Parents of full-time, degree-seeking students are eligible to participate in the SEAL program. Eligibility for this program can be established in one of two ways:

 

(1) By the submission of need analysis forms (FAFSA) to first determine the student's eligibility for need-based assistance, or

 

(2) By the submission of a signed copy of the parental 2007 Federal Income Tax Return if need analysis forms are not filed.

 

Those submitting need analysis forms will be initially eligible for the SEAL program if the calculated family contribution derived from need analysis is at least $20,000 and their available income is between $70,000 and $200,000. Parents may submit these forms to receive a calculated family contribution whether or not they are pursuing the need-based financial aid process.

Those parents not submitting need analysis forms can apply for SEAL consideration if they submit to the Office of Financial Aid a signed copy of their 2007 Federal Income Tax Return, showing an available income between $70,000 and $200,000. (Available income is defined as adjusted gross income from Form 1040 or Form 1040A plus any non-cash losses reflected on the tax return, such as loss carry forwards and depreciation.)

 

Parents of students residing outside the United States are ineligible for the SEAL program.

 

 

The minimum loan in an academic year is $9,500. The maximum is the lesser of one-half the direct cost of education (tuition, fees, room, and board, of which one-half will be $21,060 in 2008-2009) minus any aid received by the family or one-half the family contribution as calculated from the need analysis forms. The University reserves the right to adjust any loan request not meeting these criteria.

 

 

The first step is for the parent applicant to complete the eligibility determination form. If the University determines that the applicant meets one of the stated eligibility criteria, a loan application from Regions Bank will be forwarded to the applicant. The loan application should be completed and returned to Regions Bank, along with a $75 check for processing fees made payable to The University of the South. The bank will perform a standard credit check and determine the borrower's credit-worthiness for the SEAL. If the application is approved, Regions Bank will forward a promissory note and a SEAL Agreement to the borrower for signature(s).

 

 

The interest rate on the SEAL will be determined annually, and will be the prime rate in effect on September 1 of the academic year. That interest rate will remain in effect for that academic year. For 2007-2008 the SEAL interest rate was 5.5%. When repayment begins, the interest rate(s) in effect throughout the years the SEAL is borrowed will be averaged and weighted for the loan amounts borrowed at each rate. The repayment period interest rate will then be fixed at the weighted average of the interest rates plus 2.00%. The Borrower pays no interest on the SEAL while the student for whom the loan is borrowed remains enrolled at The University of the South, up to a maximum of four years.

 

Repayment begins on the SEAL thirty days after the student ceases enrollment at the University. Should the student not enroll at the University for a regularly-scheduled period of enrollment prior to the completion of a degree program, repayment will begin after the aforementioned thirty days. Students attending an approved program of external study (such as study abroad) will be considered to be enrolled for the purposes of loan usage and repayment obligations under this program.

 

Length of repayment will be tied to the number of academic years the SEAL is utilized. Each year's SEAL must be repaid in 12 months once repayment begins. If a borrower utilizes the SEAL for two academic years, 24 months will be allowed for repayment of the total SEAL lent; 36 months for three academic years of borrowing; and 48 months (the maximum period allowed) for four academic years of borrowing. Pre-payment without penalty is allowed at any time before or during the required repayment period. Repayment shall be made to Regions Bank.

 

As the interest rate will be adjusted annually, parents must re-apply each year if they wish to continue participation in the program, subject to stated eligibility criteria.

•   Loans of up to $21,060 are available for the 2008-2009 academic year.
•   Program is offered both to families of students receiving need-based aid and those who are not.
•  No payments are required of borrowers while the student is enrolled full-time at the University of the South.
•  Interest on the loan is paid by the University during the student's full-time enrollment at the University, up to a maximum   of four years.
•   Parent borrowers have up to four years to repay after the student ceases enrollment at the University.