Rights of Students on Financial Aid

  • Students receiving federal student aid have certain legal rights. Students' rights include the following:

    • To be informed of what financial aid programs are available at SCC.
      • Which programs are need based and which are not need based.
    • For each available program, the student must be advised:
      • of the procedures and forms needed to apply for assistance.
      • of the student eligibility requirements.
      • of the criteria for selecting recipients.
      • how the student’s award is determined and know what resources (such as parental contribution, other financial aid, assets, etc.) were considered in the calculation of his/her financial need.
    • For Federal Aid programs, the student must be advised:
      • how to continue eligibility for each program.
      • how the school determines whether he/she is making satisfactory academic progress (SAP), and the results of not meeting these standards.
      • How to regain eligibility if the student has failed to maintain SAP.
    • To receive a listing from the financial aid office of the agency in each state which may be contacted regarding grants available to residents of that state.
    • To know the deadlines for submitting applications for each of the financial aid programs available.
    • To know how financial aid will be distributed; the frequency of the disbursements; how decisions on that distribution are made, and the basis for these decisions.
    • To know how his/her financial need was determined.
    • To know how much of his/her financial need, as determined by the institution, has been met.
    • To request an explanation of the various awards in his/her student aid package.
    • To know the school's refund policy.
    • How Pell-eligible students may obtain books and supplies by the seventh (7th) day of a payment period and how the student may opt out.
    • To know what portion of the financial aid he/she receives must be repaid, and what portion is grant (free) aid.
    • If the aid is a loan, the student has the right to know what the terms of the loan are such as interest rate, the total repayment amount, fees during repayment, the payback procedures, the length of time he/she has to repay the loan, when repayment is to begin, and available options for consolidation.
    • If the student is offered a Federal Work-Study job, he/she has the right to know the required work hours, the job duties, the rate of pay, and how and when paychecks are received.
    • Special facilities and services available for the handicapped.
    • If the student believes a mistake has been made in determining his/her financial aid eligibility, he/she has the right to ask his/her financial aid application be reconsidered.
    • If the student has a loan and the lender transfers (i.e. sells) the loan and the right to receive payments, the student must be sent a notification telling him/her to whom he/she must now make payments.
    • If the student receives a loan, the student should receive a sample repayment schedule.
    • Lenders must provide borrowers with a copy of the complete promissory note.
    • To prepay a loan without penalty. This means he/she may at any time pay in full the loan balance and any interest due without being charged a penalty for early payment.
    • If the student cannot meet a loan repayment schedule, he/she may request forbearance from the loan servicer where the payments may be reduced for a specific period of time.
    • In borrowing money, the student assumes the responsibility for repaying the loan. If circumstances arise which make it difficult to meet this responsibility, he/she should contact the loan servicer.
    • The exit counseling information the school provides and collects.

    Responsibilities of Financial Aid Students
    Any student receiving federal student aid has certain legal responsibilities. Student responsibilities include the following:

    • Complete all application forms accurately and submit them on time to the appropriate location.
    • Provide correct information. The intentional misreporting of information on financial aid application forms is a violation of the law and is considered a criminal offense which could result in indictment under the U.S. Criminal Code.
    • Return all additional documentation, verification, corrections, and/or new information requested by either the Financial Aid Office or the agency to which an application was submitted.
    • Report to the Financial Aid Office any additional financial resources received by him/her during the period of his/her financial aid award.
    • Reading and understanding all forms he/she is asked to sign and for keeping copies of the forms.
    • Accept responsibility for all agreements he/she signs.
    • Perform the work he/she has agreed upon in accepting Federal Work-Study or regular student employment.
    • Be aware of and comply with the deadlines for application or reapplication for aid.
    • Be aware of the school's refund policy.
    • All schools must provide information to prospective students about the school's programs and performance. The student should consider this information carefully before deciding to attend school.
    • If the student receives a loan, he/she must notify the lender if any of the following occurs before the loan is repaid:
      • Graduation.
      • Withdrawal from school or less than half-time enrollment.
      • Change of address.
      • Name change.
      • Transfer to other school(s).
    • If the student has accepted a Federal Stafford Loan prior to receiving his/her first disbursement of loan funds at SCC student must complete entrance loan counseling.
    • Must attend an exit interview if enrollment drops below 6 credit hours; or if he/she graduates, transfers to another school.
    • Must repay any loan received at SCC, plus accrued interest, in accordance with the repayment schedule.
    • In borrowing money, the student assumes the responsibility for repaying the loan. If circumstances arise making it difficult to meet this responsibility, he/she should contact the lender.
    • Must notify the lender of any occurrence which may affect eligibility for a deferment of repayment.
    • Re-apply for aid each year.