2003-2005 Catalog - University of Arkansas at Monticello

is designed to provide financial assistance to students who have exceptional financial need.These awards do not have to be repaid.The ARKANSAS STATE STUDENT ASSISTANCE GRANT is available to studentswhose financial need has been determined by the application for financial aid. This grant ismade available only to residents of the State of Arkansas and does not have to be repaid.LoansThe FEDERAL PERKINS LOAN PROGRAM assists students by providing a lowinteresteducation loan to students qualifying on the basis of “financial need.” Repaymentof this loan may extend over a ten-year period beginning nine months after the borrowerceases to be enrolled at least half-time. Interest (5%) starts at the beginning of the repaymentperiod and is charged on the unpaid balance of the loan principal. For borrowers whobecome teachers in certain types of schools (or teach in fields of expertise that have ashortage of qualified teachers), there are cancellation provisions. Cancellation provisionsmay also be extended to full-time nurses, medical technicians, law enforcement orcorrections officers, providers of early childhood intervention services, and child/familyservice agency workers. Also, borrowers who serve in specified military duty may beeligible for cancellation provisions.The FEDERAL STAFFORD LOAN PROGRAM can provide either subsidized orunsubsidized low interest loans to students enrolled at least half-time. Subsidized loanfunds can be awarded to students who have “unmet need” remaining when all other typesof aid have been awarded. The Federal government pays the interest on these subsidizedloans while the student is enrolled and through the grace period. Unsubsidized loan fundsmight be awarded to students who have no “unmet need” remaining after all other types ofaid have been awarded. The Federal government does not pay the interest onunsubsidized loans while the student is enrolled. The student can choose to pay theinterest or the interest can be capitalized. Some students might be awarded a combinationof subsidized and unsubsidized loan funds. Repayment of these loans may extend over a10-year period beginning six months after the borrower ceases to be enrolled at leasthalftime.The FEDERAL PLUS LOAN PROGRAM makes loans available to the parents ofdependent undergraduate students. Each borrower must use the loan funds to pay for thestudent’s educational costs. Unlike other Federal Family Education Loan Programs, PLUSborrowers are not required to show financial need, but must complete the Free Applicationfor Federal Student Aid. The amount borrowed cannot exceed the cost of education.Part-Time EmploymentMoney is also available in the form of part-time employment. Employment opportunityis made available to those students who qualify and who need an income supplementto partially defray college expenses. Student employment generally falls into two categories:Federal College Work-Study, which is determined on the basis of financial need; andInstitutional WorkStudy, which is determined principally by the degree of work skillspossessed and availability of jobs. Types of employment opportunities at the Universityinclude secretarial, clerical, custodial, resident assistants, library, maintenance, and labassistants.Return of Title IV FundsThe return of Title IV funds is based on requirements of the Higher EducationAmendments of 1998 and assumes that a student earns his/her aid based on the period oftime he/she remains enrolled. If a student withdraws from the University during the first60% of the enrollment period, the University and/or the student may be required to returnsome of the Title IV funds awarded to the student. Title IV funds include Federal StaffordLoans, Federal Perkins Loans, Federal Pell Grants, Federal Supplemental EducationalOpportunity Grants, and Arkansas Student Assistance Grants. During the first 60% of the26Financial Assistance