Federal Aid Policies
Federal Aid Information
AAIMT participates in the following Federal Financial Aid Programs:
Federal Pell Grant
Federally funded grants are awarded to those who qualify. Students use the Free Application for Federal Student Aid (FAFSA) to apply and should submit the application to the Financial Aid Office at the College.
Federal Stafford Student Loan (subsidized)
This is a loan for students enrolled at least half time. No principal or interest payments are required until six months after the student graduates or withdraws from the Institute. The interest rate is currently a fixed 4.5%. Students must complete a needs analysis that shows demonstrated need, and must maintain satisfactory academic progress. Students use the FAFSA to apply and should submit the application to the Financial Aid Office at the Institute.
Federal Stafford Student Loan (unsubsidized)
These loans enable students who do not qualify for interest subsidies to obtain a student loan. A FAFSA must be filed to establish eligibility. The interest rate is currently a fixed 6.8%. The interest is paid by the student or deferred while the student is in college.
Federal Parent Plus Loan
This long-term variable interest rate loan is capped at a maximum of 9 percent, and is available to parents of dependent students. Repayment begins within 60 days after final disbursement of the loan. Students use the Federal Plus Loan Application form to apply and should submit the application to the Financial Aid Office at the Institute.
Applying for Federal Aid
To apply for Federal Aid, follow the first step is to obtain a PIN number. This number acts as your electronic signature. Go to www.pin.ed.gov and fill out the required information. It may take 2-3 days for this number to be sent to you via email.
In order to find out if you are eligible for Federal Aid, you will want to fill out the FAFSA form. This form can be found at: www.FAFSA.ed.gov,
IMPORTANT NOTE: USE THE 2010-2011 SCHOOL YEAR. Our SCHOOL CODE IS #039765. You will also need to use your 2009 1040 Federal Income Tax information to complete the FAFSA information. If you are under the age of 24, you may need to provide your parent’s income tax information as well.
When filling out the FAFSA form online, it may take two weeks for the results to be received by AAIMT.
Also, when you are filling out the FAFSA form, it will ask you for your pin number. Please follow the links to receive a pin number, if needed. The pin number acts as your electronic signature and is required to finish your FAFSA form.
You may also contact Melanie Gibbs for any assistance when filling out your FAFSA information. Appointments can be made to assist you with this process.
To receive aid for our programs, you must:
- Qualify for financial need (except for certain loans).
- Have a high school diploma or a General Education Development (GED) certificate, pass a test approved by the U.S. Department of Education, meet other standards your state establishes that the Department approves, or complete a high school education in a home school setting that is treated as such under state law.
- Be working toward a degree or certificate in an eligible program.
- Be a U.S. citizen or eligible noncitizen
- Have a valid Social Security Number
- Register with the Selective Service if required. You can use the paper or electronic FAFSA to register, you can register at www.sss.gov, or you can call 1-847-688-6888. (TTY users can call 1-847-688-2567.)
- Maintain satisfactory academic progress once in school.
- Certify that you are not in default on a federal student loan and do not owe money on a federal student grant.
- Certify that you will use federal student aid only for educational purposes.
The Higher Education Act of 1965 as amended (HEA) suspends aid eligibility for students who have been convicted under federal or state law of the sale or possession of drugs. If you have a conviction(s) for these offenses, call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243) or go to the www.FAFSA.ed.gov website, click on "Before Beginning A FAFSA" in the left column, then click on "Drug Worksheet" to find out how this law applies to you.
Even if you are ineligible for federal aid, you should complete the FAFSA because you may be eligible for nonfederal aid from states and private institutions. If you regain eligibility during the award year, notify your financial aid administrator immediately. If you are convicted of a drug-related offense after you submit the FAFSA, you might lose eligibility for federal student aid, and you might be liable for returning any financial aid you received during a period of ineligibility.
Satisfactory Progress Policy
To be eligible for financial aid at Ann Arbor Institute of Massage Therapy, a student must:
- Be enrolled in an eligible program of 800 clock hours
- Maintain at least an average grade of a 75% on the monthly academic report
- Complete at least 85% of the weekday cumulative hours possible in the training program
We will review your progress from your start date at Ann Arbor Institute of Massage Therapy even if you did not receive aid. It is possible to lose your eligibility without ever having received financial aid if you do not meet the above satisfactory progress requirements for both grades and attendance.
Academic Progress
Your academic progress will be verified at the time of a scheduled financial aid disbursement and at the end of each grading period. If your average grade falls below 75%, you will be placed on financial aid probation.
Attendance
You must complete at least 85% of possible weekday class hours. Attendance is tracked and verified on a monthly basis. The attendance report submitted by the program instructor after each class serves as the record. Financial aid is awarded on the basis of hours attended. You must complete all the hours in each payment period before you will be eligible for the next disbursement.
Probation
You will be placed on financial aid probation if you:
- Fail to maintain 75% or better average on the monthly academic report, or
- Fall below 85% of possible weekday class hours
Students are placed on probation for one quarter (90 days). During the probationary period, funds will not be disbursed. At the end of the term, your progress will be reviewed. If you have 75% average and your hours have come up to 85% or above, probation will be lifted.
Temporary Suspension
If you complete less than 85% of the available clock hours, you will be placed on temporary suspension for a period of one quarter (90 days). During this time, no aid will be disbursed. If your attendance improves to greater than 85%, the suspension will be lifted and you will remain on probation for the remainder of the term. If you demonstrate satisfactory progress following a temporary suspension, your aid will be reinstated retroactive to the beginning of the period of suspension.
Termination
You will be terminated from aid at Ann Arbor Institute of Massage Therapy if:
- At the end of the period of probation, you have not met the satisfactory progress requirements.
- At the end of a period of suspension, you have not met the satisfactory progress requirements.
- You withdraw before completing greater than 60% of the hours that were scheduled for the payment period.
Maximum Time Frame
The maximum time frame for a student to complete a training program is 150% of the approved clock hours.
Appeal Process
A student may appeal probation or suspension status by submitting an appeal form and documentation supporting extenuating circumstances to the Financial Aid Director.
Federal Aid Verification Policy
The Financial Aid Office is required by the U.S. Department of Education to verify files for applicants selected for verification by the Processor. In addition, the Financial Aid Office reserves the right to request verification of additional applicants with questionable or conflicting information.
If selected for verification, the Financial Aid Office will send written notification and a Verification Worksheet within 10-14 days from receipt of the Student Award Record. Students must submit all requested documentation within 10 days from the date postmarked on the verification notification letter. Each person who entered financial information on the FAFSA must submit signed copies of their recent income tax return and W-2 wage and tax statements.
No federal financial aid will be awarded until verification is completed, discrepancies are resolved, and the necessary corrections are submitted and processed by the US Department of Education.
Guidelines for students completing the verification process:
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Collect all applicable financial documents, federal income tax forms (signed), W-2 forms etc.
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Carefully observe verification deadlines.
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Complete all sections of the Verification Worksheet.
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Sign the Verification Worksheet.
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Keep copies of all documents submitted during the verification process.
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Do not send anything except the FAFSA to the Federal processor.
Save valuable time, direct any questions to the Administrator. -
The Financial Office will review your verification information and make necessary changes. These changes may include (but are not limited to): adjusted gross income, income taxes paid, untaxed income, household size or the number of family members enrolled in college.
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Once the entire process is completed, the Financial Aid Office will issue you an Award Letter which details your eligibility for federal and institutional aid.
Return of Title IV Funds Policy
The "Return of Title IV Funds" policy applies to the completion of clock-hours in a financial aid "payment period".
The return of federal financial aid funds policy is applied to all financial aid recipients who withdraw, drop out or otherwise fail to complete at least 60% of the scheduled hours in the payment period for which they have received federal funds.
Unearned Title IV Federal funds (grants and loans) must be returned to the appropriate federal program by both the college and the student. The percent of funds “earned” is based upon the number of total clock hours scheduled to have been completed as of the withdrawal date divided by the number of hours in the payment period. The percentage of Title IV funds “unearned” equals 100 percent minus the percent of the Title IV aid earned. The student and the college may retain the earned portion of aid, but are required to return a portion of the unearned aid to the appropriate federal grant and/or loan accounts.
If a student completes more than 60% of the scheduled hours in the financial aid payment period, it is determined that all financial aid has been earned.
If a student completes less than 60% of the scheduled hours in a payment period, the earned and unearned portion of aid, will be calculated.
If the student shows eligibility for federal funds not yet disbursed, a post withdrawal disbursement of aid can be made even though the student has stopped attending.
Ann Arbor Institute of Massage Therapy allocates unearned Title IV funds to the following financial aid programs, in the order shown:
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Unsubsidized Stafford Loan
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Subsidized Stafford Loan
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Federal Plus Loan
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Federal Pell Grant
Understanding Return of Title IV Funds
What does “Return of Title IV Funds” mean and how will it impact you? Here are some answers to a few basic questions to show you how important it is to understand this federal regulation.
What does the law really mean?
It means that the federal government expects a student to “earn” the financial aid they have received. Students who receive federal aid in the form of a Federal Pell Grant or a Federal Stafford Student Loan are expected to earn those funds by attending school and completing the block of hours in the “payment period” for which they are paid.
What happens if I drop out or withdraw?
If you leave school before completing more than 60% of the scheduled hours for which you received aid, you may be required to pay back a portion of the aid you received. You may also be required to pay the college for a part of your tuition in addition to returning money to the Department of Education for some of the money that you received in the form of a check.
Title IV Code of Conduct
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In accordance with federal regulations set forth by The Higher Education Act of 1965, as amended, below is a summary of consumer information that must be made available to all students at the Ann Arbor Institute of Massage Therapy (AAIMT). If you need assistance obtaining information listed or you would like a paper copy, contact the Federal Aid Office. REASON FOR THE POLICY: All colleges and universities participating in Title IV financial aid programs, including student loan programs, are required a code of conduct which must be enforced as part of the HEOA program participation agreement. Such code must prohibit a conflict of interest with the responsibilities of an agent or employee of an institution with respect to such loans, and include the provisions set forth in HEOA related to conflicts. The law further specified that the code shall be displayed prominently.
BAN ON REVENUE SHARING AGREEMENTS: Neither AAIMT, nor any of its officers, employees or agents will enter into any revenue-sharing arrangements with any lender, which is defined by the Higher Education Opportunity Act of 2008, amending the Higher Education Act of 1965, Pub. L. # 110-315 (2008), (HEOA) as any arrangement between a school and a lender that results in the lender paying a fee or other benefits, including a share of its profits, to the school, or its officers, employees or agents, as a result of the Institute recommending the lender to its students or families of those students.
BAN ON GIFTS: AAIMT financial aid office employees (or employees who otherwise have responsibilities with respect to education loans or financial aid) will not accept gifts from any lender, guaranty agency or loan servicer. A ‘gift' is defined as any gratuity, favor, discount, entertainment, hospitality, loan, or other item having monetary value of more than a de minimus amount. This prohibition is not limited just to those providers of Title IV loans but includes lenders of private educational loans as well. HEOA does provide for some exceptions related to specific types of activities or literature. This includes:
BAN ON CONTRACTING ARRANGEMENTS: AAIMT financial aid office employees (or employees who otherwise have responsibilities with respect to education loans) will not accept any fee, payment or financial benefit as compensation for any type of consulting arrangement or contractto provide services to or on behalf of a lender relating to education loans.
PROHIBITION AGAINST STEERING BORROWERS: AAIMT and its officers, employees or agents will not steer borrowers to particular lenders, or delay loan certifications. This prohibition includes assigning any first-time borrower's loan to a particular lender as part of the award packaging process or through other methods.
PROHIBITION ON OFFERS OF FUNDS FOR PRIVATE LOANS: AAIMT and its officers, employees or agents will not request or accept any agreement or offer of funds for private loans. This prohibition includes any offer of funds for loans to students at the institution, including funds for an opportunity pool loan, in exchange for providing concessions or promises to the lender for a specific number of loans, or inclusion on a preferred lender list.
BAN ON STAFFING ASSISTANCE: AAIMT and its officers, employees or agents will not request or accept any assistance with call center staffing or financial aid office staffing. However, HEOA does not prohibit schools from requesting or accepting assistance from a lender related to:
BAN ON ADVISORY BOARD COMPENSATION: Employees of AAIMT will not receive anything of value from a lender, guarantor, or group in exchange for serving on an advisory board. They may, however, accept reimbursement for reasonable expenses incurred while serving in this capacity.
SANCTIONS: An employee that violates this Code of Conduct shall be disciplined in a manner consistent with applicable college policies, procedures, or collective bargaining agreements. Disciplinary action may include termination of employment at AAIMT. |
NASFAA Code of Conduct for Institutional Financial Aid Professionals
An institutional financial aid professional is expected to always maintain exemplary standards of professional conduct in all aspects of carrying out his or her responsibilities, specifically including all dealings with any entities involved in any manner in student financial aid, regardless of whether such entities are involved in a government sponsored, subsidized, or regulated activity. In doing so, a financial aid professional should:
- Refrain from taking any action for his or her personal benefit.
- Refrain from taking any action he or she believes is contrary to law, regulation, or the best interests of the students and parents he or she serves.
- Ensure that the information he or she provides is accurate, unbiased, and does not reflect any preference arising from actual or potential personal gain.
- Be objective in making decisions and advising his or her institution regarding relationships with any entity involved in any aspect of student financial aid.
- Refrain from soliciting or accepting anything other than nominal value from any entity (other than an institution of higher education or governmental entity such as the U.S. Department of Education) involved in the making, holding, consolidating or processing of any student loans, including anything of value (including reimbursement of expenses) for serving on an advisory body or as part of or sponsored by any such entity.
- Disclose to his or her institution, in such manner as his or her institution many prescribe, any involvement with or interest in any entity involved in any aspect of student financial aid.
Pell Crossover Award Year Program
Pell Grant Cross Over Transition Awarding Policy
In accordance with federal regulations set forth by The Higher Education Act passed in August 2008 included the provision for two Pell Grants (Section 401 of the law) in a single award year (July 1 to June 30). For the 2009-2010 school year, schools were advised per the Federal Student Aid Handbook, Volume 3, Chapter 3, p 3-44 “There will not be any regulations for this provision for 2009-2010. For 2009-2010 schools should strive to be flexible in adapting their methods to award Pell in the case of two Pell Grants in an award year to best meet the needs of students.”
Final Pell Grant Regulations were published October 29, 2009 to become effective July 1, 2010. Schools have been given the option of using the guidance provided in the Handbook until July 1, 2010 or implementing the final regulations early.
The 2009-2010 cross over this year is unique because schools can choose to use the guidance provided by the Department or implement the new regulations (rules) early (before July 1, 2010) for awarding Pell Grants for the cross over period. After this year’s cross over period, the new regulations will be in effect for both award years and there will be no options.
For the crossover transition, the Ann Arbor Institute of Massage Therapy will award Pell Grants using the new regulations.
§ We will pay the higher of the student’s 2009-2010 or 2010-2011 award.
§ It is understood that for the 2009-2010 award year, the acceleration rule will NOT be used.
§ It is understood that when awarding Pell Grant funds from the 2010-2011 award year, the acceleration rule is not applicable since this would not be second Scheduled Award.
For the February class that started on February 23, 2011, AAIMT will consider the second disbursement to be in a “cross-over” payment period and will pay Pell Grant out of the 2010-2011 or 2011-2012, whichever award year provides the student with the most Pell grant eligibility per federal regulations. Students must have a valid ISIR on file for the year used to determine Pell grant eligibility.
For the February programs in all subsequent years, after 2011, the rules applied in the February 2011 program will be applied using the correct aid years as determined by federal regulations.