Financial Assistance Information for American Student Loans

American students attending RCSI are eligible to receive the U.S. Federal Student loans and U.S. based private education loans to assist them in funding their studies.

The information below details the various aid programs that are available, provides information about how to access the funds and also important information about your responsibilities.

Aid Programs Available Stafford Subsidized and Unsubsidized Loans Grad PLUS Loans Parent PLUS Loans Private Educational Loan Programs

How to Access the Funds at RCSI How to apply When to apply How is your loan disbursed

Managing Your Repayment and Understanding Your Obligations What to do about previous loans? Required Loan Counseling Information about payment plans Information about deferments and forbearances

Information for Current Students Satisfactory Academic Progress Policy What Happens If You Withdraw Return of Funds Policy

Where To Go For More Information Contact at RCSI Further resources and links Aid Programs Available

Federal Stafford Loans:

These loans may be subsidized or unsubsidized depending on you and your family’s financial aid information provided on the Free Application for Federal Student Aid (FAFSA). The amount you can borrow will depend on your grade level, your Cost of Attendance, the information you provide on the FAFSA and other aid you may receive.

Yearly Maximum Stafford Eligibility

Dependent Initial Additional Combined Undergraduates Subsidized Unsubsidized (maximum) Stafford Stafford Levels 1st Year $3500 $2000 $5500 2nd Year $4500 $2000 $6500 3rd Year and Up $5500 $2000 $7500 Independent Undergraduates or Dependent Undergrad who’s Parent is denied Parent PLUS. 1st Year $3500 $6000 $9500 2nd Year $4500 $6000 $10500 3rd Year and Up $5500 $7000 $12500 Graduate/Professional Each Academic Year (A, B, $8500 $12000 $20500 C…)

Subsidized Stafford Loan – Students enrolled at least half time in an approved degree or certificate program may be eligible for this need-based loan.  You may be eligible for the ‘Initial Subsidized Stafford’ in the above chart based on your grade level  The federal government subsidizes the interest of 6.0% while you are in school, during the grace period or in an eligible deferment. The rate is currently set at a fixed rate of 6.8% during repayment.  Interest begins to accrue from the moment the loan is disbursed  Repayment begins six (6) months after you graduate, withdraw or drop below half-time enrollment  There are no penalties for prepayment or finishing repayment ahead of schedule

Unsubsidized Stafford Loan – Students enrolled at least half time in an approved degree or certificate program may be eligible for this loan, which is not need based.  You may be eligible for the minimum ‘Additional Unsubsidized Stafford’ in the above chart based on your grade level. You may borrow this amount only after you have borrowed any eligible subsidized Stafford loans.  If you don’t qualify to receive any subsidized loan you may receive the funds as an unsubsidized loan.  The federal government does not subsidize the fixed interest rate of 6.8% - you are responsible for any interest accrued.  You may begin monthly or quarterly payments of interest when the loan is fully disbursed or allow interest to accrue while in school  Repayment begins six (6) months after you graduate, withdraw or drop below half-time enrollment  There are no penalties for prepayment or finishing repayment ahead of schedule

Note: The grace period begins at graduation, or when a student falls below half-time attendance. It should also be noted that a student who takes an approved Leave of Absence which exceeds allowable time frames (generally 180 days) will initiate the grace period and may be required to commence repayment of their loans before they return to school.

There is a maximum (aggregate) amount of money that can be borrowed from the Stafford Program:

Aggregate Limits Subsidized Sub and Unsub Combined Dependent Undergrads $23,000 $31,000 Independent Undergrads $23,000 $57,500 Graduate & Professional $65,500 $138,500

Federal PLUS Loans:

PLUS Loans, formerly only available to the parents of undergraduate students, are now available to graduate students also. Graduate students can apply for the PLUS Loan on their own signature, without parental involvement, but only after they have exhausted their Stafford Eligibility.

Parent PLUS Loans: The Parent PLUS loan program allows parent to borrow money to pay for a dependent student to attend university.  The loan is in the parent’s name and the parent is responsible for repayment of the loan.  The loan does require a credit check, but usually only looks at adverse credit, and not a ‘credit-scoring’.

Interest Rates and Limits  Loans disbursed after July 1 2006 have a fixed interest rate of 8.5%  The loan is limited to an annual maximum of the difference between the college Cost of Attendance less all other aid the student has received  There is no aggregate maximum  Repayment normally begins after the loan is fully disbursed, with the first payment due no more than 60 days later.  Parents may request to defer repayment until six months after the student fails to carry at least one-half the normal full-time workload.  Interest continues to accrue on the loan if it is deferred.

Note: If you feel that the COA for your course, as determined by the school, is lower than your estimated costs, you should provide a budget breakdown of your expected expenses for the academic year. The school FAA will review your costs to decide if they are allowable and reasonable.

 Your COA is determined by the school and includes tuition and all school costs, all living expenses (rent, utilities etc) and transportation (airline & commuting). Check the MPN for the full list of allowable expenses.

Who pays back a Parent PLUS ? The parent is the borrower on a Parent PLUS loan and cannot transfer the debt to the student. While some parents and students may agree to ‘transfer’ the debt, all legal obligations to repay the loan belong solely to the parent borrower.

What if my parent is declined? If your parent is denied a PLUS Loan, due to an adverse credit rating, you can apply for the Unsubsidized Stafford Loan amount appropriate to your grade level, as an Independent Undergraduate. If your parent is declined please provide proof of the decline to the college.

Graduate PLUS Loan:

If you are a Graduate/Professional student, you can apply for the Grad PLUS Loan in addition to the Stafford Loans. Once you are regarded as a Graduate/Professional student, you are considered independent of your parents and they can no longer borrow a Parent PLUS loan to assist you.  The loan is in the student’s name and the student is responsible for repayment of the loan.  The loan does require a credit check, but usually only looks at adverse credit, and not a ‘credit-scoring’  You must complete the FAFSA to access the program and you need to apply for Stafford loans

Interest Rates and Limits  Loans disbursed after July 1 2006 have a fixed interest rate of 8.5%  The loan is limited to an annual maximum of the difference between the college Cost of Attendance less all other aid the student has received.  There is no aggregate maximum.  Interest continues to accrue on the loan if it is deferred.

Note: If you feel that the COA for your course, as determined by the school, is lower than your estimated costs, you should provide a budget breakdown of your expected expenses for the academic year. The school FAA will review your costs to decide if they are allowable and reasonable.

 Your COA is determined by the school and includes tuition and all school costs, all living expenses (rent, utilities etc) and transportation (airline & commuting). Check the MPN for the full list of allowable expenses.

Important - No Grace Period Graduate PLUS Loans do not have a grace period. The loan enters repayment as soon as it is fully disbursed, although most lenders ‘automatically’ defer repayment until you cease to be enrolled at least half- time.

Private Education Loans:

Private education loans are administered and funded by private lenders, and each has its own specific terms and conditions. However, the following information is provided for general reference. Borrowers should contact an individual lender for full terms and conditions.

While many students and families use primarily Federal funding you may elect to borrow a private loan.  It is strongly recommended you exhaust all other assistance and federal student loans before requesting an alternative, private loan.  Loans are generally based on your credit score, and if applicable a co- signer’s.  Most undergraduate students most provide a co-signer for consideration.  The loan will most likely be unsubsidized and have a variable interest rate.  Before applying you should check your credit report for any discrepancies that may cause you to be declined.  The lender has sole discretion for approval of the loan.  Most private loans require the student to be studying at least half time in an approved course of study.

Please note: Currently there are very few lenders that will provide private, alternative loans to students studying outside of the United States. Contact your potential lender early on to avoid any problems. How to Access the Funds at RCSI In order to receive aid from federal student aid (Stafford and PLUS) programs, you must meet all of the following requirements:  Have financial need (except for unsubsidized student loans)  Have a high school diploma or a General Education Development Certificate (GED) or meet standards approved by the U.S. Department of Education.  Be enrolled as a regular student working toward a degree or certificate in an eligible program.  Be a U.S. citizen or eligible non-citizen.  Have a valid Social Security Number.  Make satisfactory academic progress, as determined by the institution.  Sign a statement of educational purpose/certification statement on refunds and default (on the Student Aid Report).  Sign a statement of updated information, if required (on the SAR).  Register with the Selective Service, if required.

How to Get Student Aid Report (SAR): Receiving the SAR for institutions outside of the United States requires additional steps by you.

Your first step is to compete the Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov .

This process generates your Student Aid Report (SAR). Your SAR is required by the college to determine your eligibility to receive a Federal Loan and also the amount you are eligible to borrow.

Applying for the first time  If you are applying for the first time, you should request a PIN. This will enable you to access your information more quickly on subsequent visits to the FAFSA site.  Having a PIN will also enable you to complete a Renewal FAFSA in future years.

Completing the FAFSA  You need to enter your tax information and your spouse’s income information for the applicable tax year. If you are an undergraduate dependent student your parent’s information is also required.  You must enter the school name and US Department of Education (DOE) School Code number on your FAFSA. o The DOE School Code number for RCSI is 007705 or G07705.

After you file your FAFSA online  The US Dept of Education (DOE) will process your information and generate a SAR.  You can review/amend your SAR online once it has been processed.  In order to certify your Federal Loans, the institution must receive your full ‘8-Page’ SAR. This is not available to you online.  You can only download a summarized 3-page version. This should be sent to the Fees office. Please select the PDF format before printing or emailing it (as an attachment) to the school.  Once it is received in the Fees office, the full SAR can be retrieved electronically by the school.

Are you considered a Graduate Student? If you are studying for a Professional Degree (e.g. Medicine, Dentistry, Veterinary, Law, etc) and you have already completed a minimum of three years post-secondary (college) education, you may be considered to be a Graduate/Professional student. In which case your parent’s information will not be required. If you are unsure contact the college.

NOTE: The college will not receive any electronic notification that you have applied for aid.

What happens next? After the college has received your Student Aid Report (SAR) it can calculate the amount of funds you will be able to borrow.

However, you must now apply for the loans as detailed below.

Stafford Loans – How to Apply:

You must complete a Stafford Application / Master Promissory Note (MPN).

Stafford MPNs are available from most US lending institutions, or you can download and print the MPN from your lender’s website.

The lender you use is entirely up to you the borrower. However, you should contact RCSI to check if your chosen lender works with institutions outside of the United States.

Once you have selected a lender:  You should sign and date the completed MPN in ink (most lenders require signatures in black ballpoint).  The original MPN should be sent to the Lender/Guarantor  A copy should be submitted to the school Financial Aid Administrator (FAA) in the Fees office, include: o Your original SAR o A statement of how much you wish to borrow. Note: You should keep copies of ALL Financial Aid documents for your own records. You will need them when your loans go into repayment after graduation.

Returning students must complete new MPN’s each year. This is a special requirement for foreign institutions.

PLUS Loans – How to Apply You, or your parent, (if you are an undergraduate) can also apply for a PLUS Loan in addition to the Stafford Loan.

The borrower must complete a PLUS Application / Master Promissory Note (MPN).

PLUS MPNs are available from most US lending institutions, or you can download and print the MPN from your lender’s website.

The lender you use is entirely up to you the borrower. However, you may wish to contact RCSI to check if the lender you are interested in using works with institutions outside of the United States.

Again you must submit your SAR and a letter stating how much you wish to borrow.

Returning students must complete new MPN’s each year. This is a special requirement for foreign institutions.

Summary of How to Apply: 1. File FAFSA online at www.fafsa.ed.gov and get your SAR

2. Complete Stafford / PLUS MPN(s) and indicate the amount(s) you wish to borrow on a separate sheet.

3. Complete Entrance Loan Counseling (see below for details)

4. Submit all documents to the FAA in the Fees Office.

What Happens Next? The college will be able to process your documents once we have received the following:  All MPN(s)  Statement of loan amounts requested  The Student Aid Report (SAR)

If you submit your original MPN(s) to the school, the FAA will forward it to your Lender/Guarantor, with the completed school certification.

If you send your original MPN(s) to your Lender/Guarantor, you must provide the FAA with a copy. Note: For Grad PLUS loans, graduate students should enter their own details in the Borrower (Parent) Section and again in the Student Information Section on the MPN. A new version of the PLUS MPN, for graduate students, will be available in due course.

Loan Disbursements:

Federal Loans are disbursed, in substantially equal amounts, at the beginning of each academic term or semester. In order to receive any funds you must be enrolled at least half-time and be meeting the requirement of the institution’s Satisfactory Academic Progress (SAP) Policy.

You must read the SAP Policy (below).

Loan cheques are co-payable to the borrower and the school. The funds will be used to pay any outstanding tuition balance in the first instance, and any remaining balance will be refunded to the borrower. Students should consult the Fees Office for details of Tuition Payment Plans.

Excess funds Parent PLUS loans will be returned to the parent unless the parent provides written permission to provide funds directly to the student.

Managing Your Repayment and Understanding Your Obligations

Managing your student loan debt is an important investment in your future and it is important to the college that you have the resources available to manage your loans effectively.

What should I do about previous loans? If you have borrowed any type of educational loan before (Stafford, PLUS, Perkins or private educational loan) you may be eligible to defer that loan while you are enrolled in the college.

You are responsible for making sure any forms are submitted and updated each year with your lenders.

Entrance Counseling The college requires all new students to complete Entrance Loan Counseling, regardless of whether or not they have received loan funds previously.

It is most important that you understand your rights and responsibilities when borrowing Federal Student Loans.

You can complete your Entrance Counseling at the following website by clicking on the icon below. Stafford Only Borrowers Click HERE: http://mappingyourfuture.org/oslc/counseling/index.cfm? act=Intro&OslcTypeID=1

Stafford and GRAD PLUS Borrowers Click HERE: http://mappingyourfuture.org/oslc/counseling/index.cfm? act=Intro&OslcTypeID=28

When you complete the online Entrance Counseling, a confirmation email will be sent to the school.

Exit Counseling You are required to undergo Exit Counseling during your final year, before you graduate. Also, if you withdraw from the college, or drop below half-time attendance, you are required by law to have Exit Counseling.

Exit Counseling Sessions are generally held annually at selected centres convenient to a number of local universities. The sessions cover Borrowers’ Rights and Responsibilities, Loan Repayment Options, Loan Consolidation and Debt Management.

If you are unable to attend an Exit Counseling Session, you can click on the icon below to take your online Exit Counseling. The school will receive an email to confirm that you have participated.

Stafford Only Borrowers Click HERE: http://mappingyourfuture.org/oslc/counseling/index.cfm? act=Intro&OslcTypeID=2

Stafford and GRAD PLUS Borrowers Click HERE: http://mappingyourfuture.org/oslc/counseling/index.cfm? act=Intro&OslcTypeID=29

What happens after graduation? After you graduate, or cease to be enrolled at least halftime, it is crucial that you understand your rights and responsibilities in the loan programs.

Repayment Options

Repayment Repaymen How it Works Option t Term Standard Maximum  Your payment is based on this Repayment 10 Years repayment option unless you request a different option  Your payment stays the same throughout the repayment period  This option keeps total interest you pay to a minimum versus other repayment options

Graduate Maximum  This multi-tiered repayment schedule Repayment 10 Years will initially allow you to make lower payments that may be as low as the interest that is accruing for up to 4 years, which may lower your initial monthly payment by as much as 40%  Later, payments increase above the original monthly payment amount so that the loan will still be repaid in 10 years  You pay more interest over the life of the loan

Income- Up to 15  You choose a monthly payment amount Sensitive years that equals between 4% and 25% of Repayment your gross monthly income  You should pay at least the amount of interest accruing each month to ensure the amount you owe does not continue to increase  You may be allowed to use this option for up to 5 years  This option may extend your repayment period, which will result in you paying more interest over the life of the loan

Extended Up to 25  Your payment amount will be Repayment years approximately the same each year and Extended (Extended Repayment) or will start out Graduated lower and increase over time Repayment (Extended-Graduated Repayment)  Only available to borrowers with more than $30,000 in student loan debt whose oldest loan was originated on or after October 7, 1998  You pay more interest over the life of the loan

Consolidatio 10 to 30  You consolidate all your student loans n years into one new loan with one monthly bill  The longer repayment period could reduce your monthly payments  Your interest is fixed, and it will not change for the life of the loan  Your monthly payment may be lower, thereby extending your repayment term and resulting in a higher total amount paid

Source: ASA Entrance/Exit Kit 2008

What to do if I can’t pay? Stafford and PLUS educational loans are designed to assist you in advancing your education and with an understanding that you may be starting out in the work force. There are many ways to manage the loan and it is crucial that you work with your lender or servicer to avoid delinquency and default.

Should you ever be in a position where you can’t make a payment, you need to contact your loan provider, to find out your options.

Deferments A deferment allows you to postpone making payments on your federal (Stafford and PLUS) loans. You must meet the criteria set forth by the US Department of Education, and if you do, the deferment is a right and you can’t be denied. During an approved deferment period the federal government pay the interest on any subsidized loans. However, you are responsible for any interest that accrues on your Unsubsidized Stafford and PLUS loans.

There are seven deferment categories for loans borrowed after July 1, 1993:

 Economic Hardship  Unemployment  At least half-time enrollment in school  Summer bridge  Graduate fellowship  Rehabilitation training  Active military duty

How do I get a deferment? You must apply for each deferment you wish to request and submit the documentation to your loan servicer. Your loan servicer may differ from the agency from which you originally borrowed the loan. However, your rights and responsibilities remain the same.

If you do not qualify for one of the deferments listed above, you may apply for a forbearance, which is described below.

Regardless, it is crucial you contact your servicer if you can’t pay.

What if I don’t make my payments or make other arrangements? If you don’t make a scheduled payment, your loan will be considered delinquent. Delinquency can and will have a negative impact on your credit. If you don’t make any payments for 270 days, it will go into default. The following consequences can result from default:

 Negative information will be reported to credit agencies, and will appear on your credit reports, and will remain for at least seven years  Your state and federal tax refunds can be seized  Your wages can be garnished by your loan holder  Legal action can be taken  You may be disqualified from borrowing additional student loans while your loan is in default  You will be ineligible to receive all forms of federal student aid  Your ability to borrow other loans (non-student loans) may be impacted  Employment opportunities may be affected

What is Forbearance? Forbearance is an adjustment to your repayment schedule. Forbearance is not a right, and it is granted primarily at the discretion of your loan servicer.

During forbearance, interest accrues, on all your loans. You will be responsible for paying it. Unpaid interest will be capitalized, or added to the principal, when the forbearance ends. A forbearance is usually reserved for cases of economic hardship.

It is recommended you exhaust all deferment options before applying for a forbearance, however your loan servicer should be able to advise you as to the best option available.

You may be eligible for forbearance if you meet any of the following conditions:

• Economic hardship • Internship or residency • Excessive debt • Disaster • Military mobilization • National and community service • Temporary disability • Identity theft

How do I apply for forbearance? In order to access a forbearance you should contact your loan servicer and submit any applications and requested documentation to them. Different providers may request different documentation.

What about Consolidation? When you consolidate your federal student loans, the consolidating lender— the company that’s consolidating the loans for you—pays off your individual loans and issues you a new, single loan called a federal consolidation loan. If you choose to extend your repayment term, you will generally have between 12 and 30 years to repay, rather than the standard 10-year term for unconsolidated federal loans. You cannot consolidate private education loans, alternative loans, or other consumer debt into the federal consolidation loan program.

See the resources section for a link for more information about consolidation.

Also, many lenders have restricted their participation in the consolidation program. It will be important to plan ahead when considering consolidation and to shop around.

Information for Current Students

Satisfactory Academic Progress US Federal regulations require that all students, who are in receipt of US Federal Student Aid (FSA), must maintain Satisfactory Academic Progress (SAP). Failure to do so can result in the loss of eligibility to receive further funding. It is the responsibility of the institution to monitor SAP and, where necessary, to suspend or withhold eligibility to receive Federal Funding.

What does SAP involve? There are two components involved in monitoring SAP, Qualitative and Quantitative.

 The Qualitative Component requires that students maintain a minimum C grade point average or equivalent, or an academic standing consistent with the college’s requirements for graduation.

 The Quantitative Component requires that students’ progress through their course of study in a timely manner.

When is SAP measured? SAP is monitored at the completion each semester to confirm eligibility to receive funding for the following semester.

Warnings and Probation  Students who fail to maintain SAP will receive a warning and will be placed on probation during the following semester.  Students on probation will receive funding but they must meet the required academic standards during that semester in order to avoid suspension of eligibility for funding.  Therefore, a student who fails to maintain SAP during two consecutive semesters will be deemed ineligible for funding for the following loan period.

Students will be notified of probation or suspension by letter and/or email. SAP Appeals: A student who loses eligibility for Federal funding may appeal the decision if they can show that their failure to maintain SAP was due to extenuating circumstances.

Note: The SAP policy is separate from academic appeals relating to exam results or test scores. The outcome of a SAP appeal has no bearing on results achieved or grades awarded. SAP decisions are based on official exam results and test scores only. In cases where no scheduled testing occurs during a payment period, SAP is assessed and reported by appropriate members of the teaching staff.

A student may appeal a decision to suspend eligibility for Federal funding if they can demonstrate that their failure to maintain SAP was due to extraordinary circumstances such as (but not limited to) the following ;

 Serious illness or injury  Death of a family member  Divorce or family difficulties  Financial difficulties  Interpersonal problems

Appeals must be submitted in writing, together with supporting documentation, within ten days of the notification of suspension. An SAP Appeals Committee will consider each case and their decision is final.

RETURN OF TITLE IV FUNDS:

If a student who is in receipt of US Federal Funding withdraws from the college, or takes unapproved leave of absence, during a loan period, the FAA will determine the amount of loan money to be returned to the Federal Student Aid Program.

Note: The return of Federal Loan Funds takes precedence over the college’s own tuition refund policy in the event of withdrawal.

When a student withdraws, the college is required to calculate the amount of “unearned” funds to be returned. Unearned funds are calculated pro-rata, based on the number of days attended during the loan period, up to the date that notice of withdrawal is received by the college. The FAA will calculate the number of days attended as a percentage of the total number of days in the loan period. This determines the amount of “earned” funds, and any remaining “unearned” funds must be returned to the FSA program.

This calculation is applied to the total amount disbursed for the loan period. Therefore, a student who received a refund (for living expenses etc) from the college after tuition was deducted, will be required to repay the “unearned” portion. Note: If a student attends for sixty percent or more of the loan period, no return of funds is required. However, any further disbursements received by the college in respect of that student, for a subsequent loan period, will be returned in full.

When a student withdraws, the college is required to inform the Lender/Guarantor of the date on which the student withdrew, so the lender can determine when that student enters repayment.

Return of Funds:

When a student withdraws, the college is required to return any “unearned” funds, up to the net amount disbursed from each source, in the following order:

 Unsubsidized Stafford Loans  Subsidized Stafford Loans  Federal PLUS Loans

Loan Repayment:

When a student withdraws, the college will inform the Lender/Guarantor of the date of separation, and the borrower “grace period” will commence. All loan funds received up to that date, including any funds given to the student for the loan period during which they withdrew, will be repayable at the end of the grace period, under the terms and conditions of the Master Promissory Note(s).

Where To Go For More Information

Contact at RCSI Clare Kilbride Fees Office Tel: (+353-1) 402-2200 [email protected]

Further resources and links: Comparison of GRAD PLUS vs Private Alternative Loans: www.amsa.com/fap/forms/downloads/FinancingOptions_2008.pdf

Confused about Consolidation? www.amsa.com/fap/forms/downloads/Consolidation_2008_v2.pdf

A financial guide for Health Professionals www.amsa.com/fap/forms/downloads/2008_Medical_web.pdf

Student Aid on the Web - Federal Guide to Aid Programs http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp