FEDERAL AID
 
Federal Stafford Loan
The Federal Stafford Loan is a loan and must be repaid. The Subsidized Stafford loan interest rate is currently 5.6% beginning July 1, 2009, and the subsidized rate is scheduled to be reduced over a period of time. The rate on the Unsubsidized Stafford Loan is fixed at 6.8%. There is a 6-month grace period before repayment begins once the student is no longer enrolled in college. Federal Stafford Loan lenders may retain up to 3% in fees. Therefore, the actual amount the student receives may be less than the amount borrowed. Stafford loans are electronically disbursed in two (or three equal disbursements for students attending Summer terms) to the student’s account. Recipients of Federal Stafford Loans must be enrolled in school at least half-time (6 credits). Please note that the average TOTAL amount students have borrowed from the Stafford Loan programs while completing an Associate’s Degree at Harcum College is approximately $14,000.
 
There are two types of Federal Stafford Loans.
 
·          Federal Subsidized Stafford Loan - the government pays the loan interest for the student while the student is in school, during grace and deferment periods.
 
·          Federal Unsubsidized Stafford Loan - the student pays the loan interest while the student is enrolled or the student can elect to have it capitalized (added to the principal)
.
Federal Parent PLUS Loan
The Parent PLUS Loan program enables a credit-worthy parent of a dependent student to borrow in the student’s behalf. The PLUS loan interest rate is fixed at 8.5%. Loan proceeds are electronically disbursed in two or three equal disbursement to the student’s account, unless otherwise indicated. Generally, repayment on Parent PLUS loans begins within 60 days of the loan being fully disbursed, but may be eligible for deferment while the student is attending at least half time.
 
Lender/Guarantor Choice
Although our process directs you to select your lender and complete your MPN on the aesSuccess.org website, you are free to select any participating lender/guarantor that you wish.  If you do not wish to use AES/PHEAA as your guarantor or if you do not find a lender that you want to use on the AES/PHEAA MPN completion website, simply call the financial aid office, and we will assist you in determining the correct process for your lender/guarantor choice.  We want to assure you that we will not refuse to certify or otherwise deny or delay certification of a loan based on your selection of a lender and/or guarantor.
 
Federal Pell Grant and Federal Supplemental Educational Opportunity Grant (SEOG)
These two need-based federal grants are awarded to students who meet the required financial need criteria. They are disbursed in two or three payments during the academic year. They are grants and do not have to be paid back.
 
Federal Academic Competitiveness Grant (ACG)
The ACG is a new federal grant available to Pell eligible, at least half time recent high school graduates who meet the eligibility criteria.  Eligibility includes the completion of a rigorous high school curriculum. ACG is a grant and does not have to be paid back.
 
Federal College Work Study
College work study provides students the opportunity to work on or off campus during the academic year. Work study earnings are paid directly to students by a paycheck twice a month during the school year and are not automatically credited to the student's account. Please contact the Financial Aid Office for further instructions if you wish to accept your Federal Work Study award.
 
Federal Perkins Loan
The Federal Perkins Loan is a need based loan from the school at a fixed interest rate of 5%. Repayment begins 9 months after the student leaves school or drops below half time status. You must complete a Master Promissory Note (MPN) before the loan may be disbursed.
 
SSS Grant
A limited number of SSS grants are available to Pell eligible students who demonstrate need and fulfill other program requirements. More information is available from Educational Support Services at 610-526-6064.
 
More Information of Federal and Other Programs
 
Please review the US Department of Education’s “Funding Your Education Beyond High School” publication distributed to all students. More information about the Federal Student Aid programs is available at www.FederalStudentAid.ed.gov
 
You may also wish to peruse the following website that includes free scholarship search services: 

Loan Counseling
 
Entrance Counseling
Students who are first-time borrowers are required to complete Entrance Loan Counseling online or via hardcopy prior to receiving loan proceeds. The counseling session details the borrower’s rights and responsibilities.
 
Exit Counseling
When a student ceases at least half-time enrollment, withdraws or graduates, federal regulations require that the student complete exit counseling. The exit counseling session will both remind the student of his/her rights and responsibilities and provide useful information regarding repayment and deferment.
 
STATE AID
 
PHEAA Grants- Grants from PA Higher Education. Eligibility and application are through the FAFSA. More information is available from AES/PHEAA at 800-692-7392 or at www.pheaa.org
 
INSTITUTUIONAL AID
 
Harcum Grants and Loans- eligibility is based on the information from the FAFSA. Grants do not have to be repaid. A Harcum Loan carries a 5% fixed interest rate with repayment beginning 9 months after graduation.
 
Admissions Scholarships- The Admissions office publishes each year a list of available scholarships and how to apply.
 
OUTSIDE SCHOLARSHIPS
Students are required to report the receipt of scholarships from sources outside of Harcum College. Outside scholarships may affect financial aid already awarded.

Federal Stafford Loan(s)

First-time borrowers are required by federal regulations to complete entrance counseling, which explains an individual's rights and responsibilities as a loan borrower. First-time borrowers must also complete a master promissory note(MPN).

Go to www.pheaa.org and on the left-hand side of the page, click on "Apply for a Stafford Loan(MPN)". The Entrance Counseling will be included in the process of completing your MPN. You may choose any lender you wish, even one that does not appear on the drop down list. If you do not wish to use PHEAA as a guarantor, please contact the Financial Aid Office.

Federal Plus Loan

Parents of dependent students may borrow a Federal PLUS loan. Go to www.pheaa.org and on the left-hand side of the page, click on "Apply for a Parent PLUS Loan." You may choose any lender you wish. If you do not wish to use PHEAA as a guarantor, please contact the Financial Aid Office.