Frequently Asked Questions
Q: Is there a deadline date for applying for financial aid for 2012-2013?
A: April 16th is the suggested deadline for US students to submit the Tepper School Financial Aid Application to the Tepper Financial Aid Office and the Free Application for Federal Student Aid (FAFSA) to the federal processor using federal code E00074. Students who do not meet the suggested deadline may still apply. The deadline is set to ensure that students have time to file their federal income tax returns before applying for financial aid and to ensure timely disbursement of financial aid for the Fall semester.
Q: How and when will I be notified of my financial aid eligibility?
A: In May, the Tepper School Financial Aid Office begins sending financial aid award letters via email to students who have submitted the above application materials by the April 16th deadline. Thereafter, students may expect to receive financial aid award letters via email within two to four weeks of having submitted the above materials. Students who wish to borrow any of the loans indicated in their financial aid award letters subsequently submit loan application materials as required for each loan type.
Q: Are international students eligible for financial aid?
A: Yes. International students are considered for Merit scholarship at the time of admission and, if selected to receive a scholarship, are notified in their offer of admission. There is no separate application process for scholarship consideration. International students are not eligible for US federal financial aid but, each academic year, international students may apply for private (non-federal) education loans to cover tuition and living expenses. A creditworthy cosigner who is a US citizen or a permanent resident of the US is required.
Q: What US federal loan changes are occurring for the 2012-2013 academic year?
A: As a provision of the Budget Control Act of 2011, the federal Direct Subsidized Stafford Loan has been eliminated for graduate students. Students are still able to borrow up to $20,500 in federal Direct Stafford Loans each academic year, but the entire loan is unsubsidized, meaning that interest accrues on the loan during in-school, grace, deferment and repayment periods. The interest is still fixed and deferrable until 6 months after graduation, leaving school, or dropping below half time status. Additionally, the up-front interest rebate for reducing the loan fees has been eliminated.
Q: What is a Perkins Loan and am I eligible?
A: A Perkins Loan is a need-based, US federal loan program with very limited funds availability. Eligible students with exceptional financial need who submit the FAFSA and Tepper School Financial Aid Application by the April 16th deadline receive priority consideration. Eligible students may borrow up to $8.000 per academic year in Perkins loans, based on available funds. The interest rate is fixed at 5% and no interest accrues on the loan while the student is enrolled on at least a half time basis as well as during the 9 month grace period and periods of deferment.
Q: My income and/or assets are high. Does that exclude me from eligibility for federal loans?
A: No. Although students may not be eligible for need-based Perkins loan, students without financial need are still eligible to apply for federal Direct Unsubsidized and federal Direct Grad Plus loans, neither of which is based on financial need.
Q: Are part time students eligible for student loans?
- Yes, students enrolled in at least 18 units of coursework during a semester are eligible to apply for federal and/or private education loans to cover tuition and other allowable education-related costs.
Q. May I borrow student loans to cover costs besides tuition?
A: Yes. The Tepper School of Business uses an average cost of attendance model to determine loan eligibility for both US and international students, full- and part-time. Eligible students may borrow up to the estimated average cost of attendance less financial aid from all sources. This cost of attendance includes allowable costs for estimated tuition and fees, room and board, health insurance, transportation, notebook computer, loan fees, and miscellaneous expenses. Students are advised of their maximum eligibility via their financial aid award letters.
Q. Should I borrow federal or private education loans?
A: Whether a student borrows federal loans or private loans or a combination of both is very individual and requires the student to research the option that is best for him/her. Eligible students’ financial aid is packaged with maximum federal loan eligibility but students may opt to borrow private, non-federal education loans as an alternative. Federal education loans offer a fixed interest rate, certain deferment options (unemployment, economic hardship, etc.), forbearance, and other federal benefits that private loans may not offer. On the other hand, the interest rate and fee structure of private education loans may be better for some borrowers. Students should thoroughly research the best option before deciding which type of loan(s) to borrow.
Q: Do I need to pass a credit test to qualify for a loan?
A: Federal Direct Unsubsidized and Federal Perkins loan borrowers do not undergo a credit test for consideration for these loans. Students who apply for Federal Direct Grad Plus Loans are required to pass a credit test in order to qualify for the loan. The credit decision is good for 90 days so students enrolling in the Fall may not apply for a Federal Direct Grad Plus Loan until June 1 or later. Students who apply for private education loans must pass the individual lender’s credit requirements in order to qualify for the loan. In some cases, this may include borrowing with a credit worthy, eligible cosigner, which is always required for an international student borrower.
