the student successfully completes a qualified drug rehabilitation program. Further drug convictions will make the student ineligible again. Students denied eligibility for an indefinite period can regain it only after successfully completing a rehabilitation program as described below or if a conviction is reversed, set aside, or removed from the student’s record so that fewer than two convictions for sale or three convictions for possession remain on the record. In such cases, the nature and dates of the remaining convictions will determine when the student regains eligibility. It is the student’s responsibility to certify that they have successfully completed the rehabilitation program.When a student regains eligibility during the award year, the school may award Pell, ACG, SMART, TEACH, and Campus‐based aid for the current payment period and Direct loans for the period of enrollment.
A qualified drug rehabilitation program must include at least two unannounced drug tests and must satisfy at least one of the following requirements:
Be qualified to receive funds directly or indirectly from a federal, state, or local government program. Be qualified to receive payment directly or indirectly from a federally or state‐licensed insurance company. Be administered or recognized by a federal, state, or local government agency or court. Be administered or recognized by a federally or state‐licensed hospital, health clinic, or medical doctor.

The following policy applies to all terminations for any reason, by either party, including student decision, course or program cancellation, or school closure.

Enrollment is defined as the time elapsed between the student’s actual starting date and last day of physical attendance in school.Any monies due the applicant or student who withdraws from the institution shall be refunded within thirty (30) days of a determination that the student has officially or unofficially withdrawn. Official cancellation, termination, or withdrawal shall occur no more than fourteen (14) days from the last day of physical attendance, and shall occur on the earlier of the dates that:

1. An applicant is not accepted for enrollment by the school. The applicant shall be entitled to a full refund of all monies paid with an exception of the non-refundable application fee of $100.
2. A student (or in the case of a student under legal age, his/her parent or legal guardian) cancels his/her enrollment agreement and requests his/her money refunded, in writing, within three (3) business days of signing an enrollment agreement or contract, regardless of whether the student has actually started training. All monies collected shall be fully refunded with the exception of the non-refundable application fee of $100.
3. A student cancels his/her enrollment agreement after three (3) business days after signing, but prior to entering classes. The student shall be entitled to a refund of all monies paid to the school less the non-refundable application fee of $100.
4. A student notifies the institution of his/her withdrawal.
5. A student on an approved leave of absence notifies the school that he/she will not be returning. The date of withdrawal determination shall be the earlier of the scheduled date of return or the date that the student notifies the institution that he/she will not be returning to school.
6. A student is expelled by the school.

The refund will be calculated based on the student’s last day of attendance, regardless of the method of withdrawal or expulsion. If a student is absent 14 consecutive calendar days the student will be considered withdrawn. Student attendance is monitored weekly to determine unofficial withdrawals. When situations of mitigating circumstances are in evidence, the school may adopt a policy wherein the refund to the student may exceed the “schedule of tuition and adjustment.” The cost of the kit is not included in the tuition adjustment computations. These items become the property of the student when issued. Students who terminate prior to course completion will be charged a $100 termination fee and the school will not release the student’s transcript until all balances have been paid in full. If the school closes permanently and ceases to offer instruction after students have enrolled, and instruction has begun, the school shall provide a pro-rata refund. If a program or course is canceled subsequent to a student’s enrollment, and before instruction in the program has begun, the school shall, at its option:

Provide a full refund of all monies paid; or Provide completion of the course. If the school cancels the course and/or program and ceases to offer instruction after students have enrolled and instruction has begun, the school shall at its option: oProvide a pro rata refund for all students transferring to another school based on the hours accepted by the receiving school: or oProvide completion of the course and/or program; or oParticipate in a Teach-Out agreement; or oProvide a full refund of all monies paid.

RETURN TO TITLE IV FUNDS POLICY The school participates in federal financial aid. Students who receive loans are responsible for repaying the loan amount, plus any interest, less the amount of any refunds, and if those students have received federal student financial aid funds, they are entitled to a refund of the monies not paid to the federal student financial aid program fund. For students who have received Title IV financial assistance, the Federal Return of Title IV Funds calculation will be completed first and applicable funds returned. Returned funds will be reduced from the payments received on behalf of the student before applying the institutional refund policy to determine whether the student is owed a refund or if a balance is owed to the school.
In compliance with Federal regulations, the school will determine how much Federal student financial assistance that the student has earned or not earned when a student who is a Title IV recipient withdraws from the school. The Federal Return of Title IV Funds formula dictates the amount of federal Title IV aid that must be returned to the federal government or the lending institution by the school and/or student. The federal formula is applicable to an eligible student receiving federal aid when that student withdraws on or before the 60% point in time in the payment period. The Return of Title IV Funds calculation may result in the student owing a balance to the Federal Government and, in some cases, to the school. Refunds are made within forty-five (45) days of the termination or withdrawal.

Withdrawal Before 60% The school must perform a R2T4 to determine the amount of earned aid up through the 60% point in each payment period and use the Department of Education’s prorate schedule to determine the amount of R2T4 funds the student has earned at the time of withdrawal. After the 60% point in the payment period or period of enrollment, a student has earned 100% of the Title IV funds he or she was scheduled to receive during the period.

Withdrawal After 60% For a student who withdraws after the 60% point-in-time, there are no unearned funds. However, the school will still calculate the Institutional Refund and R2T4 for financial aid recipients.
To calculate the amount earned, the school will determine the percentage by dividing the total number of clock hours the student was scheduled to complete in the payment period as of the last day of attendance by the total number of clock hours in the payment period. If a refund results from this calculation, federal policy requires that these unearned funds be returned to the applicable Title IV financial aid fund source. Funds are refunded to the Title IV Programs in the following federally mandated order: (1) Unsubsidized Federal Direct Loan; (2) Subsidized Federal Direct Loan; (3) Federal Direct PLUS Loan; (4) Federal Pell Grants; (5) Federal Supplemental Education Opportunity Grant (SEOG); (6) other grant or loan assistance authorized by Title IV of the HEA, as amended.

If more Federal student financial assistance has been earned than has been received, the student may be eligible for a post-withdrawal disbursement. The school will notify the student of any post-withdrawal disbursement loan funds for which the student may be eligible and what steps need to be taken for the Federal financial assistance funds to be received. The student or parent, in the case of Federal Direct PLUS Loans, needs to provide permission before any loan funds may be disbursed on the student’s account or disbursed to the student or parent. However, the school may automatically use all or a portion of the post-withdrawal disbursement of grant funds for tuition and fees, and with the student’s authorization, the school may automatically use the grant funds for other educationally related charges. Any balance of grant funds that may be available will be offered to the student.

If the Federal student financial assistance funds need to be returned, the institution must return a portion or all of the unearned funds equal to the lesser of: the institutional charges multiplied by the percentage of unearned Federal student financial assistance funds; or the entire amount of unearned funds.If there are remaining unearned Federal financial aid funds to be returned, the student must return any loan funds that remain to be returned in accordance with the terms and conditions of the promissory note. If the remaining amount of funds to be returned includes grant funds, the student must return any amount of the overpayment that is more than half of the grant funds received. The school will notify the student as to the amount owed and how and where it should be returned.

The following schedule of tuition adjustments is used: Percentage of Scheduled Amount of Tuition / Time to Total Course Owed to School:

0.01% to 4.9% = 20%
5.00% to 9.9% =30%
10.00% to 14.9%= 40%
15.00% to 24.9% = 45%
25.00% to 49.9% = 70%
50.00% to 100.0%=100%