1-800-622-3352

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McNEESE STATE UNIVERSITY

Truth in Lending Act, Section 128(e) Information

Financial Aid

Financial Aid Contact

  • 337-475-5065 or 1-800-622-3352
  • McNeese Campus
    Chozen Hall (Student Central), 4435 Ryan Street
  • studentcentral@mcneese.edu
  • Fax: 337-475-5068
  • McNeese FAFSA Code: 002017

Truth in Lending Act, Section 128 (e) Information

In accordance with 34 CFR 668.14(b)(29)(ii), an institution must, upon the request of the applicant, discuss the availability of Federal, State, and institutional financial aid. Financial Aid staff members at our institution are happy to discuss with students and prospective students, and their parents, the financial aid options available to them. Students and parents may qualify for loans or other assistance under Title IV of the Higher Education Act programs. The terms and conditions of Title IV HEA program loans may be more favorable than the provisions of private educational loans.

The Higher Education Opportunity Act of 2008 (Pub. L. 110-35) (HEOA) added section 128(e)(3) to the TILA to require that before a private educational lender may consummate a private education loan for a student in attendance at an institution of higher education, the private education lender must obtain the completed and signed Self-Certification Form from the applicant.

Please click here for the Private Education Loan Self-Certification Form.

Information Required under Sec. 128(e) of the Truth in Lending Act (15 U.S.C. 1638(e))

e) TERMS AND DISCLOSURE WITH RESPECT TO PRIVATE EDUCATION LOANS.–

(1) DISCLOSURES REQUIRED IN PRIVATE EDUCATION LOAN APPLICATIONS AND SOLICITATIONS.

In any application for a private education loan, or a solicitation for a private education loan without requiring an application, the private educational lender shall disclose to the borrower, clearly and conspicuously–

  • (A) the potential range of rates of interest applicable to the private education loan;
  • (B) whether the rate of interest applicable to the private education loan is fixed or variable;
  • (C) limitations on interest rate adjustments, both in terms of frequency and amount, or the lack thereof, if applicable;
  • (D) requirements for a co-borrower, including any changes in the applicable interest rates without a co-borrower;
  • (E) potential finance charges, late fees, penalties, and adjustments to principal, based on defaults or late payments of the borrower;
  • (F) fees or range of fees applicable to the private education loan;
  • (G) the term of the private education loan;
  • (H) whether interest will accrue while the student to whom the private education loan relates is enrolled at a covered educational institution;
  • (I) payment deferral options;
  • (J) general eligibility criteria for the private education loan;
  • (K) an example of the total cost of the private education loan over the life of the loan–
    • (i) which shall be calculated using the principal amount and the maximum rate of interest actually offered by the private educational lender; and
    • (ii) calculated both with and without capitalization of interest, if an option exists for postponing interest payments; the private educational lender may provide) following the date on which the application for the private education loan is approved and the borrower receives the disclosure documents required under this subsection for the loan; and
  • (L)that a covered educational institution may have school-specific education loan benefits and terms not detailed on the disclosure form;
  • (M) that the borrower may qualify for Federal student financial assistance through a program under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), in lieu of, or in addition to, a loan from a non-Federal source;
  • (N) the interest rates available with respect to such Federal student financial assistance through a program under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.);
  • (O) that, as provided in paragraph (6)–
    • (i) the borrower shall have the right to accept the terms of the loan and consummate the transaction at any time within 30 calendar days (or such longer period as
    • (ii) except for changes based on adjustments to the index used for a loan, the rates and terms of the loan may not be changed by the private educational lender during the period described in clause (i);
  • (P) that, before a private education loan may be consummated, the borrower must obtain from the relevant institution of higher education the form required under paragraph (3), and complete, sign, and return such form to the private educational lender;
  • (Q) that the consumer may obtain additional information concerning such Federal student financial assistance from their institution of higher education, or at the website of the Department of Education; and
  • (R) such other information as the Board shall prescribe, by rule, as necessary or appropriate for consumers to make informed borrowing decisions.

(2) DISCLOSURES AT THE TIME OF PRIVATE EDUCATION LOAN APPROVAL.

Contemporaneously with the approval of a private education loan application, and before the loan transaction is consummated, the private educational lender shall disclose to the borrower, clearly and conspicuously–

  • (A) the applicable rate of interest in effect on the date of approval;
  • (B) whether the rate of interest applicable to the private educational loan is fixed or variable;
  • (C) limitations on interest rate adjustments, both in terms of frequency and amount, or the lack thereof, if applicable;
  • (D) the initial approved principal amount;
  • (E) applicable finance charges, late fees, penalties, and adjustments to principal, based on borrower defaults or late payments, including limitations on the discharge of a private education loan in bankruptcy;
  • (F) fees or range of fees applicable to the private education loan;
  • (G) the maximum term under the private education loan program;
  • (H) an estimate of the total amount for repayment, at both the interest rate in effect on the date of approval and at the maximum possible rate of interest offered by the private educational lender and applicable to the borrower, to the extent that such maximum rate may be determined, or if not, a good faith estimate thereof;
  • (I) any principal and interest payments required while the student for whom the private education loan is intended is enrolled at a covered educational institution and unpaid interest that will accrue during such enrollment;
  • (J) payment deferral options applicable to the borrower;
  • (K) whether monthly payments are graduated;
  • (L) that, as provided in paragraph (6)–
    • (i) the borrower shall have the right to accept the terms of the loan and consummate the transaction at any time within 30 calendar days (or such longer period as the private educational lender may provide) following the date on which the application for the private education loan is approved and the borrower received the disclosure documents required under this subsection for the loan; and
    • (ii) except for changes based on adjustments to the index used for a loan, the rates and terms of the loan may not be changed by the private educational lender during the period described in clause (i);
  • (M) that the borrower–
    • (i) may qualify for Federal financial assistance through a program under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), in lieu of, or in addition to, a loan from a non-Federal source; and
    • (ii) may obtain additional information concerning such assistance from their institution of higher education or the website of the Department of Education;
  • (N) the interest rates available with respect to such Federal financial assistance through a program under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.);
  • (O) the maximum monthly payment, calculated using the maximum rate of interest actually offered by the private educational lender and applicable to the borrower, to the extent that such maximum rate may be determined, or if not, a good faith estimate thereof; and
  • (P) such other information as the Board shall prescribe, by rule, as necessary or appropriate for consumers to make informed borrowing decisions.

(3) SELF-CERTIFICATION OF INFORMATION.–

  • (A) IN GENERAL.–Before a private educational lender may consummate a private education loan with respect to a student attending an institution of higher education, the lender shall obtain from the applicant for the private education loan the form developed by the Secretary of Education under section 155 of the Higher Education Act of 1965, signed by the applicant, in written or electronic form.
  • (B) RULE OF CONSTRUCTION.–No other provision of this subsection shall be construed to require a private educational lender to perform any additional duty under this paragraph, other than collecting the form required under subparagraph (A).

(4) DISCLOSURES AT THE TIME OF PRIVATE EDUCATION LOAN CONSUMMATION.

Contemporaneously with the consummation of a private education loan, a private educational lender shall make to the borrower each of the disclosures described in–

  • (A) paragraph (2)(A) (adjusted, as necessary, for the rate of interest in effect on the date of consummation, based on the index used for the loan);
  • (B) subparagraphs (B) through (K) and (M) through (P) of paragraph (2); and
  • (C) paragraph (7).

(5) FORMAT OF DISCLOSURES.–

  • (A) MODEL FORM.–Not later than two years after the date of enactment of this subsection, the Board shall, based on consumer testing, and in consultation with the Secretary of Education, develop and issue model forms that may be used, at the option of the private educational lender, for the provision of disclosures required under this subsection.
  • (B) FORMAT.–Model forms developed under this paragraph shall–
    • (i) be comprehensible to borrowers, with a clear format and design;
    • (ii) provide for clear and conspicuous disclosures;
    • (iii) enable borrowers easily to identify material terms of the loan and to compare such terms among private education loans; and (iv) be succinct, and use an easily readable type font.
  • (C) SAFE HARBOR.–Any private educational lender that elects to provide a model form developed under this subsection that accurately reflects the practices of the private educational lender shall be deemed to be in compliance with the disclosures required under this subsection.

(6) EFFECTIVE PERIOD OF APPROVED RATE OF INTEREST AND LOAN TERMS.–

  • (A) IN GENERAL.–With respect to a private education loan, the borrower shall have the right to accept the terms of the loan and consummate the transaction at any time within 30 calendar days (or such longer period as the private educational lender may provide) following the date on which the application for the private education loan is approved and the borrower receives the disclosure documents required under this subsection for the loan, and the rates and terms of the loan may not be changed by the private educational lender during that period.
  • (B) PROHIBITION ON CHANGES.–Except for changes based on adjustments to the index used for a loan, the rates and terms of the loan may not be changed by the private educational lender prior to the earlier of–
    • (i) the date of acceptance of the terms of the loan and consummation of the transaction by the borrower, as described in subparagraph (A); or
    • (ii) the expiration of the period described in subparagraph (A).

(7) RIGHT TO CANCEL.

With respect to a private education loan, the borrower may cancel the loan, without penalty to the borrower, at any time within three business days of the date on which the loan is consummated, and the private educational lender shall disclose such right to the borrower in accordance with paragraph (4).

(8) PROHIBITION ON DISBURSEMENT.

No funds may be disbursed with respect to a private education loan until the expiration of the three day period described in paragraph (7).

(9) BOARD REGULATIONS.

In issuing regulations under this subsection, the Board shall prevent, to the extent possible, duplicative disclosure requirements for private educational lenders that are otherwise required to make disclosures under this title, except that in any case in which the disclosure requirements of this subsection differ or conflict with the disclosure requirements of any other provision of this title, the requirements of this subsection shall be controlling.

 (10) DEFINITIONS.

For purposes of this subsection, the terms “covered educational institution”, “private education lender,” and “private education loan” have the same meanings as in section 140.

(11) DUTIES OF LENDERS PARTICIPATING IN PREFERRED LENDER ARRANGEMENTS.

Each private educational lender that has a preferred lender arrangement with a covered educational institution shall annually, by a date determined by the Board, in consultation with the Secretary of Education, provide to the covered educational institution such information as the Board determines to include in the model form developed under paragraph (5) for each type of private education loan that the lender plans to offer to students attending the covered educational institution, or to the families of such students, for the next award year (as that term is defined in section 481 of the Higher Education Act of 1965).

Aid Suspension Due to a Drug Conviction
The Higher Education Act of 1965, as amended, suspends aid eligibility for students who have been convicted under federal or state law of the sale or possession of drugs, if the offense occurred during a period of enrollment for which the student was receiving federal student aid.

If you have a conviction for this offense, call the Federal Student Aid Information Center at 1-800-433-3243 or submit the Student Aid Eligibility Worksheet to find out how this law applies to you.

If you have lost your federal student aid eligibility because of drug conviction, you can regain eligibility if you successfully complete a qualified drug rehabilitation program or passes two unannounced drug tests administered by such a program.

You may also regain your eligibility if your conviction is reversed, set aside, or removed from your record so that fewer than two convictions for sale, or three convictions for possession, remain on your record.

CIA Disclosure Process Method of Distribution
If you have a Federal Stafford Loan, Federal Perkins Loan and/ or a Federal Plus Loan; the loan will be submitted to the National Student Loan Data System (NSLDS), and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system. For more information please visit www.nslds.ed.gov.

Maximum Timeframe for Program Completion: A student must complete their degree or certificate program within the maximum timeframe allowed. The maximum timeframe allowed is 150% of the time normally required for completion of the degree or certificate program. A student who fails to complete their program within the maximum timeframe is ineligible to receive federal financial assistance, even if the student did not receive federal financial aid each term of enrollment.

Degree/Certificate Program Maximum Attempted Credit Hours Allowed
Associate Degree 90 attempted credit hours allowed
Bachelor’s Degree 180 attempted credit hours allowed*
Post-Baccalaureate Certificate (initial teacher certification) 60 attempted credit hours allowed
Master’s Degree 50 attempted credit hours allowed**
Doctoral Degree 81 attempted credit hours allowed
2nd Associate Degree 135 attempted credit hours allowed
2nd Baccalaureate Degree 270 attempted credit hours allowed
2nd Master’s Degree 80 attempted credit hours allowed

Based on a 120-hour bachelor’s degree plan.
**Based on a 33-hour master’s degree plan.
Students in bachelor’s and master’s degree programs requiring more hours may appeal for extended periods of entitlement.

Other Considerations Relevant to Academic Courses

  • Remedial or developmental courses are included in attempted and earned credit hours when calculating maximum timeframe for completion.
  • Courses with withdrawal grades (W, WM, WN, WX, WZ) are included in attempted hours, but not earned hours, and do not affect GPAs.
  • Courses with grades of incomplete (I, IN, IP, IPC) or not reported (NR) are included in attempted hours, but not in earned hours or GPA calculations until changed to grades other than incomplete, not reported, or withdrawn.
  • Once a grade change has occurred, it is the student’s responsibility to contact the Office of Financial Aid to determine the impact to financial aid eligibility.
  • Federal financial aid may be paid for repeated coursework but may not include more than one repetition of a previously passed course. For example, if a student passes a course with a grade of D or better, federal financial aid can pay for only one more attempt of the same course.
  • For financial aid eligibility purposes, credit hours dismissed through academic bankruptcy are included in attempted hours only; however, in the case of a transfer student, all credit hours and grades are also included in the calculation of the GPA.
  • First-semester graduate students must have maintained a cumulative undergraduate GPA of at least a 2.0 prior to beginning graduate school.
  • Transfer students must 1) be in good standing at all previous institutions attended, 2) meet the minimum term GPA requirement, which is a 2.0 term GPA for undergraduates and a 3.0 term GPA for graduates, for the last period of enrollment at the previously attended institution, and 3) meet the earned hour requirements specified in the McNeese SAP standards to be eligible for financial aid. Entering transfer students are not eligible for a financial aid warning term. All previous hours attempted are considered in establishing total remaining federal financial aid eligibility.

Failure to Meet Satisfactory Academic Progress and Appeal for Continuing Eligibility

Satisfactory Academic Progress is assessed at the end of every term—fall, spring, and summer—after final grades are posted. Email notifications are sent to the student’s McNeese email address if the student does not meet SAP standards. The email notification includes instructions to appeal for continuation of financial aid.

Financial Aid Warning: A student, other than a transfer student, who fails to meet SAP is placed on Financial Aid Warning. A student on Financial Aid Warning may receive federal financial aid for the next term of enrollment without appeal.

Financial Aid Suspension: A student who fails to meet SAP while on Financial Aid Warning is placed on Financial Aid Suspension and is not eligible to receive federal financial aid. The student may appeal to request continuation of federal financial aid.

  1. A successful appeal allows continuation of eligibility of federal financial for the next term.
  2. If the appeal is unsuccessful and the student wishes to reestablish eligibility for federal financial aid, the student must enroll, cover tuition and fees from sources other than federal financial aid, and meet SAP standards.

Appeal Procedures: A student with extenuating circumstances which negatively impacted academic progress may appeal the financial aid suspension. Examples of extenuating circumstances include, but are not limited to, prolonged personal illness or illness of a dependent, serious accident, or death of an immediate family member.

  1. Federal Financial Aid SAP and academic suspension appeals are combined into a single process.
  2. Appeal information and instructions are located at www.mcneese.edu/financial-aid/how-to-appeal, and the appeal process may be accessed through Banner Self-Service or the MyMcNeese Portal.
  3. Appeals must be submitted electronically by deadlines published by the Office of Financial Aid.
  4. Academic personnel review submissions for appeal and make one of the following decisions:
    1. Granted, Placed on Financial Aid Probation
    2. Granted, Academic Plan Approved for One Term
    3. Granted, Academic Plan Approved for Two Terms
    4. Granted, Academic Plan Approved for Three Terms
    5. Granted, Change of Major Required
    6. Denied
  5. Students placed on an academic plan must meet plan requirements. If an undergraduate student fails to earn a 2.0 term GPA, or a graduate student fails to earn a 3.0 term GPA, while on an academic plan, the academic plan will be revoked and the student will be placed on Financial Aid Suspension.
  6. Committee appeal decisions are final, are communicated to the student via email, and are uploaded into the student’s record in the financial aid component of the student information system.

Communication

This policy is distributed via the Academic Catalog, the University Policies webpage, and the Office of Financial Aid webpage.

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CONTACT ANNA GRACE

Anna Grace Bizzle

Ms. Anna Grace Bizzle is an Academic Advisor for the College of Nursing and Health Professions. She earned her Bachelor’s and Master's degrees in Secondary Education from Mississippi State University. Her favorite part of advising at McNeese is being a resource for students as they get used to the expectations of college and helping students pursue their degrees at such a wonderful school.

ADVISOR FOR:
  • College of Nursing and Health Professions