US Federal Loans

US Federal Loans

*** This information is subject to change in accordance to the rules and regulations of the US Department of Education

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

The Free Application for Federal Student Loans (FAFSA) is a confidential statement detailing information about your family’s financial circumstances. When you have completed the form, you submit it directly to the U.S. Department of Education. Using a formula mandated by Congress, the U.S. Department of Education makes an evaluation of your family’s strength and estimates the amount your family can contribute annually toward your educational expenses. This financial statement is a necessary first step in order to apply for all Federal Direct Stafford Loans.

The FAFSA is available each year beginning January 1, and should be completed as soon as possible, but not later than June 30, 2017 (DOE Deadline) as regards to the 2016-17 Academic Year.

Starting spring 2015, a new login process will be implemented by the Department of Education. The new FSA ID which is a user- selected username and password. This will replace the Federal Student Aid PIN that has been used up until now by which students, parents and borrowers authenticated their identity to access their federal student aid information. This change has been made to eliminate the need for individuals to enter personal identifiers (Social Security Number, Name and Date of Birth).

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 15, 2016 is the TAU International deadline for FAFSA applications. (July 15, 2016 for TESOL and LLM Students)

* Processing of loans for the 2016/2017 academic year will not begin until Summer 2016.

 

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).

 

Direct PLUS Loans:

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

* 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.

Instructions for PLUS loan graduate professionals/ parents applying for PLUS Loan:

Steps to secure your PLUS loan:

1- Complete the PLUS Request Process at www.studentloans.gov

2- Complete a PLUS Master Promissory Note at www.studentloans.gov

3- Complete a PLUS loan entrance counseling for Graduate and Professional Students at www.studentloans.gov (There is a required special loan counseling for any PLUS loan applicant who has an adverse credit history but who qualifies for a PLUS Loan through the process for reconsideration due to extenuating circumstances or by obtaining an endorser for the loan)

(Parent/graduate professional must sign in to the site under their own parent/graduate professional FSA ID and login information to complete both of these steps)

*Adverse credit history is when a PLUS loan applicant (either a parent or a graduate or professional student) in addition to other conditions (e.g., bankruptcy, foreclosure, tax lien, or a default determination), the applicant has one or more debts that are 90 or more days delinquent or that are in collection or have been charged off during the two years preceding the date of the applicant’s credit report, but only if the total combined outstanding balance of those debts is greater than $2,085. Thus, absent any other adverse credit history finding a PLUS Loan applicant whose credit check shows that the total of any debts that are 90 or more days delinquent or that have been placed in collection or charged off is $2,085 or less will not be considered to have adverse credit and therefore, will be eligible for a PLUS Loan.

 

International Schools do not participate in the U.S. Department of Education’s grant programs, so you will not be able to obtain a Federal Pell Grant to get your degree at an international school such as Tel Aviv University.

Loan Amounts & Aggregate Limit

* Please click here in order to see the maximum Stafford loan amounts for 2016-17.

* See the Aggregate Loan limits here.

Please note that the total Federal Loan Aggregate Limits do not include loans taken in the Graduate and Parent PLUS Loans.

 

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 Sallie Mae Webpage.

* The Maximum loan amount is the student’s cost of attendance (COA)
(determined by the school) minus any other financial aid received.

 

Interest Rates

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

 

Interest rates for Direct Loans First disbursed on or After July, 1 2016

Loan Type Borrower Type Loan first disbursed on or after 7/1/15 and before 7/1/16

Direct Subsidized/

Unsubsidized Loans

Undergraduate 3.76%

Direct Unsubsidized

Loans

Direct Unsubsidized

Loans Graduate and Professional Students

5.31%
Direct PLUS Loans Parents of Undergraduate Students and Graduate/ Professional Students 6.31%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Have other questions about interest?

 

* Prior federal loans and financial aid history—if you already have federal student loans and would like to check the interest rate, servicer information, and other financial aid history go to the National Student Loan Data System.

* Understanding interest rates and fees— Find out how interest is calculated.

 

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.

Loan Type First Disbursement Date Loan Fee

Direct Subsidized Loans and

Direct Unsubsidized Loans

On or after 10/1/14 and before 10/1/15 1.073%
  On or after 10/1/15 and before 10/1/16 1.068%
Direct PLUS Loans On or after 10/1/14 and before 10/1/15 4.292%
  On or after 10/1/15 and before 10/1/16 4.272%

Loans first disbursed prior to Oct. 1, 2014, have different loan fees.

 

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

* Loan Fee Subject to Change by the Department of Education

 

Eligibility Requirements

To qualify according to U.S. 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 15, 2016 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) 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 5 – Click 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 by sending you a loan package from finaid@telavivuniv.org.

* STEP 6- After receiving your loan package, you will need to email finaid@telavivuniv.org to confirm the amount and type of loan you wish to borrow.

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 2016/17 Disbursal Schedule:

* 1st Disbursal – Early August (TESOL)

* 1st Disbursal – Early September (L.L.M)

* 1st Disbursal – End of October (for programs that start in October)

* 2nd Disbursal – End of March (for all programs)

 

TAU 2016/17 Academic Calendar

Program Fall Semester Start Date Spring Semester Start Date End Date
BA in Liberal Arts October 26, 2016 March 13, 2017 June 29, 2017
BSc Electrical Engineering October 30, 2016 March 13, 2017 June 29, 2017

Archaeology and History of

the Land of the Bible

October 30, 2016 March 13, 2017 August 25, 2017

Conflict Resolution and

Mediation

October 30 2016 March 13, 2017 September 15, 2017

Emergency & Disaster

Management EMPH

October 26, 2016 March 13, 2017 September 15, 2017
Environmental Studies October 30, 2016 March 8, 2017 August 24, 2017

Social Work with

Specialization in Crisis

Stress and Trauma

October 30, 2016 March 13, 2017 August 25, 2017
iMBA October 30, 2016 March 12, 2017 August 25, 2017
MAMES October 30, 2016 March 5, 2017 August 25, 2017
Political Science in Action October 30, 2016 March 5, 2017 August 25, 2017
Security and Diplomacy October 31, 2016 March 6, 2017 August 17, 2017
TESOL Summer Semester
August 2, 2016 October 30, 2016
March 13, 2017 June 29, 2017
LL.M. Degree September 4, 2016 March 13, 2017 July 21, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 you 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:

 

Overview of Direct Loan and FFEL Program Repayment Plans

Repayment

Plan

Eligible Loans Monthly Payment and Time Frame Eligibility and Other Information

Standard

Repayment

Plan

* Direct Subsidized and Unsubsidized Loans

* Subsidized and Unsubsidized Federal Stafford Loans * all PLUS loans

* all Consolidation Loans (Direct or FFEL)

Payments are a fixed amount. 
 
Up to 10 years (up to 30 years for Consolidation Loans).
All borrowers are eligible for this plan.
 
You’ll pay less over time than under other plans.
Graduated Repayment Plan * Direct Subsidized and Unsubsidized Loans 
* Subsidized and Unsubsidized Federal Stafford Loans 
* all PLUS loans 
* all Consolidation Loans (Direct or FFEL)
Payments are lower at first and then increase, usually every two years. 
 
Up to 10 years (up to 30 years for Consolidation Loans).
All borrowers are eligible for this plan.
 
You’ll pay more over time than under the 10-year Standard Plan.

Extended

Repayment

Plan

* Direct Subsidized and Unsubsidized Loans 
* Subsidized and Unsubsidized Federal Stafford Loans 
* all PLUS loans 
* all Consolidation Loans (Direct or FFEL)
Payments may be fixed or graduated. 
 
Up to 25 years.
* If you're a Direct Loan borrower, you must have more than $30,000 in outstanding Direct Loans. 
* If you're a FFEL borrower, you must have more than $30,000 in outstanding FFEL Program loans.
* Your monthly payments will be lower than under the 10-year Standard Plan or the Graduated Repayment Plan. 
* You’ll pay more over time than under the 10-year Standard Plan.
Revised Pay As You Earn  * Direct Subsidized and Unsubsidized Loans 
* Direct PLUS loans made to students 
* Direct Consolidation Loans that do not include PLUS loans (Direct or FFEL) made to parents
* Your monthly payments will be 10 percent of discretionary income. 
* Payments are recalculated each year and are based on your updated income and family size. 
* If you're married, both your and your spouse’s income or loan debt will be considered, whether taxes are filed jointly or separately (with limited exceptions). 
* Any outstanding balance on your loan will be forgiven if you haven't repaid your loan in full after 20 or 25 years.
* Any Direct Loan borrower with an eligible loan type may choose this plan. 
* Your monthly payment can be more than the 10-year Standard Plan amount. 
* You may have to pay income tax on any amount that is forgiven. 
* Good option for those seeking Public Service Loan Forgiveness (PSLF).

Pay As You

Earn

Repayment

Plan (PAYE)

* Direct Subsidized and Unsubsidized Loans 
* Direct PLUS loans made to students 
* Direct Consolidation Loans that do not include (Direct or FFEL) PLUS loans made to parents
* Your maximum monthly payments will be 10 percent of discretionary income. 
* Payments are recalculated each year and are based on your updated income and family size. 
* If you're married, your spouse's income or loan debt will be considered only if you file a joint tax return. 
* Any outstanding balance on your loan will be forgiven if you haven't repaid your loan in full after 20 years.

* You must be a new borrower on or after Oct. 1, 2007, and must have received a disbursement of a Direct Loan on or after Oct. 1, 2011. 

* You must have a high debt relative to your income. * Your monthly payment will never be more than the 10-year Standard Plan amount. * You’ll pay

more over time than under the 10-year Standard Plan. 

* You may have to pay income tax on any amount that is forgiven. 

* Good option for those seeking Public Service Loan Forgiveness (PSLF).

Income-

Based

Repayment

Plan (IBR)

* Direct Subsidized and Unsubsidized Loans 
* Subsidized and Unsubsidized Federal Stafford Loans 
* all PLUS loans made to students 
* Consolidation Loans (Direct or FFEL) that do not include Direct or FFEL PLUS loans made to parents
* Your monthly payments will be 10 or 15 percent of discretionary income. 
* Payments are recalculated each year and are based on your updated income and family size. 
* If you're married, your spouse's income or loan debt will be considered only if you file a joint tax return. 
* Any outstanding balance on your loan will be forgiven if you haven't repaid your loan in full after 20 or 25 years. 
* You may have to pay income tax on any amount that is forgiven.

* You must have a high debt relative to your income.

* Your monthly payment will never be more than the 10-year Standard Plan amount. 

* You’ll pay more over time than under the 10-year Standard Plan. 
* Good option for those seeking Public Service Loan Forgiveness (PSLF).

Income-

Contingent

Repayment

Plan (ICR)

* Direct Subsidized and Unsubsidized Loans 
* Direct PLUS Loans made to students 
* Direct Consolidation Loans
* Your monthly payment will be the lesser of o 20 percent of discretionary income, or o the amount you would pay on a repayment plan with a fixed payment over 12 years, adjusted according to your income. 
* Payments are recalculated each year and are based on your updated income, family size, and the total amount of your Direct Loans.
* If you're married, your spouse's income or loan debt will be considered only if you file a joint tax return or you choose to repay your Direct Loans jointly with your spouse.
* Any outstanding balance will be forgiven if you haven't repaid your loan in full after 25 years.
* Any Direct Loan borrower with an eligible loan type may choose this plan.
* Your monthly payment can be more than the 10-year Standard Plan amount. 
* You may have to pay income tax on the amount that is forgiven. 
* Good option for those seeking Public Service Loan Forgiveness (PSLF). 
* Parent borrowers can access this plan by consolidating their Parent PLUS Loans into a Direct Consolidation Loan.

Income-

Sensitive

Repayment

Plan

* Subsidized and Unsubsidized Federal Stafford Loans 
* FFEL PLUS Loans 
* FFEL Consolidation
Your monthly payment is based on annual income. Up to 15 years. * You’ll pay more over time than under the 10-year Standard Plan. 
* The formula for determining the monthly payment amount can vary from lender to lender.

 

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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