FREQUENTLY ASKED QUESTIONS AND ANSWERS
Q. What documents are required for me to apply for Financial Aid?
Q. When will I get these documents?
The Admissions Office sends the Financial Aid packet with your tentative acceptance letter if you are accepted after January 1. If you are accepted prior to January 1, your packet will be mailed separately after January 1.
Q. As a graduate/professional student, I am independent of my parents, why do I need to provide parental information on the FAFSA? Do I need to provide this information even though I am married and have children?
To be considered for the Health Profession Student Loan parental information is required on the FAFSA no matter what your age or marital status. This loan is need based and the Federal Government determines your eligibility. They examine your parent’s income and assets as well as the student’s income and assets. We ask that you use estimated figures when submitting parental information and to complete your FAFSA as early as possible. January 1 is the earliest date your FAFSA can be completed.
The HPSL is the most attractive loan offered to health professional students with a 5% locked (fixed) interest rate and no interest accrues while you are in school. HPSL has a 12-month grace period after graduation when no interest accrues and no payment is due.
Q. Are there any scholarships available and how do I apply for them?
There are approximately 30 endowed scholarships awarded from our Admissions Office. All applicants are considered for these scholarships. The Admissions Office notifies the recipients of their selection. All inquiries concerning these scholarships are directed to the Admissions Office.
Q. Are there any Federal Grants available like Pell?
Unfortunately, for graduate students there are no federal grants offered.
Q. Is there any type of aid available other than loans?
Q. Can you explain the interest rates?
Perkins and HPSL are subsidized with a 5% locked interest which does not accrue interest while in school or during your grace period. Subsidized Stafford has a variable interest rate and does not accrue interest while you are in school. The interest rate is capped at 8.25%. Unsubsidized Stafford has a variable interest, accrues interest while in school, during your grace period and during repayment. The interest is capped at 8.25%. The interest rate changes July 1 each year. Beginning July 1, 2006 all new loans will have a fixed interest rate of 6.8%. Any loans made before that date will be at the variable rate.
Q. What if I get married after completing the FAFSA?
If you get married after completing the FAFSA, a correction is not necessary. You will submit your spouse’s information the next year.
Q. How do I get FWS and how can I find a Federal Work-Study position?
Entering students are allowed to work FWS the summer before enrollment. Indicate on your SCO financial aid application the quarters you want to work. If you have the financial “need”, federal work-study will be awarded to you. A FWS student is awarded $750 per quarter to earn using federal work-study funds with the exception of the summer quarter, when $2600 is awarded. For the summer quarter, we award $2600. This amount can easily be increased with documentation of allowable expenses or if the student has the “need” as calculated from the FAFSA. After accepting your award letter, you will complete a FWS contract and other documents needing proof of citizenship and identification. The Accounting Office will need a copy of your social security card. You will not get a paycheck without a copy of your social security card.
Contact the Financial Aid Office to obtain by email or a paper copy of a list of departments that hire FWS students. You can also check out job openings by going to www.sharepoint.sco.edu/sites/financialaid/default.aspx This web site shows all open positions from departments that have contacted the Financial Aid Office requesting a FWS student.
Q. How does Federal Work Study work? How am I paid? Will I get a check? When will I be paid?
If you have a Federal Work Study job, you will get a paycheck at the end of the month. The salary varies from $11 - $15 per hour depending on the position. You will complete a timesheet each month reporting the number of hours worked and submit your timesheet to the Accounting Office. You will get your paycheck from the Accounting Office once a month.
Q. When will I find out which loans I have been awarded and the amounts?
After you have completed your FAFSA and submitted your SCO application for Financial Aid, you will receive an award packet. This includes your Award Letter, telling you exactly how much money you have been awarded in loans and Federal Work Study funds. After receiving your award letter, you will complete a Master Promissory Note on line.
Q. Is $10,000 the maximum I can get in Unsubsidized Loans?
Your unsubsidized loan can be increased to meet the needs of your total budget if you request additional funds. You must remember that the unsubsidized loan accrues interest upon disbursement. It will accrue interest while you are in school, while you are in your grace period and during your 10-30 years of repayment. Keeping in mind that interest rates this year will be 6.8%, we highly encourage you to be conservative if you MUST increase your unsubsidized loan. Entering students are encouraged to plan ahead and save your money before coming to school here to help keep borrowing at a minimum. This will help to keep you from defaulting on your student loans and allow you to enjoy life and live the lifestyle of a doctor after graduation, not a student.
Q. I have been awarded $29,000 but my budget says I need $31,000. What do I do about the difference?
Your unsubsidized loan could possibly be increased to meet the needs of your total budget. The preferred solution to this problem would be using your earnings saved from previous employment before entering SCO.
Q. What do I do about my car payment while I am going to school?
The Federal Government will not allow you to borrow federal loan funds to pay for a car. Federal loans are to help pay for your education and living expenses while attending school. You and your parents were expected to have saved for your education and living expenses for this period of time you are in school. If your financial needs are above your budget, loans cannot supplement this need. You will have to find an alternative means to fund this difference. Auto repairs are an allowable expense, but remember that loan will be an additional Unsubsidized Stafford loan. It is best if you do not have an auto payment while attending school. That payment is not and cannot be included in your budget. The best option is to have your automobile paid in full before attending school.
Q. I have credit card debt. Can I add that debt to my budget? Where will I get the money to pay my credit cards?
Please pay off all credit card debt before coming to SCO. The Federal Government will not allow you to borrow money to pay for credit card debt.
Q. Why do I have to submit a copy of my lease?
Students that are unmarried with no dependent children are allowed $525 per month or $650 month if you live alone for rent while attending SCO. Students with a dependent child are allowed up to $825 per month for rent. If you are single and have a roommate, you can live in a very nice apartment or house with your share being $525.
Each student’s budget is figured precisely for him or her. If you pay less that $525 per month, your rent budget is reduced to the amount actually paid. If you pay more that $525 per month, you are expected to get the difference from savings, parental or other family member’s contribution. Your budget will not be increased because you chose to live alone and not within the allotted budget. The goal is to get through this program with the least amount of debt possible.
Q. If I move, do I have to submit another lease?
Yes. We must have a copy of your lease for your current address. Budget adjustments will be made with each change in address and rent.
Q. What is the SCO Box number?
The SCO Box number is your SCO mailbox. You will get an assigned mailbox and key at orientation.
Q. What do I put for my local address when I have not yet moved to Memphis?
You can use the address where you are presently living or you may use your permanent address. We will change your local address to the Memphis address when you submit the copy of your lease agreement or as soon as you are living locally.
Q. Can I get loans for the summer? How am I supposed to live during the summer?
You can only get Federal loans for the period enrolled in school. Currently all students are enrolled at SCO for nine months unless you are a fourth year student. Fourth year students are enrolled for twelve months.
You must plan for the summer months that you will not have loans to pay for your rent and other living expenses. Federal Regulations prohibit the Financial Aid Office from processing a Federal loan when you are not enrolled and attending classes.
Q. When can I get my loan checks? How does that work?
Your loan funds will be deposited to your bank account, within the first week of school, after tuition & fees are deducted. Federal Regulations prohibit disbursing loans until actively enrolled in school. If at any time during the term you need additional funds, those will come in the form of a paper check. You must have a local bank to deposit the paper checks. At orientation, there will be bank representatives from different banks with which we have a good business relationship. These banks offer free checking accounts to our students and guarantee that when you make a deposit, your funds are available to you immediately. (Other banks will hold your checks for up to 10 days) An ATM machine is located in the Tower lobby next to security for your convenience and safety. Your Perkins and/or Health Profession Student Loan will be credits on your fee sheet. If you are due a refund, the Accounting Office will process a refund check to you. Expect to get your refund in approximately two weeks. Accounting should notify you of when your refund check is ready.
Currently we are on a 3-term schedule at SCO. Fall and spring for 1st and 2nd year students. Summer, Fall and Spring for 3rd and 4th year students.. Students receive their loan funds at each registration. If you experience a financial emergency between registrations, you can see a Financial Aid Counselor to see if you are eligible for additional loan funds.
Q. How will I know if all my money has arrived in time for registration?
Call the Financial Aid Office approximately two weeks before registration to be certain your loan funds have arrived and you have no pending documents holding the registration and disbursement process.
Q. How are Academic Scholarships disbursed?
If you were notified by Admissions that you are receiving an Academic Scholarship, know that it will be a credit on your fee sheet at Fall Quarter registration.
Q. Can my budget be increased with the birth of a child? Is it increased for each additional child?
Yes, a budget adjustment can be made if you have a child. We can increase your rent budget up to $825. Also increased are your food, utilities budget and transportation budget. We can add health insurance to your budget for your child and for you as well as any medical expenses. Your spouse is expected to contribute to the household earnings and pay their share. Federal regulations prohibit us from increasing your budget for additional children. These budget exceptions are made to help provide for just one or multiple children. We do not make add additional adjustments for additional children. Child daycare expenses can be added to the budget for each child with proper documentation from a childcare provider and proof that your spouse is employed. These budget exceptions are added based on a nine-month period while attending classes. Funds for the summer months cannot be included in the budget unless you are a fourth year student and attending classes for 12 months.
Q. What are your budget adjustment limits?
Q. Are there limits to the amount of loans I can receive?
Yes, and they are:
Stafford Loans:
Subsidized per year $8,500
Unsubsidized per year $32,000 (1st and 2nd years) $38,667 (3rd and 4th years)
Perkins $6000 per year
HPSL: up to cost of attendance when available
Keep in mind that you can never borrow more than your actual cost of attendance. Most students never borrow the entire loan limit each year.
Aggregate (Lifetime Limit)
Stafford Total: $189,125 of this only $65,500 can be from subsidized loans
Perkins: $40,000
HPSL: (no limit)