(Financial Aid Available for Those Who Qualify)
Most postsecondary educational institutions operate on the basis of students completing an academic year in nine months. This means that full time attendance consists of approximately 15 hours of classes per week for two semesters of 15 weeks each for a total of 30 weeks during the twelve months of a year. In other words, most college students attend classes for only nine months (30 weeks) of the year. The regulations about federally sponsored student financial aid are based on this schedule.
Porter and Chester students, however, attend classes for twelve months of the year rather than nine. They also spend more time in class each day than do students attending a nine months’ college. Accordingly, in adjusting things to enable Porter and Chester students to be treated fairly with respect to Federally sponsored student financial aid, a framework must be set up that will match Porter and Chester’s schedule with the Federal regulations that are based on the nine month college schedule. Needless to say, this causes a great deal of complexity.
In July of 2021, the Federal Department of Education published a regulation which updated how many student contact hours (clock hours) equal a semester credit hour and a quarter credit hour for federal aid purposes. A student contact hour is defined as a 60 minute unit of instruction and break time, with at least 50 minutes of instruction. Porter and Chester measures student academic progress in quarter credit hours. The regulation specifies that 20 student contact hours are equal to one quarter credit hour. For purposes of awarding federal student aid, all programs follow this definition
Pell Grants
To be eligible for a grant under this program, the student’s financial need must fit the requirements of the eligibility formula. The formula also determines the amount of the grant the student receives. Another factor affecting the amount of the grant is the amount of money Congress appropriates each year for funding of this program. The money the student receives under this program is not paid back. It is a gift.
Because the Pell Grant can provide a fundamental source of aid to students, Porter and Chester encourages every student seeking financial aid to apply for this grant. By making sure that every student who qualifies for a Pell Grant receives one, the Institute is able to make its other sources of student aid stretch further and help more students than would otherwise be the case.
Ford Federal Direct Loan Program (DL)
This program consists of the loans described below which students or parents can use to borrow money from the U.S. Department of Education for financing education after high school. Porter and Chester acts as the intermediary on behalf of the applicant and the U.S. Department of Education.
Federal Direct Subsidized Loans (DSL)
Students who qualify for federal financial aid may apply for this low-interest loan. The interest is paid by the federal government while the student remains in attendance. Repayment commences six months after the student graduates or ceases to be enrolled at least half time. The interest rate for the current award year can be found at https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized#interest-rates
Federal Direct Unsubsidized Loan (DUL)
Students who are not eligible for other federal financial aid may still apply for this low-interest loan. The terms of this loan are the same as the DSL except that the federal government does not pay the interest while the student is in attendance.
Federal Direct PLUS Loan (DPLUS)
This low-interest loan is available to the parents of dependent students. The parents must have established a satisfactory credit record, and the amount they may borrow per academic year is the cost of attendance at the Institute minus any financial aid the dependent student receives. The interest rates for the current award year can be found at https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized#interest-rates
Federal Supplemental Educational Opportunity Grant (FSEOG)
Students with exceptional need for financial assistance are considered for this program. The money the student receives is not paid back. It is given to the student as a combined gift from the federal government and Porter and Chester. Grants are provided in varying amounts depending on the student’s calculated need. First priority is given to Pell Grant recipients.
Education Tax Benefits
Currently, the federal government offers three education benefits to tax filers: the Tuition and Fees deduction, the American Opportunity Credit, and the Lifetime Learning Credit. In general, these tax benefits are available to the person claiming the student as a dependent for tax purposes. So, parents paying for their child’s education may receive the credit instead of the student. The eligibility criteria, the amounts available, and income limits vary by program, so it is useful to seek the help of a tax advisor in determining whether a student or parent is eligible for one of these benefits. These benefits are subject to revision or elimination by the federal government at any time.
Imagine America Scholarship
Porter and Chester participates in the Imagine America scholarship program. In 2022 this constitutes the Imagine America High School Scholarship for graduating high school students, Military Award Program for current and former military, and Adult Skills Education Program for adults returning to school. Details are available on our website and from the Admissions and Educational Funding offices.
Porter and Chester Institute Grants and Scholarships
Porter and Chester offers a few small tuition grant programs to specific student populations. Applicants with an immediate family member who is a student, graduate, or employee of Porter and Chester may be eligible for a Family Member tuition grant. Amounts vary based on the family member relationship. Details are available from the Admissions and Educational Funding offices.
Recent graduates of the Medical Assisting program returning to enroll in the Practical Nursing program are eligible to apply for a PN Grant to offset the double tuitions. Applicants to the Practical Nursing program who hold a valid CNA certification may apply for the CNA Community Service grant. During the first term when a new program is being launched, applicants to those programs may be awarded a New Program grant. Recent high school graduates or GED recipients may be awarded a Porter and Chester High School grant. Applicants who are receiving educational funding under the Trade Adjustment Act, but whose remaining need after allowable adjustments for other grants exceeds their funding agency’s tuition cap are eligible for a TAA grant to meet their remaining need and help them qualify for their TAA funding.
Institutional Award
The Institution may offer Institutional Awards to help reduce a student’s out-of-pocket costs after all federal financial aid and outside scholarships have been applied. Award amounts are determined by program and institutional methodology and are applied directly to tuition and fees; these funds are not disbursed as cash to students.
Institutional Awards are subject to availability and may be adjusted if a student’s financial aid eligibility, enrollment status, or charges change. Students must maintain Satisfactory Academic Progress (SAP) to remain eligible (see Satisfactory Academic Progress Policy).
In the event of a withdrawal, Institutional Awards are treated as a reduction to institutional charges and are adjusted in accordance with the Institution’s Refund Policy. Institutional Awards are not federal financial aid and are not included in the Return of Title IV (R2T4) calculation (see Return of Title IV Funds Policy).
For additional information regarding funding and packaging, please refer to the Educational Funding Section of this catalog.
Alternative Financing
Credit based loans are available through private lenders to students who meet the lender’s criteria. The Educational Funding Department can provide a neutral, historic list of lenders who have made loans to our students in the past and are still available to make loans to Porter and Chester students and can also provide the “Private Education Loan - Applicant Self-Certification” form for applicants to give to their private loan lender. Porter and Chester will certify students for any private loan they qualify for. Porter and Chester has a preferred lender arrangement with Instiutional Student Finance Corporation (ISFC) for students who wish guidance on borrowing a private student loan.
Student Aid Award Policy
Direct Loans, Pell Grants, and Federal Supplemental Educational Opportunity Grants make up the fundamental building blocks for putting together a financial aid “package.” After establishing the amount of aid available from these sources, the Educational Funding Department determines whether additional funding is needed. Generally speaking, federal financial aid is disbursed in the first week of the term for continuing students. The following conditions and procedures apply to the awarding of financial aid:
- The appropriate forms must be filled out accurately and sent or brought to the appropriate campus on time. Educational Funding staff are available to provide the forms and answer any questions a student may have.
- The federal government’s award year is July 1 to June 30. Accordingly, if the student is enrolled in the Institute for more than one federal government award year, the student must fill out the appropriate forms for each award year. When both forms are available at the same time, both must be filled out during the enrollment process.
- The student must be making Satisfactory Academic Progress toward the completion of his/her educational program. This means that there must be a reasonable expectation that the student will graduate in an acceptable time frame with satisfactory mastery of information taught in their program.
- The student may not be in default on repayment of a federal student loan. Similarly, the student may not owe a refund on a Pell Grant or Federal Supplemental Educational Opportunity Grant.
Return to Title IV Funds Policy (R2T4)
If you leave Porter and Chester prior to completing 60% of a payment period (term), the Institute recalculates your eligibility for Title IV funds. Recalculation is based on something called “the percentage of aid that has been earned” using the Federal Return to Title IV Funds (R2T4) formula. This formula basically calls for proration of your aid based on the time you attended school. Your last day of recorded attendance is your withdrawal date for this calculation. Once you have completed 60% of your payment period, you have earned all of your Title IV funds, and no R2T4 calculation is required.
In the R2T4 formula, the percentage of the payment period completed is equal to the number of days completed (up to the withdrawal date) divided by the total days in the payment period. Any break of five days or more is not counted as part of the days in the term. This percentage of the payment period completed is equal to the percentage of aid that has been earned.
If you earned less federal aid than the aid that was disbursed to you, the Institute would be required to return a portion of the funds to the Federal government. The portion of funds the Institute would be required to return is equal to the lesser of: 1) your institutional charges multiplied by the unearned percentage of your federal funds, or 2) the entire amount of unearned funds. Funds which the Institute is required to return will be restored to the Title IV programs in the following order: Direct Unsub, Direct Sub, Direct PLUS, PELL, FSEOG. The school returns funds within 45 days of determining that you withdrew.
If you received some of your Title IV funds as a stipend for living expenses, you may be required to return a portion of the funds, in addition to what the school returns. You will repay any loan funds required to be returned according to the terms of your promissory note. The amount of grant overpayment due from you is limited to the amount by which the original grant overpayment amount exceeds half of the total Title IV grant funds disbursed or could have been disbursed.
If you earned more aid than was disbursed, the school may owe you a post-withdrawal disbursement (PWD). Any grant PWD will be credited directly to your account. BUT if that post-withdrawal disbursement consists of a loan, you can decline those funds if you do not wish to incur additional debt. (And it may be in your best interest to do so).
There are some FSA funds that you might be scheduled to receive that you cannot earn because of eligibility requirements. For instance, if you are a first-time borrower, and you have not completed the first 30 days of your program (before you withdraw) you will not earn any of the Direct Loan funds which you would have received if you had remained in school past your 30th day.
Also keep in mind that the requirements for returning FSA program funds (when you withdraw) are separate from any refund policy which the Institute has. The Educational Funding office can research any questions you have and provide you with requirements and procedures to officially withdraw from school.
Copies of this policy, and examples of R2T4 calculations, are available from the campus Educational Funding office.
|