Financial assistance is divided into three basic categories:
Grants or Scholarships
Aid that does not have to be repaid.
Loans
Aid that must be repaid. Some do not require repayment
until after you have graduated or stopped attending School.
Work Programs
Jobs that may be arranged through your School.This program is only available at select campus locations.
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Federally funded financial aid programs
Some of the best sources of financial assistance are grant, work and loan programs that are Federally funded.
Federal Pell Grants
are awarded to every qualified undergraduate student, and unlike loans, do not have to be repaid. You must qualify financially, be in an eligible program, and not have already earned a bachelor's or a professional degree. Although not everyone qualifies for these need-based grants, all students should apply.
Students who qualify may receive one Pell Grant per academic year in amounts ranging from $555 - $5550 (for the award year beginning July 1, 2010 and ending June 30, 2011). The actual amount of your Pell Grant is based on your cost of education, the number of credit hours of your courses, and the Federal Pell Grant Program Regulations.
Federal Supplemental Educational Opportunity Grants (FSEOG)
(FSEOG) provide money to undergraduates who demonstrate exceptional need, and like Federal Pell Grants, do not have to be repaid. Funds in amounts from $375 to $1500 per academic year are awarded to students based on financial need, the program of study and the availability of funds to our school. Priority is given to students receiving a Pell Grant. (This program is not available at our Minnesota location.)
Federal Work-Study (FWS)
This program provides on or off-campus jobs. Wages are paid jointly from
Federal and institutional. Students must demonstrate financial
need for Federal Work-Study jobs. This program is only offered at select campus locations.
Academic Competitiveness Grant
The maximum grant award for a first academic year eligible undergraduate
student is $750; the maximum award for a second academic year eligible
undergraduate student is $1,300.This program is only available at select campus locations.
ACG Requirements
To receive an ACG, a student must:
• receive a Federal Pell Grant during the same award year;
• be a U.S. citizen;
• be a first- or second-year full-time undergraduate student in an eligible program;
• provide an academic transcript that documents completion of a rigorous
secondary school program of study; and:
• if a first-year student–have completed secondary school after Jan. 1, 2006, or
• if a second-year student–have completed secondary school after Jan. 1, 2005,
and have at least a 3.0 grade point average as of the end of the first academic
year of undergraduate study.
Direct Stafford Loans are the most common source of loan funds. There are two types: direct subsidized and direct unsubsidized. Your FAFSA will establish your eligibility for both.
You may also qualify for a federal PLUS loan.
Direct Subsidized Loansare for all qualified students and are not based on income or assets. This means you have to meet the same requirements for the direct subsidized loan, but you don't have to demonstrate financial need. Students who are ineligible or have limited eligibility for the subsidized loans may apply for the unsubsidized loan. Dependent students may borrow from the unsubsidized loan program up to an additional $2,000 per academic year. Independent students may borrow from the unsubsidized loan program up to an additional $6,000 per academic year. One main difference with the direct unsubsidized loan is that interest accrues from the time the loan is disbursed. Interest payments begin immediately but can be deferred while you are in school. Repayment begins six months after you graduate, drop below half-time, or withdraw.
These low-interest loans have a fixed rate of 4.5% for direct subsidized loans first disbursed between July 1, 2010 and June 30, 2011. Direct unsubsidized loans are fixed at 6.8%. Total undergraduate borrowing may not exceed $23,000 for dependent students and $57,500 for independent students (no more than $23,000 of which may be in subsidized Stafford loans). Unless you qualify and opt for an alternative repayment plan, you must repay Stafford loans within 10 years.
Direct PLUS (Parent Loans for Dependent Undergraduate Students) LoansThe documents that are required (but not limited to) for verification are,
as follows:
1. The parents’ (if applicable) and student’s signed Federal tax forms
(for the appropriate tax year).
2. A completed and signed verification worksheet.
The student will be notified when selected for verification; a deadline for providing the required documents is given at that time. Upon completion
of the verification process, the student will be notified if any of the student’s
financial aid has been affected.
What is the Private Loan Program?
Private loans (not sponsored by a government agency) are
offered by banks or other financial institutions to parents
and students. These loans provide supplemental funding
when other financial aid does not cover costs. Private loans
can help bridge the financing gap for School expenses,
generally at much lower interest rates than credit cards.
Eligibility for the private loan is determined by the lending
institution.
The interest rate on a private loan is usually 1 to 10 percent
above the prime interest rate. Interest begins accruing when
the loan is disbursed. Some private loans defer repayment
until the student leaves School; for others repayment begins
45 days after the first disbursement of the loan. Monthly
payments vary but may be as low as $50 per month with
repayment terms up to 15 years.
What is the Institutional Loan Program?
The Institutional Loan Program (ILP) was created for students attending the
Schools of Anthem Education Group. The ILP provides an
affordable payment program worked out in accordance with individual financial
circumstances as reflected in the financial information submitted to the
School.
The objective of the ILP is to provide students with either an alternative to Federal Financial Aid programs or an additional source of funding for tuition, books and supplies. The loans have no associated fees and carry a 0 to 18 percent interest rate depending upon the length of the loan.
To qualify for these loans the following documents may be required (but not limited to) for verification are:
1. The parents’ (if applicable) and student’s signed Federal tax forms
(for the appropriate tax year).
2. A completed and signed verification worksheet.
Failure to submit ILP payments within the requested time period may result in
termination of the financing agreement, with the balance due immediately.
As early as your junior year in high school, start exploring all of your financial aid options that may be available from federal and state sources. Learn more about private grants and scholarships for which you may be eligible to apply. Talk to your parents, too. Financial aid may be available through their employers or their labor unions.
Generally speaking, your amount of financial aid is calculated by subtracting your family’s expected contribution from your college costs. You don’t have to be from a low-income family to qualify for financial aid, but you do have to demonstrate financial need.
Your expected family contribution is determined based on criteria defined by the Federal Government using the information on your financial forms.
One of the first things the Federal Government looks at is your dependency status. Whether you are an independent or a dependent student affects the type of aid you may receive. If you’re dependent, your parents’ ability to help out is considered. If you’re independent, you’ll be evaluated based on your income and your income only, unless you are married, then spousal income will also affect eligbility.
To determine if you are dependent or independent, answer the following questions:
| YES / NO | Were you born before January 1, 1987? |
|---|---|
| YES / NO | At the beginning of the 2010-2011 school year, will you be working on a master's or doctorate program (such as an MA, MBA, MD, JD, PhD, EdD, or graduate certificate, etc.)? |
| YES / NO | As of today, are you married? (Answer "Yes" if you are separated but not divorced.) |
| YES / NO | Do you have children who receive more than half their support from you between July 1, 2010 and June 30, 2011? |
| YES / NO | Do you have dependents (other than your children or your spouse) who live with you and who receive more than half of their support from you, now and through June 30, 2011? |
| YES / NO | Are (a) both of your parents deceased, or (b) are you (or were you until the age of 18) a ward/dependent of the court? |
| YES / NO | Are you currently serving on active duty in the U.S. Armed Forces for purposes other than training? Are you a veteran of the U.S. Armed Forces? |
| YES / NO | At anytime since you turned age 13, were both your parents deceased, were you in foster care or were you a dependent or ward of the court? |
| YES / NO | Are you, or were you an emancipated minor or in legal guardianship, determined by the court in your state of legal residence at the time you received the determination? |
| YES / NO | At any time on or after July 1, 2010, did the director of an emergency shelter or transitional housing program funded by the U.S. Department of Housing and Urban Development or your high school or school district homeless liaison, determine that you were an unaccompanied youth who was homeless? |
| YES / NO | At any time on or after July 1, 2010, did the director of a runaway or homeless youth basic center or transitional living program determine that you were an unaccompanied youth who was homeless or were self-supported and at risk of being homeless? |
If you answered “no” to every question, you are a dependent student.
Dependent students need to include their financial information on their FAFSA. These things will be considered when calculating your expected family contribution:
You should file your FAFSA as early as possible after January 1.
Yes, you must reapply each year to continue to receive financial aid.
You will need your, your parents’ (if you’re a dependent) and your spouse’s (if you’re married):
American Opportunity Tax Credit is a tax credit. Tax credits are subtracted from the tax your family owes, instead of subtracting them from taxable income like a tax deduction. Your family must file a federal tax return and owe taxes to get this tax credit. If your family owes less in taxes than the maximum amount of the tax credit for which your family is eligible, you can only take the credit for the amount you owe in taxes. Your family may claim a tax credit up to $2,500 for the first four (4) years of post-secondary education.
The exact amount of the American Opportunity Tax Credit depends on your family's income, the amount of qualified tuition and fees paid during the taxable year and the number of dependents there are in your family.
The Lifetime Learning Credit is a tax credit available to individuals who file a tax return and owe taxes. This means the amount of the credit is subtracted from the taxes your family owes. If your family owes less in taxes than the maximum amount of the Lifetime Learning tax credit for which your family is eligible, you can only take the credit for the amount you owe in taxes. This is available for all post-secondary education.
Your family may claim a tax credit of up to $2,000 per tax year (as of January 1, 2003) for the taxpayer, taxpayer's spouse, or any eligible dependents for an unlimited number of tax years. You may claim up to 20% of $10,000 of eligible expenses for expenses paid during the tax year.
The actual amount of the credit depends on your family's income, the amount of qualified tuition and fees paid during the taxable year and filing status.
Deductibility of Loan Interest
Student loan interest paid is deductible. This deductibility reduces the adjusted gross income a taxpayer reports. Under law, up to $2,500 in education loan interest paid can be deducted. A taxpayer claimed as a dependent by another taxpayer is not eligible for the deduction.
Penalty-Free IRA Withdrawals
A taxpayer may make a withdrawal from an Individual Retirement Account (IRA) to pay tuition for the taxpayer, the taxpayer’s spouse, or the child or grandchild of the taxpayer or the taxpayer’s spouse. The taxpayer will not be subject to the 10% early withdrawal tax that applies when amounts are withdrawn from an IRA before the account holder reaches age 59 1/2.
