Using Financial Aid
Generally, for your financial aid to be "portable" to a
study abroad program, you must carry a full-time load at the foreign
institution and receive credit for the program toward your degree at
your home institution. There may be other eligibility restrictions,
depending on the financial aid program, but usually you will be able
to take your Title IV funding (Pell, Stafford and PLUS) overseas with
you.
Your home institution may require an agreement in order for you to
use your financial aid. The first step should be checking with your
study abroad advisors and financial aid administrators or bursar's
office to confirm what will apply to the ISA Direct program.
Federal Aid
Federal student aid is financial help, usually covering school
expenses including tuition and fees, room and board, books and
supplies, and transportation. Most federal aid is need-based. The
most common types of aid are scholarships or grants and loans.
Loans
Education loans come in three major categories: student loans,
parent loans and private (or alternative) loans.
The Perkins Loan is awarded to undergraduate and graduate students
with exceptional financial need. This is a campus-based loan program,
with the school acting as the lender using a limited pool of funds
provided by the federal government.
All Stafford Loans are either subsidized or unsubsidized. To
receive a subsidized Stafford Loan, you must be able to demonstrate
financial need. You may be borrowing this loan from a bank, a credit
union, other eligible lenders, or directly from the government.
Federal PLUS loans are available to parents of dependent students
under the Federal Direct Loan Program and the Federal Family
Education Loan Program (FFELP). These loans are made either by the
school (direct loan) or through a private lender.
Grants and Scholarships
Grants and Scholarships are financial aid that does not have to be
repaid. Numerous private organizations and government agencies offer
grants to students in all fields. Federal Pell Grants are awarded to
exceptionally needy undergraduate students.
Some colleges/universities offer scholarships which may be either
need or merit-based. Please check with your study abroad advisors and
financial aid administrators to inquire about availability.
Paying for an ISA Program
(Note: These are general instructions. Please check with your
financial aid office, as each U.S. Institution is different!)
The following is a preliminary checklist of items that you must
complete:
Inform your university study
abroad office and financial aid administrator of your plans to use
financial aid to pay for an ISA study-abroad program.
Please let your financial aid
officer know that Susan Farley is the person to contact at ISA if
your university has any questions regarding financial aid, or if
they have a "Consortium/Contractual Agreement" that needs
to be completed.
Give your financial aid
administrator the ISA Financial Aid Payment Information Form,
including the "Authorization to Release Aid" and the
"Verification of Award", which will accompany your
acceptance packet if you note on your application that you intend to
use financial aid.
Ask your financial aid
administrator to complete the "Verification of Award" form
and return it to ISA.
Let your financial aid administrator know about the payment
deadlines of the ISA program that you have chosen. Remember that it
is ultimately up to you to ensure that ISA receives one of the
following by the payment due date:
Option 1: Full payment for the ISA Direct program
In this case you will make full payment for the program, for which
you may be reimbursed by your financial aid when it is released. Many
students will take out a personal loan at their bank or ask their
parents for the money. Keep in mind that you can pay back your
parents, or the bank, as soon as you receive your financial aid!
Option 2: Guarantee of full payment from your US university to
ISA directly
In this situation, the "Verification of Award" form from
your university will state the amount you will be receiving (funds
equal to or in excess of your balance due) and that the payment will
be sent directly to ISA. If funds to ISA are less than the balance
due, the student owes the difference by the payment due date.
Option 3: Guarantee of full payment and a "Good Faith
Payment"
In this situation, the "Verification of Award" form from
your university will state the amount you will be receiving and that
the payment will be sent directly to student. You may send ISA a
check, postdated for one week after your funds are to be released.
Please staple the check to a sheet of paper and clearly write "Please
hold for Financial Aid". The postdated check should be for the
amount you will be receiving for financial aid, and the remainder of
your balance should be sent in a separate check to be deposited
immediately by ISA. HOWEVER, if your aid WILL cover the full balance,
please send through a "Good Faith Payment" to ISA in the
amount of $500 for summer, $1000 for semester, $1500 for year
programs, or $2000 for Multi-Country programs. This "Good Faith
Payment" will be deposited upon receipt by ISA, and the amount
can then be subtracted from your postdated check payment. (This will
show us that you are planning on participating and allow us to begin
making program arrangements on your behalf.)
An Example
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If your program cost is: $5,000 - And you have a
loan for: $3,000
You owe ISA:
one check for $2,000 to deposit
immediately AND one CLEARLY MARKED postdated check for $3,000
If your program cost is: $5,000 - And you have a
loan for: $5,000
You owe ISA:
one "good faith" check
for $1,000 to deposit immediately AND one CLEARLY MARKED postdated
check for $4,000
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Important Note
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Failure to follow through with one of the three
options, before the payment due date, could result in added fees
to your ISA program cost and/or cancellation of your ISA
application.
If you come across any obstacle that prevents
you from meeting a financial aid deadline, please contact ISA
immediately.
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Help Getting Financial Aid
Be sure to look at the financial aid information found in the
Resources/Helpful Links document on our website.
Click here to view financial aid resources
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