Frequently Asked Questions
Q: Do I have to file for Federal Student Aid every year?
When are the deadlines?
A: Yes, you must apply each year! The priority deadlines are posted each year. The FAFSA applications are available starting in January for the upcoming year.
Q: What determines whether or not I will receive financial aid?
A: The primary factor is financial need. Financial need is computed by determining the educational costs (tuition and fees, room and board, books and supplies, and a personal allowance) less family contribution (based on federal and institutional formulas). The difference between these is the need for financial assistance.
Q: What are some of the common mistakes people make while filing for financial aid?
A: Four of the most common are:
- Not filing early enough.
- Not reading the instructions.
- Not fully completing the applications.
- Not using the correct social security number.
Q: Why does my award change each year?
A: At HOFSTRA, eligibility for financial aid is based on a federal formula that estimates your family's ability to contribute to the cost of education. A typical award includes grants, loans and federal work-study. Keep in mind that your award is likely to change each year for one or more of the following reasons:
- The cost of education goes up.
- Your family's income changes.
- The number of children in college changes.
- You forgot to reapply for financial aid early and miss the priority deadlines.
Q: How do I know my application was processed?
How can I verify that HOFSTRA will receive the results?
A: About four weeks after filing your FAFSA you will receive an acknowledgement e-mail from the Department of Education. After it is processed you should receive a Student Aid Report (SAR). You should make sure HOFSTRA is one of the schools. Questions about FAFSA processing can be directed to the Federal Student Aid Information Center at 1-800-4FEDAID.
Q: It has been a while since I have filed my application, but I still have not received my SAR. What can I do?
A: Contact the Federal Student Aid Information Center at 1-800-4FEDAID to find out the status of your file.
Q: Do I need to send a copy of my SAR to the Office of Financial Aid?
A: No. Provided that you listed HOFSTRA (code:002732) as one your school choices, we will receive the information electronically. Therefore, you do not need to send your SAR to our office.
Q: HOFSTRA isn't listed on my SAR, but I called the processors and they said you could request my record if I give you the PIN number?
A: Yes. If you did not list HOFSTRA's school code, but you have a copy of your SAR, contact our office, and under certain circumstances we can electronically request your information. Another alternative is to call 1-800-4FEDAID and request that they add HOFSTRA electronically by providing them with your DRN# (located in the upper-right corner of your SAR.)
Q: What is a Federal Stafford Loan?
A: The Federal Stafford Loan is a guaranteed loan backed by the federal government. Interest rates are low and variable.
Q: What is the difference between the Subsidized and Unsubsidized Federal Stafford Loan?
A: With the Subsidized Federal Stafford Loan, the interest is paid by the government while you are in school. The interest on the Unsubsidized Federal Stafford loan is not paid by the government while you are in school. You have the option of paying the interest or deferring it until after you graduate, at which time it will be added to the principal of the loan.
Q: What is EFT? Should I use it?
A: EFT is Electronic Funds Transfer, which is used by lenders to transfer Federal Stafford and Federal PLUS Loan proceeds from the lenders to the schools without the need for individual checks. This method of disbursing loan funds does speed up the time between receiving funds and the student actually having access to the funds.
Q: How much should I borrow so that I know I can afford to pay it back?
A: Planning ahead is essential to managing debt. If you plan to borrow each year you are in school, estimate the total amount you will borrow. Then use a sample loan repayment table to calculate how much you will have to pay each month. Then decide how much to borrow. You can use the criteria lenders use when they consider an applicant's ability to repay: the total monthly payment for all debts should not exceed 8 percent of your gross monthly salary.
Q: What if my educational or career plans change or something happens after I'm out of school and working?
A: A change in career goals, the loss of a job, or other unexpected changes in your situation could make repaying your loan more difficult than you expected. In some cases, and at the lender's option, you may be permitted to temporarily stop making your payments, or your lender may accept smaller payments than scheduled. This is called a forbearance. In addition, for some loans, you may defer repayments temporarily, which may help. The promissory note for each loan you borrow outlines the specific terms under which you may be granted a deferment. Contact your lender if you think you may need to make arrangements.
Q: What happens if I don't pay back my loan?
A: Not paying back your student loan can have serious consequences. If you go into default, your lender can require you to repay the entire amount immediately, including all interest plus collection and late payment charges. The lender can sue you and can ask the federal government for help in collecting from you. The Internal Revenue Service may withhold your income tax refund and apply it toward your loan. You cannot get any additional federal student aid until you make satisfactory arrangements to repay your loan. Also, the lender may notify credit bureaus of your default. This may affect your credit rating, which will make it difficult to obtain credit cards and car loans in the future.
Q: If I borrow from more than one loan program, I may have to pay several different lenders at the same time. May I consolidate my payments?
A: If you've borrowed from more than one type of loan program, you may be able to consolidate some of the loans and use one payment plan to repay the loans. In general, federal loans may be consolidated into one new loan at an interest rate of the weighted average of the original interest rates of the loans being consolidated. The length of the extension depends on the total amount of the loans consolidated.
Q: Why was my file selected to be verified?
A: Many student files are selected by the Federal Processor in the process of applying for aid. Some files are randomly selected while others are selected because of appearing to be error-prone. If the student's file is selected, requested documentation should be submitted to the Office of Financial Aid at Hofstra immediately because of specified deadline date requirements.