Frequently Asked Questions

Applying

General Eligibility

Loans

General loan information
Bank of America changes

Verfication

State Aid


Applying


What is Columbia College's federal school code?
002456

Who do I call to check on my financial aid status?
If you are a Day Campus or Evening Campus student at the Columbia Mo. campus, check with Registration and Financial Services at (800) 231-2391, ext. 7390 or (573) 875-7390. If you are from a nationwide/extended campus, check with the financial aid advisor at your campus.

How can I get an estimate of my federal aid situation?
This Financial Aid Estimator will give you an estimate of your Expected Family Contribution (EFC). It will also give you an estimate of your financial need. Both of these are the basis of how schools award federal aid.

What is auto-packaging for financial aid?
Columbia College auto-packages student's aid. After Columbia College Financial Aid Office has received the student's FAFSA results, a financial aid "package" is automatically developed. An electronic award letter (eAward) outlining the financial aid award will then be sent to the student within 24 hours. Notification of the eAward is sent to a student's CougarMail. The eAward can also be accessed through eServices. Students no longer are required to submit a Stafford Loan Data Sheet to request funds. A student can confirm loan amounts via the eAward; students may also reduce or decline via the eAward. Learn more about auto-packagingPDF document.

Can I opt-out of Columbia College's marketing campaign?
The marketing opt-out form allows a student to opt-out of the marketing for a specific financial aid award year. Opting out of the marketing campaign means that the student will not receive future financial aid marketing reminders regarding (via e-mail, postal mail, and phone) the deadlines, FAFSA completion, or loan certification information. Opting out does not mean that the student will no longer receive e-mails from financial aid. E-mails will continue to come as a result of processing responses and award changes. Opting out of marketing must be requested each individual year.

Marketing is done by the Financial Aid Office to help students meet deadlines and encourage students completing financial aid in a timely manner. Opting out of the marketing will keep the Financial Aid Office from sending student reminders. By opting out of the marketing a student takes on full responsibility of knowing financial aid deadlines and requirements.

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General Eligibility


When is a student considered independent?
Not until the student turns 24 (i.e. student must turn 24 before January 1st of the award year). Exceptions to this are made for veterans of the U.S. Armed Forces, students with dependent(s) other than a spouse, married students, students in graduate or other professional school, or students who are orphans or wards of a court. If you are a dependent student and want to have the financial aid office to review your dependency status, you need to complete and return the Request for Dependency Override form located in the Forms section.

What is satisfactory academic progress and how does it affect my financial aid situation?
According to state and federal regulations, all students applying for federal and/or state financial assistance must maintain satisfactory progress in a degree program to receive federal and/or state funds. For more in-depth information, see the Financial Aid Standards of Academic Progress.

What will happen if I withdraw from all classes?
You will need to complete the official withdrawal process. Withdrawal can affect your aid situation and may result in some or all of your federal aid being returned to the federal government. For more in-depth information, you can see the Return of Title IV Funds (Federal Aid) Policy.
Day Campus students should consult the Dean of Campus Life if you have questions about the withdrawal process. All other students should contact Registration and Financial Services at (800) 231-2391, ext. 7390 or (573) 875-7390, or your local campus.

What if my financial situation has changed, can I have my information updated?
Yes. If you or your family has unusual circumstances (such as loss of employment or major medical expenses) that might affect your need for financial aid, you will want to complete the Special Consideration Form.

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Loans


General questions

How much can I borrow?
Refer to "Annual Loan Limits" from U.S. Department of Education Web site.

How does Columbia College know how much I want to borrow?
A student can accept, reduce and accept, decline their eAward letter. The options to accept, reduce and accept, decline are available beside each award type (i.e. subsidized loan, unsubsidized loan, federal work study, Pell grant etc). A student must then submit their award letter by clicking submit at the bottom of the eAward. A student must accept federal Stafford loans and submit their award letter for the loan to be certified. A loan cannot be figured into a payment plan until it has been certified. The eAward letter can be accessed through a student's eServices. Learn more about auto-packaging.

What is a Grade Level Loan Limit?

Stafford Loan Program Annual Maximums
Year in school Credit hours Dependent* Independent or dependent w/ PLUS denial
Freshman 0.0-23.9 $3,500 $3,500 + $4,000 = $7,500
Sophomore 24-51.9 $4,500 $4,500 + $4,000 = $8,500
Junior 52-83.9 $5,500 $5,500 + $5,000 = $10,500
Senior 84-120 $5,500 $5,500 + $5,000 = $10,500
Post-baccalaureate — $5,500 $5,500 + $7,000 = $12,500
Graduate — — $8,500 + $12,000 = $20,500
* Annual maximums include both subsidized and unsubsidized Stafford loans. These limits apply to loans borrowed from August through July. Amounts listed are the maximum amount a student may receive annually. Aggregate limits, proration, cost of attendance as well as other factors may keep a student from being eligible for the full annual maximum.

What is a loan period and how does is affect my loan?
Give the beginning and ending enrollment period applicable to the loan you are requesting. A loan period may not cover more than 9 months. For example, a loan may cover an entire academic year (August through May, a single 8-week session within an academic year (August through October, October through December, etc.), or a combination of 8-week sessions. You must be enrolled at least half-time to qualify for loan proceeds during an enrollment period.

How is my student loan disbursed?
Refer to "How will I receive my Stafford Loan" from U.S. Department of Education Web site.

Where and when do I pick up my refund check?
If you are a day or evening student you pick up your refund check at Registration and Financial Services in MO Hall. If you are a nationwide campus student, you need to contact your local campus for refund check pick-up information. If you are an online student your check will be mailed to you.

How do I request funds that I have reduced/denied/or gained eligibility for due to grade level change?
The Loan Request Form is available for individual circumstances that cannot be handled through the eAward. Packaging of aid eligibility is done automatically for up to 4 sessions. Examples of when the Loan Request Form may be needed.
  • Student plans on attending all five sessions August-July.
  • A student increased grade level after aid was packaged.
  • A student reduced loans on award letter but now needs to borrow more funds.
  • A student's loans for future sessions were denied or reduced due to non-enrollment, non-attendance, or withdrawal and the student wants to request funds for those future sessions.
A student should not complete a loan request form if the student has already been awarded their full Stafford loan eligibility.

Why does Columbia College have a preferred lender list?
Prior to 2001, Columbia College did not utilize any preferred lender. Due to the diverse geography of our student population, the College had to work with over 100 lenders annually, each of whom had varying levels of service. In an effort to comply with the federal Title IV disbursement requirements , and to streamline the process and provide a better experience for the student, both in terms of fees, service and loan options, the College selected preferred providers that have a regional or national presence that can service loans using a single point of contact and who have attractive origination fee options.

How is Columbia College's lender list compiled?
The college considers the following criteria for preferred providers:
  • The ability for the lender to provide the best front-end fee structure to the student and ability to provide good servicing during the life of the loan.
  • The ability of the college to work with the lender to process loan requests, communications, and disbursements in an electronic format and through a centralized and standardized processor.
Lenders that have been removed from the list were not able to satisfy this criterion. Students do have the option to originate a loan through a non-preferred lender.

Do I have to use a lender from Columbia College's preferred lender list?
Students and parents have the right and ability to select an education loan provider of choice and are not required to use any lender on the preferred lender list.

How do I go about using a non-preferred lender at Columbia College?
Student (for stafford loan and private, credit based loans) and Parents (for Parent PLUS loans) must submit a promissory note from the chosen lender to Columbia College. Until the promissory note is received Columbia College will be unable to complete the certification of any loan. Student and/or parent is responsible for communicating with chosen lender and ensuring that Columbia College receives appropriate notification that promissory note has been done. Students and/or parents using a non-preferred lender still must submit all other required documents for loans to be completed including but not limited to Parent PLUS loan data sheet, stafford entrance loan counseling, submission of eAward letter, etc.

How are loan funds from a non-preferred lender disbursed?
Loan funds will be sent via postal mail to Columbia College on or after the loan disbursement date. Checks will be made out to Columbia College and the borrower. Checks will have to be endorsed before funds can be credited to the student's account. Once the check is received the student will be contacted (via phone or mail depending on campus location) to endorse the check. The check will then be sent to the Accounting Office to have funds credited to the student's account.

How are loan funds from a preferred lender disbursed?
Loan funds will be sent to Columbia College via an electronic funds transfer (eft). Loan funds are credited to the student's account within 3 business days of receiving the funds (unless the student has been notified of a problem). Funds received electronically do not have to be endorsed to disburse to a student's account.

What are benefits?
Benefits are the benefits offered by the lender at this time. Benefits can change over the life of a student's promissory note. Students will need to contact their lender to determine how to earn the discounts listed under benefits.

Can you define Lender, Servicer and Guarantee agencies?
A Lender is the company that originates the loan; the organization that loans the money to a student. A Servicer is the company that provides customer service and account management services. Guarantee agencies insure the loans against default.

What are the fees?
There are two fees that can be charged through student loans: The default fee helps offset default costs for all borrowers and maintains the Federal Family Education Loan Program. Law requires that the fee be deposited into a federally-owned reserve fund; this money is given to the federal government. The maximum fee is 1%. The origination fee is a fee paid by the borrower (unless waived) to the lender to cover administrative fees for his or her loan. As of July 1, 2008 the maximum origination fee is 1%. This maximum decreases .5% each consecutive year until it is 0% (ie it is .5% July 1, 2009, and 0% July 1, 2010).

What is the interest rate?



Loans first disbursed between: 		Subsidized Stafford Loans Unsubsidized Stafford Loans FFELP PLUS Loans
Undergraduate borrowers Graduate Borrowers All Borrowers All Borrowers
7/1/2006-6/30/2008 6.8% 6.8% 6.8% 8.5%
7/1/2008-6/30/2009 6.0% 6.8% 6.8% 8.5%
7/1/2009-6/30/2010 5.6% 6.8% 6.8% 8.5%
7/1/2010-6/30/2011 4.5% 6.8% 6.8% 8.5%
7/1/2011-6/30/2012 3.4% 6.8% 6.8% 8.5%


Bank of America changes

Bank of America was my lender. Why do I have to complete a new promissory note?
Bank of America has discontinued its relationship with Sallie Mae and is requiring new promissory notes be signed for loans to disburse (ie for loan funds be sent to Columbia College on the students behalf). The promissory notes that students signed through Sallie Mae for Bank of America are no longer valid. A Stafford loan cannot disburse without a valid promissory note.

How do Bank of America changes affect me during repayment?
The loans with Bank of America/ Sallie Mae will be repaid through Sallie Mae. The loans with Bank of America /Great Lakes will be repaid through Great Lakes servicing. This means that a student will have two different places to send payments to during repayment.

I like Sallie Mae. Do I have to go with Bank of America/Great Lakes? 
Students and parents have the right and ability to select any education loan provider of their choice. You can absolutely choose to not use Bank of America/Great Lakes. In order to ensure that Columbia College provides the best customer service possible, please complete the change lender form. In addition, you will need to provide a promissory note for the lender you want to use.

Please keep in mind Columbia College does not work with all lenders in an electronic format. Columbia College will work with Bank of America/Great Lakes in an electronic format even though Bank of America/Great Lakes is not a preferred lender. 

Should I choose a Sallie Mae lender instead of Bank of America/Great Lakes?
Students and parents have the right and ability to select any education loan provider of choice. Students who choose a lender who works with Sallie Mae will be able to have their loans combined into one payment as long as the loan stays with Sallie Mae over the life of the loan.

What is a change lender form?
A change lender form communicates to the Financial Aid Office that you no longer want to use your current lender. This means that Columbia College will place your future disbursements in a pending status and contact you via CougarMail to provide more information on how this will affect your loans. This process is necessary due to the fact that poor communication through a change can keep Columbia College from providing you the best possible service in changing lenders. Students and parents have the right and ability to select any education loan provider of choice and we support our students’ rights. You can complete the change of lender form here.

What happens if I don’t complete a new promissory note?
A loan cannot disburse unless a student completes a promissory note. Failure to submit the promissory note after it has been requested three times will result in the loan being cancelled. If a loan is cancelled then the student will need to complete several documents including  loan request form  requesting the loan amount the student is interested in borrowing, a master promissory note for the lender the student wants to use, and submitting the award letter accepting the loan amount.

Where do I complete a promissory note for Bank of America?
You can complete the promissory note for a Stafford loan online here.

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Verification


What is verification?
Verification is the process of confirming that the information reported by the student and/or parent on the Free Application for Federal Student Aid (FAFSA) is accurate. Each year approximately 30 percent of student applicants nationwide are randomly selected by the Department of Education for verification. NOTE: Students selected for verification cannot receive financial aid until their information has been verified. See: verification forms.

What do I do if I am chosen for verification?
You will need to submit to the financial aid office certain financial information such as your own and your parents' tax returns, W-2s, untaxed income, child support and other requested financial information. No aid will be processed until your verification is completed.

I don't have the forms needed for verification. Where can I get copies?
You can request a tax transcript free of charge from the Internal Revenue Service. The transcript can be ordered by completing Form 4506- T (Request for Transcript of Tax Return) or by calling (800)829-1040. You should receive the forms within 10 business after submitting the request. For more information, visit www.irs.gov/faqs/faq1-6.html. Please make sure to sign your transcripts before submitting them to the financial aid office. You can also request your prior year's W-2 forms from the IRS by completing Form W-2; however, it may be quicker to contact your employer.

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State Aid


What is the Marguerite Ross Barnett Scholarship?
The Marguerite Ross Barnett Scholarship is a form of state aid that was established for students who are employed while attending school part- time. A student must be enrolled at least half-time but less than full time at a participating Missouri postsecondary school. Other qualifications include:
  • At least 18 years old
  • Missouri resident and a US citizen or eligible non-citizen
  • Employed and compensated for at least 20 hours per week
  • Demonstrate financial need
  • Maintain a 2.5 cumulative GPA and maintain satisfactory academic progress as defined by the school
For more information, please visit www.dhe.mo.gov/rossbarnett.shtml.

How do I apply for the Marguerite Ross Barnett Scholarship?
Along with completing the FAFSA, a student must submit a supplemental application. This application is submitted to the Financial Aid Office at Columbia College. Final eligibility for the scholarship is determined by the State of Missouri. Reminder--the FAFSA must be submitted by April 1 of the year the student plans to attend college (i.e. April 1, 2008 is the deadline for those applying for the 2008-2009 academic year).

I have applied for the Marguerite Ross Barnett Scholarship. Why haven't I been awarded?
Final eligibility for Marguerite Ross Barnett is determined by the state. Columbia College cannot request funds in your name until after the add/drop of the October 8 week session or March 8 week session due to the requirement that we verify you are a part-time student. While we do request funds for students, in the more recent years the state of Missouri has not had funds available for Columbia College students.

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