Federal Student Aid

hand-and-nail-care-spa-and-beauty-salon-services-hairdresser-and-stylist.jpg

Federal Student Aid Eligibility for Borrowers with Defaulted Student Loans

How to Apply

A valid Free Application for Federal Student Aid (FAFSA) must be on file with the Office of Financial Aid for each award year you will be enrolled. Mosley School of Cosmetology’s federal school code no. is 043138.

2024-25 Award Year: July 1,2024-June 30, 2025 (uses 2022 tax information)

2025-26 Award Year: July 1, 2025-June 30, 2025 (uses 2023 tax information)

General Eligibility Requirements

A student is eligible for Federal Student Aid at Mosley School if he/she:

Is a U.S. Citizen (or) an eligible non-citizen
Has a valid Social Security number
Has proof of a high school education (see Admissions)
Demonstrates financial need (for most programs)
Does not owe money on a federal student grant (such as a Pell Grant)
Is not in default on a federal student loan (such as a Direct Loan)
Certifies that they will use federal student aid only for educational purposes
Is enrolled in the Cosmetology program
Maintains satisfactory academic progress (SAP) while in school (see the Creative Hair School SAP policy in the Catalog)

All eligibility requirements must be maintained throughout a student’s education to continue receiving federal student aid. If a student has questions regarding eligibility, they should contact the Office of Financial Aid.

Federal Pell Grants

Federal Pell Grants are for undergraduate students who demonstrate financial need, and who have not yet earned a bachelor's, graduate, or professional degree. Unlike loans, Pell Grants do not require repayment, unless the student withdraws from school and owes a refund.

A student can receive Federal Pell Grants for no more than 6 years (roughly 12 semesters). Award amounts can change annually. For the 2024-2025 award year, a student may be awarded up to $7,395 (scheduled award). The exact amount of the scheduled award will depend on the student’s Student Aid Index (SAI), the school’s Cost of Attendance (COA), whether the student is full-time or part-time, and whether the student will be attending school for a full academic year during the award year. In some cases, a student may be eligible to receive 150% of their scheduled award (sometimes called “Year-Round Pell”).

A Pell-eligible student can expect to receive the full amount they qualify for - all participating schools receive enough funds to pay all eligible students from the U.S. Department of Education. Federal Pell Grant amounts are not affected by other student aid amounts.

For more information, visit https://studentaid.gov/understand-aid/types/grants/pell.

Federal Pell Grants

Loans must be paid back. You are responsible for repaying your loan according to your repayment schedule even if you do not complete your academic program, if you are dissatisfied with the education you received, or if you are unable to find employment after you graduate. If your loans go into default, you are ineligible for receiving further federal student aid, the defaulted loan is reported to credit bureaus, your tax refunds and federal benefit payments may be withheld and applied toward repayment of your defaulted loan (this is called “Treasury offset”), and your wages may be garnished. See Student Loan Delinquency and Default at StudentAid.gov for more information.

Also check out the Loan-Related Disclosures posted on the Financial Aid Homepage.

Direct Subsidized Loans are for undergraduate students who demonstrate financial need. The U.S. Department of Education pays interest on Subsidized Loans while the student is in school at least half-time, during the grace period, and during deferments.

Direct Unsubsidized Loans are available to undergraduate and graduate students. Financial need is not required. The borrower (student) is responsible for paying the interest on an Unsubsidized Loan during all periods.

Student borrowers must complete Entrance Counseling (Undergraduate) and sign the Master Promissory Note for Subsidized and Unsubsidized Loans before their first Subsidized or Unsubsidized Loan will be disbursed.

Borrowers must complete Exit Counseling (Undergraduate) any time they drop below half-time enrollment, graduate, or leave school for any reason.

The maximum amount of Direct Subsidized and Unsubsidized Loan money a student may borrow in an academic year (the “annual limit”) is based on the student’s academic year in school (grade level) and whether they are classified as a dependent or independent student. The exact amount the student is eligible for will depend on whether the student will be attending for a full academic year, the student’s expected family contribution, the school’s cost of attendance, and the amount of other student aid (such as Pell Grants). A dependent undergraduate student can borrow no more than $31,000 in Subsidized and Unsubsidized Loans (of which no more than $23,000 may be in Subsidized Loans) and an independent undergraduate student may borrow no more than $57,000 in Subsidized and Unsubsidized Loans (of which no more than $23,000 may be in Subsidized Loans) over the course of their schooling (the “aggregate limit”) without paying the loan back.

Direct Subsidized and Unsubsidized Loans must be paid back with interest. The first payment is due after the grace period (the first six months after the student leaves school or drops below half-time enrollment). The interest rate is 6.53% for loans first disbursed on or after July 1, 2024 and before July 1, 2025. This interest rate is fixed for the life of the loan. A loan fee is deducted from each disbursement. The loan fee for loans first disbursed on or after October 1, 2020 and before October 1, 2025 is 1.057% of the net disbursement amount.

For more information, visit https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized.

Direct PLUS Loans (also called Parent PLUS Loans) are for the eligible parent of a dependent undergraduate student who is enrolled at least half-time. Financial need is not required. The borrower (parent) must apply for a PLUS Loan, not have an adverse credit history (pass a credit check), and sign the PLUS MPN for Parents of Dependent Undergraduate Student.

The maximum amount of Direct PLUS Loans a parent may borrow is the school’s cost of attendance minus any other financial assistance the student receives.

Direct (Parent) PLUS Loans must be paid back with interest. Your first payment is due after the loan is fully disbursed, unless a deferment is requested. If a deferment is requested, the first payment is due after the grace period (the first six months after the student leaves school or drops below half-time enrollment). The borrower (parent) is responsible for all interest. The interest rate is 6.53% for loans first disbursed on or after July 1, 2024 and before July 1, 2025. This interest rate is fixed for the life of the loan. The maximum award amount is the cost of attendance minus any other financial aid received. A loan fee will be deducted from each disbursement. The loan fee for loans first disbursed on or after October 1, 2020 and before October 1, 2025 is 4.228% of the net disbursement amount.

For more information, visit https://studentaid.gov/understand-aid/types/loans/plus/parent.

After you graduate, leave school (for any reason, including dropping or termination), or drop below half-time enrollment, you will have a 6-month grace period before you must begin repaying your loans.

If you have difficulty making payments, there are a number of options available to you, including: