Financial Aid

An alternative student loan is a loan obtained for educational purposes that is not borrowed through the federal student loan program. There are many private lending institutions and banks that provide student loans. No member of Paul Smith’s College can advise a student what lender to use. When a student applies for an alternative student loan, the lender will send a “certification request” to the Financial Aid Office to confirm student eligibility. Paul Smith’s College may refuse to certify an alternative loan if the student has not borrowed their federal student loans first.

You may use ELM Select to compare lenders.

What to Consider When Selecting a Lender

Students are encouraged to research the interest rates, credit check requirements, conditions, terms, and repayment of alternative loans when selecting a lender. Below are some questions to ask when comparing lenders.

• What is the interest rate?
• Is the rate fixed (rate does not change) or variable (rate changes)?
• Are there any fees associated with the application or early repayment?
• Can I defer principal and interest payments while enrolled in school?
• Am I required to have a co-signer?
• Will a co-signer help lower my interest rate?
• Is there an option to have my co-signer released from the loan after a specified time period?
• Do I have to be enrolled in a minimum number of credit hours to receive the loan?
• What is the repayment period?
• When do I enter repayment and how long do I have to repay?
• Can I use the loan to cover a prior balance? If yes, how long after that semester is over can I apply?
• Are there any other benefits/incentives offered with the loan?

A consortium agreement is an agreement between two colleges to recognize your course registration at each location for financial aid purposes. It certifies that your “home” institution (the school you’re receiving your degree from) is the only school that’s allowed to administer your financial aid.

PSC students who are unable to find a required PSC course needed for completion of their degree program may take the required class at another institution and receive federal and/or state financial aid for the course through PSC. The student should request a “Financial Aid Consortium Agreement” from the PSC Financial Aid Office. 

To be eligible for federal financial aid at PSC, students must:

1. Be a U.S. citizen, a national, or other eligible non-citizen
2. Not be in default on any federal student loans or owe a refund or repayment on any federal grant. This also applies to parents applying for Federal Parent PLUS Loans.
3. Have a valid Social Security number
4. Be accepted in an eligible degree program at PSC
5. Have a high school diploma from an accredited high school, or a GED
6. Meet Satisfactory Academic Progress (SAP) requirements as outlined in PSC’s SAP policy

For more information on federal financial aid eligibility, visit the Federal Student Aid eligibility website.

 

Paul Smith’s College is prohibited under federal regulations from making any false, erroneous, or misleading statement directly or indirectly to a student, prospective student, member of the public, accrediting agency, state, agency, or to the U.S. Department of Education. Misleading statements include anything that is likely to deceive or confuse on topics including but not limited to PSC’s education programs, financial charges, employability of graduates, relationship with the Department of Education, etc. Statements can be made by any means including written, visual, or word-of-mouth. This includes testimonials given under duress or because such testimonial was required to participate in a program.

Students may not be awarded financial aid over their estimated Cost of Attendance. If additional resources become available to a student, the Financial Aid Office may reduce previously paid or anticipated awards to keep the student’s financial aid within the estimated cost of attendance. Every effort will be made to make the smallest reduction possible. To avoid overawards, it’s important for students to disclose any outside scholarships they’re anticipating to the financial aid office.

Overawards of “need-based” financial aid (ex: Federal Subsidized Student Loans) can also occur when changes to a student’s Estimated Family Contribution (EFC) or financial aid awards. This usually results in Federal Subsidized Student Loan eligibility being converted to a Federal Unsubsidized Student Loan. You can read more about the difference in these two loan programs on the Federal Student Aid webpage.

Any adjustments made to financial aid will appear immediately in student’s Financial Aid portal. It is important to check the portal often.

Students earn a portion of their Federal (Title IV) financial aid for every day of attendance or active participation in academically-related activity. Eligibility for aid must be recalculated for a student who withdraws from all classes before completing 60% of the period of enrollment. If recalculation determines the student owes the federal government a portion of the loans or grants received at the beginning of the semester, the university will automatically pay this to the government on the student’s behalf. This may result in a debt created on the student account and an institutional hold, preventing registration or release of official transcripts until resolved.

Depending on when and why the student withdrew, the student may receive prorated refunds for tuition, or room and board. These institutional adjustments do not impact the official withdrawal calculation described above. If a student withdraws prior to their financial aid being disbursed by the PSC Financial Aid Office (typically the first two weeks of classes), the student may be eligible for a “post-withdrawal disbursement” if the student attended their classes prior to withdrawing. the Financial Aid Office will email information about “post-withdrawal disbursements” and request student permission before applying these financial aid funds. 

 

There are two types of student behaviors that will result in a recalculation review:

1. Official Total Withdrawal: Students who withdraw from all courses are eligible for a percentage of financial aid based on the percent of the semester completed. For example, a student who withdraws from all classes after completing only 30% of the term will have “earned” 30% of any federal financial aid received. The school (or sometimes the student) must return the remaining 70% to the government.
2. Unofficial Withdrawal: A student that doesn’t officially withdraw from their classes but doesn’t earn any credits in a semester may be considered an unofficial withdrawal. In this situation, federal financial aid will be recalculated based on the mid-point, or 50% point of the semester unless there is documentation that shows the student attended classes or participated in an academically- related activity beyond this date.

Students thinking about withdrawing from classes should speak with the Financial Aid Office to understand how it may impact financial aid.

To learn more about how PSC prorates tuition, fees, room, and board for students that withdraw from all their classes during any semester, see the Refund Policy in the PSC Catalog.