Financial Information FAQ

1. Do I make too much to be eligible for federal aid?
2. There are loans on my award letter. Does this mean that they are on my account?
3. How do I know which lender to choose?
4. Are my "disbursement" and my "refund" the same thing?
5. What is a budget?
6. What is Financial Check-In and why do I need to complete it?
7. My loans were automatically split for fall/spring/summer. How can I change my loans to fall/spring only?
8. I'm not going to attend for summer. How can this affect my financial aid?
9. What is verification and what do I have to do?
10. What is SAP?
11. How can I get off of SAP suspension?
12. What is the difference between a drop and a withdrawal?

1. Do I make too much to be eligible for federal aid?

Federal aid is broken down into two categories: need-based and non need-based. Although you may not be eligible for subsidized student loans or federal grants (which are based on financial need), you may still be eligible for unsubsidized student loans. In order to determine your eligibility for aid, you must fill out the Free Application for Federal Student Aid (FAFSA) each year.

2. There are loans on my award letter. Does this mean that they are on my account?

Not necessarily. The loans are listed on your award letter because you said “yes” to financial aid loans on your FAFSA and Liberty University determined that you may be eligible for loans, but this does not mean that you have applied for a loan. If you are a first-time borrower you will need to complete Entrance Counseling and federal student MPN online. Although Stafford loans require no credit check, you are still required to complete the Entrance Counseling and MPN. Steps for loans for 2010-2011 are available at  www.liberty.edu/loans.  If you plan to borrow after June 18, 2010, you must complete the steps listed at www.liberty.edu/direct even if you have previously completed an MPN and Entrance Counseling for federal student loans.

3. How do I know which lender to choose?

Liberty University does not maintain a preferred lenders list. Students are encouraged to borrow from any participating lender they choose. For convenience, Liberty University provides direct links (in alphabetical order) to several lenders that offer federal and private loan options, but students are free to select any participating lender. After June 18, 2010, all federal loans will be processed by the U.S. Department of Education.

Lenders and guarantors may charge a percentage-based fee for borrowers of federal student and federal PLUS Loans. For example, a $4,000 federal student loan with a 3 percent fee will disburse $3,880 to the student’s account at the student’s specified school. The $120 difference represents a charge from the lender or guarantor — it is NOT a charge from Liberty University.

4. Are my ‘disbursement’ and my ‘refund’ the same thing?

No. A disbursement occurs when funds are released from a lender to Liberty and are paid to your student account. Refunds are funds that have been sent from Liberty to you via LibertyOne. After arriving at Liberty, disbursements must first go through Financial Aid, Student Accounts and Higher One. By law, Liberty University has three days to post the loan amounts to your account and 14 days to process a refund.

For additional information regarding disbursements please visit the following aid disbursement link.

5. What is a cost of attendance?

The cost of attendance may include allowances in the student budget for the following expenses that the student may incur: tuition, room and board, fees, books, travel, miscellaneous, and loan fees. The total amount of a student's financial aid CANNOT exceed the cost of attendance. It is calculated according to several factors, such as your resident status (on-campus or off-campus), your degree level (undergraduate or graduate), and your enrollment level (‘half-time or greater’ or ‘less than half-time’). Your budget sets the maximum amount of financial aid you may receive from all potential sources, including scholarships, grants and loans. If you change enrollment to ‘less than half-time’ or vice-versa, your budget will adjust accordingly. Your budget is also adjusted annually to reflect changes to factors such as cost of living, tuition, and room and board.

6. What is Financial Check-In and why do I need to complete it?

Financial Check-In is a mandatory process during which the student addresses matters such as housing, vehicle registration and book vouchers, and commits to attending Liberty University by entering into a financial agreement. Financial Check-In is the last step of the enrollment process before you begin courses each term. You can access Financial Check-In by logging into your ASIST account and selecting Financial Check-In.

7. My loans were automatically split for fall/spring/summer. How can I change my loans to fall/spring only?

If you prefer to have your financial aid packaged (divided) for a semester combination other than the one you were set up for, please submit a Loan Change Form to the Financial Aid Office. Be aware that changing your packaging to fewer semesters may reduce your loan amounts, since decreasing your number of semesters will also decrease your total budget. You can print this form from the  Financial Aid Forms page or pick one up at the Student Service Center.

8. I’m not going to attend for summer. How can this affect my financial aid?

If your budget currently includes summer, your account will be adjusted and reduced if you do not plan to attend summer.

9. What is Verification and what do I need to submit?

The U.S. Department of Education selects about 30 percent of all students for Verification. If you are selected, the Financial Aid Office will request additional documentation from you to verify the accuracy of the information you submitted on your FAFSA. If you need to print any of the Verification forms, you may retrieve them from the  Financial Aid Forms page. For a list of any outstanding items that you still need to submit, log into your ASIST account, then select Financial Aid → Current Messages Regarding Your Financial Aid.

10. What is SAP?

SAP stands for Satisfactory Academic Progress. It is the evaluation that LU conducts at the end of every semester to ensure that you are still eligible for student aid based on your academic progress. If you are placed on suspension, any aid you had will be canceled immediately, and will only be reinstated if the suspension is appealed and approved. For more information on SAP, please see the SAP Policy and the SAP Appeal form from the Financial Aid Forms page.

11. How can I get off of SAP suspension?

You must submit an appeal to the Financial Aid Office using the SAP Appeal Form from the Financial Aid Forms page. Include any third-party support documents such as letters from a physician, counselor, lawyer, social worker, teacher or religious leader, or documents such as a death certificate or a divorce decree. Support statements cannot be from a family member, friend or Liberty employee. Appeals are reviewed on Fridays and to have your appeal reviewed on a given Friday, you must have submitted it by Tuesday of that week; otherwise it will be included in the following week’s review. Once the SAP Appeal Committee has reviewed your appeal and reached a decision, you will be notified of the outcome through your Liberty email account. You can also check the outcome by logging in to your ASIST account and selecting Financial Aid → Eligibility → Academic Progress.

12. What is the difference between a drop and a withdrawal?

A drop occurs before the course and attendance starts; a withdrawal occurs after the course has begun. For more details on dropping classes, please refer to the Academic Policy Handbook.  For information on withdrawals please visit the following link.