Types of Federal Student Aid

Creative Hair School participates in the Federal Student Aid Program (also known as the Title IV programs), and uses the information from the FAFSA to determine your eligibility for federal student aid, including grants and loans. Annual award amounts are determined based on the expected family contribution (EFC), cost of attendance, dependency status, and grade level. Creative Hair School recommends every one interested in the Cosmetology program fill out a FAFSA at www.fafsa.ed.gov even if you think you will not qualify.

federal pell grants

Federal Pell Grants are for undergraduates who demonstrate financial need who have not yet earned a bachelor's or professional degree. Unlike loans, Pell Grants do  not require repayment, unless the student withdraws from school and owes a refund. A student can receive a Federal Pell Grant for no more than 6 years (roughly 12 semesters). Award amounts can change annually. For the 2018-2019 award year, the award amount is up to $6,095.

For more information, visit StudentAid.ed.gov/pell-grant.

direct subsidized loans

Direct Subsidized Loans are for undergraduate students who demonstrate financial need. All loans must be paid back. Your first payment is due six months after you leave school. The U.S. Department of Education generally pays interest while the student is in school and during certain other periods. The interest rate is 5.05% for loans first disbursed on or after July 1, 2018 and before July 1, 2019. The interest rate is fixed for the life of the loan. Eligible students can receive this type of loan for no more than 150% of the length of their program, and the U.S. Department of Education may stop paying interest if a student who received Direct Subsidized Loans for the maximum period continues enrollment. Award amounts depend on grade level and dependency status. A loan fee will be deducted from each disbursement.

Borrowers must complete Entrance Counseling and the Loan Agreement for a Subsidized/Unsubsidized Loan before a loan will be disbursed.

Borrowers must complete Exit Counseling each time they drop below half-time enrollment, graduate, or leave school for any reason.

For more information, visit StudentAid.ed.gov/sub-unsub.

direct unsubsidized loans

Direct Unsubsidized Loans are for undergraduate and graduate or professional students. Financial need is not required. All loans must be paid back. Your first payment is due six months after you leave school. The borrower (student) is responsible for all interest that accrues on the Direct Unsubsidized Loan while they are in school and during their grace period. The interest rate for undergraduates is 5.05% for loans first disbursed on or after July 1, 2018 and before July 1, 2019. The interest rate is is fixed for the life of the loan. Award amounts depend on grade level and dependency status. A loan fee will be deducted from each disbursement.

Borrowers must complete Entrance Counseling and the Loan Agreement for a Subsidized/Unsubsidized Loan before a loan will be disbursed.

Borrowers must complete Exit Counseling each time they drop below half-time enrollment, graduate, or leave school for any reason.

For more information, visit StudentAid.ed.gov/sub-unsub.

direct plus loan

Direct PLUS Loans (also called Parent PLUS Loans) are for parents of dependent undergraduate students.  Financial need is not required. All loans must be paid back. Your first payment is due six months after you leave school. The borrower (parent) is responsible for all interest. The interest rate is 7.6%. for loans first disbursed on or after July 1, 2018 and before July 1, 2019. The interest rate is is fixed for the life of the loan. The maximum award amount is the cost of attendance minus any other financial aid received. A loan fee will be deducted from each disbursement.

Borrowers must apply for a PLUS Loan and complete the Loan Agreement for a PLUS Loan before a loan will be disbursed.

For more information, visit StudentAid.ed.gov/plus.

(Information taken from StudentAid.ed.gov and Do You Need Money for College?: The Guide to Federal Student Aid 2018-19, published by the U.S. Department of Education, August 2017.)

 

 

Loan Repayment

 
 

Repayment Checklist

After you graduate, leave school (for any reason, including dropping or termination), or drop below half-time enrollment, you will have a 6-month grace period before you must begin repaying your loans.

If you have difficulty making payments, there are a number of options available to you, including:

  1. Changing your payment due date.
  2. Changing your repayment plan.
  3. Loan consolidation.
  4. Deferments and forbearances.
  5. Forgiveness, cancellation, or discharge. (In special circumstances.)

REMEMBER: You must repay student loans even if your run into financial difficulty or didn't get the education or job you expected. If you don't, your loan may go into default. Once in default, your credit rating may go down, your wages may be garnished, and your tax refunds may be withheld!

For more information, visit StudentAid.ed.gov/Repay or contact your loan servicer.