Financial Aid Programs

Types of Financial Aid
  1. Need-Based Financial Aid A student must demonstrate that he/she needs the money to pursue an education. The need is determined through an analysis of the student’s and or student’s parent(s) financial situation.
    Need-based aid aims to cover costs that the family cannot cover, and attempts to eliminate worries about paying for studying. Financial need is determined by using the following formula:
    Cost of attendance - Expected family contribution = Financial need
  2. Non-need-Based Financial Aid A student does not have to demonstrate a need; student’s and family’s financial situation is not considered. Non-need-based aid is often awarded when student and family does not qualify for need-based aid. Also, non-need aid may be awarded in recognition for special talent, skills or abilities (athletics, academic, leadership, etc.) or group affiliations (clubs, business, etc.).
    Students often receive the following types of financial aid from different sources:
    1. Grant: Free or gift money from state or federal government;
    2. Scholarship: Free or gift money from private entity, institution (school, church, affiliation, etc.), or employer; or
    3. Loan: Borrowed money from federal government, institution, or private financial institution (i.e., bank).

All of the above types of available Federal Aid and or Institutional Loans apply to all locations of the Institution as stated on the most current ELIGIBILITY and CERTIFICATION APPROVAL REPORT issued by the Department. An agreement between LBA and the United States Department of Education covers the Institution's eligibility to participate in each of the following listed Title IV, HEA programs, and incorporates by reference the regulations cited:

- FEDERAL PELL GRANT PROGRAM, 20 U.S.C. §§ 1070a et seq.; 34 C.F.R. Part 690.
- FEDERAL DIRECT STUDENT LOAN PROGRAM, 20 U.S.C. §§ 1087a et seq.; 34 C.F.R. Part 685.
- FEDERAL PERKINS LOAN PROGRAM, 20 U.S.C. §§ 1087aa et seq.; 34 C.F.R. Part 674.
- FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT PROGRAM, 20 U.S.C. §§ 1070b et seq.; 34 C.F.R. Part 676.
- FEDERAL WORK-STUDY PROGRAM, 42 U.S.C. §§ 2751 et seq.; 34 C.F.R. Part 675.
- ACADEMIC COMPETITIVENESS GRANT AND NATIONAL SCIENCE AND MATHEMATICS ACCESS TO RETAIN TALENT GRANT PROGRAMS, 20 U.S.C. §§ 1070a-1 et seq.; 34 C.F.R. Part 691.
- IRAQ AND AFGHANISTAN SERVICE GRANT, 20 U.S.C. §§ 1070d et seq.
Federal Grants and Loans
Federal Pell Grant (Government Grants)
A grant is free money, given to a student based on financial need. This money does not have to be repaid. Latin Beauty Academy students can receive money from these different grant programs:
Federal Pell Grant: Many Latin Beauty Academy students receive Pell Grants. To qualify, they must be enrolled in the Cosmetology Program. The maximum annual award for 2015-16 is $5,775. Eligibility is primarily determined from a student's FAFSA information. Students in default of a federal loan or those who do not maintain federal Satisfactory Academic Progress are ineligible to receive any federal aid, including Pell Grants. Students enrolled in summer classes can receive a summer Pell Grant based on information from either the new (2015-16) FAFSA or depending on remaining eligibility, the previous year's (2014-15) FAFSA.

Lifetime Eligibility Limit for Pell Grants: Effective with the 2012-13 award year, all Pell-eligible students are limited to a lifetime maximum of twelve (12) full-time semesters (or the equivalent for part-time students), regardless of when a student first received a Federal Pell Grant. The U.S. Department of Education informs us (via FAFSA records) and students (via the FAFSA's Student Aid Report) which students are close to or have reached their lifetime limit. We then notify students that may not be eligible for all of their current year Pell Grant awards. Note that in some cases, we are notified after we have already awarded Pell for the award year, which means we will need to reduce or remove Pell Grant awards. This could result in a balance due on the current or next eBill.
There are often instances when the grant(s) received for student educational costs is not sufficient to cover the student’s full tuition. Additionally, students have the option to obtain student loans.
A Pell Grant is money the government provides for students who need it to pay for college. Grants, unlike loans, do not have to be repaid. Eligible students receive a specified amount each year under this program. A student who receives a Pell Grant for the time on or after July 1, 2015, can only receive a Pell Grant for up to the Academic Year or the equivalent. The maximum Pell Grant for the award year 2014-2015 (July 1, 2014 through June 30, 2015) is $5,730.
There are two payment periods in each award year for the Cosmetology Program, one each of 450 clock hours, which is the number of payments received in each award year. For the Pell Grant program, the EFC range full time scheduled award for 2014-2015 is $0 through $5,157. Students with EFC outside of this range are not eligible for the Pell Grant. LBA offers loans to students who have more than 26 clock hours per week.
Cross-Over Payment Period
LBA will award students when a payment period includes both the last day of the current award year (June 30) and the first day of the next award year (July 1). This is referred to as a “crossover” payment period. When awarding and disbursing aid for a crossover payment period, schools must consider from which award year the funds will be paid. Unless more than six months of the payment period is in one award year, the school may choose the award year from which the federal aid will be paid. This determination affects eligibility, the timing of disbursement, and reporting. This determination does not affect calculations of Stafford loan eligibility since loan eligibility is based on the academic year.
Direct Loan
The Direct Loan (DL) program provides federal loans funded by the Department of Education to eligible applicants. This type of loan is for educational expenses and requires repayment at a specified time. Students are allowed a grace period of six months from the time they graduate, withdraw, or fall below half-time to begin repayments of loans.
Students are required to complete a FAFSA, Entrance Counseling and sign a Master Promissory Note (MPN) prior to receiving loans and also complete Exit Counseling at the end of their program of study, upon withdrawal, or when they cease to be enrolled at least half time. LBA utilizes a multi- year MPN. Student will receive written notification of these obligations.
A significant step in the use of the multi-year MPN is the confirmation process. The confirmation option helps students or parents maintain control over their borrowing ability. To guarantee that a student borrower is aware and has control over the borrowing process, he/she must accept, either actively or passively, the loan amount offered.
- Active Confirmation - the school does not disburse the loan until the borrower affirmatively requests or accepts the proposed loan type and amount or request changes to the loan package.
- Passive Confirmation – the school does not disburse the loan until the borrower is notified of his/her proposed loan package and the time given to respond has elapsed. The borrower only needs to take action when declining the loan or making adjustments to the type or amount of the loan.
LBA applies the passive confirmation rule with regard to the disbursement of loan funds.
Loan Eligibility
  1. Students and their parents who are in default on a student loan must resolve the default before they can become eligible to receive federal aid. A parent who is in default on a PLUS loan does not prevent the student from obtaining aid.
  2. A student who unintentionally exceeds the annual or aggregate loan limit is ineligible to receive loans, but may regain eligibility by paying the extra amount borrowed or make satisfactory arrangements with the lender in the case of a default.
  3. A student or student’s parent(s) whose property is subject to a judgment lien for debt owed to the United States is also ineligible.
  4. Any student who has been convicted of, or has pled no contest to or is guilty of, crimes involving fraud in obtaining Title IV funds is not eligible for aid and must pay all outstanding balances in full to regain financial aid eligibility.
Eligible undergraduate students may receive Subsidized and Unsubsidized need-based loans and their parent(s) PLUS loan.
Subsidized Loan – A student educational loan, which does not accrue interest before repayment or during deferment periods; the Federal Government subsidizes the interest during these periods. Both dependent and independent students are eligible for this need based loan, up to the annual or aggregate loan limit, whichever applies.
Unsubsidized Loan – The student is charged interest from the first disbursement through the life of the loan. A dependent student is only eligible for the additional unsubsidized portion of $2,000. If a student’s parent(s) is/are denied the PLUS loan, then the student is eligible to receive a maximum unsubsidized loan for the particular loan period.
PLUS (Parent Loan for Undergraduate Student) ˗ Credit based loan, which allows the parent(s) of a dependent student to borrow money for student educational expenses. Interest is applied from the first disbursement until the loan is paid in full.
Federal Work-Study Federal work-study awards (based on need) are very limited and are available for students who wish to work while attending Latin Beauty Academy. Students are paid the school's approved minimum wage every week for hours worked on-campus. The hours are arranged around their class schedule.
Work-study supervisors understand that student workers have education as their priority. Open positions are offered to students interested in work-study and they are eligible; the institution inform them of the amount they may earn during the coming year. If they accept the award, we will follow up with additional information.
The institution requires that their work-study wages are deposited directly into their checking or savings account. The convenience of direct deposit will ensure that their wages will be available for their use on payday.

Pin It on Pinterest

Share This