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Financial Aid
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2005–2006 Estimated Budgets for New Full-Time Students |
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* Tuition and fees vary by campus. Actual amounts of tuition are shown in the 2005–2006 General University Per Semester Tuition table. Amounts do not include continuing student tuition or additional class or program fees. Actual expenses may vary due to personal choices. |
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Federal Supplemental Educational Opportunity Grant
The Federal Supplemental Educational Opportunity Grant (FSEOG) is a federally funded, campus-based program. A limited amount of funding is available through the program. The amount received will depend upon a student’s financial need, the amount of other assistance awarded, and the availability of funds. Maximum grant awards for 2005–2006 were $1,000 per individual student.
Leveraging Educational Assistance Partnership (LEAP)
This is a three-partner program of federal, state, and university funding. Students with high financial need may receive this particular form of funding. It is restricted to residents of Arizona. The maximum grant for 2005–2006 was $2,000 per individual student.
Student Financial Aid Trust Grant
Provided in partnership between ASU students and the state legislature, these funds are provided primarily to resident, undergraduate or underrepresented students with high financial need. The maximum grant for 2005–2006 was $2,000 per individual student.
University and ASU Grants
University grants are generally reserved as the last grant programs used to resolve a student’s need. Funded by the university, these grants are available for both resident and nonresident students. The maximum grant awards for 2005–2006 were $2,500 per individual student.
Loans are forms of financial assistance available from sources such as the federal government and private lenders that must be repaid and will include any accrued interest.
Federal Direct Stafford Loans
The federal government loans money to students based on the university’s determination of the student’s financial need and cost of education. Repayment begins after the student graduates, leaves school, or drops below half-time enrollment. There are two Stafford Loan types: subsidized and unsubsidized. With a subsidized Stafford, the federal government pays the interest on the loan principal during the student’s in-school status, grace, and other authorized periods of deferment.
The school may determine that the student is eligible for an unsubsidized Stafford Loan. In this program, the federal government does not pay the interest during the student’s in-school status, grace, or other authorized periods of deferment. As the student proceeds through school, interest will accrue and will be added to the principal once the student enters repayment. Otherwise, conditions and terms for the two programs are the same.
The variable interest rate is adjusted every July 1. The rate cannot exceed 8.25 percent. In addition, there is a 3 percent loan origination fee deducted from each disbursement. The federal government provides several options for repayment once the student has left school. For students who are considered dependent based on their financial aid application, the following total annual loan limits for subsidized and unsubsidized loans apply: freshmen may borrow up to $2,625 per year; sophomores, up to $3,500 per year; and juniors and seniors, up to $5,500 per year. For students who are considered independent, the following annual loan limits apply: freshmen may borrow up to $6,625, of which only $2,625 can be subsidized; sophomores, up to $7,500, of which only $3,500 can be subsidized; and juniors and seniors, up to $10,500, of which only $5,500 can be subsidized.
Federal Perkins Loans
The Federal Perkins Loan program is funded by the federal government and is awarded based on financial need. The school is the actual lender, and repayments after graduation are made to the university at a 5 percent interest rate. Like the subsidized Stafford Loan, no interest accrues on the Perkins Loan during the student’s in-school status, grace, or other authorized periods of deferment. If funding is available, deferment and cancellation provisions may apply to graduates working in community service, qualifying law enforcement, and teaching occupations. Maximum undergraduate awards for 2005–2006 were $3,000 per individual student.
Parent Loan for Undergraduate Students
Under the Parent Loan for Undergraduate Students (PLUS) Program, parents may borrow money from the federal government on behalf of their dependent students. With this loan, interest is not deferred and repayment begins within 60 days of the final disbursement for the enrollment period. The PLUS approval is based on the parents’ credit history. There is a variable interest rate adjusted every July 1 that cannot exceed 9 percent. The maximum loan amount is determined by subtracting all other financial aid from the student’s cost of education. If parents are determined ineligible for a PLUS and students need additional funds, they should contact the Student Financial Assistance office to determine their eligibility for an unsubsidized Stafford Loan.
The Student Employment Office provides employment opportunities to students who must work to meet educational expenses or who wish to work because they feel the experience can be a valuable part of their education. Federal Work-Study and hourly positions are available. For more information, access www.asu.edu/fa/studemp on the Web.
Federal Work-Study
The Federal Work-Study program encourages community service work and jobs that complement and reinforce educational or career goals. Funds for this program are provided on a matching basis by the federal government and ASU. Students employed under this program receive the same pay rates as other students employed on campus. In this program, students must demonstrate a financial need as established through completion of the Free Application for Federal Student Aid.
University Hourly
ASU, with its own resources, hires many students on a part-time basis. Although the jobs are similar to those under the Federal Work-Study Program, the university provides the entire amount of the student’s wage.
Part-Time Off-Campus
The university receives requests for assistance from many agencies and companies throughout the area to help them recruit and hire students on a part-time basis. This job listing service provides opportunities for students not only to earn funds to support their education, but to gain experience in the areas of their majors or career interests.
Educational Tax Credits.
Students may be eligible for either the Hope Scholarship Credit or the Lifetime Learning tax credit. Additional information about these tax credits is available on the Web at www.asu.edu/sbs.
Consult a personal tax advisor about qualifications for the Hope Scholarship Credit, and Lifetime Learning tax credit.
Taxability of Financial Aid Programs
Scholarships, grants, fellowships, and stipends (but not loan funds) are taxable income to the recipient, except for the portion of these funds used for tuition, registration, and other university fees, or books, supplies, and equipment required for the courses being taken. Special tax regulations also apply to nonresident alien students and may require withholding of taxes at the time of aid disbursements to these individuals. Information on the taxability of scholarships can be obtained from the following Internal Revenue Service (IRS) publications and forms: Publication 4 — Student’s Guide to Federal Income Tax; Publication 519 — U.S. Tax Guide for Aliens; Publication 520 — Scholarships and Fellowships; Form 1040EZ and Instructions — Income Tax Return for Single and Joint Filers With No Dependents; and Form 1040NR and Instructions — U.S. Nonresident Alien Income Tax Return.
These publications and forms can be obtained by calling the IRS at 1-800-829-FORM (3676) or by accessing the IRS Web site at www.irs.gov.
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