FAQs

Financial Aid FAQs

What type of aid is available at Aerosim Flight Academy?

Aerosim Flight Academy currently participates in the Federal Student Aid programs, which consists of the Federal Pell Grant, Subsidized and Unsubsidized Stafford student loans, and Parent PLUS Loan programs.

Pell Grant: These grants are available to undergraduate students who qualify. This grant does not have to be repaid unless monies have been awarded and received, and you do not attend class.
Subsidized Stafford Loan: Available to students who qualify, and repaid according to the terms of your MPN (Master Promissory Note). Department of Education pays interest while you are in school and during grace and deferment periods.
Unsubsidized Stafford Loan: Available to students who qualify, and repaid according to the terms of your MPN (Master Promissory Note). You are responsible for all interest accrued while you are in school and during grace and deferment periods.
Parent PLUS Loan: Available to qualifying parents of undergraduate students to assist with education costs up to the amount of COA (Cost of Attendance) minus any other aid received.

The Financial Aid Office continues to seek alternative sources of financing. Once alternative student loans are available, the Financial Aid Office will announce those sources of funding.

Do I need to be accepted before I can apply for aid?

No. You may apply for Federal Student Aid at anytime. However, for students who qualify, funds will be disbursed accordingly upon enrollment.

How do I know if I qualify for Federal Student Aid?

Federal Student Aid is available for U.S. citizens or Eligible non citizens who qualify. In order to determine your eligibility, you must complete a FAFSA (Free Application for Federal Student Aid).

How do I apply for Federal Student Aid?

You may apply for aid by using the online FAFSA, provided by the Department of Education at www.fafsa.ed.gov.

To submit your FAFSA, you must apply for a pin (Personal Identification Number), which will allow you to sign your FAFSA electronically. You may apply for your pin at www.pin.ed.gov.

How long does the financial aid process take?

After you have electronically submitted your FAFSA, please contact the financial aid department. You would need to provide your EFC (Expected Family Contribution) number so the Financial Aid Department can tell you right away what types of Federal Aid you may receive. You will receive your EFC number immediately after completing your FAFSA.

Please keep in mind, Federal Student Aid is only available to those who qualify; some students may not be eligible for Federal Student Aid.

When do I enter repayment on my Federal loans?

Once you have completed the Professional Pilot Program, your 6-month grace period begins; when your grace period expires, you will enter into a repayment status.

The repayment period for a Parent Plus loan begins 60 days after the loan is fully disbursed. However, a Plus borrower may defer repayment while the student for whom the loan was borrowed is enrolled full-time and for 6-months after the student ceases to be enrolled.

What repayment options are available for my Federal loans?

The Direct Loan Program offers loan repayment plans designed to meet the needs of almost every borrower. Direct Loans are funded by the U.S. Department of Education through our school and are managed by a loan servicer, under the supervision of the Department. The Direct Loan Program allows you to choose your repayment plan and to switch your plan if your needs change.

To find out more about repayment options before receiving a Direct Loan, borrowers may contact the financial aid office or the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243). If you currently have a Direct Loan and would like the exact payment amount on your loan, you can find it out by contacting your loan servicer.

Parent Direct PLUS Loan borrowers may only choose from the standard, extended, or graduated options.

Standard Repayment:
With the standard plan, you’ll pay a fixed amount each month until your loans are paid in full. Your monthly payments will be at least $50, and you’ll have up to 10 years to repay your loans.

The standard plan is good for you if you can handle higher monthly payments because you’ll repay your loans more quickly. Your monthly payment under the standard plan may be higher than it would be under the other plans because your loans will be repaid in the shortest time. For the same reason—the 10-year limit on repayment—you may pay the least interest.

Extended Repayment:
To be eligible for the extended plan, you must have more than $30,000 in Direct Loan debt and you must not have an outstanding balance on a Direct Loan as of October 7, 1998. Under the extended plan you have 25 years for repayment and two payment options: fixed or graduated. Fixed payments are the same amount each month, as with the standard plan, while graduated payments start low and increase every two years, as with the graduated plan below.

This is a good plan if you will need to make smaller monthly payments. Because the repayment period will be 25 years, your monthly payments will be less than with the standard plan. However, you may pay more in interest because you’re taking longer to repay the loans. Remember that the longer your loans are in repayment, the more interest you will pay.

Graduated Repayment:
With this plan your payments start out low and increase every two years. The length of your repayment period will be up to ten years. If you expect your income to increase steadily over time, this plan may be right for you. Your monthly payment will never be less than the amount of interest that accrues between payments. Although your monthly payment will gradually increase, no single payment under this plan will be more than three times greater than any other payment.

Income Contingent Repayment: (Not available for parent PLUS loans)
This plan gives you the flexibility to meet your Direct Loan obligations without causing undue financial hardship. Each year, your monthly payments will be calculated on the basis of your adjusted gross income (AGI, plus your spouse’s income if you’re married), family size, and the total amount of your Direct Loans. Under the ICR plan you will pay each month the lesser of:

The amount you would pay if you repaid your loan in 12 years multiplied by an income percentage factor that varies with your annual income, or
20% of your monthly discretionary income*.

If your payments are not large enough to cover the interest that has accumulated on your loans, the unpaid amount will be capitalized once each year. However, capitalization will not exceed 10 percent of the original amount you owed when you entered repayment. Interest will continue to accumulate but will no longer be capitalized.

The maximum repayment period is 25 years. If you haven’t fully repaid your loans after 25 years (time spent in deferment or forbearance does not count) under this plan, the unpaid portion will be discharged. You may, however, have to pay taxes on the amount that is discharged.

Income-Based Repayment:
Under this plan the required monthly payment will be based on your income during any period when you have a partial financial hardship. Your monthly payment may be adjusted annually. The maximum repayment period under this plan may exceed 10 years. If you meet certain requirements over a specified period of time, you may qualify for cancellation of any outstanding balance of your loans.

What additional resources are available to me?

*Monthly discretionary income equals your AGI minus the poverty level for your state of residence and family size, divided by 12. For the current poverty level, see the Poverty Guidelines Chart, which is issued annually by the U.S. Department of Health and Human Services: http://www.direct.ed.gov/RepayCalc/poverty.html.

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