What is available

It is important to understand that the responsibility for financing the cost of a higher education must be primarily assumed by students and/or their families to the extent of their ability. To this end, a number of the aid programs administered by the Office of Financial Aid are awarded first and foremost on the basis of calculated need-based eligibility. Need-based awards are considered to supplement, not replace, the family’s obligation in financing the student’s education.
      There are two basic types of need-based financial assistance available through the Office of Financial Aid to help students meet the cost of their education: gift aid and self-help programs (loan and work).

Gift Aid
Grants
A grant is a gift. It does not have to be repaid. Your award will include some grant money whenever guidelines and funding levels permit. Grants available include:
Federal Pell Grants. This federal program makes direct grants available to all students who are pursuing their first undergraduate degree, are citizens or permanent residents of the United States, and show eligibility according to the federal formula which applies to this grant. Qualifying family incomes and grant amounts vary from year to year, depending upon federal guidelines and appropriations.

Academic Competitiveness Grants (ACG). This federal grant is available to U.S. citizen Pell Grant recipients in their first or second year of undergraduate education who have been certified as having completed a “rigorous program of study” in their high school curriculum. The federal government establishes what high school curricula meet the “rigorous” criteria, and the college or university certifies the student’s eligibility. First-year grants are for $750 and second year grants are for $1,300. Academic progress criteria are also mandated by the federal government.

National Science and Mathematics Access to Retain Talent (SMART) Grant. This federal grant is available to U.S. citizen Pell Grant recipients in their third or fourth year of undergraduate education who are pursuing federally-specified academic majors in the areas of mathematics or science. The federal government designates which majors qualify for SMART Grant eligibility, and the college or university must then certify that recipients are enrolled in those designated academic majors. The grant amount is $4,000 for both third- and fourth-year students, and academic progress criteria are mandated by the federal government.

Federal Supplemental Educational Opportunity Grants (SEOG). Under this program, the federal government makes funds available to the institution to award to students who have exceptional calculated need-based eligibility. This grant will be included as part of a total financial aid offer to qualified students.

State Grants. These grants are offered by various states for residents, are often based upon financial need, and vary in amount depending upon both federal and state appropriations for this program.

Scholarships
Sewanee scholarships come from over 200 endowed scholarship funds, annual gifts, remissions of tuition, and additional amounts budgeted from the University’s operating funds. As previously mentioned, many of these scholarships are awarded on the basis of calculated need-based eligibility, and applicants are automatically considered for these scholarships as part of the normal need-based financial aid award process.

In addition to its need-based scholarships, Sewanee will offer a number of merit-based and non-need based scholarships in 2008-2009:
Those scholarships which are competitively awarded to incoming student are fully described (as to criteria and amounts) in the publications of Sewanee’s Office of Undergraduate Admission. Applications for these scholarships are included in the admission application packet and at <http://admission.sewanee.edu/apply>.Please note the specific application deadline and requirements.
Other non-need-based awards include:
George Hopper Scholars. Children of Episcopal clergy will automatically receive this renewable $1,500 scholarship, regardless of family income.
University of the South National Merit Scholars. National Merit Finalists who select Sewanee as their first choice school are eligible for designation as Merit Scholars in the college-sponsorship program of the National Merit Scholarship Corporation. The University designates Merit Scholars, with the annual stipend ranging from $1,000 to $2,000, depending on the need-based eligibility (if any) calculated through filing the FAFSA.
Please note: The federal income tax code contains provisions regarding the potential taxability of grant and scholarship aid. Total grant and scholarship dollars in excess of certain allowable educational expenses will have to be reported by the recipient as taxable income on his or her Federal Income Tax Return. For specific details regarding this tax code provision, you should consult Internal Revenue Service publications or your family’s tax advisor.

Self-Help
Loans
At the University of the South it is assumed that aided students will accept some personal financial responsibility for their education. For this reason, an educational loan with a low interest rate and deferred repayment is included as part of many need-based awards. The type of loan offered ordinarily depends upon level of eligibility and funds available, and Sewanee reserves the right to determine which type will be utilized.
Federal Subsidized Stafford Loans. A number of students will be advised to borrow through this program, which is available from banks, credit unions or state agencies in their home area. (Sewanee also lists a number of lenders available to those without an available local lender.) These loans are guaranteed to the lender by state or regional guarantee agencies and the interest rate is subsidized by the federal government. The current Subsidized Stafford Loan limits are up to $3,500 for the first year of an undergraduate program, up to $4,500 for the second year, and up to $5,500 per year for the remaining years of undergraduate study for a maximum of $23,000 as an undergraduate student. An annual interest rate (6.0% for 2008-2009) is subsidized by the federal government until repayment begins six months after either graduation or the cessation of (at least) half-time enrollment, whichever occurs first. Repayment generally extends over a period of up to 10 years with a minimum repayment amount of $600 per year. (Note: Lending institutions may charge up to 4% in fees to help defray the costs of making a Stafford Loan. These fees are deducted from the loan prior to its disbursement. Thus, on a $3,000 loan, a student should not expect to receive more than $2,880 and the University does not cover the difference between the gross amount of the loan awarded and the net amount disbursed. The student or his/her family must plan to pay the difference between the gross and net amount.)
            Previous Federal Subsidized Stafford Student Loan borrowers should refer to their loan disclosure statements to determine the interest rate in effect for their particular loan(s).

Federal Unsubsidized Stafford Loans. Students not qualifying for either any Subsidized Stafford Loan or for less than the annual maximum under the Subsidized Stafford Loan may borrow an Unsubsidized Stafford Loan. Effective with the 2008-2009 academic year, the maximum annual unsubsidized loan limits are $5,500 for first-year undergraduates, $6,500 for second-year, and $7,500 per year for third- and fourth-year undergraduates. The borrower is responsible for paying the interest on the loan while still enrolled in school. (The interest rate is also 6.8% for both the in-school and repayment periods.)
            To qualify for this loan, students must first establish that they are not eligible for the Federal Pell Grant Program and/or the full annual amount of a Subsidized Stafford Loan. This requires the filing of the FAFSA (as described previously). Students not receiving their full annual eligibility under the Subsidized Stafford Loan Program may also borrow an Unsubsidized Stafford Loan, but the total of the two loans may not exceed the annual limit for Stafford Loan borrowing (as described previously).
Federal Perkins Loans. Funds for these loans are provided by repayments from former borrowers. Five percent interest, liberal repayment terms, and cancellation and deferment clauses are features of these loans. Students showing the greatest calculated eligibility receive priority for this loan program. Perkins Loans are provided directly through the University to the extent that funds are available.
 
University Loans. These institutionally-funded loans are offered to some students because they are not eligible to borrow a Stafford Loan or a Perkins Loan due to federal limitations. The interest rate on these loans varies, and the program is handled in the same way as the other loan programs.
Work
In addition to the assumption of a contribution from the student’s previous year’s employment, Sewanee offers need-based scholarship recipients the opportunity to work during the academic year as part of taking responsibility for the financing of their education. Need-based scholarship recipients can choose to accept all, half, or none of the work offered to them. This choice must be made by a stated deadline, which is currently July 1. Students choosing half or none of the work offered also accept a reduction in their need-based scholarship as a consequence of making this choice.
      Sewanee provides approximately 400 need-based job opportunities for students in administrative offices, academic departments, the University library, and numerous other campus locations. Some jobs are also offered with off-campus, non-profit agencies during the academic year. Additionally, community service jobs are available to need-based work recipients.
      Both freshmen and upperclassmen are currently expected to work no more than eight hours per week. Students receive paychecks every four weeks for actual hours worked. These earned funds are intended to be used to cover personal expenses, as well as some of the cost of pre-registration fees, or transportation.
Students who are awarded both need-based University scholarship funds and need-based employment are currently expected to earn at least 90% of the work funds awarded to them. Failure to do so can result in the reduction or cancellation of subsequent need-based funding, including future need-based employment and/or scholarships.
Federal Work-Study (FWS). The College participates with the federal government in this program. Students who meet the federal need-based criteria for such employment will be paid from these funds. At least 7% of these funds are used for community service jobs.

Work Scholarship. Employment opportunities are provided under the institutional work-study (work scholarship) program for students who do not meet the federal guidelines for the FWS program. Generally, work scholarship funds are awarded to international students who qualify for need-based aid.


Other Educational Resources
Hope Scholarship. The Hope Scholarship is actually a tax credit, not a scholarship. Tax credits are subtracted directly from the tax a family owes, rather than reducing taxable income like a tax deduction. A family must file a tax return and owe taxes to take advantage of it. The Hope credit is not refundable for families who do not pay taxes or who owe less in taxes than the maximum amount of the Hope tax credit for which the family is eligible. 
The actual amount of the credit depends on the family’s income, the amount of qualified tuition and fees paid, and the amount of certain scholarships and allowances subtracted from tuition. The total maximum credit also is based on the number of eligible dependents, rather than a maximum dollar amount for the family.
 
Lifetime Learning Tax Credit. The Lifetime Learning credit is a tax credit available to individuals who file a tax return and owe taxes. This means the amount of the credit is subtracted directly from a family’s actual tax liability, rather than reducing taxable income like a tax deduction does. The Lifetime Learning credit is not refundable.
The actual amount of the credit depends on the family’s income, the amount of qualified tuition and fees paid, and the amount of certain scholarships and allowances subtracted from tuition. This credit is family-based rather than dependent-based like the Hope credit.
(The above information on the Hope Scholarship and Lifetime Learning credit is provided by the National Association of Student Financial Aid Administrators.)
 
Veterans and U.S. Dependents Benefits. The University of the South is approved by the Department of Education and Department of Veterans Affairs for educational benefits under the various public laws. If you think you may be eligible for these benefits, contact your local office of Veterans Affairs for more information.
 
Benefits for the Disabled. Students with qualifying disabilities may be eligible for vocational rehabilitation benefits and other forms of public assistance. Contact your local Vocational Rehabilitation Office or Bureau of Services for the Disabled for complete information.
 
Outside Scholarships. As part of your responsibility to provide as much from your own resources as possible, you are encouraged to apply for any outside scholarships for which you may be eligible, especially those in your own community. Scholarships from sources outside the University must be reported to the Office of Financial Aid. Generally, half of the amount of the outside award goes to reduce the self-help portion of your aid package, benefiting you by reducing your long-term loan debt. The other half of the outside award goes against your institutional grant amount, keeping your total award within your calculated need-based eligibility, and allowing wider distribution of these limited funds.
 
Other Employment. Even without calculated eligibility you may still find an opportunity for a job after the need-based assignments are made. “Spot jobs” such as child care, yard cleaning, tutoring, and word processing can be solicited by signing up under the “Skills for Sale” program in the Office of Financial Aid.
 
Outside Loans. Many students are able to secure non-federal loans through a variety of private sources. Sewanee's Office of Financial Aid has information on numerous private loan sources. NOTE: Students should maximize federal loan options prior to borrowing non-federal loans.
 
Parent Loans. There are several parent loan and financing plans available to help parents pay the cost of a Sewanee education in monthly installments. A few of these options are:
Sewanee Educational Assistance Loan (SEAL). This loan program was established by the University to assist families with annual incomes between $70,000 and $200,000. Families qualifying for the SEAL make no payments on this loan while the student is enrolled full-time at the University of the South. During the student’s enrollment, the University pays the interest on the loan. Further details and an Eligibility Determination Form are available at <http://admission.sewanee.edu/financial_aid/forms>.
Monthly Payment Option. The University offers this plan in conjunction with Tuition Management Systems to assist the parents of all Sewanee students (regardless of income level) in the annual financing of the cost of a Sewanee education. Using this plan, a parent may pay the annual direct cost (minus pre-registration deposits) or any portion of that cost in ten interest-free monthly installments. Detailed information on this plan and application materials are provided in the spring to all parents of enrolled and admitted students, and are also available during the school year from the Office of Financial Aid. More information is available at <http://www.afford.com/sewanee>.
Federal PLUS Loans. This federal loan program offers parents of dependent students annual loans of up to the total cost of education, minus other financial aid received. The repayment period extends for up to 10 years beyond the academic year for which the loan is used. There is no income restriction or needs test for this program, but loan approval is subject to a satisfactory credit check. These loans require no security or collateral. The interest rate on the PLUS Loan is variable, but not to exceed 9%. In 2007-2008, the rate was 8.5%. Repayment of a PLUS Loan begins within 60 days of the date the loan is disbursed. The monthly repayment amount will vary depending upon the amount of PLUS Loan borrowed.