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Financial
aid refunds consolidated
By Cytella Francis
Students financing their education through federal loans now receive
all of their loan money at the beginning of the semester. The previous
procedure was to give out the aid money in two disbursements, requiring
students to wait until mid-semester to have access to the remainder
of their funds. The change came about from a regulation change by
the U.S. Department of Education.
"It's a benefit to the institution and to the student,"
said Stephen Thannickal, Director of Financial Aid. "At this
point I will say the biggest impact has been for our commuters who
are living off campus and rely on financial aid."
The change is a result of the good track record in loan payments that
ORU alumni have had in the past few years. An improved rate of repayment
results in more flexibility with the granting of federal funds for
ORU.
The U.S. Department of Education statistics show that ORU's cohort
default rate fell from 9.3 percent in 1997 to 3.9 percent in 1999,
which are the most recent results.
"Our federal default rate is a measurement of how our students
are doing after they leave ORU," said Thannickal. "The rates
have been dropping over the years, so it's a good indication that
we have been doing better."
Officially effective Sept. 13, 2001, the change is reflected the first
semester possible.
"It makes more sense to me," freshman Chanel Wall said.
A new student with first time financial aid, she receives her funds
in one disbursement, unaffected by former regulations.
As the average financial aid package totals $14,105 for an academic
year and the cost of tuition totals $12,980, not including lab or
computer fees, students have the option of applying for a "refund"
to receive the money left over.
Shawn McKinnon, husband and father of two, agrees. "From a married
standpoint, I think it is better just to get it in the beginning because
we can allocate the funds," McKinnon said. "When it's split,
I'm not quite sure when that second one is going to happen."
Though financial needs vary from freshmen to seniors and commuters
to on-campus students, the main issue is money management.
"Our concern continues to be still that you borrow only what
you need," Thannickal said. "You are obviously going to
have to pay this back when you go out into the business world, into
ministry and so on. It's very important that you borrow according
to your means."
In his 10 years of working with ORU, Thannikal said the track record
has improved. ORU graduates have left a legacy from which current
students can tangibly benefit.
As a step to taking financial responsibility, students are urged to
start making arrangements for financial aid early. Applications for
summer financial aid are now available.
"The quicker [students] apply the better it is for them,"
Thannickal said. "Students who complete their FAFSA (Free Application
for Federal Student Aid) now can know their awards before they leave
for the summer. They can actually know what their financial aid is
going to look like for the 2002-2003 school year, and they can plan
ahead and get their file complete."
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