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Financial Aid News and Updates









Financial Aid News & Updates 

August 2014
Change in Federal Loan Origination fees

Be Aware of Spam Emails about Student Loans
 
It has come to our attention that there are spam emails being sent to individuals within the Fordham community regarding student loan consolidation and loan forgiveness. These emails may declare that you already have been approved for a consolidation loan and make other false claims. The Office of Student Financial Services encourages borrowers to work exclusively with the loan servicer assigned to them by the Department of Education. Your servicer will help with loan consolidation, loan forgiveness and answer any other questions you have about loan repayment free of cost. Click here for more information about legitimate loan servicers and how to find out who your servicer is.

 
October 2013
Change in Federal Loan Origination fees

The fees on loans whose first disbursement is on or after 12/1/2013 are increasing! 

Subsidized and Unsubsidized 
Stafford Loans
Origination Fee
First Disbursed Prior to 12/1/2013 1.051%
First Disbursed On or After 12/1/2013 1.072%
Direct PLUS and Graduate PLUS Loans  
First Disbursed Prior to 12/1/2013 4.204%
First Disbursed On or After 12/1/2013 4.288%

There are ways to avoid paying the higher fee if you need fall loan funds but you will need to take action as soon as possible.

Undergraduate Students
Make sure you filed a FAFSA and sent us any documentation we've asked for. You can ensure you've done this by accessing the Financial Aid Channel through your my.fordham.edu account. Click on the Documents tab to see if anything is missing. You can also ensure you have accepted your loan on the Accept Awards tab.

Graduate Students:
You can request your loan using the online request form. Also, make sure you filed a FAFSA and sent us any documentation we've asked for. You can ensure you've done this by accessing the Financial Aid Channel through your my.fordham.edu account. Click on the Documents tab to see if anything is missing.


August 2013
New Federal Loan Interest Rates

On August 9th, President Obama signed into law a new way of setting interest rates for federal education loans. The rates will now be linked to Treasury bill, which means lower rates for the coming school year. As a result, Undergraduates this fall will borrow at a 3.86% interest rate for subsidized and unsubsidized loans. Graduate students would have access to unsubsidized loans at 5.4% and Graduate PLUS Loans at 6.4%. Parents borrowing Parent PLUS Loans will also borrow at 6.4%. 

These rates are locked in for 2013-14 federal student loans. however, interest rates are now linked to Treasury bill rates, so future interest rates may differ from year to year. 

Loan Type Old Interest Rate New Interest Rate for 2013-14
Undergraduate Subsidized 6.8% 3.86%
Undergraduate Unsubsidized 6.8% 3.86%
Graduate Unsubsidized 6.8% 5.41%
Graduate PLUS 7.9% 6.41%
Parent PLUS 7.9% 6.41%

Repayment Examples
These charts show the potential savings of this change. They assume the borrower will repay their loan over a standard 10 year repayment plan.

Undergraduate Subsidized/Unsubsidized

Total Interest Accrued Over 10 Year Repayment   

Amount Borrowed

Old Interest Rate

New Interest Rate for 2013-14

Potential Savings

$3,500

$971

$472

$499

$5,500

$2,095

$1,138

$957

$6,500

$2,476

$1,345

$1,131

$7,500

$2,857

$1,552

$1,305

$10,500

$3,810

$2,070

$1,740

$12,500

$4,762

$2,587

$2,175


Graduate Unsubsidized Loan

Total Interest Accrued Over 10 Year Repayment   

Amount Borrowed

Old Interest Rate

New Interest Rate for 2013-14

Potential Savings

$5,000

$1,905

$1,485

$420

$10,000

$3,810

$2,970

$840

$15,000

$5,714

$4,455

$1,259

$20,500

$7,810

$6,088

$1,722


Parent PLUS & Graduate PLUS

Total Interest Accrued Over 10 Year Repayment   

Amount Borrowed

Old Interest Rate

New Interest Rate for 2013-14

Potential Savings

$10,000

$4,496

$3,571

$925

$15,000

$6,744

$5,356

$1,388

$20,000

$8,992

$7,142

$1,850

$25,000

$11,240

$8,927

$2,313

$30,000

$13,488

$10,713

$2,775

$35,000

$15,736

$12,498

$3,238

$40,000

$17,984

$14,283

$3,701



 March 2013
Impact of Sequestration on Federal Aid


We know you are hearing a great deal about the fiscal reductions known as the "sequester", effective Friday, March 1, 2013. Although these budget cuts impact many federal programs including financial aid, we wanted to assure you that funding for students awarded federal grants for the 2012-13 academic year is not in jeopardy and is unaffected by the sequester.

Federal Pell Grants will not be affected for either 2012-2013 or 2013-2014. We anticipate a reduction of 5.1% in funding for the other federal aid for the 2013-2014 academic year. However the impact of this reduction will be nominal for our students.

Additionally, for federal loans whose first disbursement is made after March 1, 2013, there will be a minimal increase to the loan fees paid by the borrower. the increase will range from $1.75 to $6.25 on a Federal Direct Stafford Loan, depending on the amount borrowed (see the chart below). Please monitor the Student Financial Services website (www.fordham.edu/finaid) as we will continue to provide information once it becomes available.

Impact of Sequestration on Federal Aid

Loan Amount Additional Fee Due to Sequester
$3,500 $1.75
$4,500 $2.25
$5,500 $2.75
$6,500 $3.25
$7,500 $3.75
$9,500 $4.75
$10,500 $5.25
$12,500 $6.25

New Lifetime Pell Grant Eligibility

The Consolidated Appropriations Act, 2012 reduced the duration of a student’s eligibility to receive a Federal Pell Grant from 18 semesters (or its equivalent) to 12 semesters (or its equivalent).  This provision applies to all Federal Pell Grant eligible students effective with the 2012-13 award year.  The calculation of the duration of a student’s eligibility will include all years of the student’s receipt of Federal Pell Grant funding.  This change in the duration of students’ Federal Pell Grant eligibility is not limited only to students who received their first Federal Pell Grant on or after the 2008-2009 award year, as the Higher Education Act previously provided when the duration of eligibility was 18 semesters.

The Department of Education will calculate the equivalency by adding together each of the annual percentages of a student’s scheduled award that was actually disbursed to the student.  For example, a student whose 2011-2012 Federal Pell Grant scheduled award was $5,550, but who only received $2,775 because she was only enrolled for one semester, will have used 50% of that award year’s scheduled award.  Similarly, a student who was enrolled three-quarter time for the entire award year would have used 75% of his scheduled award.

Students and their schools will be notified when the student has reached the 12 semester limit or is close to that limit.

Special Direct consolidation loan 

The U.S. Department of Education (the Department) began offering Special Direct Consolidation Loans to eligible borrowers in January 2012. This is a short-term consolidation opportunity, ending June 30, 2012 for borrowers with both

-at least one student loan held by the deparment (a Direct Loan or a Federal Family Education Loan owned by the Department and serviced by one of the Department's servicers.
AND
- at least one commercially held FFEL loan (an FFEL loan that is owned by an FFEL lender and serviced either by that lender or by a servicer contracted by that lender).

Special Direct Consolidation Loans are intended to help borrowers manage their debt by ensuring all of their federal loans are serviced by the same entity, resulting in one bill and one payment (borrowers repay loans to a loan servicer). Borrowers will also receive an interest rate reduction on Special Direct Consolidation Loans as a repayment incentive.

For more information, please visit www.studentloans.gov 

2012
Repayment Plans and Calculators 

When it comes time to start repaying your student loan(s), you can select a repayment plan that is reight for your financial situation. Generally, you'll have from 10 to 25 years to repay your loan, depending on which repayment plan you choose.

Standard Repayment
This is the default payment plan. You pay a fixed amount each month until your loans are paid in full. Your monthly payment will be at least $50, and you'll have up to 10 years to repay your loans. 

To calculate your estimated loan payments, go to the Standard Repayment plan calculator

Extended Repayment
Under the extended plan, you will pay a fixed annual or graduated repayment amount over a period not to exceed 25 years. You must have more than $30,000 in outstanding federal loans to qualify. Your fixed monthly payment is lower than it would be under the Standard Plan, but you will ultimated pay more for your loan because of the interest that accumulates during the longer repayment period.
This is a good plan if you will need to make smaller monthly payment.

To calculate your estimated loan payments, go to the Extended Repayment plan calculator.

Graduated Repayment
With this plan, your payments start out low and increase every two years. The length of your repayment will be up to 10 years. If you expect your income to increase steadily over time, this plan may be right for you.Your monthly payment will never be less than the amount of interest that accrues between payments. Although your monthly payment will gradually increase, no single payment under this plan will be more than three times greater than any other payment. 

To calculate your estimated loan payments, go to the Graduated Repayment plan calculator.

Income Based Repayment (IBR) Effective July 1, 2009
Under Income Based Repayment, the required monthly payment is capped at an amount that is intended to be affordable based on income and family size. You are eligible for IBR if the monthly payment amount under IBR will be less than the monthly amount calculated under a 10 year standard repayment plan. If you repay under the IBR plan for 25 years and meet other requirements you may have any remaining balance of your loan(s) cancelled. Additionally, if you work in public service and have reduced loan payments through IBR the remaining balance after 10 years in a public services job could be cancelled. Please read the IBR fact sheet.

Income Contingent Repayment (IRC) (Direct Loans Only) 
Each year, your monthly payments will be calculated on the basis of your adjusted gross income (AGI, plus your spouse's income if you are married), family size, and the total amount of your Direct Loans. Under the ICR plan you will pay each month the lesser of:

1. The amount you would pay if you repaid your loan in 12 years multiplied by an income percentage factor that varies with your annual income, 
or
2. 20 percent of your monthly discretionary income.

If your payments are not large enough to cover the interest that has accumulated on your loans, the unpaid amount will be capitalized once each year. The maximum repayment period is 25 years. If you haven't fully repaid your loans after 25 years (time spent in deferment or forbearance does not count) under this plan, the unpaid portion will be discharged. You may, however, have to pay taxes on the amountthat is discharged. 

To calculate your estimated loan repayments, go to the ICR plan calculator.

VETERANS INITIATIVE

Post 9/11 GI Bill Updates

Fordham is proud to be a Yellow Ribbon University, and we are pleased to welcome the men and women who have served their country and now want to go back to school to finish degree or earn a new credential. For more information on Veteran's Admission, Post 911 Benefits and Fordham's Yellow Ribbon Agreement please click here.

For more information on New York's Yellow Ribbon Program please click here.

For more information on the Post 911 GI Bill and how to apply please visit www.gibill.va.gov.





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