2008-09 POLICIES HANDBOOK - Colorado College

Outside Scholarships,Alternative Financing, and Payment Plans

Outside Scholarships

We remind students that they must notify the financial aid office of receipt of any outside assistance regardless of the amount. To ensure proper accounting of the scholarship, outside scholarship checks must be sent to the financial aid office, not to the student accounts and loans office. In most cases, private or outside scholarships may not reduce the financial aid award. One exception is if the amount of the outside scholarship causes the total aid award to exceed the amount of federal aid eligibility. In this case we must reduce the amount of aid so the total does not exceed the limits according to federal regulations. When this occurs, we will reduce the self-help (loan or work-study) by the amount of the outside scholarship. If the outside scholarship still exceeds the amount of federal aid eligibility and the student has been awarded federal or state funds, those funds would be reduced accordingly (except for the federal Pell Grant which is not affected by these regulations). Once all federal and state funds (except for the federal Pell Grant) have been eliminated, no further reduction of the student's award will occur unless the total package exceeds the total cost of attendance. If a student receives the Federal ACG or SMART grant the total aid award may not exceed the total federal eligibility under the federal methodology. 

Outside scholarship funds are credited to the student account when the checks are received in the financial aid office from the donor organization. One-half of the total amount is credited for fall semester and one-half for spring semester, unless the donor instructs differently.

National Merit Scholarships®

Colorado College sponsors National Merit Scholars® each year. The minimum National Merit award is $1,000, with the college providing additional merit funds to bring the total for National Merit finalists who name Colorado College as their first choice to $2,000 per year for four years. Self-help levels are reduced for National Merit Scholars®.

Payment Plan Options

The student accounts and loans office offers two payment plan options for families. The TuitionPay Plan from SallieMae is an interest free academic year payment plan. The plan offers flexible payment plan options and requires a small enrollment application fee. The In-House Deferred Payment Plan allows families to make four equal installments per semester directly to Colorado College . A one percent deferred payment charge is assessed on the student account each month, based on the outstanding balance. Families not paying in full or utilizing the TuitionPay plan will automatically default to the In-House Deferred Payment Plan. For more specific information about these options, please contact the student accounts and loans office at (719) 389-6698 or email the office at StudentAccounts@coloradocollege.edu or the web at www.coloradocollege.edu/internal.asp , under Administration click on "Student Accounts".

Personal Loans

Before exploring other loan options students should consider borrowing first the Federal Direct Stafford loan and parents should consider the Federal Direct PLUS loan. Private alternative educational loans for parents and students may be another funding option. Terms and requirements for alternative loans will vary. We encourage families to consider alternative loan options carefully and seek guidance about private alternative educational loans at www.coloradocollege.edu/financialaid/loans . Our office staff is available to talk about additional borrowing options. For some families a home equity loan or similar type loan is the best source of funding. Bank loans and loans from retirement funds or insurance plans may be an alternative source of additional funding. Since these loans are secured, the interest rate on them may be much lower than a private educational loan. Making withdrawals from retirement plans may be an option but these withdrawals may impact future eligibility for federal and state financial aid, and we urge families to consult with their tax advisor.  

Private Educational Loan

The student should always consider federal loans before considering an alternative student loan. Additional information about various lenders offering alternative loans can be reviewed at http://www.finaid.org.