New Financial Aid Instructions for Returning Students
Bryn Mawr College is making a transition to The Direct Student Loan Program beginning in the Fall of 2009. This decision was made to address concerns many students had with their ability to obtain funding to cover educational costs. In 2008, many lenders abruptly stopped their participation in the Federal Stafford Loan Program as a result of the economic downturn. It is impossible to predict how many other lenders may follow. The College is taking responsibility to ensure that every student and parent has a sure and clear path to obtain educational loans by eliminating risk and participating in the Direct Student Loan Program. Funds will come to Bryn Mawr College parents and students directly from the U.S. Treasury.
A crucial change has also been made to the financial aid application process. Effective with the 2009-2010 award year, students and parents will submit tax returns, W-2s and applicable supplemental forms directly to the College Scholarship Service instead of the Financial Aid Office. Completion of the CSS PROFILE will prompt the College Board to send you instructions on how to submit your tax and income documentation using their Institutional Documentation Service (IDOC) at no cost to you or your parents. Students who only apply for loans and do not complete the CSS PROFILE will receive instructions separately. This new service will allow us to serve you and your parents in more important ways.
New Financial Aid Application Instructions: Start your financial aid re-application process during winter break! Applications for 2009-2010 financial aid are due April 15th, 2009. You will receive a reminder e-mail, and your parents will receive a postcard, but you are responsible for meeting the deadline. Complete both your FAFSA and your PROFILE as soon as possible after January 1st to allow time for processing. Late applications may not receive full consideration for aid.
Questions and Answers for Students and Parents regarding the Federal Direct Student Loan Program
What is the Federal Direct Student Loan Program and how is it different from what Bryn Mawr College did in the past?
There are two ways in which the Stafford/PLUS loan program is administered. One is through the Federal Family Educational Loan Program (FFEL) and the other is the Federal Direct Student Loan Program. Bryn Mawr College has participated in the FFEL Program whereby funds were obtained from banks and lenders after a guarantee agency approved the loan certification from the school. With the recent turmoil in the U.S. financial markets, many lenders have backed out of the FFEL Program or decided to limit their lending practices to certain higher education institutions. More lenders may soon follow.
The Federal Direct Student Loan model eliminates risk by assuring that federal loan funds are available to students who need to borrow. In the Direct Student Loan model, students and parents complete the Free Application for Federal Student Aid (FAFSA), Bryn Mawr College determines student eligibility, and the U.S. Department of Education obtains funds directly from the U.S. Treasury. This process involves fewer participants and provides a single point of contact for the school, students and parents.
Why did Bryn Mawr College decide to enter the Federal Direct Student Loan Program?
The abrupt changes in lender participation in the Stafford/PLUS loan program proved to create an unacceptable disruption in the service we provide to students and parents. Although we made strides to lessen the impact, further disruptions are anticipated as the state of the economy remains unstable. Bryn Mawr College administrators decided to eliminate risk by moving to the Federal Direct Student Loan Program. The Program is the most stable source of Stafford/PLUS Loan funding available because funds are provided directly from the U.S. Treasury. Internally, the processes used to deliver Stafford/PLUS loan funds from Direct Lending mirror those already in use to deliver Pell grants and other federal funds. We hope that you will provide with feedback during this transition so that we may serve you as well as possible.
What are the main benefits of switching to the Federal Direct Student Loan Program?
- Federal Direct Loans are a guaranteed source of funding for student Stafford and parent PLUS loans.
- The option of an income-contingent or an income-based repayment plan when a student enters repayment. This means a student has the option of ensuring that the loan repayment amount will always be affordable based on what the borrower’s income will allow.
- The PLUS loan for parents through the Direct Student Loan Program uses a more liberal credit assessment. More parents may qualify for a PLUS Loan under the Direct Loan Program than in the FFEL Program.
- The interest rate for PLUS Loans is 7.9 percent in the Direct Student Loan Program compared to 8.5 percent in the FFEL Program.
- Most lenders offer benefits during repayment after a student makes payments for two to four years. Very few students end up receiving those benefits. In the Direct Student Loan Program, students earn benefits after only one year.
- Should a student make payments late under the Direct Student Loan Program, the late fees charged are less than the late fees charged by the lenders in the FFEL Program.
I have borrowed Federal Stafford Loans already. How will this change affect me?
You will still apply for federal Stafford Loans by completing the FAFSA. The financial aid office will continue to determine your eligibility. The difference is that once you accept a federal Stafford Loan offer, your lender will be the Federal Government. Processing of the loan is simplified because you do not need to decide on a lender. All you need to do is sign a new Master Promissory Note to obtain a Federal Stafford Loan. You will receive further instructions to guide you through this process via e-mail and via this website.
My parents have borrowed Parent PLUS Loans already. How will this change affect them?
Your parent(s) will still apply for a Federal PLUS Loan by completing the loan information sheet that is provided along with your financial aid award or by contacting the Office of Financial Aid via phone or e-mail. The financial aid office will continue to determine PLUS Loan eligibility. The difference is that once your parent(s) apply for a Federal PLUS Loan, their lender will be the Federal Government. Processing of the loan is simplified because your parent(s) do not need to decide on a lender. Parent(s) must sign a new Master Promissory Note. Further instructions will soon be available to guide them through the process via e-mail, post and this website.
Will this change affect my Bryn Mawr Grant?
No.
How will this change affect my future loan repayment?
After graduation you have a choice. You may either make individual payments to your previous lender(s) and to the Department of Education for your Direct Student Loans, or you can consolidate your loans into one simple payment. You may either consolidate all of your loans with your previous lender, or with the Department of Education.
Benefits of the Federal Direct Student Loan Program: A comparison chart
Questions and Answers for students and parents regarding the Institutional Documentation Service (IDOC)
What is the College Board Institutional Documentation Service (IDOC)?
Effective with the 2009-2010 award year, students and parents will submit tax returns, W-2s and applicable supplemental forms directly to the College Scholarship Service instead of the Financial Aid Office. Bryn Mawr College and other colleges and universities contract with the College Board to collect financial aid application materials. The College Board stores the documents in a secure environment and transmits the information electronically Bryn Mawr College. Many selective institutions participate in IDOC and there is no cost to the student or parents to submit information.
How will I be notified about IDOC?
Completion of the CSS PROFILE will prompt the College Board to send you instructions on how to submit your tax and income documentation using IDOC. Students who only apply for loans and do not complete the CSS PROFILE will receive instructions separately.
I heard that most students are notified and reminded via email. What if the College Board finds that my email address is invalid? Will follow-up be done via letter?
If you submit a PROFILE application you will receive a message on your PROFILE Acknowledgment and submission email that tells you how to access the IDOC website. Because you will receive your IDOC ID through this email, it is crucial that you receive this notification. Therefore, if the email bounces back the College Board will notify you via paper (U.S. mail). This paper notification will go to your permanent home address.
Emails to Parents
If the College Board has the parents' email address they will send them the IDOC notification and reminder emails. The College Board will not follow up in any way if those emails are returned due to invalid email addresses.
Reminder Emails
The College Board will send two reminder emails to students and parents who have not sent in their packets. They send the first reminder to students who haven't submitted their packet and were notified at least 21 days previously. CSS’s experience is that a very small number of email reminder communications come back as being sent to invalid addresses. They do not follow up via letter.
Can students send in their IDOC packets by fax?
No. IDOC will not accept packets by fax. The image quality of faxes is often not acceptable. In addition, the College Scholarship Service cannot always determine the sender of the fax in cases where they would need to follow up.
How long does IDOC keep copies of the documents once they have been imaged?
The Cover Letter/Requirements state that paper copies of documents will be destroyed. Paper documents are kept in a secure location and destroyed approximately 120 days after the end of the processing year. 2009-2010 IDOC documents will be destroyed in spring 2010.
New Financial Aid Application Instructions
Please be sure to meet the filing deadlines to allow sufficient time for processing. Late applications may not receive full consideration for aid. Be sure to put your full name on all of your submitted documentation. This is especially important if you and your parents have different last names.As you submit required documents, remember to check Financial Aid Self-Service for current information. Using your BMC user ID and password, you can access your Financial Aid "To do List" on the web at URL virtual.brynmawr.edu.
REQUIRED FORMS AND INSTRUCTIONS CHECKLIST:
1. COLLEGE SCHOLARSHIP SERVICE (CSS) PROFILE, submit by April 15
Along with your custodial parent, register your CSS PROFILE at www.collegeboard.com at least two weeks before the deadline. The Bryn Mawr College code is #2049. Follow instructions provided on the College Board website.
2. NONCUSTODIAL PARENT’S STATEMENT, submit by April 15
If your parents are divorced, separated, or have never been married, your noncustodial parent is required to complete and submit a Noncustodial Parent Statement. This form is available on the Bryn Mawr web site at www.brynmawr.edu/financialaid/forms.shtml.
3. FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA), submit by April 15
Along with your custodial parent, file your FAFSA as soon as possible to meet the deadline, but not before January 1. Complete the online version of the FAFSA at www.fafsa.ed.gov. You and your parents should sign your online FAFSA electronically by obtaining a Personal Identification Number (PIN) at www.pin.ed.gov. The Bryn Mawr College Federal Code is #003237. You must report your social security number correctly on the FAFSA. Without it the Department of Education cannot process your results.
4. PARENTS’ AND APPLICANT’S SIGNED FEDERAL TAX RETURNS, submit by April 15
Completion of the CSS PROFILE will prompt the College Board to send you instructions about how to submit your 2008 federal income tax returns or non-tax-filer statements to Bryn Mawr College using their Institutional Documentation Service (IDOC) at no cost to you or your parents. Submit signed photocopies of all 2008 federal (no state) income tax returns, both business and personal, including all W-2 forms, statements, attachments and schedules for both custodial and noncustodial parents, stepparents and applicant.
REQUIRED UNDER CERTAIN CIRCUMSTANCES:
CSS BUSINESS/FARM SUPPLEMENT, submit by April 15
If you or your parents own or have interest in any part of a business or a farm, you will be prompted to submit a CSS Business/Farm Supplement to the College Board’s Institutional Documentation Service (IDOC) after you register for and complete your PROFILE form.
FEDERAL VERIFICATION WORKSHEET, submit upon notificationRequired only if we notify you that your FAFSA has been selected for verification by the U.S. Department of Education. The form is available on the Bryn Mawr web site at: www.brynmawr.edu/financialaid/forms.shtml and should be submitted directly to the financial aid office.
