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US Federal Loans

US Federal Loans

US Federal Loans are available to qualifying degree-seeking students through the Office of Academic Affairs in New York. Graduate and undergraduate students who will be applying for federal loans are encouraged to begin the process as soon as possible.

 

About the Process

For complete information regarding federal loans including application process and repayment, please refer to the Federal Student Aid Program with the Department of Education here.

 

Deadlines

  • September 5, 2014 is the deadline for FAFSA applications. (July 14, 2014 for TESOL Students and August 11, 2014 for L.L.M Students)
  • Processing of loans for the 2014/2015 academic year will not begin until Summer 2014.

Federal Loan Programs

Direct Subsidized loans:

  • Direct Subsidized Loans are available to undergraduate students with financial need.
  • Your school determines the amount you can borrow, and the amount may not exceed your financial need.
  • The U.S. Department of Education pays the interest on a Direct Subsidized Loan while you’re in school at least half-time, for the first six months after you leave school (referred to as a grace period*), and during a period of deferment (a postponement of loan payments).

*Note: If you receive a Direct Subsidized Loan that is first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.

 

 Direct Unsubsidized Loans:

  • Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need.
  • Your school determines the amount you can borrow based on your cost of attendance and other financial aid you receive.
  • You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods. 
  • If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).

PLUS loans are federal loans that graduate or professional degree students and parents of dependent undergraduate students can use to help pay education expenses. The U.S. Department of Education makes Direct PLUS Loans to eligible borrowers through schools participating in the Direct Loan Program.

 

Direct PLUS Loans:

  • The U.S. Department of Education is the lender.
  • The borrower must not have an adverse credit history.
  • The maximum loan amount is the student’s cost of attendance (determined by the school) minus any other financial aid received.

 

Supplemental Loans

Many of our students do not require supplemental loans like the GradPLUS loan. However, eligible US students may choose to apply for this type of loan once they have exhausted the Subsidized and Unsubsidized loans, pending approval by the Office of Academic Affairs. The GradPLUS Loan allows students to borrow the total cost of their graduate program needs, including tuition, room and board, supplies, lab expenses and travel. This loan serves to supplement the Stafford loans in case they do not cover all expenses.

 

Private Loans

For your convenience TAU has partnered with Sallie Mae Servicing to provide additional private loans to qualifying students. To apply through Sallie Mae for student loans please visit their TAU webpage.

 

Please note:

  • Interest rates are variable but will not exceed 8.25%. Rates are determined each July.
  • To get an early estimate of your eligibility for Federal Student Financial Aid, click here.

Here are the interest rates for loans first disbursed between July 1, 2014, and June 30, 2015.

Loan Type Borrower Type Loan first disbursed on or after 7/1/14 and before 7/1/15
Direct Subsidized/ Unsubsidized Loans Undergraduate 4.66%
Direct Unsubsidized Loans Graduate and Professional Students 6.21%
Direct PLUS Loans Parents of Undergraduate Students and Graduate/ Professional Students 7.21%

 

Have other questions about interest?

 

 

Other than interest, is there a charge for this loan?

Most federal student loans have loan fees that are deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You're responsible for repaying the entire amount you borrowed and not just the amount you received.

There is a 1.072% loan fee on all Direct Subsidized Loans and Direct Unsubsidized Loans.

There is a 4.288% for Direct PLUS Loans for parents and graduate and professional students.

The loan fee will be proportionately deducted from each loan disbursement.

 

Eligibility Requirements

To qualify according to US Federal Aid guidelines, a student must:

  • Be a US citizen or US permanent resident

  • Have a valid Social Security Number

  • Be enrolled in a full-degree program at Tel Aviv University

  • Be enrolled at least half time (a minimum of six credits per semester)

  • Meet satisfactory academic progress

  • Comply with Selective Service Registration, if required

  • Must not be in default on a federal student loan or owe payment on a federal student grant

  • Be below the aggregate borrowing limit: See limits here.

 

Application & Renewal:

First-Time Borrowers

September 5, 2014 is the deadline for FAFSA applications. (See different FAFSA Deadline above for TESOL and L.L.M)

  • STEP 1 – You will need to gather some personal paperwork as well as the appropriate IRS tax forms. We strongly recommend that you do your taxes prior to filing your FAFSA. If possible, do them using estimates so that you can file your FAFSA as early as possible.

  • STEP 2 – File the FAFSA (Free Application for Federal Student Aid) here. The information you report is used to determine your eligibility for Direct subsidized, unsubsidized, and PLUS loans.

  • STEP 3 – Select the correct Federal School Code for Tel Aviv University: G08373

  • STEP 4 – Complete the MPN (Master Promissory Note) at here. Your loans cannot be approved, disbursed, or adjusted until you complete this step. Note that TAU is currently set up for electronic transmission (e-MPN).

  • STEP 5Click here to fill out a mandatory loan entrance course. It is a 20 minute process and is required of all borrowers.

After all steps are completed, TAU will review the results and inform you about your loan eligibility via email to finaid@telavivuniv.org.

 

Returning Borrowers

If you have borrowed Stafford loans before and wish to continue receiving federal aid, you must complete the following steps:

  • STEP 1 – You must file a Renewal FAFSA at here before the start of each academic year.

  • STEP 2 – Select the correct Federal School Code for Tel Aviv University: G08373

  • STEP 3 – You must re-submit your MPN here.

  • STEP 4 – Click here to fill out a mandatory loan entrance course. It is a 20 minute process and is required of all borrowers.

 

Disbursement

In most cases, your loan will be disbursed in two installments to Tel Aviv University. The first disbursement will pay half of your Tuition and Dorm Fee (and Ulpan if it is included in your Cost of Attendance and any remaining funds will be sent to you). If you have an outstanding balance with Tel Aviv University at the time of the second disbursement, your loan funds will be used to pay your debt first. A reimbursement for the remainder, if any, will be sent to your permanent address in the US within approximately 2 weeks or to your bank account via wire transfer. If you wish to receive your funds via wire transfer fill out a Wire Transfer Request Form and submit it to finaid@telavivuniv.org

 

TAU 2014/2015 Disbursal Schedule:

  • 1st Disbursal – Early August (TESOL)
  • 1st Disbursal – Early September (L.L.M)
  • 1st Disbursal – Mid- October (for programs that start in October)
  • 2nd Disbursal – Early March (for all programs)

 

Program Fall Semester Start Date Spring Semester Start Date End Date
BA in Liberal Arts  October 19, 2014 March 08, 2015 July 21, 2015
BSc Electrical Engineering October 26, 2014 March 08, 2015 July 21, 2015
Archaeology and History of the Land of the Bible October 26, 2014 March 08, 2015 August 28, 2015
Conflict Resolution and Mediation October 26, 2014 March 08, 2015 August 28, 2015
Emergency & Disaster Management EMPH October 26, 2014 March 08, 2015 August 28, 2015
Environmental Studies October 26, 2014 March 08, 2015 August 28, 2015
Migration Studies October 26, 2014 March 08, 2015 August 28, 2015
Social Work with Specialization in Crisis Stress and Trauma October 26, 2014 March 08, 2015 August 28, 2015
iMBA October 26, 2014 March 08, 2015 August 28, 2015
MAMES October 26, 2014 March 08, 2015 August 28, 2015
Political Science in Action October 26, 2014 March 08, 2015 August 28, 2015
Security and Diplomacy October 26, 2014 March 08, 2015 August 28, 2015
TESOL August 3, 2014 March 08, 2015 July 21, 2015
LL.M. Degree September 7, 2014 March 08, 2015 July 21, 2015

 

Canceling Your Loan

Before your loan money is disbursed, you may cancel all or part of your loan at any time by notifying the school.  After your loan money is disbursed, there are two ways to cancel all or part of your loan: A) Within 14 days after the date the school notifies you that it has credited loan money to your or your dependent student’s account at the school, or by the first day of the school’s payment period, whichever is later (the school can tell you the first day of the payment period), you may tell the school that you want to cancel all or part of the loan money that was credited. The school will return the cancelled loan amount. B) Within 120 days of the date the school disbursed your loan money (by crediting the loan money to your or your dependent student’s account at the school, by paying it directly to you, or both), you may return all or part of your loan. Contact the Direct Loan Servicing Center for guidance on how and where to return your loan money.

 

 

Refund Policy

Students who have paid tuition for the semester, and have a positive balance, will receive a refund, dependent upon the date of official withdrawal. The date will determine the amount of money to be refunded to the Department of Education.

The federal government mandates that students who withdraw from all classes on or before the 60 percent point in the term may only keep the financial aid they have “earned” up to the time of withdrawal. Students who withdraw will have their tuition charges adjusted and may have to refund financial aid dollars to the appropriate Title IV student aid sources, as required by federal law.

To determine the amount of aid the student has earned up to the time of withdrawal, the University will divide the number of calendar days the student attended classes by the total number of calendar days in the semester (less any scheduled breaks of five days or more). The resulting percentage is then multiplied by the total federal funds that were disbursed (either to the student’s university account or to the student directly by check or direct deposit) for the semester. This calculation determines the amount of aid earned by the student, which he or she may keep. 

The unearned amount (total aid disbursed less the earned amount) must be returned to the federal government by the University or the student. The university will notify and provide instructions to students who are required to return funds to the government.

Funds that are returned to the federal government are used to reduce outstanding balances in individual federal programs. Financial aid returned by the school must be allocated in the following order:

  1. Federal Direct Unsubsidized Stafford Loan

  2. Federal Direct Subsidized Stafford Loan

Student whose circumstances require that they withdraw from all classes are mandated to contact or meet with the financial aid office prior to withdrawal.

 

Repayment

The normal repayment for the graduate Stafford loan is 10 years. You may be able to extend repayment by deferring or consolidating your loans. You may choose one of the following plans:

  • Standard Repayment: requires you to pay a fixed amount each month-- at least $50 or the interest that has accrued.

  • Graduated Repayment: sets your payments lower at first and then increases them over time. Each of your payments must equal the interest accrued on the loan between scheduled payments.

  • Income-Sensitive Repayment: bases your monthly payment on your yearly income and your loan amount. Payments may change as your income rises or falls.

  • Extended Repayment: is for borrowers with loans totaling more than $30,000. This plan offers a choice of fixed or graduated payments over a period of up to 25 years.

For all repayment guidelines please refer to the information provided by your lender or by the US Department of Education

 

Please note:

  • All students must meet the satisfactory academic progress policy to receive federal loan aid as well as tuition assistance through Tel Aviv University International School! See guidelines here.

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