News and Announcements
Below are news and announcements you may find helpful in your financial aid process. In order to download the PDF forms, we recommend that you have the latest version of Adobe Acrobat Reader installed on your computer. You may download Acrobat Reader for free if you do not have it.
Bank of America Exiting Federal Student Loan Program
November 9, 2009
Bank of America announced today that they would be exiting the Federal Family Education Loan Program, or FFELP, in December. Here are some details from their announcement:
Starting December 5, 2009, Bank of America will suspend loan originations through the Federal Family Education Loan Program (FFELP) and will no longer accept applications for new FFELP loans. Bank of America will continue to service our existing loan portfolios. All new FFELP loans must be set for disbursement on or before December 18, 2009. This means the application must be:
- Guaranteed by the Guarantor,
- Certified by the School,
- Credit-approved, if applicable, and have a valid Master Promissory Note on file, and satisfy other requirements for disbursement.
For approved loans that meet the December 18, 2009 deadline, Bank of America will honor scheduled funding including second disbursements. Bank of America will be unable to accept FFELP loan applications received on or after December 5, 2009.
New Educational Tax Credits
October, 2009
The Hope Scholarship and Lifetime Learning Tax Credit
The Hope Scholarship is a tax credit for eligible first- or second-year undergraduates or their parents; it is for certain educational expenses paid on or after January 1, 1998. For 2009 and 2010 only, the Hope Scholarship tax credit has been modified with expanded eligibility criteria and a larger claimable credit. The Lifetime Learning Credit is for eligible students who are beyond their second year of college or their parents; it is for certain educational expenses paid on or after July 1, 1998.
To take advantage of the tax credits, taxpayers must submit IRS form 8863, Education Credits (Hope and Lifetime Learning Credits), with their federal tax returns to the IRS.
The American Opportunity Tax Credit for 2009 – 2010
Under the American Recovery and Reinvestment Act of 2009, more families will be able to claim a larger tax credit for educational expenses in 2009 and 2010. The new credit, known as the American Opportunity Tax Credit, modifies the Hope Scholarship tax credit for two years. It allows eligible taxpayers to claim up to $2,500 per student per year on their 2009 and 2010 tax returns.
The American Opportunity Tax Credit also expands eligibility for the higher education tax credit. Families with incomes up to $80,000 ($160,000 for joint filers) will qualify. In addition, families may claim the credit for students who are enrolled in their first four years of college (instead of just their first two years). And for the first time, books and course materials will be considered eligible expenses. For more information visit IRS Web site regarding the Amercian Opportunity Tax Credit.
Updates to the Federal Pell Grant Program
August 12, 2009
In accordance with the Higher Education Opportunity Act of 2008, the following updates are effective July 1, 2009:
- A student may be eligible to receive up to two scheduled Federal Pell Grant awards during a single award year if the student maintains certain criteria including minimum half time enrollment during the second Scheduled Award.
- Children of U.S. military veterans may be eligible to receive the maximum Federal Pell Grant award if their parent or guardian was a member of the U.S. Armed Forces and died as a result of performing military service in Iraq or Afghanistan after September 11, 2001. The student must have been under 24 years of age or enrolled in college at the time of the parent or guardian's death. In addition, the student must already be eligible for the Federal Pell Grant award under the original determination of eligibility.
- Any student who is subject to an involuntary civil commitment after completing a period of incarceration for a forcible or non-forcible sexual offense is ineligible to receive a Federal Pell Grant.
- A student may receive no more than nine Scheduled Awards in their undergraduate career. This only applies to students who receive a Pell Grant for the first time on or after July 1, 2008.
Erma Byrd Scholarship Available
July 9, 2009
The Erma Byrd Scholarship Program provides scholarships to individuals pursuing a course of study that will lead to a career in industrial health and safety occupations, including mine safety. This program is designed to increase the skilled workforce in these fields at both the fundamental skills level and the advanced skills level. The program has a service obligation component, requiring recipients of the scholarship to be employed in a career position directly related to industrial health and safety, including mine safety, for a period of one year upon completion of the degree program. The selected areas of study are: mining and mineral engineering, industrial engineering, occupational safety and health technology/technician, quality control technology/technician, industrial safety technology/technician, hazardous materials information systems technology/technician, mining technology/technician, and occupational health and industrial hygiene. Scholarship recipients must begin such employment no more than six months after the completion of their degree program.
Web site: http://www.ed.gov/programs/ermabyrd
Deadline: July 31, 2009
Positive changes in financial aid programs
July 1, 2009
Effective July 1, 2009 the following changes occur in financial aid as a result of the College Cost Reduction and Access Act (CCRAA), the American Recovery and Reinvestment Act (ARRA)., and the HEOA Technical Corrections Bill (H.R.1777).
Loans- Lower Interest Rates: The interest rates on subsidized federal student loans for undergraduate students will decrease from 6% to 5.6%.
- Reduced Fees: Borrower origination fees on federal student loans will be lowered from 2% to 1.5% on loans with initial disbursements between July 1, 2009, and June 30, 2010.
- Income Based Repayment (IBR): The IBR helps borrowers keep their loan payments affordable with payment caps based on their income and family size. It is available to borrowers of federal student loans in both the Direct Loan and Federal Family Education Loan (FFEL) programs. The IBR does not apply to PLUS loans made to parent borrowers. Additional information on the IBR may be found at www.IBRinfo.org
- Federal Pell Grant: Increases the 2009-10 maximum to $5,350. You must apply for financial aid to determine your eligibility for the Federal Pell Grant.
- Academic Competitiveness Grant (ACG) and National SMART Grant: Eligibility for these grants will be expanded to include eligible non-U.S. citizens and students attending on a less than full time basis. Students must be eligible for a Federal Pell Grant to receive an ACG or a National SMART Grant.
- Excludes all federal veteran benefits from consideration when determining financial aid eligibility.
If you have not yet applied for financial aid for the 2009-10 academic year, visit the FAFSA on the Web.
It's Not Too Late to Apply — But It's Not Early Either
June 18, 2009
The Financial Aid Office has already completed hundreds of files for the 2009-10 academic year. All students who wish to be considered for federal financial aid for the fall term must file a 2009-10 Free Application for Federal Student Aid (FAFSA). If you have not started this process, you should begin right now.
The best way to apply it to go to FAFSA on the Web and complete the 2009-10 new or renewal FAFSA. If you wait until just before the quarter begins, your payment will be delayed. The Financial Aid Office is open all summer to answer questions and assist you.
It is important that you respond to all correspondence we send you. We often need additional documentation to complete your file. Any incomplete request will cause a delay with your file and aid.
Graduating at the end of Spring?
June 1, 2009
Graduating students who have borrowed a Federal Direct Loan or a Federal Perkins Loan while attending the Santa Clara University are required to complete exit counseling on-line by visiting our Exit Counseling Web page.
Need Federal Loans for Summer School?
May 19, 2009
The deadline to request a William D. Ford Federal Direct Loan for the summer term is June 15, 2009. Please contact the Financial Aid Office by June 15, 2009 to request a student loan. Please make sure you completed the 2008-09 Free Application for Federal Student Aid (FAFSA) to determine your loan eligibility.
The American Recovery and Reinvestment Act of 2009 (ARRA)
April 9, 2009
The American Recovery and Reinvestment Act of 2009 (ARRA) was signed into law on February 17, 2009 and will directly benefit Santa Clara University students as they pay for a Santa Clara education.
The ARRA provides increased Federal Pell Grant funding for eligible students in 2009-10. In addition, the ARRA also provides Santa Clara University more Federal Work Study dollars to enable more students to be considered eligible for Federal Work Study funding.
The ARRA creates the American Opportunity Tax Credit (AOTC), which is a temporary enhanced replacement of the Hope Tax Credit in 2009 and 2010. There are five major enhancements to the Hope Tax Credit:
- The maximum credit is increased from $1800 to $2500 (for up to a $4,000 in eligible charges).
- The income ceiling rises from $116,000 to $180,000 for married filers ($58,000 to $90,000 for single filers). The tax credit begins to phase out for individual taxpayers with adjusted gross income over $80,000 or $160,000 for married couples filing jointly).
- The credit is expanded to cover four years of education (currently it is 2 years under the Hope Tax Credit).
- Eligible charges (up to the $4,000 allowable) include tuition and course material charges.
- 40% of the AOTC is now refundable, benefiting some families with no tax liability.
Please consult your personal tax adviser for more information about your particular situation.
FAFSA Declaration of Assets
March 6, 2009
What your students should include and what they are not required to list as assets on the FAFSA.
Some students and families across the country often struggle with completing the FAFSA form. Questions often include items such as what to list and/or not list as assets on the form.
| LIST THIS | NOT THIS |
| Savings | Value of your family home (or farm) |
| Stocks & bonds | Value of annuities |
| Mutual funds | Life insurance plans |
| Money market accounts | Non-education IRAs |
| Real estate investments | 401(k) plans |
| Trusts | Keogh or other retirement plans |
| Education savings accounts owned by your parents |
Education savings accounts in your name (only list this if you are an independent student) |
* You must report contributions for 2008 to any tax-deferred pension or savings plan.
Increase to Federal Pell for the 2009-10 Academic Year
February 20, 2009
On February 17, 2009 President Obama signed the American Recovery and Reinvestment Act of 2009 (P.L. 111-5) that appropriated an increase amount to Federal Pell Grant program with the provisions from the College Cost Reduction and Access Act (CCRAA) (P.L. 110-84), resulting in a 2009-10 maximum Federal Pell Grant of $5,350.
California Budget Preserves Cal Grant Programs
February 20, 2009
The California Assembly followed the California Senate and adopted a budget that runs through June 2010. The budget makes major changes to many state programs. One programs not cut was Cal Grant. The budget preserves the maximum Cal Grant at $9,708, continues the Competitive Program and unfreezes the income and asset ceilings.
California Student Aid Commission Office Hours have Changed
February 13, 2009
In accordance with the Governor's Executive Order S-16, that became effective February 1, 2009 and until further notice, the California Student Aid Commission (CSAC) will be closed the first and third Fridays of every month. CSAC apologizes for the inconvenience for students as the March 2 deadline approaches. As a reminder: although CSAC will be closed, WebGrants will still be available for both students and schools.
In a effort to assist as many students as possible, CSAC is extending their Student Support Service Branch (Call Center) hours from Tuesday, February 17 to Monday, March 2, 2009. With the exception of Friday, February 20, 2009, the Call Center's hours will be from 8:00 a.m. to 4:55 p.m.
California Student Aid Commission: PO Box 942845, Sacramento, CA 94245. California Student Aid Commission may also be reached by phone at 1-888-CA-GRANT.
New FAFSA Filing Option - FAFSA on the Phone
December 20, 2009
Federal Student Aid has launched a new initiative that offers the option for students and parents to complete the Free Application for Federal Student Aid (FAFSA) over the phone. In lieu of filing the FAFSA online or mailing in a paper FAFSA, students and parents can call the Federal Student Aid Information Center (FSAIC) and file by phone.
FAFSA on the Phone (FOTP) provides applicants with real-time assistance from a customer service representative in completing the FAFSA. FOTP was developed as an alternative for FAFSA applicants and is not intended to replace our FAFSA on the Web application. This new service is designed for applicants who do not have access to FAFSA on the Web and who are facing fast-approaching state application deadlines.
Because this is a new option and because we do not want current online filers to switch to FOTP, we are doing a phased, controlled rollout-a rollout that is supported by informed college access professionals. To determine where to start with the rollout, Federal Student Aid analyzed paper submission trends and identified three target states that would benefit most from the FOTP service. The states identified were Indiana (the state with the highest percent of paper filers) and Rhode Island and West Virginia (states that may not have ready access to Internet services for online filing).
Federal Student Aid is pleased about this milestone that increases accessibility to the FAFSA. FOTP is free, fast, reliable, and accurate and provides real-time counseling on the financial aid process and end-to-end support for submission of the FAFSA. If you have questions regarding FOTP, please contact the FSAIC at 1-800-4-FED-AID.
* From the U.S. Department of Education, ifap.ed.gov eAnnouncements 12-17-2008
EdFund's 2009 Tax Benefits for Higher Education Brochure
January 20, 2009
The 2009 Tax Benefits for Higher Education Brochure covers a variety of important tax topics related to higher education. It is intended for your educational use and not as legal or tax advice; it does not cover every facet or the full scope of this subject. We highly recommend that you consult a professional tax adviser or attorney and encourage you to visit the Internal Revenue Service Web sites, where you will find the complete text of various relevant IRS publications.
The 2009-10 Free Application for Federal Student Aid (FAFSA) is now available
January 1, 2009
To receive student financial aid, you need to fill out a Free Application for Federal Student Aid (FAFSA) every school year.
FAFSA on the Web allows you to complete and submit your financial aid application electronically.
Past News and Announcements
December 8, 2008 Tips for Completing the 2009-10 FAFSA
November 21, 2008 Watch for Your Renewal Reminder from the U.S. Dept. of Education
October 30, 2008 U.S. Department of Education Creates New Web site
September 3, 2008 Student Loans: Avoiding Deceptive Offers
August 4, 2008 New TEACH Grant Program began July 1
July 22, 2008 Regulatory Changes for Financial Aid
June 10, 2008 ECMC's FAB program launches new financial literacy Web site
May 27, 2008 New Federal TEACH Grant
May 22, 2008 Additional Loan Financing Options
April 21, 2008 Private Loan Tips
March 17, 2008 Federal Stafford Loans for Summer Term 2008
February 29, 2008 - Revised March 13, 2008 Access to Student Loan Capital for SCU Students
February 13, 2008 FAFSA Tips
January 30, 2008 Direct to Consumer Loans
December 28, 2007 EdFund Updates Higher Education Tax Benefits Flyer
November 19, 2007 "Real-Time" PIN Available for 2008-09 FAFSA
October 26, 2007 Families Affected by the Southern California Fires
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