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GIFT AID AND WORK-STUDYST. THOMAS SCHOLARSHIPS AND GRANTSThese scholarships are funded by the university orestablished by donors as gifts to the university. Recipientsare selected according to the terms of the scholarshipprogram or the donor. Incoming first-year students whoare offered a St. Thomas Scholarship or Founders Grantmay receive funding for eight semesters (fall and springsemesters only) or until graduation, whichever comes first,provided the student meets the necessary renewal criteria.To renew any St. Thomas gift aid, recipients must remainconsecutively enrolled as a full-time St. Thomas student,achieve at least a 2.0 grade-point average and maintainsatisfactory academic progress (see page 16).Recipients of some scholarship funds will be contacted bythe St. Thomas Development Office with instructions onsending a letter of appreciation to the donor of their funds.Scholarship funds that require a thank-you letter willbe disbursed to a student’s St. Thomas account after theDevelopment Office notifies the Financial Aid Office thatthis requirement has been satisfied.FEDERAL AND STATE GRANT PROGRAMSVETERANS EDUCATION BENEFITSMilitary veterans and/or their dependents may beentitled to a variety of benefits to assist with educationalexpenses. More information regarding the certificationof veterans benefits, the Yellow Ribbon ScholarshipProgram and other resources is available atstthomas.edu/veterans.FEDERAL AND STATE WORK-STUDYThe Federal and State Work-Study programs providestudents an opportunity to work on campus or in a fewpositions located off campus in the community. Beingawarded work-study is not a guarantee of a job. Students atSt. Thomas apply for and obtain their own jobs. Studentswith a Federal or State Work-Study award are givenpriority for positions, provided they have the requiredqualifications. Available positions will be posted onthe Human Resources website (stthomas.edu/jobs). Firstyear students may begin looking for campus employmentafter they attend orientation and have registered for classes.St. Thomas also offers job opportunities with a number ofcommunity partners for students eligible for Federal andState Work-Study programs. These positions are alsoposted on the Human Resources website.Notification of Award Guide6Eligibility for the following federal and state grantprograms is based on the results of the Free Applicationfor Federal Student Aid (FAFSA). Need-based grantprograms are available to students who demonstrateexceptional financial need.Students generally work approximately 10-12 hoursper week to earn their work-study awards, which rangefrom 500 to 4,000 per year. Work-study compensationstarts at 13.50 per hour and may increase based on theresponsibilities required for the position. Work-studyearnings are subject to federal and state income taxes, butin most cases are not subject to FICA tax. Income earnedfrom work-study is made available to students in the formof a paycheck, direct deposit into a bank account or as apayment toward a student’s bill. Work-study awards arelisted on the Notification of Award as financial aid. It isup to the student to decide how, or if, work-study earningswill be used to pay the student’s bill.ATHLETIC FINANCIAL AIDStudents offered athletic financial aid should refer to theirUniversity of St. Thomas Tender of Athletic Financial Aidfor terms and conditions.FEDERAL PELL GRANTStudents are eligible to receive the full-time maximumas long as they are enrolled in three courses (12 credits)or more each semester. Federal Pell Grant recipientsare eligible to receive full-time Pell Grant funding fora maximum of six academic years (12 semesters).FEDERAL SUPPLEMENTAL EDUCATIONALOPPORTUNITY GRANT (SEOG)Availability of SEOG funding is limited and awarded tostudents who qualify until funds are exhausted. SEOGfunding can range from 250 to 4,000 each year.based on enrollment of 15 or more credits per semester.If you plan to enroll in fewer than 15 credits per semester,you must inform the Financial Aid Office and youraward will be recalculated. The University of St. Thomasmust ensure that you meet all eligibility and residencyrequirements to receive Minnesota State Grant funds.If we cannot clearly establish this from the informationwe have on file, you will be sent a State of MinnesotaFinancial Aid Application to complete and return to ouroffice. Your Minnesota State Grant cannot be finalizeduntil this determination is made.OTHER MINNESOTA STATE AID PROGRAMSThe state of Minnesota offers additional aid opportunitiesincluding the Postsecondary Child Care Grant, MinnesotaIndian Scholarship, Public Safety Officer’s Survivor Grant,Teacher Candidate Grant, and MN GI Bill for eligibleveterans from Minnesota. More information is availableat ohe.state.mn.us.MINNESOTA STATE GRANTThese state funds do not have to be repaid and areawarded to Minnesota residents who demonstratefinancial need. Unless otherwise specified, the MinnesotaState Grant indicated on your Notification of Award isUniversity of St. Thomas7

FEDERAL LOAN PROGRAMSFEDERAL DIRECT LOANSA Federal Direct Loan is a long-term, fixed-rate loan madeavailable to students. Typically, every student who filesthe FAFSA is eligible to borrow a Federal Direct Loan.Students may qualify to have a portion of their federalloan eligibility subsidized based on their financial needas determined by the FAFSA. A student must be enrolledat least half time (six credits) to be eligible to borrow aFederal Direct Loan.INFORMATION FOR TRANSFER STUDENTSUST TRANSFER AWARDSTransfer awards are funded by the university or establishedby donors as gifts to the university. Students who areoffered a UST Transfer Award may receive funding for amaximum of 192 total credits (attempted St. Thomas creditsplus all transferred credits) or until graduation, whichevercomes first, provided the student meets the necessaryrenewal criteria. To renew UST Transfer Award funding,recipients must remain consecutively enrolled as a full-timeSt. Thomas student, achieve an institutional GPA of 2.0 orhigher and maintain satisfactory academic progress (seepage 16). UST Transfer Award funds are only disbursedduring the fall and spring semesters.ST. THOMAS GRANTSSt. Thomas grants are funded by the university orestablished by donors as gifts to the university.St. Thomas Grant funds are awarded to transfer studentswho demonstrate financial need as determined by theFree Application for Federal Student Aid (FAFSA). Thesegrant funds are awarded on a first-come, first-servedbasis and eligibility is determined every year. To receive aSt. Thomas Grant (if eligible), students must enroll atleast half time (six or more credits), remain enrolledconsecutively at St. Thomas and maintain satisfactoryacademic progress (see page 16). St. Thomas Grant fundsare only disbursed during the fall and spring semesters.Notification of Award Guide8FEDERAL GRANT PROGRAMSPlease refer to page 7 of this guide for a completelisting of federal grants.MINNESOTA STATE GRANTPlease refer to page 7 of this guide for moreinformation about the Minnesota State Grant program.TRANSFER STUDENT MONITORING PROCESSAll new transfer students who have applied for financialaid are monitored by the U.S. Department of EducationNational Student Loan Data System (NSLDS). Federalregulations do not allow students to receive federal grantsand loans simultaneously at more than one institution.The University of St. Thomas is notified by NSLDS ifanother school has processed financial aid for a transferstudent during the same academic year. The Universityof St. Thomas can begin monitoring students 30 daysprior to the beginning of the term. The Financial AidOffice is unable to process and disburse financial aid forstudents during this initial monitoring period. It typicallytakes two weeks for this initial monitoring period to takeplace and for financial aid processes to resume. Studentsremain on the NSLDS monitoring system for 90 days.Subsidized: The Federal Direct Subsidized Loan isawarded to students who demonstrate financial need asdetermined by the FAFSA. Interest on a Federal DirectSubsidized Loan does not accrue while the student isenrolled at least half time (six credits). Interest begins toaccrue six months after graduation or when enrollment forfall or J-Term and spring semester falls below half time.Unsubsidized: The Federal Direct Unsubsidized Loanis not a need-based loan. Interest accrues on this loanprior to repayment. The student has the option to makeinterest payments during the in-school period, or toallow the accrued interest to be capitalized (added on) tothe principal balance at repayment.INTEREST RATEThe interest rate is 3.73 percent for the 2021-22academic year. This rate is set annually for new loans.Once the rate is set it is fixed for the life of the loan.The interest rate for 2022-23 Federal Direct Loansshould be similar but will not be known until June 2022.DEPENDENT ANNUAL LIMITFirst-year student: 5,500 (up to 3,500 may be subsidized)Sophomore: 6,500 (up to 4,500 may be subsidized)Junior/Senior: 7,500 (up to 5,500 may be subsidized)INDEPENDENT ANNUAL LIMITDependent annual limit First-year student/Sophomore: 4,000(always unsubsidized)Junior/Senior: 5,000 (always unsubsidized)AGGREGATE LIMITDependent: 31,000 (no more than 23,000 maybe subsidized)Independent: 57,500 (no more than 23,000 maybe subsidized)FEES1.057 percent origination fee, effective throughSept. 30, 2022.REPAYMENT TERMTypically 10 years, begins six months after studentgraduates, leaves school for any other reason orenrollment is reduced to less than half time.University of St. Thomas9

SUPPLEMENTAL LOAN OPTIONSFEDERAL DIRECT PLUS LOAN FOR PARENTSFor families who need to borrow beyond the Federal DirectLoan limits, the Parent PLUS Loan is one option. TheFederal Direct Parent PLUS Loan is available for parents toborrow on behalf of dependent undergraduates who areenrolled at least half time (six credits). A credit analysis isrequired. Students must have a current FAFSA on file inorder for their parent(s) to apply for a Federal Direct ParentPLUS Loan. More information is available atstthomas.edu/otherloans.When a Federal Direct Parent PLUS Loan is Denied Due toParent’s CreditIf a Federal Direct Parent PLUS Loan is denied becauseof a parent’s credit history, families have three options.The parent may appeal the decision due to extenuatingcircumstances, secure a credit-worthy endorser (cosigner) for their PLUS Loan or the student may borrowan additional Federal Direct Unsubsidized Loan. Forinformation about appealing a denial or using anendorser, the parent should contact the Student LoanSupport Center at (800) 557-7394. If a denial is overriddenby either an appeal or adding an endorser, the parentborrower is required to complete online loan counselingbefore the PLUS Loan can be disbursed.PRIVATE EDUCATIONAL LOANSBefore applying for any private educational loan, studentsshould file the Free Application for Federal Student Aid(FAFSA) to take advantage of the federal student loansawarded to all students. We believe it is in the best interestof our students to borrow all of the federal loans availableto them before pursuing any private educational loan.Private educational loans are loans made by banks or otherlending institutions specifically for the purpose of fundingexpenses associated with postsecondary education. Thesefinancing instruments offer rates that are competitivewhen compared to secured loans such as car loans or homemortgages that require collateral. A student’s eligibility toborrow a private educational loan is based on the terms ofeach loan and the student’s overall credit profile, includingrepayment on prior credit obligations, and their currentuse of credit. A co-signer generally is required. Moreinformation is available at stthomas.edu/otherloans.Notification of Award Guide10To apply for the Federal Direct Unsubsidized Loan inthe student’s name, contact the Financial Aid Office.Under this option, the student is limited to borrowing amaximum of an additional 4,000 if he or she is a first-yearstudent or sophomore and an additional 5,000 if he or sheis a junior or senior.INTEREST RATEThe interest rate is 6.28 percent for the 2021-22academic year. This rate is set annually for new loans.Once the rate is set it is fixed for the life of the loan.The interest rate for 2022-23 federal Parent PLUS Loansshould be similar but will not be known until June 2022.FEDERAL PLUS OR PRIVATE LOANS:WHICH IS BETTER?Before borrowing any supplemental loan (PLUS or private), we recommend that all students utilize the federalsubsidized or unsubsidized loans they have been awarded. Even though a student’s federal loan eligibility maynot provide the total amount needed to cover their remaining expenses, it is still in the student’s best interest totake advantage of federal funding rather than securing one larger supplemental loan for the total amount needed.When deciding what type of supplemental financing to use in conjunction with a student’s federal loan eligibility,we encourage families to consider the differences between the Federal Direct Parent PLUS Loan and other privateeducational loans.FEATUREFEDERAL DIRECT PARENT PLUS LOANPRIVATE EDUCATIONAL LOANSInterest RateFixed at 6.28 percent for the 2021-22academic year.Variable and fixed rates available, usually no cap.Many programs reset monthly or quarterly. Usuallybased on a consumer index (prime, commercialpaper, LIBOR, etc.) plus a margin.BorrowerLoan is in parent’s name and is nontransferable.Typically the student, with a credit-worthy co-signerwho bears equal responsibility for the loan. Somelenders offer loans that parents or other individualsmay borrow to cover a student’s expenses.Loan AmountsUp to the cost of student’s education minus otherfinancial aid.Minimum and maximum borrowing limits varyfrom lender to lender.Fees4.228 percent origination fee, effective throughSept. 30, 2022.Fees vary from lender to lender. May includeorigination and/or repayment fees.Repayment Terms Generally repayment begins within 60 days afterfull disbursement. Length of repayment is 10 years from the start ofprincipal payments. Interest accrues while student is in school. Someprograms require students to make minimummonthly payments or interest-only paymentswhile in school. If deferred, repayment usuallybegins six months after student graduates orleaves school. Length of repayment varies, usually 10-30 years.QualifyingBased on credit history; debt-to-income is notconsidered, making it easier to qualify.Varies from lender to lender, but debt-to-incomeratio is often considered in credit decision.Effect onCredit ReportWill show as debt on credit report of parent.Will show as debt on credit report of studentand co-signer.Parent borrowers may request defermentof principal and interest payments as longas their student is enrolled at least half time.Unemployment and economic hardship also mayqualify parent for deferment or forbearance.Deferment of principal and interest is oftenavailable as long as the student is enrolled atleast half time. However, some lenders only offerdeferment of principal. Some lenders may offerforbearance. Check with lender for details.Loan discharged if parent or student dies or ifparent suffers total and permanent disability.Loan discharge policy based on student’sdisability or death varies by lender.ANNUAL LIMITTotal cost of education minus any other financialaid received.FEES4.228 percent origination fee, effective throughSept. 30, 2022.REPAYMENT TERMUp to 10 years. Principal and interest repayment begins30 to 60 days after final disbursement. Parent borrowersmay request deferment if necessary.If you decide to borrow a private educational loan,you are encouraged to carefully evaluate the terms ofeach loan program to determine which loan will bestsuit your needs. Some lenders offer private educationloans for parents, family members or other individualsto help pay for a student’s education. The University ofSt. Thomas is willing to work with any lender to providethe supplemental financing needed to pay remainingeducational expenses on our campus.Deferment/ForbearanceCancellationUniversity of St. Thomas11

HOW TO OBTAIN A FEDERAL LOANThe Financial Aid Office at St. Thomas automaticallyawards Federal Direct Loans based on financial aideligibility, which is determined by the Free Application forFederal Student Aid (FAFSA). Federal Direct Parent PLUSLoans are available, but are not automatically awarded.Students and parents who participate in federal loanprograms are required to have their loan records submittedto the National Student Loan Data System (NSLDS). Loanrecords on NSLDS will be accessible to guarantee agencies,lenders and colleges determined to be authorized users ofthe data system.This past year, St. Thomas students received just over 2.7 million in private scholarships awarded by localfoundations, community agencies, clubs, social andfraternal organizations, parents’ employers, etc. Thesescholarships are awarded based on a variety of factorssuch as financial need, academic achievement, ethnicity,community involvement, leadership, career plans andfields of study. It is truly worth a student’s time tosearch for these opportunities. Our office providesseveral tools to help you search for outside scholarships.Our website also offers links to free online scholarshipsearches, tips for students applying for private scholarshipsand information about scholarship matching programs.FEDERAL DIRECT LOANSTo obtain a Federal Direct Subsidized and/or FederalDirect Unsubsidized Loan, students must accept the loan(s)via Murphy Online. Once loans are accepted, studentsborrowing for the first time at St. Thomas will receive arequest to take the following steps:REPORTINGStudents receiving funding from outside sources mustnotify the Financial Aid Office of these additional funds.If we are required to revise financial aid due to a student’sreceipt of other resources, the student’s Federal DirectLoan(s) or work-study award will be adjusted first. Contactthe Financial Aid Office if you have questions abouthow aid received from outside sources may affect youroverall aid package. Students may report their outsidescholarships on Murphy Online or by submitting anOutside Aid Information Form.Entrance Loan CounselingThis online counseling requires student borrowersto read and answer questions about the Federal DirectLoan Program. It is intended to inform students of theirrights and responsibilities as borrowers in the program.Go to studentaid.gov to learn more and complete acounseling session.Complete MPNThe MPN is the official document a student borrower signspromising to repay his or her Federal Direct Loan. TheMPN is completed online at studentaid.gov using your FSAID as an electronic signature. Students who have borrowedin a previous year from the Federal D

To renew any St. Thomas gift aid, recipients must remain consecutively enrolled as a full-time St. Thomas student, achieve at least a 2.0 grade-point average and maintain satisfactory academic progress (see page 16). Recipients of some scholarship funds will be contacted by the St. Thomas Development Office with instructions on sending a letter .