FAQ
Can we use the monthly payment plan in combination with student loans?
The monthly payment plan can be used in combination with both student and parent loans to assist in paying any remaining balance to the college.
Can PLUS loans be put into deferment?
Yes, PLUS loans can be deferred while the student is enrolled in college on at least a half-time basis. The parent borrower would need to contact the Direct Loan Servicing Center and request the deferment once the loan has been originated.
What lender should I use for my private loan?
Each private loan lender's loan terms and conditions will vary. Therefore, what may be right for one family may not be for another. The financial aid website contains a comprehensive list of all private loans utilized by our students in the past three years as well as a link to frequently asked questions regarding private loan borrowing.
Can I borrow my federal loans from a hometown bank?
Since Luther College utilizes the Federal Direct Loan program; a student would borrow their federal loans directly from the government and would not need to utilize their hometown bank for this purpose.
Will my financial aid change in future years?
The results of the FAFSA each year are one of the main factors that drive the make-up of a financial aid package. If FAFSA results are similar each year, the financial aid package should be similar.
The main components driving FAFSA results are family size, number of current college students in the family, and the income and assets of both the student and parents. Failure to meet renewal criteria for scholarships can also change a financial aid package.
Will my academic scholarship change in future years?
The value of academic scholarships remains constant for four academic years of full-time study. Each scholarship is renewable providing a minimum cumulative grade point average is being maintained at the end of each academic year.
How do I pay the interest that will accrue on my unsubsidized and private loans?
You will need to contact your lender for specific instructions on making interest only payments on loans while you are enrolled, as procedures may vary by lender. We strongly encourage students and their families to pay this interest as it accrues to help lower the overall cost of the loan.
Why is the college encouraging me to sign up for direct deposit?
Direct Deposit allows the recipient of funds quicker access to those funds without the hassle of keeping track of a paper check and making a trip to the bank. Direct Deposit is also less costly for the college to administer and serves as an efficient means to process payments.
How much of my tax return do you need?
We need a signed copy of the Federal 1040, 1040A or 1040EZ as well as Schedules A-F, if filed.
What financial aid forms am I missing and where do I find those forms?
The Financial Aid Office will notify prospective students of needed forms via mail, e-mail or telephone as required in order to create a financial aid award. Students who choose to attend Luther will receive a mailed notice of forms needed to complete their file in May of the year they will start college.
Once a student begins attendance at Luther, requests for forms are sent via e-mail and a list of needed forms can also be viewed on a student's My.luther account. Most forms that are being requested can be downloaded at http://www.luther.edu/admissions/financialaid/scholarshipsaid/forms/.
My taxes will not be done by the March 1 FAFSA deadline. Will my student be penalized for these not being done?
The March 1 FAFSA priority deadline has been established so prospective students can receive a financial aid package in a timely manner in order to assist in the college decision-making process. Missing the March 1 FAFSA deadline does not penalize a student from a financial standpoint.
Why was only half of my student's aid credited to their account?
Most financial aid is credited to a student's account at the rate of one-half each semester. As a general rule, financial aid is credited to a student's account no sooner than ten days prior to the start of each semester if all documents are returned.
How will a job loss of one of my parents affect my financial aid?
Job losses of a parent should be discussed with a member of the financial aid staff. In many cases, a loss of income will increase the amount of financial aid a student is eligible to receive. This, however, is dependent on the percentage of income lost when compared to adjusted gross income and reported assets.
Why has my friend received his financial aid award but I have not?
Prospective students must be admitted to the college in order to receive a financial aid award. Receipt of the award is also dependent on documents we may need from a student and/or their parents to complete the award.
Our office will also hold an award if we expect a student to complete a music audition or if we are waiting on new transcripts or test scores.
Continuing students receive an award once they are registered for the upcoming year and have submitted all necessary documents to complete their financial aid file.
How many hours of work-study are allowed each week?
Most work-study awards allow for a student to work an average of ten hours per week throughout the academic year. Continuing students who are also resident assistants (RAs) are limited to 7 hours per week due to the work requirements of a RA position.
Can I have more than one work-study job?
A student can have multiple positions, but the total hours per week for all positions cannot exceed what is allowed in the work-study award. This is generally ten hours per week.
I don't want to work my first semester at Luther. Can I still get a job second semester?
Many students choose not to work during their first semester at Luther. Students who do this can still secure a job for second semester by reviewing job postings on the financial aid website. The Student Employment Office does not assign placements after the initial placement is made.
When do I find out where I will work?
Work-Study assignments are distributed at summer registration which is held in June.
When should I report outside scholarships to the Financial Aid Office?
Outside scholarships are usually reported to the Financial Aid Office in the summer once a student feels they have heard from all of the entities to which they applied for a scholarship. Many students bring this information with them to summer registration. It is recommended that these scholarships be reported prior to July 1, so accurate billings can be calculated.
Why do I have to report outside scholarships to the Financial Aid Office?
Federal law requires that outside scholarships be considered in a financial aid package when determining a students eligibility for certain types of financial aid.
Why do I have to include my parents information on the FAFSA when they don't claim me on their taxes?
A series of thirteen questions on the FAFSA determine a students dependency status. The US Department of Educations definition of a dependent student is different than that used by the Internal Revenue Service.
How does the federal government come up with my EFC?
A standard formula is used to evaluate the Expected Family contribution of all students. The main items that drive EFC for a dependent student include a students income and assets, income and assets of the parent(s) a student lives with, the number of family members in the student's household and the number of family members of that household in college (excluding parents).
My Student Aid Report says I don't qualify for a Federal Pell Grant. Does that mean I'm not eligible for financial aid?
Usually not. The majority of Luther's students is not eligible for a Federal Pell Grant, but is eligible for a variety of other types of aid including scholarships, grants, work-study and student loans.
If we don't accept the loans in the financial aid package now, can we utilize them later if needed?
In most cases, loans declined now can be reinstated later in the academic year as long as the student is enrolled at least half time and making satisfactory academic progress as the time the request is made.
Does it cost anything to participate in the monthly payment plan?
Our payment plan is administered in-house; therefore, there is no cost to participate in the plan.
How many months is the plan? When does it begin and end?
The payment plan is spread over 8 months. Payments for the fall semester begin in July and end in October. Spring semester payments begin in December and end in March.
My parents are divorced. Which parent's information should be reported on the FAFSA?
Generally speaking, you will use the information of the parent you have lived with most during the past twelve months. The instructions on the FAFSA are fairly precise in this area.
