a. First Coast Barber Academy has been approved by the United States Department of Education to participate in Federal Financial Aid Programs. In order to apply for Federal funds students must be United States citizens or eligible non-citizens. The following Federal Financial Aid Programs are available:
i. Federal Pell Grant - is a federal grant awarded to students on the basis of financial need and does not have to be repaid. These grants are considered the foundation of federal financial aid, to which aid from other federal and non-federal sources might be added. Pell Grants are only awarded to undergraduate students who have not yet earned a bachelor’s or a professional degree. In order to apply for a Pell Grant, students must complete a Free Application for Federal Student Aid (FAFSA). The U.S. Department of Education uses a standard formula to evaluate the financial information provided on this application to determine a student’s eligibility for a Pell Grant. Award amounts vary based on a student’s financial need, an institution’s cost of attendance and enrollment status.
ii. The William D. Ford Federal Direct Loan Program - Direct Loans are low-interest loans and the lender/servicer is the U.S. Department of Education (the Department).
1. Direct Subsidized Loans - are loans for undergraduate students with financial need. Repayment begins 6 months after a student graduates or is no longer enrolled at least half time. The interest rate on Federal Direct Subsidized loans borrowed by undergraduate students between July 1, 2014 and June 30, 2014 is 4.66%. If a student qualifies, the maximum amount of a Subsidized Stafford Loan is $3,500 for first-year students and $4,500 for second-year students.
2. Unsubsidized Direct Loans - are loans for undergraduate students that are not based on financial need. Interest is charged during in-school, deferment, and grace periods. The interest rate on Federal Direct Unsubsidized loans borrowed by undergraduate students between July 1, 2014 and June 30, 2015 is 4.66%. You are charged interest on this loan from the time the loan is disbursed until it is paid in full. If the interest is allowed to accumulate, the interest will be added to the principal amount of the loan and increase the amount to be repaid. If a student qualifies, the maximum amount of an Unsubsidized Stafford Loan is $6,000 for first and second year students. Award amounts are based on a student’s dependency status on the Free Application for Federal Student Aid.
3. Federal Direct PLUS Loan - are low interest loans available to parents of dependent undergraduate. It is an affordable, low-interest loan designed to help students and parents pay for a college education. The Direct PLUS Loan is an unsubsidized loan, meaning that interest accrues while the student is enrolled at least half-time and during deferment periods. A mandatory credit check is completed as eligibility for this loan depends upon the borrower’s credit worthiness. Repayment of principal and interest begins 60 days after the loan is disbursed. The interest rate on Federal Direct PLUS loans borrowed between 2014 and June 30, 2015 is 7.21%.
4. College Affordability and Transparency Center – is a website that students or parents can access to view schools by sector with the highest and lowest tuition and net prices (the price of attendance after considering all grant and scholarship aid). It has the College Scorecard, which displays the typical student cost, graduation rate, loan default rate, and median borrowing amount for the school one types in. The website is located at www.collegecost.ed.gov
b. The Higher Education Act (HEA) requires that all schools enforce a code of conduct governing educational loan activities. Loan activities at First Coast Barber Academy are those that are associated with any loan made under the Federal Direct Loan Program.
This Institutional Code of Conduct applies to:
Any agent of the First Coast Barber Academy that is directly or indirectly associated with anyone employed at First Coast Barber Academy
The following activities are banned:
Revenue-sharing arrangements with any lender;
Steering borrowers to particular lenders or delaying loan certifications, and
Offers of funds for private loans to students in exchange for providing concessions or promises to the lender for a specific number of FSA loans, a specified loan volume, or a preferred lender arrangement.
Financial aid office staff (or other employees or agents with responsibilities with respect to education loans) are prohibited from accepting compensation for -
any type of consulting arrangement or contract to provide services to or on behalf of a lender relating to education loans; and
service on an advisory board, commission, or group established by lenders or guarantors, except for reimbursement for reasonable expenses.