Financial Aid Policies

Federal regulations require that all federal financial aid recipients maintain minimum satisfactory academic progress (SAP) to receive financial assistance.  A financial aid academic progress policy is required in addition to the institution’s general academic policies.

See Full Academic Progress Policy

The Higher Education Opportunity Act (HEOA) requires educational institutions that participate in federal Title IV programs to publish a code of conduct regarding educational loans [HEOA § 487(a)(25) and 487(e)].  This code of conduct applies to all Allegheny College employees, officers and agents of the College, including without limitation individuals who are employed in the financial aid office or who otherwise have responsibilities with respect to education loans. This code of conduct reflects Allegheny College’s commitment to conducting financial aid practices with integrity, in the interest of students, and in compliance with applicable law.

Ban on Actions that Limit a Borrower’s Choice of Lending Institutions

Allegheny College shall not assign through award packaging or other methods, the borrower’s private loan to a particular lender or refuse to certify, or delay certification, of any loan based on the borrower’s selection of a lending institution.

Ban on Opportunity Loans

Allegheny College shall not arrange with a lending institution to provide funds for private education loans, including funds for an opportunity pool loan, to students in exchange for the institution providing concessions or promises to the lender.  For purpose of this code, an opportunity loan agreement is an arrangement whereby a lending institution agrees to make loans up to a specified aggregate amount to students with poor or no credit history, or to international students whom the lending institution claims would not otherwise be eligible for its loan programs, in exchange for concessions or promises by Allegheny College that may prejudice other borrowers.

The College also may not accept or solicit any funds to be used for private educational loans or opportunity pool loans in exchange for providing a lending institution with a specified loan volume or a preferred lender arrangement.

Prohibition on Revenue Sharing with Lending Institutions and on Solicitation or Acceptance of Remuneration or Assistance from a Lending Institution

Allegheny College prohibits any revenue-sharing or contracting arrangement with any lending institution or affiliate of a lender. Revenue sharing or contracting is any arrangement by which a lender pays the College a percentage of the principal loan taken by a borrower or otherwise compensates the College as a result of a borrower taking a loan.

Allegheny College may not accept or solicit anything of value from any lending institution related to its education loan activity. This prohibition shall include, but not be limited to, (i) revenue sharing by a lending institution with the institution, (ii) the institution’s receipt from any lending institution of any computer hardware for which the College pays below-market prices and (iii) printing costs or services.

Allegheny College also may not accept or solicit staffing assistance from a lending institution, including but not limited to call center staffing or financial aid office staffing. The institution shall ensure that it does not identify any employee or other agent of a lending institution to students or prospective students of the College or their parents as an employee or agent of the institution.

Prohibition on Stock Ownership in Lending Institutions by Financial Aid Employees

A person employed in the Office of Financial Aid at Allegheny College shall not own stock or hold any another financial interest in a lending institution, other than through ownership of shares in a publicly traded mutual fund or similar investment vehicle in which the person does not exercise any discretion regarding the investment of the assets of the investment vehicle.

Limitations on University Employees Participating on Lender Advisory Boards

Allegheny College prohibits employees from receiving any remuneration for serving as a member or participant of an advisory board of a lending institution, guarantor, or group of lenders or guarantors, except that the employee may be reimbursed for reasonable expenses incurred in serving on such advisory boards, commission, or group.

Choosing to live off-campus means students’ do not have the overhead involved with on-campus housekeeping, amenities and maintenance. As a result, it is recognized that students have fewer costs associated with living in the Meadville community. Therefore, the standard cost of attendance (COA) for a student living off-campus is less than those with on-campus housing. Since there is a reduction to the COA, there will be a decrease to a student’s financial need as well.

Consequently, students choosing to live off-campus may find a reduction in their need-based gift assistance, specifically to their institutional grants. However, the merit scholarship (Trustee and Alumni) scholarships are not based on financial need, and therefore, are not reduced based on student housing choice.

There are a number of reasons some students will seek to have an off-campus status, which will allow them to attend Allegheny College while living at home with their parents and/or guardians or within the Meadville community.
However, students must request a housing status change with Residence Life using this form if they meet exemptions from the on-campus residency requirement, which stipulates all students are required to live in campus housing for 4 years or 8 full semesters.

Allegheny College’s financial aid package is based upon the exchange rates at the time of your initial award. If the currency exchange rate for your country changes by 10% or more than the initial rate at the time of packaging, then you may request a review of your package once per the academic year. Reviews can be completed in mid-July or mid-December, prior to payment of bills, in order to consider how the exchange rate would affect students from that country. If the change in exchange rate is less than 10%, there will be no review or adjustment based on exchange rate information. This policy does not guarantee a change in your financial aid package.

Allegheny College will provide to every student borrower of loans under the FFEL, Federal Direct Loan, or Perkins Loan programs (other than consolidated or Parent PLUS loans) an individualized exit counseling packet of information whenever the student ceases at least half-time enrollment (less than 6 credits), whether due to reduced course load, withdrawal, dismissal, or leave-of-absence.

The exit counseling session will provide information on:

• average anticipated monthly repayment amounts
• repayment plan options
• options to prepay or pay on shorter schedule
• debt management strategies
• use of Master Promissor Note
• the seriousness and importance of the student’s repayment obligation
• terms and conditions for forgiveness or cancellation
• rights and responsibilities of students under Title IV, HEA loan programs
• terms and conditions for deferment or forbearance
• consequences of default
• options and consequences of loan consolidation
• tax benefits available to borrowers

Allegheny-Sponsored Programs – These off-campus study programs encompass a variety of programs for which Allegheny students are charged Allegheny rates for program costs.  In many cases, Allegheny financial aid, with the exception of federal work-study and Tuition Exchange scholarships, can be applied to program costs.  The program fee always includes tuition; if the program fee includes housing and food, students will be charged Allegheny housing and food rates.  Depending on the program, students may pay for housing and food directly to the host institution.

Independent Programs – Students participating in these off-campus study programs will pay program costs directly to the institution through which they are participating.  Allegheny financial aid is not applicable to independent program costs; however, most state and federal aid can be applied.  Students participating in independent programs are responsible for notifying the Office of Financial Aid & Enrollment Support to initiate a consortium agreement for the transfer of state and federal aid (e.g., student loans).

Students are encouraged to meet with a financial aid office representative to determine specific financial aid implications for the program being considered.

In accordance with 34 CFR 668.14(b)(29)(ii), an institution must, upon the request of the applicant, discuss the availability of Federal, State, and institutional financial aid.

Read Loan Disclosure Notices

Federal Loan Cancellation Program

Federal student loan borrowers with an annual income below $125,000 for individuals or $250,000 for married couples or heads of households are eligible for up to $10,000 in federal student loan debt cancellation.  If the borrower received a Pell Grant while in college, they are eligible for up to $20,000 in debt cancellation.

Borrowers can check their federal loan balance as well as see if they received a Pell Grant by logging into studentaid.gov.  Borrowers who want to be notified when an application is available or receive updates about this process, can sign up at the ED subscription page.  If you have a Perkins loan currently in repayment through ECSI, Allegheny’s loan servicer, more information will be provided to you in the near future.

For the full announcement, please visit the Federal Student Aid website.  If you have additional questions, please contact the Federal Student Aid Information Center at 1-800-433-3243 or the Allegheny College Financial Aid Office at 1-800-835-7780.

The Office of Financial Aid recommends that students utilize federal student loans before considering private educational loans.  Federal loans have lower fixed interest rates and also have deferment and consolidation options.  Students who need further financing beyond federal student loan eligibility should select the loan that best meets funding needs and offers the best interest rate and borrower benefits.

At Allegheny College, we believe families should have as much information as possible to make individual loan choices that are in their best interest.  Many families find it challenging to gather accurate loan information to make the best borrowing decision.  To assist you, Allegheny maintains a list of possible lenders families may wish to include when comparing private loan options; however, borrowers are not limited to Allegheny’s private lender list and may select a lender not on Allegheny’s private lender list.

After a family has researched and selected the loan of their choice, and once the lender approves the loan application, Allegheny College promptly provides loan certification information, so the funds can be credited as soon as possible to the student’s account.

Borrowers who have questions regarding federal or private student loans are encouraged to contact the Office of Financial Aid at 800-835-7780 for more information or individual assistance.

Please visit www.ELMSelect.com or  Sparrow for examples of private student loan options.  Allegheny College has no written or implied preferred lender arrangement with lenders on its list of possible lenders.  The method and criteria used by Allegheny College when selecting lenders of private loans whose information we will share with students and parents are as follows:

Method – Allegheny College sends requests for private loan information to lenders each January.   Lenders responding to this request for information must provide information on their private loan products by the response deadline in mid-February each year.  There is no specific format required for response.  By March 1st, financial aid staff will review the terms, conditions, and provisions of each type of loan to determine if the loan may be beneficial to students or their families.  Those loans determined to be typical for the credit market at that time will be included on the www.ELMSelect.com website for families to view and consider when comparing loan options.

Additionally, Allegheny partners with Sparrow where you can search and compare real, personalized private student loan offers from over 16+ lenders through a simple, three-minute application.  Sparrow provides a suite of analytical tools that make loan comparison easy, digestible, and visual.  Using Sparrow is free and does not impact your credit score.  Both sites are provided as a starting point, but you are not limited to the lenders listed.  Allegheny works with all private student loan lenders and does not promote, endorse, or recommend a specific lender.

Criteria – Allegheny College Office of Financial Aid seeks lenders that offer the most favorable loan products as determined through:

1. Loan Terms (e.g., interest rates, fees charged, and front end borrower benefits)
2. Customer Service (e.g., timeliness of processing and disbursement, ease of application, web-based services)
3. Savings Potential (e.g., rate reduction and/or consolidation options)
4. Default Prevention (e.g., standards to help students maintain good account standing)

Allegheny College has no limit to the number of lenders we list on the www.ELMSelect.com website.  We will include as many lenders annually as we determine offer comparable favorable loan terms, customer service, savings potential, and default prevention when comparing all of the responses we receive.  The loan information we provide to students and parents is for their information in comparing loan options, and does not imply any particular endorsement or recommendation by Allegheny College regarding specific lenders.

Please view the Code of Conduct for Educational Loans for more information on Allegheny College’s commitment to conducting ethical financial aid practices in the interest of students, and in compliance with applicable law.  The Private Educational Loan Disclosures under the Sources of Aid section of Allegheny’s financial aid web site provides additional facts regarding private educational loans.

The Department of Education allows financial aid professionals to alter a student’s FAFSA due to special or unusual circumstances, which allows students to be re-evaluated for financial aid based on a more accurate or current financial situation.

Special circumstances can include a change in family size, a decrease in income, or unusually high medical bills paid by the family.

Unusual circumstances constitute a potential change to a student’s dependency status as defined by their FAFSA form based on a unique situation, such as being homeless or at risk of being homeless. Students who feel they need a reconsideration of their dependency status can contact the Financial Aid Office and request a dependency override. If your FAFSA indicates that you are an independent student, our office is required to collect documentation from your high school, homeless liaison, or homeless shelter detailing their determination of your unaccompanied youth/homeless status. You can fax our office at 814-337-0431. If you are unable to provide documentation, please schedule an interview with our office by calling 800-835-7780 or emailing fao@allegheny.edu. Additional documentation may be necessary after the interview.

The Office of Financial Aid is required by federal statute to recalculate federal financial aid eligibility for students who withdraw, drop out, are dismissed, or take a leave of absence prior to completing 60%* of a payment period or term.  The federal Title IV financial aid programs must be recalculated in these situations, but all other sources of aid are also recalculated.  Students desiring to withdraw from the College must complete the withdrawal form available from the Office of the Dean of Students.

Institutional funds follow the same policy as Title IV funds when calculating eligibility for a withdrawn student.  The amount of Title IV and institutional funds earned is directly proportional to the time enrolled, prior to completing 60%* of the term.  At 60%*, the student is considered to have earned all Title IV and institutional aid. Funds from state agencies or outside foundations (not federal or institutional dollars) will be evaluated for potential recalculations based on those agencies’ policies.  Unearned Title IV, institutional, state and outside agency funds are the amount of grant and loan assistance awarded under Title IV, the institution, state, or outside agencies that have not been earned by the student and must be returned to the programs.

If a student leaves the institution prior to completing 60%* of a payment period or term, the financial aid office recalculates eligibility for Title IV funds.  Recalculation is based on the percentage of earned aid using the following Federal Return of Title IV funds formula:

Percentage of payment period or term completed = the number of days completed up to the withdrawal date divided by the total days in the payment period or term.  (Any break of five days or more is not counted as part of the days in the term.)  This percentage is also the percentage of earned aid.  Funds are returned to the appropriate federal program based on the percentage of unearned aid using the following formula:

Aid to be returned = (100% of the aid that could be disbursed minus the percentage of earned aid) multiplied by the total amount of aid that could have been disbursed during the payment period or term.

If a student earned less aid than was disbursed, Allegheny College would be required to return a portion of the funds and the student would be required to return a portion of the funds.  Keep in mind that when Title IV funds are returned, the student borrower may owe a debit balance to the institution.  If a student earned more aid than was disbursed to him/her, Allegheny College would owe the student a post-withdrawal disbursement which must be paid within 120 days of the student’s withdrawal.

Allegheny College must return the amount of Title IV funds for which it is responsible no later than 30 days after the date of the determination of the date of the student’s withdrawal.

Return of funds are allocated in the following order:

• Unsubsidized Federal Direct Loans
• Subsidized Federal Direct Loans
• Federal Perkins Loans
• Federal Direct Parent (PLUS) Loans
• Federal Pell Grants for which a return of funds is required
• Federal Supplemental Opportunity Grants for which a return of funds is required

**The 60% point of the Spring 2024 semester is March 27th.