Download AUSTIN COLLEGE GRANT/LOAN PROGRAM

AUSTIN COLLEGE GRANT/LOAN PROGRAM
DISCLOSURE FORM
The Austin College Grant/Loan is an effort by Austin College to provide essential need-based assistance to full-time
students pursuing a baccalaureate degree at Austin College. Primary characteristics of the program are as follows:
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50% of the grant-loan will be forgiven for students maintaining continuous full-time enrollment and graduating
within five years of admission.
Students withdrawing before graduation will be obligated to repay the full amount.
Interest will not be charged while the student is enrolled full-time at Austin College.
The Interest rate is variable and will be set at 3% over the ninety-one day Treasury Bill rate on January 2 of each
year.
Repayment and interest charges will begin six months after graduation or withdrawal. The maximum period for
repayment is 10 years. The minimum monthly payment is $30. Therefore, smaller loans may pay out in less than
10 years.
Repayment Deferral: Payment of principal may be deferred during any time you are enrolled as a full-time student
up to a maximum of three years. Payment of interest will not be deferred and will commence six (6) months after
graduation/withdrawal from Austin College.
Austin College will report this loan to credit reporting bureaus.
The Austin College Grant/Loan is offered as part of a comprehensive aid package--the offer of a Grant/Loan is
withdrawn if a student rejects other need-based student loans (Federal Subsidized Stafford Loans and Federal
Perkins Loans) listed on the student’s Award Letter.
These awards are made at the discretion of the administration of Austin College within the guidelines of the overall
philosophy and policies for packaging need-based financial aid.
EXAMPLE: A student who received a $3,000 Austin College Grant/Loan as a freshman and the same amount each year
for the next three years would have received a total of $12,000 from the program. Upon graduation, $6,000 would be
forgiven. The remaining $6,000 would be set up for repayment. Since the 91-day Treasury Bill rate on January 2, 2009,
was .05%, had this student’s loan been set up for repayment during 2009, the interest rate would be 3.05%. At this rate,
the monthly payment for a $6,000 loan amortized over 10 years would be $58.08.
In order to receive the Austin College Grant/Loan, a student must (a) complete the FAFSA, (b) be awarded the Austin
College Grant/Loan by the Director of Financial Aid as a part of a complete financial assistance package, (c) accept the
Austin College Grant/Loan by circling “yes” by the award and returning the signed copy of the Award Letter to the
Financial Aid Office, (d) also accept any need-based loans (Subsidized Stafford and Perkins Loans) awarded as part of
the student’s financial aid package and listed on the Award Letter, (e) sign and return a copy of this program Disclosure
Form, certifying that the student has read and understood the characteristics of the program and would like to receive the
award, (f) complete and sign the Master Promissory Note, (g) complete the Austin College Student Loan Information
Form and (h) each semester complete and sign the required affidavit as requested by the Austin College Business Office.
CERTIFICATION STATEMENT:
I have read and understood the above information about the Austin College Grant/Loan program and wish to receive this
award. Furthermore, after graduating from Austin College, I pledge in “good faith” to give gifts in kind to the College,
to the extent that I am able, to help sustain this grant-loan program or other programs which will assist future generations
of students.
Signature: _____________________________________________ Date: ___________________________
Printed full name: _______________________________________
Social Security #: _______________________________________
Last Revised Jan 2009