Financial Assistance

To provide procedures that will insure conformity in the gathering of information and the eventual discernment of that information on a District-wide basis while efficiently employing the resources and time of the District’s employees.

The District shall maintain its financial records and submit reports in accordance with the regulations as set forth from the various agencies from which grants and loans have been awarded. Additionally, to be eligible for financial aid or veteran educational benefits, student must meet existing federal, state and/or institutional eligibility criteria.

These procedures will allow the Board to be in compliance with the objectives as stated in the Lone Star College System Policy Manual, Section FE (Local) and Federal and State Regulations.

The scope of this section is to outline specific procedures necessary to award and monitor funds granted or loaned to students whose educational costs cannot be met in whole or in part from other sources. These procedures will identify and outline the specific functions to be performed, the regularity that those functions must be performed and the designated responsible individuals involved from both the College and District Business Offices.

The primary overall responsibility for the administration and application of the Financial Assistance Program at Lone Star College System lies with the District Director of Financial Assistance.

Interface with the student population and assessment of need is performed by the Offices of Financial Assistance at each College, under the direction the Director of Financial Assistance for each College.

Determination of Need: All students who receive need based aid must submit a "Free Application for Federal Student Aid" (FAFSA) to the Department of Education. The application checks for eligibility on: citizenship, selective service, social security number, loan and default status and some drug convictions. The student is assigned a family contribution number, determined by a Federal Methodology formula and this figure is used to established need at the school that the student attends. The student also agrees, on the application, to spend funds received solely for education related expenses and that they do not owe any overpayments.

In addition to specific eligibility requirements listed under each type of financial aid, there are others to be considered. Below are some of the main ones but should not be considered to be all of them.

1. Verification: Verification is flagged by the Department of Education of certain elements on the application form (income, taxes paid, earned income credit, number in family, number in college).

2. Standards of Satisfactory Academic Progress: Several measurable items have been selected to determine if the student is making satisfactory academic progress. Those items include: (1) Overall Grade Point Average -minimum 2.00, (2) Change in Student Status, (3) Attempting more than 108 total credit hours at Lone Star College System and (4) Attempting more than 30 total remedial hours.

3. Veteran Administration Benefits: VA benefits are to be considered as a resource of additional aid in the determination of need for all programs. All veterans will be expected to provide either (1) a letter of non-entitlement from the VA or (2) a statement of their expected monthly benefit amounts.

4. Professional Judgment: The Higher Education Act allows the Assistance Administrator to adjust an individual’s reported economic status, if, in the "professional judgment" of the Assistance Administrator, the report does not accurately reflect the student’s financial situation. This judgment, however, is limited to specific data elements which can be justified by the FAA.

One or a combination of the following financial resources is available to students who apply to the Office of Financial Assistance and qualify. These programs are designed to help students pay for their education after high school.

Grants

Federal Supplemental Educational Opportunity (SEOG)

Federal Pell

State Student Incentive (SSIG)

Texas Public Education (TPEG)

Loans

Federal Family Educational Loans

Stafford Subsidized Stafford Unsubsidized Parent Loan (PLUS)

Lone Star College System Short Term

Work Programs

Federal Work Study (FWS)

Texas College Work Study (TXCWS)

Lone Star College System On Campus Employment

15.3.3.1.1 Federal Pell Grant

The federal Pell Grant is the basic building block of all the federal need based programs and, in most cases, will be the first award, if eligible, that the student receives.

1. Eligibility: Limited to Undergraduate students who are enrolled at least one hour.

2. Amount of Grant: The maximum award is determined by Federal authorization on a yearly basis. The award is also prorated for full-time, three-quarter time, half-time and less than half-time according to the Federal Pell tables with a minimum of $400.

3. Disbursement Policy: Disbursement to Students is as follows:

   • Students with awards before early or regular registration will have tuition, fees and books charged to their account. Unused balances will be mailed to students.

   • Students with awards after registration will receive funds by mail.

15.3.3.1.2 Federal Supplemental Educational Opportunity Grant (SEOG)

1. Eligibility: Federal need based grant that is awarded to students with exceptional financial need and have received the Pell Grant.

2. Amount of Grant: The maximum award is federally limited to $4,000 per year but is also governed by the cost of attendance as calculated annually (awards to approximate between $200 to $1,500 per year).

3. Disbursement Policy: Disbursement to Students is as follows:

   • Students with awards before early or regular registration will have tuition, fees and books charged to their account. Unused balances will be mailed to students.

   • Students with awards after registration will receive the funds by mail.

15.3.3.1.3 State Student Incentive Grant (SSIG)

1. Eligibility: This is a Federal incentive grant that is matched by the State and awarded to students who are defined by Lone Star College System as having exceptional financial need. The students’ names are submitted to the State and warrants for the Federal portion and the State portion are sent back to the schools. An affirmation form is signed before the student receives the check in the Business Office.

15.3.3.1.4 Texas Public Education Grant (TPEG)

1. Eligibility: State grant for students that have "cost of attendance" need for credit classes, resident and non-resident and also for continuing education.

2. Amount of Grant: The maximum award is generally limited to $2,500 per year but is also governed by the cost of attendance as calculated annually by Lone Star College System (awards to approximate between $200 to $500 per year).

3. Disbursement Policy: Disbursement to Students is as follows:

   • Students with awards before early or regular registration will have tuition, fees and books charged to their account. Unused balances will be mailed to students.

   • Students with awards after registration will receive the funds by mail.

15.3.3.2.1 Federal Family Educational Loan Programs

15.3.3.2.1.1 Federal Stafford Subsidized Loan Program

(Interest is subsidized by the Federal Government)

1. Eligibility: Students who have a financial need after eligible grants and other assistance are considered.

2. Amount of Loan: The maximum award is federally limited for first year students (under 30 hours) to $2,625 and for second year students (over 30 hours) to $3,500.

3. Disbursement Policy: Disbursement to Students is as follows:

   • Students apply for funds via a certified application ( certified by the Director of Financial Assistance) which is submitted to the bank or credit union of the student’s choice.

   • The funds are sent to the school in the form of checks made out to the student by the bank.

   • The Financial Assistance Office certifies student eligibility the day the funds are received and then fills out a check release form for the Business Office to release the check to the student.

15.3.3.2.1.2 Federal Stafford Unsubsidized Loan Program for Independent Students

1. Purpose: Federal need based loan that is awarded to students who are defined by Lone Star College System as having a need to borrow money for education that cannot be met through the Stafford Subsidized Loan.

2. Eligibility: Students who request a loan and who have exhausted their eligibility for discretionary funds and the Stafford Subsidized Loan and still have cost of attendance left in budget. Usually limited to Independent students.

3. Amount of Loan: The maximum award is federally limited to $4,000 per year for a student in a two year program of study but is also governed by the cost of attendance.

4. Disbursement Policy: Disbursement to Students is as follows:

   • Students apply for funds via a certified application ( certified by the Director of Financial Assistance) which is submitted to the bank or credit union of the student’s choice.

   • The funds are sent to the school in the form of checks made out to the student by the bank.

   • The Financial Assistance Office certifies student eligibility the day the funds are received and then fills out a check release form for the Business Office to release the check to the student.

15.3.3.2.1.3 Federal Parent Loan for the Undergraduate Student (FPLUS)

A federal loan that is made to a parent of a dependent student, who does not have sufficient need based assistance to satisfy their cost of attendance.

1. Eligibility: The parent is the borrower on behalf of the student. The bank determines the credit worthiness of the borrower and the College certifies that the student is enrolled and the cost of attendance.

2. Amount of Loan: The maximum award is totally dependent upon the cost of education minus any other assistance received by the student.

3. Disbursement Policy: Disbursement to Students is as follows:

   • Certified loan applications are submitted to the Lender of the student’s choice.

   • The funds are sent by check to the school made out to the Parent and school.

   • The Financial Assistance Office certifies the student is enrolled half time and the check is released to the Parent by the Business Office.

15.3.3.2.2 Lone Star College System Short Term Loan (STL)

Loans that the College controls to provide a means for the student to enroll. Students generally receive this loan if they have not taken the proper steps to guarantee the completion of financial assistance.

1. Eligibility: Short term loans are restricted to the semester the student is enrolled or intends to enroll and the availability of funds. Eligibility criteria is set by the Financial Assistance Council and approval is made by the Office of Financial Assistance and put on the system by the Business Office.

2. Amount of Loan: The loan is based upon the availability of funds and student individual charges. Amounts approximate from $35 to $600.

Federal need based grant that is awarded to students who are defined by Lone Star College System as having a financial need and chose to work to help defray a part of their educational expenses.

1. Eligibility: Awarded to students with a financial need and chose to work part-time to pay some of their educational costs. Students must be enrolled at least half-time.

2. Placement: Students are placed, if possible, in an area that will relate to their educational objective or in student services. Students must not be scheduled to work more than nineteen and one-half (19.5) hours per week.

3. Amount of Grant: The maximum award is federally limited to $4,000 per year but is also governed by the cost of attendance as calculated annually by Lone Star College System (awards to approximate between $800 to $3,000 per year).

4. Disbursement Policy: Disbursement to Students is as follows:

   • Students employed on any of the Colleges will be paid in accordance with Lone Star College System payroll procedures.

   • Students will be paid in accordance with the Fair Labor Standards Act and receive compensation at a rate no lower than the federal minimum wage.

   • Students must work for this awarded money before they receive it.

5. Federal "Community Service" Program: A percentage of the Federal Work Study allocation must be spent on work that provides a community service.

15.3.3.3.2 Texas College Work Study Programs (TXCWS)

State need based grant that is awarded to students who are defined by Lone Star College System as having a financial need and chose to work to help defray a part of their educational expenses. This program is designed to supplement the Federal CWS program except the money is state funded.

15.3.3.3.3 Lone Star College System on Campus Employment

1. Student Assistants refers to all employees who are employed with the District in a staff capacity and whose employment is contingent upon enrollment as a student at Lone Star College System.

2. Any Part-time worker must not be scheduled to work more than nineteen and one-half (19.5) hours per week.

3. Interim employment is allowed and may continue between semesters or over the summer when there is an intent to re-enroll.

4. Disbursement Policy: Disbursement to Students is as follows:

   • Students employed on any of the Colleges will be paid in accordance with Lone Star College System payroll procedures.

   • Students will be paid in accordance with the Fair Labor Standards Act and receive compensation at a rate no lower than the federal minimum wage.

Requests for grants to satisfy financial needs for educational costs are usually, but not necessarily, applied for in the following order:

1. Federal Pell Grant - Awarded first

2. Federal Supplemental Educational Opportunity Grant - Awarded to students who qualify for Pell and still have unmet financial needs.

3. State Student Incentive Grant - Awarded to students with high financial needs.

4. Texas Public Education Grant - Awarded to students with financial need.

5. Federal Work Study - Awarded to Students with a financial need and have a desire to work on campus to offset some or all of their unmet need.

6. State College Work Study - Awarded to Students with a financial need and have a desire to work on campus to offset some or all of their unmet need, who are Texas residents.

Requests for loans to satisfy financial needs for educational costs are usually, but not necessarily, applied for in the following order. Loans normally are considered only when grants or other sources of financial assistance are not available.

1. Federal Stafford Subsidized Student Loan - Awarded to student with a financial need not met by grants or work.

2. Federal Stafford Non - Subsidized Student Loan - Awarded to student with a financial need but do not qualify for a subsidized loan.

3. Federal Parent Loan - The parents are the borrowers and the funds are sent to the parents to pay for the educational costs of their dependent children.

1. All inquiries for financial assistance should be directed to the Office of Financial Assistance.

2. Students should be encouraged to apply as early as possible to allow sufficient time for grant and/or loan approvals.

1. Each individual grant or loan (excluding College Work Study) has specific procedures outlined in that section for the method in which disbursement of funds can take place.

2. Book vouchers are available for a set amount for students who qualify. This will allow the student to apply the cost of books against the approved grant amount. Book vouchers are available through the Financial Assistance Office.

3. After tuition and book vouchers are charged against a student’s approved grant account, the Financial Assistance Department will authorize the unused balance to be paid to the student through Accounts Payable.

4. Procedures are outlined in the Accounts Payable section for payment of Financial Assistance checks that are paid through the District. Other funds may specify that they will be paid directly by check from the source to the student.

5. All Financial Assistance checks (excluding CWS) require a check release signed by the Office of Financial Assistance verifying student enrollment, "holds", and other items as specified by the individual grant or loan and/or the District.

6. Checks for student may be housed in the College Business Office or mailed to the address in the system for the Student.

7. College Work Study will come through the payroll system and will be paid on the 15th and the last working day of the month. Refer to the Supervisor’s Payroll Manual for specific guidelines in this area.