No. There are many different types of aid for all students, regardless of income levels. Most incoming scholarships and some loans are non-need-based forms of financial aid.

What is the FAFSA form?

The Free Application for Federal Student Aid (FAFSA) is a large piece of your financial aid file. The Office of Financial Aid uses this document to determine your need for all the available aid, such as the Pell Grant, SEOG, Federal Perkins and Federal Stafford Loan program. You can complete the FAFSA online at www.fafsa.ed.gov or with a paper application. Include our school code so we can receive the form electronically. Please be aware that Los Angeles and Kansas City have two different codes. Our Title IV codes are as follows:

Los Angeles Campus: 014919

Kansas City Campus: 014438

When should I start applying for financial aid?

It is recommended to start the financial aid application process 90 days prior to the beginning of the term. The deadlines are as follows. This schedule allows our office to process your aid in a timely manner:

Fall entry: July 1

Spring entry November 1

Summer entry: March 1

What is the difference between subsidized and unsubsidized Stafford Loans?

The Federal Stafford Subsidized Loan is a need-based loan where the Department of Education pays the interest on the loan during periods of deferral and up to 6 months after separation from the College (i.e., graduation, withdrawal, enrolled less than half time). The Federal Stafford Unsubsidized loan is a non-need-based loan. This means the borrower is responsible for the interest on the day the loan is disbursed. The interest can be paid monthly or quarterly or the borrower can allow it to accrue during the in-school period.

Why are fees taken out of my Federal loans?

The lender deducted fees from the loan proceeds to pay the federal government to partially offset the cost of the federal loan programs. In some circumstances the lender or the guarantor of your loan may offer to make these payments on your behalf so that you would not be responsible for any fees. If you have questions about lenders who are currently offering to pay fees for you, please contact the Office of Financial Aid.

What are the interest rates on my loans?

The current interest rate on the Federal Stafford loans disbursed after July 1, 2006 will be a 6.8 percent fixed interest rate. For loans disbursed prior to July 1, 2006, the interest rate is variable and changes every July 1. The interest rates on Federal Stafford loans will never go above 8.25 percent. For the Federal Perkins loan, the interest rate is 5 percent. In regards to alternative loans, you will need to refer to the promissory note or contact the lender for interest rate information.

If I do not complete my education, do I have to pay back my student loans?

Yes. Student loans are required to be paid back regardless of whether you have completed your education. In the event that you choose not to pay your loans back, they will go into default. With default the Department of Education will obtain your loan and assign it to a collection agency. You will owe the entire unpaid amount, including interest, collection fees and court and attorney’s fees. At this time, the IRS may seize your property, garnish your wages, or sue you. The government can take your federal and state tax refunds and even your state lottery winnings to pay your student loan. Defaulted borrowers are published in the federal register.

What are the current default rates on student loans from the federal government?

The College is in compliance with all Title IV requirements of the Higher Education Reauthorization Act as amended in 1992. Since 1988, the default rate for the Federal Stafford Loan program at the Kansas City campus has ranged from 0 percent to 6.3 percent. Currently the default rate is 1.8 percent. Since 1988, the default rate for the Federal Stafford Loan program at the Los Angeles campus has ranged between a high of 6.8 percent in 1993 to a low, and current, rate of 0.5 percent.