Financial aid for USA students
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- Satisfactory progress for financial aid recipients
- Withdrawing from the University
- Leave of Absence FFELP Rules
- Loan repayments
- Payment of tuition fees
Satisfactory progress for financial aid recipients
All students receiving US Federal Aid must satisfy the University's academic progress rules to be eligible for continued federal aid.
At the end of each semester students receiving financial aid will be evaluated to determine whether satisfactory academic progress has been made. Failure to progress satisfactorily, according to University regulations, could result in the suspension of your financial aid. This evaluation process will consider: 1) your academic grades and 2) the maximum timeframe allowed to complete your course of study.
See the University's regulations regarding unsatisfactory academic progress.
Academic Progress Requirements
Academic Grades ? You will be required to pass all subjects in which you have enrolled during the semester. If you withdraw from your subject prior to the census date the subject will not be considered in the evaluation process.
Research Degrees ? Your academic supervisor will confirm academic performance against targets. Maximum Time Frame ? Your enrolment in the course for which you are in receipt of US Financial Aid must not exceed 150% of the published length of the course eg if you are completing a 3 year degree you will have a maximum of 4.5 years in which to complete the course.
Unsatisfactory Progress
At the end of each academic semester your enrolment record will be evaluated to determine your eligibility for continued aid.
- If you do not meet the university's US financial aid satisfactory academic progress requirements you will be notified in writing that you have been placed on probation for the following academic semester. You will still be eligible for financial aid during this probationary period.
- If you subsequently meet the satisfactory progress requirements in the probationary semester you will have your good standing reinstated and can continue to receive US financial aid subject to you continuing to meet the academic progress requirements.
- If you fail to meet the academic progress requirements during the probationary period you will have your aid suspended and you will be ineligible to receive further aid until satisfactory academic progress is achieved. If satisfactory academic progress is achieved in the following semester you will be eligible for further aid, however you will be placed on probation for that semester.
Appeal Procedures for Reinstatement of Financial Aid Eligibility
You will be notified in writing if your Financial Aid is suspended and you may appeal the decision (within 10 days of receiving written notification) if you can demonstrate that exceptional circumstances have effected your academic performance such as the death of an immediate relative (eg parent, spouse, sibling, child) or room mate or you have been ill for an extended period of time. The written appeal must be forwarded to: General Manager International Admissions John Smyth Building University of Melbourne.
In the written submission you must explain the reason (s) for failure to meet the University's US financial aid academic progress rules, why financial aid should not be suspended and outline a plan for your academic recovery. All documentation to support the appeal must be submitted with the written submission. You may be required to meet with the General Manager, International Admissions, to discuss your appeal. You will be advised of the outcomes of your appeal within 7 working days.
Withdrawing from the University
You must advise both Student Administration and the university's US Financial Aid Administrator as soon as you decide to withdraw from your studies. Upon withdrawal you will need to complete Exit Counselling (this must be completed within one week of withdrawal) and prepare to commence your loan repayments.
Leave of Absence FFELP Rules
If you are receipt of FFELP finding you must submit a written Leave of Absence (LOA) request to the US Financial Aid Administrator prior to commencing LOA. The request must include the reason for going on LOA and the dates that the LOA commences and ends. If this is not received you will be considered to have withdrawn from the course and the lender and guarantor will be advised that you have withdrawn from the University.
You may take multiple LOAs during a year but not more than 180 days in total (and this includes weekends and scheduled breaks).
Loan repayments
As soon as you leave university you have a 6 month grace period before you must commence monthly principal and interest repayments on your loan. Please note that the maximum 6 month grace period may be reduced should you take a leave of absence.
Note: As the grace period does not apply to PLUS loans you may wish to consider consolidating your PLUS loan with your Stafford loan. Please contact your lender for further information about consolidation.
It is a requirement that you complete exit loan counselling (via Mapping your Future) before you leave university to ensure that you are aware of the types of repayment plans, loan consolidation options and deferment options that are available to you.
Failure to make you monthly payment within 30 days will result in you being considered as a delinquent borrower and may result in your delinquency being reported to a credit bureau. This could damage your credit rating. It is essential that you contact your lender immediately if you are unable to make a monthly payment to avoid default.
The consequences of delinquency could include:
- failure to make payment when due
- reported to credit bureaus, affecting your credit history
- after several months you will be classified as a defaulter.
The consequences of defaulting could include:
- the lender will assume that you will not pay
- the lender can garnish your wages and tax returns
- the services will sue and you will be responsible for all costs
- collection agencies take over and add an additional 15-18% interest to the loan.
- Students loans can not be discharged in bankruptcy
- Licences pulled in a number of US states.
The National Student Loan Data System provides data on all your Federal student loans to assist you keep track of the amounts borrowed. See Student Clearing House for details on your loan debt to date.
Additional sources of information to assist you in repaying you student loans are:
Payment of tuition fees
Please always allow sufficient time for your loans to be processed in time for you to receive your funds and commence your tuition fee payments. Note: The University?s Student Administration does impose late fees for students who do not pay their fees on time. If you believe that you will not be able to pay you tuition fees by the due date then you can request an extension from student administration.