Jun 22, 2024  
2011-2012 Graduate Catalog 
2011-2012 Graduate Catalog Archived Catalog

Financial Aid Information

General Information

Neumann University recognizes that increasing numbers of graduate students require assistance in financing their college education. It is the University’s objective to assist in making it financially possible for academically qualified graduate students to attend Neumann. Students with financial need should not hesitate to apply for admission.

The Financial Assistance Office encourages all students, regardless of their financial circumstances, to apply for financial aid. At present, approximately 90% of all students attending Neumann University receive some form of financial assistance. By applying for financial aid, students are considered for scholarships and student loans which are awarded and/or coordinated by the University from institutional and federal sources.

Neumann University awards financial aid on the basis of academic merit and documented financial need. The student’s need is determined by an analysis of the information provided on the Free Application for Federal Student Aid (FAFSA). The FAFSA is available at the FAFSA web site at www.FAFSA.ed.gov. For Fall admissions, the FAFSA should be completed and submitted to the Federal Processor as soon as possible after January 1st. In order to submit the FAFSA form online, the student must register for a PIN number at www.pin.ed.gov, and use that number for submitting the FAFSA form. In order to be eligible for financial aid funding, a student must be matriculated in a graduate degree program and be a U.S. Citizen or Eligible Non-Citizen. Graduate students may borrow funds through the Federal Family Education Loan Program (Stafford and Unsubsidized Stafford) to assist them with their cost of education. In general, a student must be registered at least half-time (4.5 credits) to receive any type of financial aid funding.

Graduate students are awarded financial aid on a rolling basis. Returning students must apply each year to receive funding. The priority deadline for returning student financial aid applications is March 15th for the following academic year. Graduate students should attempt to apply for financial aid well in advance of the enrollment period in order to ensure that funding is available at the start of a term.

Application Procedure

Graduate students should take the following steps in applying for financial aid from the University:

  1. Complete and submit the Free Application for Federal Student Aid (FAFSA) to the Federal Processor as soon as possible after January 1st. The FAFSA form is to be completed online at www.fafsa.ed.gov. In order to submit the FAFSA form online, the student must register for a pin number at www.pin.ed.gov and use that number for submitting the FAFSA form. Students who received financial aid at another institution in the previous year should receive an alert on their e-mail address. They should update and submit this form to the Federal Processor in lieu of completing a new FAFSA.
  2. Be sure that the FAFSA/Renewal FAFSA lists Neumann University as the institution which has been designated to receive the student’s application information. Neumann University’s Title IV school code is 003988.
  3. Respond promptly to all requests for additional information. These requests may originate from Neumann University and/or the Federal Processor.
  4. To apply for a Federal Direct Loan, you must complete the FAFSA. To be eligible, you must be enrolled at least half-time and meet other general federal student aid eligibility requirements. If you qualify for a Federal Direct Loan, it will be included in your Financial Aid Award Letter.

The returning student financial aid application deadline is March 15th for the following academic year. Returning students should follow the steps outlined above.

Financial Aid Programs


Educational loans provide money for students to help pay for educational expenses while the student is enrolled at the University. Perhaps the best features of these educational loan programs are the low interest rates — lower than most other types of personal loans — and the extended repayment periods — in most cases up to 10 years.

William D. Ford Direct Loan Program

The U.S. Department of Education’s major form of self-help aid is available through the William D. Ford Federal Direct Loan Program. There are two types of Federal Direct Loans: subsidized and unsubsidized. Federal Direct Loans replace the Federal Stafford Loans, which were formerly known as Federal Guaranteed Student Loans.

Because the funding for these loans comes directly from the U.S. Department of Education, you do not have to find a lender to borrow through this program. Please disregard any offers you may receive about the Federal Stafford Loan program through private lenders. Since Neumann University is a Federal Direct Lending institution, you may not use a private lender to apply for a Federal Loan.

This loan program is available to full-time and part-time graduate students who are enrolled for a minimum of 4.5 credits per semester. If a student qualifies for a subsidized loan, the federal government makes the interest payments on behalf of the student while the student is still enrolled in school. Students who do not qualify for any or a full, subsidized loan are eligible for the Unsubsidized Direct Loan. Under the Unsubsidized Direct Loan program, the student is responsible for making the interest payments while enrolled in school. The annual subsidized loan limit for graduate students is $8,500. The interest rate is a fixed rate, which is set each July 1st by the federal government and will not exceed 8.25%. The repayment period may extend up to 10 years, depending upon the total amount borrowed.

Graduate students may have additional unsubsidized direct loan eligibility beyond the annual loan limits specified above. This additional eligibility may not exceed the cost of attendance minus other aid (including subsidized direct loan). Graduate students may borrow up to $12,000 per academic year.

Federal Direct Subsidized Loan

A Federal Direct Subsidized Loan is available to help meet financial need after other resources are subtracted from either the cost of attendance or the annual maximum loan limit, whichever is lower. The interest rate in effect for 2011-2012 for graduate students is fixed at 3.4%. Interest begins to accrue for the student 6 months after the student graduates or ceases to be enrolled at least half time.

Federal Direct Unsubsidized Loan

A Federal Direct Unsubsidized Loan is not based on your financial need. If your Estimated Cost of Attendance is greater than your financial aid and you have not reached your annual maximum loan limit through the Federal Direct Subsidized Loan, you may qualify for Federal Direct Unsubsidized Loan. The interest rate for Federal Direct Unsubsidized loans is fixed at 6.8%. You are charged interest on this loan from the time the loan is disbursed until it is paid in full. You have the option to pay on the interest while in school, or to allow the interest to accumulate, which adds to the principal amount of the loan and increases the amount to be repaid.

Federal Direct Grad PLUS Loan

The Federal Direct Graduate PLUS loan enables graduate students with good credit histories to borrow funds to pay their educational expenses that are not covered by a Federal Direct Loan or other aid if they are enrolled at least half time. The yearly limit on a Direct Grad Plus is equal to the cost of attendance minus any other financial aid.

The Federal Direct Grad Plus has a fixed interest rate of 7.9 %. A maximum origination fee of 4% will be deducted from each loan disbursement. Borrowers can choose to defer payments on a Federal Direct Grad Plus loan until six months after the date they cease to be enrolled at least half-time. Accruing interest can either be paid by the borrower monthly or quarterly, or be capitalized quarterly. Payments on interest can be tax deductable, and there are no penalties on paying off the loan early.

E-sign the Federal Direct Loan Master Promissory Note (MPN)

Students borrowing a Federal Direct Loan must complete a Federal Direct Loan Electronic Master Promissory Note (MPN) before loan money can be disbursed. Once a Federal Direct Loan MPN is completed and the loan is disbursed to you by Neumann University, you do not have to sign Federal Loan MPN again (it is valid for 10 years).

To complete the MPN, you must go to https://studentloans.gov/. You will need your U.S. Department of Education PIN to sign your MPN electronically. The PIN is the same one used to sign your FAFSA. After you sign your MPN, electronic notification will be sent to Neumann University. Neumann may not disburse your Federal Direct Loan unless you have completed your MPN and have completed Entrance Counseling.

Federal Direct Loan Entrance Counseling

The federal government requires a student to participate in loan counseling prior to receiving a Federal Direct Loan. Entrance Counseling will explain various aspects of student loans, such as repayment and interest, as well as your rights and responsibility. It concludes with a 15-question quiz. You must get all answers correct to successfully complete Entrance Counseling.

Entrance Counseling can be completed at https://studentloans.gov. You will need your U.S. Department of Education PIN to successfully complete Entrance Counseling. After you complete Entrance Counseling, the results will be sent electronically to Neumann University, although you may wish to print a copy of the rights and responsibilities page for personal records.

Request Reduction or Cancellation of Federal Direct Loans

You have the right to reduce or cancel your Federal Direct Loan offer. You may do so by making a notation on your Financial Aid Award Letter and returning it to the Financial Assistance Office.

Federal Direct Loan Exit Counseling

The federal government requires that students participate in Exit Counseling prior to leaving or graduating from college. You will need your U.S. Department of Education PIN to successfully complete Exit Counseling.

During Exit Counseling, you will learn about additional deferment and forbearance and how to get the necessary forms. Even though you have a six month grace period, the Exit Counseling process will help you set up a repayment plan, a direct withdrawal, and a payment date. The National Student Loan Data System for Students handles Exit Counseling. Exit Counseling can be completed at http://www.nslds.ed.gov.

Veterans Benefits

These benefits may be available to veterans based upon their service and/or participation in Department of Veterans Affairs (VA) Educational Programs. Children of deceased or 100% disabled veterans with a service-connected disability are also eligible to receive benefits. Award amounts are determined by the Department of Veterans Affairs. Students should contact the VA for additional information.

Notification of Financial Aid Awards

Newly enrolled students are notified of their eligibility for financial aid with a Financial Aid Award Letter. The award letter is processed and mailed to accepted students upon receipt of the student’s FAFSA data. Returning students’ letters are processed as their files become complete.


Each year the federal government randomly selects 33% of all FAFSA applications for a process called verification. Selected students are required to submit verification documents, including federal tax returns, to the University for review within 45 days from receipt of the verification request. Students who are selected for verification will only be awarded an estimated award package until their verification process is complete.

The Financial Assistance Office reserves the right to adjust awards based upon receipt of information that changes the student’s eligibility to receive financial aid. This information may include any changes in application data, receipt of outside awards, changes in financial circumstances, etc.

Students may receive requests for additional information from the University and/or the Federal Processor. Students must respond in a prompt manner to all requests for additional information to avoid delays in the finalization of their awards.

Financial Aid Adjustments

The Financial Assistance Office is prepared to respond to unforeseen changes in any student’s financial status. In the event that a student’s financial status changes, the student may request a review by contacting the Director of Financial Aid in writing and outlining the circumstances surrounding his/her request for a review of his/her file. The Office reviews each case individually for possible changes in funding.

If a student receives gift assistance from another source or has a change in family circumstances, it is the student’s responsibility to report that information to the Financial Assistance Office. The University then reviews the student’s financial status, reserving the right to adjust the student’s award.

If a student drops to less than half-time status during the academic year, an adjustment will be made to the student’s financial aid award at the University’s discretion. If a student who has received financial assistance withdraws from Neumann University, he or she will be subject to the refund policies of the University.

Payments and Refunds

Statements covering all charges for the Fall semester are mailed home to students in July and must be paid by the due date indicated on the student’s bill. Statements covering charges for the Spring semester are mailed in December and must be paid by the due date indicated on the bill. There is a $50 fee assessed for each missed payment deadline and for each month, thereafter, that the student’s balance remains unpaid.

Neumann University participates in a Deferred Payment Plan. Students should contact the Business Office 610-358-4220 for additional information on this plan.

For refund purposes, a week is defined as seven calendar days beginning with the first day of classes. The first scheduled meeting of a course, therefore, constitutes the beginning of the refund period for that course. The refund period may change based upon the length and nature of the course.

Neumann University Refund Policy

Refunds for students during the Fall and Spring semesters of the academic year are as follows:

  For students withdrawing before the first day of classes 100% of tuition
  For students withdrawing during the first and second weeks 80%
  During the third week 50%
  During the fourth week 20%
  After the fourth week 0%

All students who have previously attended, in a prior semester, at least one class at Neumann and who are receiving Federal Title IV Aid and who withdraw from the University during any term, will be granted refunds using the following Federal Refund Policy.

Federal Refund Policy

The Financial Assistance Office is required by federal statute to determine how much financial aid was earned by students who withdraw, drop out, are dismissed, or take a Leave of Absence prior to completing 60% of a payment period or term. For a student who withdraws after the 60% point in time, there are no unearned funds. However, a school must still complete a Return Calculation in order to determine whether the student is eligible for a post-withdrawal disbursement. This calculation is based upon the percentage of earned aid using the following Federal Return of Title IV Funds formula.

The percentage of the period completed is determined by dividing the number of calendar days completed in the payment period or period of enrollment, as of the day the student withdrew, by the total number of calendar days in the same period. The number of calendar days in the numerator or denominator includes all days within the period, except for institutionally scheduled breaks of five or more consecutive days. Days in which the student was on an approved Leave of Absence would also be excluded. The day the student withdrew is counted as a completed day. This percentage is also the percentage of earned aid. Funds are returned to the appropriate federal program based upon the percentage of unearned aid.

If a student earned less aid than was disbursed, the institution would be required to return a portion of the funds, and the student would be required to return a portion of the funds. When Title IV funds are returned, the student borrower may owe a debit balance to the institution. If a student has earned more aid than was disbursed to him/her, the institution would owe the student a post-withdrawal disbursement which must be paid within 180 days of the student’s withdrawal. The institution must return the amount of Title IV funds for which it is responsible no later than 45 days after the date of the determination of the date of the student’s withdrawal. Refunds are allocated in the following order:

  • Unsubsidized Direct loans (other than PLUS loans)
  • Subsidized Direct loans
  • Federal Perkins loans
  • Direct PLUS loans
  • Federal Pell Grants for which a return of funds is required
  • Federal Supplemental Opportunity Grants for which a return of funds is required
  • Iraq Afghanistan Service Grant

Students are required to meet all financial obligations to the University when due. Students are not allowed to register for classes, graduate, or receive academic transcripts if they are delinquent in meeting their financial obligations to the University.

Satisfactory Academic Progress Standards Policy

In compliance with federal and Pennsylvania state regulations, Neumann University has adopted a minimum standard of academic progress which students must meet in order to be eligible to receive federal or Pennsylvania state financial aid funds. University need-based funding is also subject to this standard.

Satisfactory Academic Progress (SAP) Requirements for Federal, State, and College Financial Aid Programs

To be eligible to receive financial assistance under any federal, state, or university scholarship, grant, loan, or work-study program, students must achieve both a minimum cumulative GPA and a minimum number of earned credit hours at the end of each academic year. Full-time graduate students must successfully complete a minimum of 18 credits per academic year. An academic year is defined as a minimum of 30 weeks of instructional time in which a full-time student is expected to complete at least 18 credits. Part-time graduate students must successfully complete a minimum of nine credits per academic year. A full-time graduate student may not receive financial aid for more than 10 semesters. A part-time graduate student may not receive financial aid for more than 10 semesters. All students must maintain a minimum cumulative GPA of 3.00 in order to continue receiving need-based federal and institutional funding.

In determining Satisfactory Academic Progress for financial aid purposes, the Director of Financial Aid also utilizes the following criteria:

  • A grade of Incomplete [“I”] is treated as an attempted and non-passing grade until it is resolved as a passing grade, i.e., until the grade of “I” is replaced with a grade of “D” or better in accordance with the University’s grading policy for grades of “Incomplete.”
  • A grade of “IW” or “W” is treated as an attempted and non-passing grade and, hence, is counted in the quantitative measure of SAP standards. Students who withdraw from the University after the conclusion of the Drop/Add Period will have all financial aid assistance suspended in the subsequent semester.
  • The Pass/Fail Option must be requested by the student during the first two weeks of any given semester/term, unless otherwise posted. While grades of “P” are counted in both the qualitative and quantitative measurement of SAP standards in accordance with federal and state regulations, the student’s GPA is affected only when a failure grade (“F”) is earned.
  • Repeat courses are considered as new classes for financial aid purposes. The Director of Financial Aid reserves the right to decide, on an individual basis, the number of times a student can receive federal aid for repeated courses.
  • Transfer credits accepted by Neumann University are included in the quantitative measurement of a student’s academic progress (maximum time-frame for degree completion).
  • For readmitted students, all prior credits are considered in determining satisfactory academic progress of individual students who return to Neumann University after one or more semesters of absence.
  • For change of program, all prior credits are considered in determining the satisfactory academic progress of students.
  • If in any term, a student earns zero credit hours, the student is suspended from receipt of federal financial assistance in the subsequent term of enrollment. In addition, the maximum time-frame for the completion of any graduate degree-granting program at Neumann University is five years. This length of eligibility starts with the student’s entry date and includes any accepted transfer credits from other institutions.

The SAP review is conducted by the Director of Financial Aid after each semester’s grades are posted by the Registrar. All aid recipients and applicants are reviewed by the Director, even if the student attended for only one semester during the academic year. One semester of attendance requires the completion of at least 9 credits if full-time, and at least 4.5 credits if part-time. The minimum GPA requirement is 3.00.

Financial Aid Probation/Suspension

The Director of Financial Aid may place a student on Financial Aid Probation/Suspension if the student has not met both the quantitative and qualitative measures of SAP standards. A student placed on Financial Aid Probation is allowed to receive financial aid for one additional term and is required to complete at least 9 credits if full-time, and 4.5 credits if part-time. At the end of that term, if the student has completed at least 67% of the credit hours attempted and has earned a minimum GPA of 3.00 for the term of financial aid probation, aid is reinstated. If this requirement has not been met, the Director of Financial Aid revokes the student’s eligibility and suspends all financial aid for the student. The Director also notifies the student, in writing, when he/she has been placed on Financial Aid Probation/Suspension. A copy of that letter is kept in the student’s permanent file. In cases of financial aid suspension, the Director also updates the University’s database to indicate financial aid suspension to prevent financial aid from being credited to the student’s account.

Reinstatement of Financial Aid

A student who has been suspended from receiving financial aid may be reinstated after the student has taken, at Neumann University at his/her own expense, at least 4.5 credit hours of course work in one term and has earned a minimum semester GPA of 3.00 for those courses. The Director of Financial Aid determines whether or not to reinstate financial aid to the student based upon the student’s academic appeal. If the Director reinstates financial aid for the student, an SAP Reinstatement Letter is sent to the student.

Appeals Process

A student who does not meet the Satisfactory Academic Progress standards and is subsequently placed on probation or has his/her financial aid eligibility revoked may appeal to the Director of Financial Aid. The appeal must be made in writing and must be submitted within 45 days after notification of the student’s failure to meet SAP standards. Only extenuating circumstances are considered in the appeals process. The Director notifies the student of the determination within 30 days after receiving the student’s written appeal. That decision is final and binding on all parties. A student may only receive one waiver of SAP requirements, as determined during the appeals process, during his/her entire career at Neumann University. Once an appeal has been accepted, the student may not appeal again if SAP standards are not met in future academic years.