Financial aid

Federal Pell Grant

The Department of Education uses a standard formula, revised and approved every year by Congress, to evaluate the information you report when you apply for a Pell Grant. The formula produces an Expected Family Contribution (EFC), Student Aid Report (SAR), and your Institutional Student Aid Report (ISIR), which contains this number and will tell you whether you are eligible for a Federal Pell Grant. The size of award you receive will depend on your EFC number, how long you will be enrolled during the academic year, and the cost of education at MBC.

Once MBC has received your Institutional Student Information Report (ISIR), our Financial Aid Office will calculate the amount for which you are eligible. Our FAA will then credit the award to your account, pay you directly, or use a combination of these methods. You will receive an award letter informing you in writing of how much your award will be, and how and when the Pell Grant payments will be credited to your account or paid to you directly.

Awards are based upon financial need, cost of attendance and enrollment status. The maximum amount of Pell grant for the 2020-2021 award year is $6,345.00 annually. The federal government establishes Pell awards and reserves the right to modify Pell amounts at any time. Beginning with the 2017-2018 award year, eligible students may receive up to 150% of the student’s Federal Pell Grant Scheduled Award. Any Pell Grant received will be included in determining the student’s Pell Grant duration of eligibility and Lifetime Eligibility Used (LEU) in accordance with section 401(c)(5) of the Higher Education Act.

Applicants must be enrolled in an approved post-secondary institution and in an eligible program. Students Pell eligibility is measured in scheduled awards and measured by the percentage of lifetime eligibility used (LEU). Maximum duration of Pell lifetime eligibility used (LEU) is 600%. If a student has used 600% or greater of Pell lifetime eligibility, they are ineligible to receive further Pell awards. All students should apply; however, not all students may be eligible. Learn more here.

Federal Subsidized Loan

Awards are based upon financial need. The maximum amount of subsidized loans a student can receive for the 2020-2021 award year is $3,500.00 for first year students, $4,500.00 for second year students and $5,500.00 for third year students and beyond. Loans have a fixed interest rate with a cap of 8.25% adjusted every July 1. The interest rate for loans first disbursed on or after 7/1/20 is 2.75%.

The federal government establishes student loan interest rates and reserves the right to modify interest rates at any time. Applicants must be enrolled in at least half-time basis in an approved postsecondary institution and in an approved program and must demonstrate financial need. As of July 1, 2013, eligibility for a subsidized loan is limited to 150% of the length of the student’s academic program. Once a borrower has reached the 150% limitation, student eligibility for an interest subsidy also ends for all outstanding subsidized loans that were disbursed on or after July 1, 2013. At that point, interest on those previously borrowers’ loans would begin to accrue and would be payable in the same manner as interest on unsubsidized loans. All students should apply; however, not all students may be eligible.

Qualified students are not required to make payments nor pay interest while enrolled at least half time; the federal government “subsidizes” the interest during this period of enrollment. Interest begins accruing during the grace periods. Repayment of interest charges and principle begin six months after the student leaves school or drops below half time enrollment status. Applicant eligibility is determined by information reported on the

Free Application for Federal Student Aid (FAFSA). Students can complete a FAFSA here. Subsidized and unsubsidized Federal Direct Stafford Loans that have a first disbursement date on or after 10.1.2019 through 10.1.2020 have a 1.059% origination fee. The origination fee is assessed and automatically deducted by the federal government. Since the origination fee is deducted before the federal government disburses the loan to MBC, the amount credited to the student’s account will be less than the loan amount borrowed. Origination fees are determined by the Department of Education.

For more information contact: MBC Financial Aid Office.

Federal Unsubsidized Loan

Awards vary. The award may be used in conjunction with the Federal Subsidized Stafford Loan program. The maximum amount for a qualified independent student can receive for the 2020-2021 award year is $4,000.00 for first year students, $4,000.00 for second year students and $5,000.00 for third year students and beyond. Loans have a fixed interest rate with a cap of 8.25% adjusted every July 1.

The interest rate for loans first disbursed on or after 7/1/20 is 2.75%. The federal government establishes student loan interest rates and reserves the right to modify interest rates at any time. Some students may also qualify for an additional unsubsidized loan of $2,000.00.

Applicants must be enrolled in at least half-time basis in an approved post-secondary institution and in an approved program. This award is not based upon financial need and is available to students regardless of income.

All students should apply. Students are responsible for the interest from the date of disbursement. Interest payments may be made in installments while in school or allowed to accrue and be added to the principle (capitalized). Repayment begins six months after the student leaves school or drops below half time enrollment status. Students can complete a FAFSA application here or view the differences between subsidized and unsubsidized loans here.

Subsidized and Unsubsidized Federal Direct Stafford Loans that have a first disbursement date on or after 10.1.2019 through 10.1.2020 have a 1.059% origination fee. The origination fee is assessed and automatically deducted by the federal government. Since the origination fee is deducted before the federal government disburses the loan to MBC, the amount credited to the student’s account will be less than the loan amount borrowed. Origination fees are determined by the Department of Education. For more information contact: MBC Financial Aid Office.

Federal PLUS loans

Amount Award based on cost of dependent student's education minus other financial assistance. Loans have a fixed interest rate with a cap of 10.50% that may adjust every July 1. The interest rate for loans first disbursed on or after 7.1.2020 is 5.30%. The federal government establishes student loan interest rates and reserves the right to modify interest rates at any time. Applicants must be a parent or legal guardian of a dependent, undergraduate student. Students must be enrolled in at least half-time basis in an approved postsecondary institution and in an approved program. The parent or legal guardian must complete a credit check to qualify and the parent or legal guardian and student must complete the Free Application for Federal Student Aid (FAFSA) here and learn more about Federal PLUS loans here.

Veteran's Affairs

Veteran Affairs Benefits (VA) If a student has questions regarding eligibility in any VA program, the student should contact the VA hotline at 888.442.4551 or the student can also access the VA website here.

Chapter 33—Post 9/11 GI Bill™– Active Duty This education benefit is available to eligible veterans and service members. For more information regarding Chapter 33, please visit the VA website [here][8]. Midwest Barber College has elected to enter into an agreement with the VA to fund tuition costs. For more information regarding this program, please visit the VA website.

Chapter 30 - Montgomery GI Bill™ – Active Duty This education benefit is available to any man or woman who is active duty or honorably discharged from the military and completed his/her high school education. The VA office determines eligibility for this program. Monthly entitlements increase every year on October 1st with

the Consumer Price Index increase. The rates may increase at other times by an act of Congress. Current monthly entitlement amounts are listed here A student may qualify for increases above the basic monthly rates. The additional money is referred to as a “kicker.” The VA office and the VA website have information regarding who qualifies for “kicker.” Chapter 1606 - Montgomery GI Bill™ – Selected Reserves This program is for members of the Selected Reserve, including the Army, Navy, Air Force, Marine Corps and Coast Guard Reserves, the Army National Guard and the Air Guard. The selected Reserve component decides who is eligible for the program. For more information, please visit the VA website here.

AWARDING OF TITLE IV, HEA PROGRAMS

All Title IV funds are awarded based on the information received from the FAFSA. You must complete the FAFSA to be eligible. To complete the free FAFSA, Student/parents will provide two years prior tax return documents. Free Application for Federal Student Aid (FAFSA) can be found here.

After the FAFSA has been completed, an output document will be created. Two to three business days Midwest Barber College financial aid office will receive the FAFSA data electronically in a document called an Institutional Student Information Record (ISIR) and the student will receive a Student Aid Report (SAR). The output document will provide information about the student and family including a calculate Expected Family Contribution (EFC), written comment identifying specific information about the applicant data submitted.

For those students selected for federal verification or determined to have conflicting information, the applicant moves to review. All applicant data is reviewed for accuracy and an IRS Tax Transcript and additional documentation may be required to resolve any conflicting information. After the information and data are reviewed and any conflicting information is resolved, the file is coded ‘verification complete’ and the applicant is ready to be packaged.

STATE ASSISTANCE

The State of Kansas funding organizations provide funding to help qualified students meet the costs of post-secondary education. Awarding of funds is determined by the individual organizations.

State funding programs include:

• Veteran’s Education Training

• WIA Workforce Investment Act

• Workforce Development

• Trade Readjustment Allowance (TRA)

• Social Rehabilitation Services (SRS)

• Vocational Rehabilitation

Please contact our Financial Aid Office more information at (785) 266-2500.

RESERVE EDUCATION ASSISTANCE PROGRAM

It is a Department of Defense education benefit program designed to provide educational assistance to members of the Reserve components called or ordered to active duty in response to a war or national emergency (contingency operation) as declared by the President or

Congress. This program makes certain reservists who were activated for at least 90 days after September 11, 2001 either eligible for education benefits or eligible for increased benefits. The National Defense

Authorization Act of 2016 ended REAP on 11.25.2015. Some individuals remain eligible for REAP benefits until 11.25.2019, while others are no longer eligible for REAP benefits. VEAP - Veteran’s Educational Assistance Program Veterans who first entered active duty between January 1, 1977 and June 30, 1985 were able to voluntarily contribute to an education account to establish eligibility. The initial contribution must have been made by April 1, 1987. For more information, please visit the VA website

Chapter 35 - Dependent Educational Assistance Benefits This program provides education benefits for the spouse and dependent children of veterans who are permanently and totally disabled from service connected causes, veterans who died in service or who died of service-connected causes, and certain other veterans and service persons, such as those currently missing in action or captured in the line of duty. The VA determines eligibility for these benefits.

For more information, please visit the VA website. Students who do not meet the institution’s standards of satisfactory progress, or those students who withdraw from school, forfeit all future Federal financial assistance funds for which they previously were eligible until reinstated by the College.*

Loan Consolidation

If a student has multiple federal student loans, a student can consolidate them into a single Direct This may simplify repayment if the student is making separate loan payments to different loan holders or servicers as consolidation will consolidate multiple payments into one payment. However, the student will need to review the advantages and possible disadvantages of consolidating before making a decision. Once the student has selected a repayment plan, the student can change to another one with no financial penalties – although some restrictions may apply. For further information regarding student loan repayment, please visit: https://studentaid.gov/h/manage-loans.