Financial Aid

Financial Aid Home

Frequently Asked Questions

and

Glossary

Financial Aid, with its alphabet soup of terms and calendar full of due dates, produces a lot of questions. This page is meant to provide you with a place find answers to your questions fast.

The Financial Aid Home page provides a comprehensive list of the most frequently asked Financial Aid Questions. We listed the most important of these questions on this page along with questions most frequently asked by our students. We have also provided a Glossary of Important Financial Aid Terms.

Please direct any additional questions through our email address at finaid@yccc.edu.

Frequently Asked Questions

How was my award determined?

Your need for Financial Aid is based on an estimated calculation of your family's ability to pay the expected total college cost. The total family contribution is calculated from the information you provide on the Free Application for Federal Student Aid (FAFSA).. Your Financial need is determined by deducting this contribution form your expected total college cost.

How was my financial need determined?

Your financial need was determined by a formula developed by the Federal Government. This formula utilizes information your family provided on the Free Application for Federal Student Aid (FAFSA). The components of this formula include family size, number of family members in college, family income, and family assets.

I had a Financial Aid award at another college this year, can I transfer it here?

The Pell Grant is the only award that you can take with you from school to school. You just need to provide your new school with a valid Student Aid Report (SAR).

You must reapply for other aid, such as loans, at the new school.

Part of my award included work study. What's that all about?

The amount indicated on your award letter indicates the maximum you can earn under the Federal Work Study Program for the academic year. You must work in order to receive the award. If you accept the work study award, you will receive further instructions on job placement.

Once you are working, you will receive a biweekly paycheck based on the hours worked during the pay period.

To receive Financial Aid, do I need to do anything special?

For any Federal Financial Aid, a valid Student Aid Report (SAR) or Institutional Student Information Report (ISIR) must be on file with the Financial Aid Office in order to receive the funds. These forms result from filing the Free Application for Federal Student Aid (FAFSA).

For Federal Stafford Loan and The Federal PLUS loan, you must submit a separate application.

Is there any other documentation that the financial aid office needs?

The Federal Government requires schools to verify 30% of the Financial Aid Applications they receive. If you have been chosen for verification, you must provide certain documents such as tax returns, verification forms and W2's before you can receive the financial aid funds. Required documents will be listed on your award letter.

Failure to provide the documentation necessary to complete the verification process will result in the cancellation of the financial aid award.

I received a Stafford Loan. How much can I borrow?

Under the Federal Stafford Loan Program a freshman taking at least six credits may borrow up to $5,500, and sophomores may borrow up to $6,500 combined Subsidized and Unsubsidized Stafford Loan. Independent students may borrow an additional $4,000 in an Unsubsidized Loan. Please contact the Financial Aid Office to discuss your eligibility.

In order for you to receive the maximum loan amount, you may note on your award letter both a Federal Stafford and a Federal Unsubsidized Stafford Loan award. Unsubsidized means you, rather than the federal government, will be responsible for interest payments while you are in school. Consult your lender regarding capitalizing the interest.

What are some other Important details about the loan program?

Loan Processing Fees. All loans are subject to fees of up to four percent which are paid to the federal government to offset administrative and insurance cost. Fees are deducted proportionately from each disbursement.

Terms of Disbursement. Your loan will be disbursed in two or more installments that are sent directly to the school. You will be notified when the funds arrive.

First Time Borrowers must complete an Entrance Interview before receiving the first disbursement. The Entrance Interview is conducted on line. Loan proceeds for first time borrowers may not be disbursed until 30 days after the first day of classes.

When you apply for a loan, you are agreeing to repay the funds you borrow plus interest and fees. Loans must be repaid.

I had a problem with a student loan in the past. Will that have any effect on me now?

Students with defaulted student loans cannot receive Federal Financial Aid. If you have a defaulted loan, you must contact your lender to make arrangements to rehabilitate your loan. Usually, you will be required to make 6 months worth of on time payments.

How will my financial aid be applied to my bill?

Your financial aid awards are divided into disbursements, one for each semester. Verification must be completed before any funds are disbursed. The Pell Grant and Supplemental Education Opportunity Grant will be disbursed after the end of the add drop period in each semester. Stafford Loans will be credited once the money is received by the lender. Maine Student Incentive Scholarship Program will be credited when the money is received from the Finance Authority of Maine (Usually in the second month of the semester).

If my Financial Aid is more than what I owe to the college, what happens to the extra money?

If you have a credit balance with the college, it will be returned to you. All credit balances must be returned to the student within 14 days of the date the credit balance occurred. If you wish to leave the credit on your account, you must advise the Business office in writing.

Does Financial Aid cover books?

Books are included in the Cost of Attendance which is used to determine your Financial Need. What you receive in financial aid will first be applied to your tuition and fees. If there are funds left over, they can be used for your books.

What if my family or I have a problem and feel that financial assistance is not enough?

You can request a re-evaluation. Often changes occur during the academic year that affect the family's ability to provide its contribution. A request for re-evaluation must be done in writing. The Special Circumstance Form on the Financial Aid Forms Page will help you provide us with the required documentation. You must document the circumstances you feel deserve consideration. Example of these conditions would be: medical bills, unemployment, divorce/separation, death of a spouse or parent, disability of family members, change in employment earnings, loss of income or benefits.

You should outline your anticipated family income for the financial aid year. Attach supporting documentation such as year to date pay stubs, verification of untaxed income to date, unemployment benefits to date, TANIF benefit history and projection, statement from employer in a case where hours were reduced or a salary changed. Please note how long the condition has existed and why.

Please contact the Financial Aid Office, if you have any questions.

My parents are divorced and I'm a dependent student, who's income do I use?

You will use the income and assets of the parent with whom the student lived for the greater part of the twelve months preceding the date of the financial aid.

The Government says I'm a Dependent Student, I haven't seen my parents in years, what do I do?

The Federal Government's definition of a Dependent Student is black and white, however, schools have been given the authority to make a professional judgment in this matter. You must complete the Request for Independent Status form on the Financial Aid 'Forms' page. Additional instructions are included on the form.

Please contact the Financial Aid Office, if you have any questions.

Are there any reasons why my award would change?

There are cases in which the Financial Aid Office may need to recalculate your Financial Aid Award after the original award is made. These include:

Receipt of additional aid from outside sources.
Changes in family contribution due to updated information.
Changes in enrollment status.
Withdrawal from the College prior to the semester's end. Federal regulations may require repayment of funds.
Failure to maintain satisfactory academic progress.

Is there anything else I am responsible for?

It is your responsibility to :

Complete forms accurately and submit them by the appropriate deadlines.
Submit all additional documents and/or information requested.
Do Not give information that is false or misleading.
Understand, accept responsibility for, and keep copies of all signed agreements.
Participate in entrance and exit interviews, when required.
Report any changes in your address, income, or registration.
Notify us of any financial assistance your are receiving from an outside source.
Be aware of the College's withdrawal and refund procedures.
If accepting a Work Study Award, perform the work that is agreed upon.
Maintain satisfactory academic progress according to the College's policy.

Are there tax credits available to students and their families?

The HOPE Scholarship Credit establishes a tax credit for higher education:

The amount of the credit is 100% of the first $1,000 of qualified tuition and related expenses paid by the taxpayer, and 50% of the the second $1,000 of qualified tuition and related expenses. Scholarships and financial aid do not count as qualified tuition and related expenses paid by the taxpayer. Only out-of-pocket expenses count. Gifts, bequests, and inheritances do count as though paid by the taxpayer.

The credit is allowed only for 2 taxable years per student. The student must be enrolled at least half time for at least one academic period that begins during the taxable year. The credit is allowed only for the first two years of postsecondary education.

The credit will be denied for a student convicted of a felony drug offense.

If the family has multiple students that meet the requirements, then multiple HOPE Scholarship Credits may be claimed. The credit applies to expenses paid after December 31, 1997.

The Lifetime Learning Credit establishes a tax credit for higher education:

The amount of the credit is equal to 20% of the first $10,000 of qualified tuition and related expenses paid by the taxpayer. Like most tax changes, this change is being phased in gradually. For tax years beginning before January 1, 2003, the tax credit is limited to the first $5,000 of qualified tuition and related expenses. Thus the credit is up to $1,000 through 2002, and $2,000 thereafter.

Note that the Lifetime Learning credit does not vary according to the number of students. This is in contrast with the HOPE tax credit, which is based on the number of eligible students in the household. This means that if you have multiple children in school at the same time, so that your tuition bills total more than $10,000, you only get the credit for the first $10,000 paid. You don't get another credit for each additional child. The credit is relative to the total amount of tuition paid, irrespective of the number of children in school.

Qualified tuition and related expenses includes expenses for any course of instruction at an eligible educational institution to acquire or improve job skills. This means that the credit may be used for part-time study, not just students enrolled half-time.

Unlike the HOPE tax credit, the Lifetime Learning tax credit may be claimed for an unlimited number of years.

The credit applies to expenses paid after June 30, 1998.

For more information please visit the IRS website.

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Glossary of Terms

Award Letter: The letter sent to a student from a College or University Financial Aid Office. It indicates how much financial aid and the type of financial aid the student qualifies for during the academic year.

Campus Based Financial Aid: Federal funds which are controlled by the college or university. The are distributed to students to students based on financial need. At YCCC, the examples of Campus Based Financial Aid are the Federal Work Study Program (FWS) and the Federal Supplemental Educational Opportunity Grant.

Cost of Attendance (COA) Sometimes referred to as the Cost of Education. It is the cost, both direct and indirect, associated with attendance at a college or university. YCCC COA includes tuition, fees, board, books, supplies, transportation,and miscellaneous expenses.

Dependent Students: Students that the Federal Government has determined are still dependent on parents for financial support. Dependent students are under 24 years old and have no dependents for whom they provide half the financial support. Dependent Students are not orphans nor have they served in the armed forces.

Expected Family Contribution (EFC): The amount of money that is expected from the family to be contributed toward the cost of attendance. It is determined through needs analysis. The EFC for dependent students consists of a contribution from the parent's income and assets, and a contribution from the student's income and assets. The EFC for independent students consists of a contribution from the student's (and spouse, if applicable) income and assets.

Federal Parent Loan for Undergraduate Students (PLUS): A low interest loan for parents or guardians of dependent undergraduate students. PLUS loans are based on credit worthiness. Parents can borrow up to the cost of attending the school minus any other financial aid the student receives.

Federal Pell Grant: A grant program from the Federal Government. It is based on need and is for undergraduates. The federal Pell Grant is an entitlement program because once a student qualified for the grant, that student will receive the money regardless of which school the student attends.

Federal Stafford Loan: A loan for students, from the federal government. The government pays the interest on loan while the student is in school for those students who demonstrate financial need. This is the Federal Subsidized Student Loan. Students with a non-need based Stafford Student Loan have a Federal Unsubsidized Student Loan and they are responsible for the interest during the in-school and deferment periods. All students start repayment of the loan, plus interest, only after they leave school. They will have ten years to repay the loan.

Federal Supplemental Educational Opportunity Grant (FSEOG): A grant for students. It is awarded based on need with priority given to Pell Grant recipients.

Federal Work Study (FWS): A student who qualifies for this program will be able to work in a part time job on campus or off campus in a community service program. Earnings assist in meeting the cost of attendance.

Financial Aid: The funds, grant, scholarship, loan or work, made available from a variety of sources, federal, state, institutional, or private, are used to supplement the family's ability to meet the cost of attendance.

Financial Aid Formula: The formula used to determine a student's financial need. It is the Financial Need = Cost of Attendance - Expected Family Contribution.

Free Application for Federal Student Aid (FAFSA): The application required to determine eligibility for Federal Financial Aid. A student can get a FAFSA from their high school, college or it can be completed on the web at www.fafsa.ed.gov. A FAFSA needs to be completed for each year the student is enrolled in school

Grant: A sum of money given to a student based on the financial need. It does not need to be paid back.

HOPE Scholarship:

The amount of the credit is 100% of the first $1,000 of qualified tuition and related expenses paid by the taxpayer, and 50% of the the second $1,000 of qualified tuition and related expenses. Scholarships and financial aid do not count as qualified tuition and related expenses paid by the taxpayer. Only out-of-pocket expenses count. Gifts, bequests, and inheritances do count as though paid by the taxpayer.

The credit is allowed only for 2 taxable years per student. The student must be enrolled at least half time for at least one academic period that begins during the taxable year. The credit is allowed only for the first two years of postsecondary education.

The credit will be denied for a student convicted of a felony drug offense.

If the family has multiple students that meet the requirements, then multiple HOPE Scholarship Credits may be claimed. The credit applies to expenses paid after December 31, 1997.

Independent Students: Students that the Federal Government has determined are not dependent on parents for financial support. All independent students are over 24 years old. Students under 24 years old may be considered Independent Students if they have dependents for whom they provide half the financial support, they are orphans, or they have served in the armed forces.

ISIR: The electronic version of the Student Aid Report received by the school.

Life Long Learning Credit:

The amount of the credit is equal to 20% of the first $10,000 of qualified tuition and related expenses paid by the taxpayer. Like most tax changes, this change is being phased in gradually. For tax years beginning before January 1, 2003, the tax credit is limited to the first $5,000 of qualified tuition and related expenses. Thus the credit is up to $1,000 through 2002, and $2,000 thereafter.

Note that the Lifetime Learning credit does not vary according to the number of students. This is in contrast with the HOPE tax credit, which is based on the number of eligible students in the household. This means that if you have multiple children in school at the same time, so that your tuition bills total more than $10,000, you only get the credit for the first $10,000 paid. You don't get another credit for each additional child. The credit is relative to the total amount of tuition paid, irrespective of the number of children in school.

Qualified tuition and related expenses includes expenses for any course of instruction at an eligible educational institution to acquire or improve job skills. This means that the credit may be used for part-time study, not just students enrolled half-time.

Unlike the HOPE tax credit, the Lifetime Learning tax credit may be claimed for an unlimited number of years.

The credit applies to expenses paid after June 30, 1998.

Loan: Money available for students to borrow. Typically, loans must be paid back with interest. Usually, student loans do not require repayment until the student has graduated or left school.

Maine Student Incentive Scholarship Program (MSISP): Through this program, grants are available to Maine residents based on financial need. Financial need is determined based upon financial information submitted by students and parents on the Free Application for Federal Student Aid (FAFSA). The FAFSA must be processed by May 1 for students to be eligible for the MSIP. For AY 2001-2002, grants will be $500 for students attending public institutions and $1,000 for students attending private institutions. For the school year that began in September of 2001, the Finance Authority of Maine awarded grants totaling more than $5,000,000 to more than 10,000 students. For more information on the Maine Student Incentive Scholarship Program, please visit the FAME website.

Need Analysis: The evaluation of a family's financial strength. The result of need analysis is an indication of the amount the family can contribute toward a college education.

Scholarship: A sum of money given to a student for some special skill, talent, or academic achievement. It does not need to be paid back.

Self Help: Those things a student does personally to assist in meeting the cost of education such as working part time or borrowing money.

Student Aid Report (SAR) or Institutional Student Information Report (ISIR): The papers students receive from the U.S. Department of Education indicating their Expected Family Contribution and eligibility for the Pell Grant.

Verification: The Federal Government requires schools to verify 30% of the Financial Aid Applications they receive. A student chosen for verification must provide certain documents such as tax returns, verification forms and W2's before they can receive the financial aid funds. Required documents will be listed on the award letter.

Failure to provide the documentation necessary to complete the verification process will result in the cancellation of the financial aid award.