Types of Financial Aid
Basis for the Type of Financial Aid
The aid package awarded to a student may consist of a loan, grant, scholarship, part-time job, or any combination of these programs. The total amount of aid the student receives depends on the student’s cost of attendance, expected family contribution, meeting application deadlines, outside resources, academic history, and the availability of funds.
At National University of Natural Medicine (NUNM) the Financial Aid staff will make every attempt to help you reach your educational goals because we believe everyone should have access to a university education. We will assist you in the process of filing for federal aid and evaluate your information to determine your eligibility for everything from grants and work-study, to federal loans. We will make every attempt to ensure your transition into our degree completion programs is as seamless as possible.
The following is a summary of the types of assistance that may be available to eligible students at NUNM. Students should be aware that many of the programs are subject to change without notice by the state or federal government.
Federal Pell Grant
The Federal Pell Grant program provides funds to students demonstrating financial need. Students should submit the Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov to apply for this program. This grant is available to undergraduate students who are pursuing their first baccalaureate degree.
As an example, the maximum Pell Grant during the 2015-16 school year was $5,775.
Federal Supplemental Educational Opportunity Grant (FSEOG)
The FSEOG program was created to provide additional grant support to students with exceptional financial need. Exceptional need is measured by comparing the Expected Family Contributions (EFC) of all students attending the NUNM. Priority of funding is given to students who receive Federal Pell Grants. The US Department of Education distributes FSEOG funds to each University that participates in the program. Unlike the Federal Pell Grant program, FSEOG funds are often exhausted before the end of the school year. Interested students should be sure to submit their FAFSA applications as early as possible.
As an example in the 2015-2016 year the estimated FSEOG grant ranged from $100 and higher.
Oregon Opportunity Grant
The Oregon Opportunity Grant program was created by the Oregon State Legislature to help needy Oregon students to attend Oregon Universities. Oregon residents who attend the NUNM may be eligible to receive an Oregon Opportunity Grant. These grants are awarded on the basis of financial need, based upon the information provided on your FAFSA. Students who already have a bachelor’s degree are not eligible to receive an Oregon Opportunity Grant.
As an example, in 2015-16 the maximum award for a student enrolled full-time, full-year was $2100.
For more detailed information regarding the Oregon Opportunity Grant go to: Oregon Opportunity Grant website
Federal Work-Study Program
Federal Work-Study is available to students on the basis of financial need, based upon the information provided on your FAFSA. Funds from this program are earned as a result of working part-time in a position on or off campus. Students completing a FAFSA will automatically be considered for this program. Awards are based on availability of funds and the student’s financial need.
Federal Direct Loan Program
Direct Loan funds from this program are made available to students from the U.S. Department of Education. These loans can be either subsidized or unsubsidized, or a combination of both. The maximum amount a student can borrow from this program in an academic year depends on the student’s year in school (i.e. freshman, sophomore, etc.); whether the student is considered to be dependent or independent for the purposes of financial aid; the student’s total cost of education as determined by the school; and what other forms of financial aid the student is receiving.
Federal Direct Subsidized Loan
Subsidized Stafford Loans are one of three programs in the Federal Direct Loan program. Subsidized Stafford Loans have both interest and principle payments waived during enrollment (at least half time) periods and during the grace period. Eligibility for this program is based upon need, class level, annual limits, and cumulative limits. Only undergraduate students can be awarded subsidized loans. Students who borrow Subsidized Stafford Loans must complete entrance counseling and a Master Promissory Note (MPN). For more information go to www.studentloans.gov
Federal Direct Unsubsidized Loan
Unsubsidized Stafford Loans are covered under the Federal Direct Loan program. Unsubsidized Stafford Loans have principle payments waived during enrollment (at least half time) and during the grace period. The student borrower must elect to make interest only payments while attending school or defer payments. Deferred interest payments will be capitalized (added to the principle balance) at repayment. Eligibility for this program is based upon dependence status, class level, annual limits, and cumulative limits. Student borrowers who elect to borrow both Subsidized and Unsubsidized Stafford Loans (if eligible for both) may complete one MPN for both programs. Borrowers who have not completed entrance counseling must do so before completing an MPN. For more information, go to www.studentloans.gov
Federal Direct PLUS Loan
The Federal Direct PLUS Loan is a part of the William D. Ford Federal Direct Loan Program. Direct PLUS Loans are available to the parent (biological, adoptive, or in some cases, stepparent) of a dependent undergraduate student enrolled at least half-time at a participating school. Direct PLUS Loans are designed to cover any portion of the student’s estimated cost of attendance not already being covered by other types of financial aid.
To be eligible for a PLUS Loan, you must have a valid FAFSA on file, the parent must agree to and pass a credit check, and both the student and the parent borrower must meet the following general criteria: 1) must be a U.S. citizen, U.S. national, or an eligible non-citizen, 2) must provide his or her valid social security number, and 3) must not be in default on any federal education loan or owe an overpayment on a federal grant or loan program. For full details review the Department of Education’s PLUS Loans page.
Returning loan funds to your lender
We will return loan funds if your written request is received within 14 days after the disbursement notification has been sent to you.
After this time, you can return Direct Loan funds by check to your servicer. For information about your servicer, please visit NSLDS.
To ensure that the payment is properly credited, you will need to include a cover letter stating whether the funds are for a loan payment or for canceling (inactivating) a loan. This note should indicate which loan(s) the returned funds should be applied to, and in what amounts (if repayment is split between loans).
A borrower has up to 120 days after the disbursement date to return Direct Loan funds without being responsible for paying fees and any accrued interest on the amount canceled.
Deferment of Payment and Forbearance
Payment of a PLUS Loan may be deferred if the student and/or the parent borrower is enrolled in school on at least a half-time basis. Payment may also be deferred if the borrower is unemployed or in a situation of demonstrable economic hardship, or during some periods of active duty military service. During a deferment, interest continues to accrue on the loan and may be capitalized (added to the principal of the loan).
In situations not covered by deferment, a borrower may ask for a forbearance. By granting forbearance, the lender permits a temporary cessation of payments, allows an extension of time for making payments, or temporarily accepts smaller payments than were previously scheduled.
Full details about deferment and forbearance can be found on the Department of Education’s Federal Student Aid website.
Interest and Repayment
Federal Direct PLUS Loans with a first disbursement date of July 1, 2015 but before July 1, 2016 have a fixed interest rate of 6.84%.
A PLUS Loan borrower enters repayment at the time the loan is fully disbursed. The lender must notify the borrower of the terms and conditions for repayment of the loan before repayment is scheduled to begin. The minimum monthly payment is $50.00. A borrower is allowed at least five years (unless the minimum required payment will retire the debt in less time), to repay a PLUS loan. A borrower may prepay his or her loan in full or in part at any time, without penalty and without liability for unearned interest.
Alternative repayment schedules and deferment or forbearance options are available on all federal student loans, including the PLUS Loan. Extended repayment plans (up to 25 years) are available for borrowers with federal education debt exceeding $30,000.
The following table is based on a standard 10-year repayment plan. Use this table to estimate the monthly payment amount for your Federal Direct PLUS Loan(s).
|TOTAL AMOUNT BORROWED||INTEREST RATE|
Alternative (private) loans are administered and processed by private lending institutions to be used for educational costs after exhausting potentially more favorable federal and state financial aid options first.
Exhaust Federal Student Aid Options First
Alternative loans are not part of the Federal student loan programs, and should only be used in circumstances where you have exhausted all other options in regards to financing your education. We highly recommend you apply for financial aid using the Free Application for Federal Student Aid (FAFSA) prior to seeking an alternative loan. You may be eligible for the Federal William D. Ford (Direct) loan program.
Benefits of the Direct Loans over an alternative loan may include lower interest rates and greater repayment options that unavailable through the Alternative Loan Program. Additional information about the Direct Loans can be found by contacting the NUNM Financial Aid Office Staff. Eligible students who elect to decline participation in the Federal Direct Loan Program to borrow alternative loan must contact the NUNM Financial Aid Office to schedule a counseling session and sign a Federal Student Loan Waiver Form. If you have additional questions please contact the NUNM Financial Aid office.
As a result of the Truth in Lending Act (TILA) of 2009, lenders are required to provide multiple disclosures to the borrower and to collect a Self-Certification Form from the borrower. Please keep in mind that due to these new requirements, your alternative loan disbursement may be delayed as required by this new law.
Below is an example of what to expect if you apply for an alternative loan:
- Search for an alternative loan lender through ELMSelect.
- Apply online through the lender’s website. You will receive an Application Disclosure Statement from the lender.
- Submit the Self-Certification Form to your lender.
- If approved for the loan, you will be provided an Approval Disclosure Statement from your lender.
- Your lender will contact the NUNM Financial Aid Office for certification that you meet certain requirements of the loan.
- After the NUNM Financial Aid Office certifies your eligibility with your lender, you will receive a Final Disclosure Statement, and are allowed up to three days to cancel the loan before it disburses.
- Disbursement of alternative loan funds typically takes place ten to 14 days business days after the NUNM Financial Aid Office certifies the loan.
Points to consider when choosing a lender
- Interest Rate – It may be capitalized: therefore, increasing the amount of money you ultimately owe. Consider using a cosigner. You may qualify for slightly lower rates.
- Fees – The interest rates and fees that you pay are based on your credit score and the credit score of your cosigner if you choose to use one.
- Borrower Benefits – These vary by lender.
- Repayment Terms – Some lenders require you to pay while you are in school. Others will defer payments until after graduation.
- Eligibility Requirements – Check the requirements for the loan.
Please use these general loan term dates when filling out an application. However, your loan will be processed using specific enrollment dates for your program.
Loan Period Dates
Fall Term 2016: Sept. 19, 2016 – Dec. 17, 2016
Winter Term 2017: Jan. 6, 2017 – April 1, 2017
Spring Term 2017: April 10, 2017 – June 30, 2017