ACADEMIC REGULATIONS

III. Student Financial Services

The Georgetown University Office of Student Financial Services helps students and their families assess their ability to meet educational costs, and provides information about the options available to finance those expenses.

The Office of Student Financial Services, located in G-19 Healy Hall, welcomes visitors from 9:00 a.m to 5:00 p.m. Mondays through Fridays. The telephone number is (202) 687-4547 and fax number is (202) 687-6542. Visit our web site for up-to-date information about expenses and financial assistance: http://finaid.georgetown.edu.

Georgetown University practices “need-blind” admissions; an applicant’s ability to meet college costs is not a criterion for admission.

To assist those admitted, the University is committed to meeting the demonstrated financial need of eligible applicants through a combination of need-based aid programs which include grants, scholarships, student employment, and student loans. In addition to need-based aid, the University offers a wide array of financial services to help students meet college costs. Georgetown helps applicants and their families plan how to use family resources, financial aid, and supplemental financing options to achieve their investment in higher education. Our mission is to make it financially possible for every qualified applicant to enroll at Georgetown University, and to thereby ensure that we recruit and retain a talented and diverse learning community.

To determine the amount of financial aid each student is eligible to receive, the Office of Student Financial Services uses an expense budget that is intended to cover the average cost of attendance at Georgetown University. The average budget includes the cost of full-time tuition, required fees (Yates, activity, and average lab fees), average room and board, plus allowances for the average cost of books, personal expenses, and the average cost of two round trips home each year for resident students, or a commuting cost allowance for students living with their parents.

Eligibility for federal, many state, and some private aid programs is based on financial need as determined by a formula that is mandated by Congress which calculates an expected family contribution towards educational expenses.

The federal need analysis formula evaluates net income, some net assets (the value of home equity is not considered to be an available asset in the federal need analysis formula), number of family members, number of family members in college, and other relevant factors that may affect each family’s ability to contribute towards educational expenses.

A parent contribution based on reported parent income and net assets, plus a student contribution based on reported income and assets are both included in determining the total expected federal family contribution. If the student will have other resources available to meet college costs, such as a state or privately-sponsored scholarship, or student benefits from government agencies such as the Veterans Administration or Bureau of Indian Affairs, these must be considered in determining need for federal aid. If the cost of attending Georgetown University is greater than the expected federal family contribution plus other resources, the applicant may be eligible for federal financial aid.

Eligibility for Georgetown University scholarship assistance is determined using a need analysis formula that is similar to the federal model described above, but which analyzes additional factors that Georgetown believes affect the applicant’s ability to contribute toward educational expenses.

So that limited funds can be shared most equitably, Georgetown University expects that each student and his or her family will contribute to the fullest extent possible to meet educational expenses, drawing on income and all family assets (including home equity). To determine eligibility for its own scholarship aid, Georgetown collects information about income and assets from the parents of independent students, and from both natural parents even if they are separated or divorced.

Under the Georgetown formula for determining eligibility for Georgetown scholarship funds, students are expected to contribute to the cost of their education by providing a mandatory minimum expected contribution from savings and/or summer employment.

Georgetown University scholarship assistance is offered to students whose expected federal family contribution, plus additional expected Georgetown family contribution (if applicable), plus federal, state and other outside resources do not meet the full cost of attending Georgetown.

a. Initial Applications Required

To apply for financial aid at Georgetown University, undergraduates must complete two applications:

1. FAFSA: Students must complete the Free Application for Federal Student Aid (FAFSA) and must indicate that the processed information be sent to Georgetown University; Georgetown’s school code is 001445. All federal, many state, and some private financial aid programs require students to complete the FAFSA to apply for aid. Students can complete the FAFSA on-line at http://www.fafsa.ed.gov.

2. PROFILE: Students must complete the College Scholarship Service (CSS) Financial Aid PROFILE form, and must indicate that the processed information be sent to Georgetown University; Georgetown’s school code is 5244. The PROFILE form collects the information Georgetown needs to award its own financial aid funds. Students can complete the PROFILE application on-line at http://www.collegeboard.com.

To verify application data and confirm eligibility, all applicants must submit copies of parent and student federal tax returns, with W-2s, attachments, and schedules.

Business and/or Farm Owners Students whose parents own a business or farm should complete the College Scholarship Service (CSS) Business/Farm Supplement form in addition to the initial aid applications. The most recent copy of the family’s corporate, business, or farm federal tax return and/or schedules may be requested in cases where more detailed information is required to determine need for assistance.

Divorced or Separated Parents Georgetown University recognizes that financial complications may arise in meeting educational costs when parents are divorced or separated. Georgetown believes, however, that parental responsibility for educational costs does not cease upon divorce or separation. The University expects that both natural parents (even when divorced or separated) will provide funds for educational expenses based on their ability to contribute from their income and assets. Both natural parents will be expected to submit financial information and to provide assistance for the student’s college expenses commensurate with their ability rather than their willingness to contribute.

By law, the student applicant, his/her custodial natural parent, and step-parent (if the custodial parent has remarried) must complete the Free Application for Federal Student Aid (FAFSA) to apply for federal assistance. The FAFSA contains instructions to help the applicant determine who is the custodial parent if that status is not clear.

To apply for Georgetown University scholarship assistance, the student applicant, his/her custodial natural parent, and step-parent (if the custodial parent has remarried) must complete the Free Application for Federal Student Aid (FAFSA) and the College Scholarship Service (CSS) Financial Aid Profile Form. In addition, the non-custodial natural parent must complete a College Scholarship Service (CSS) Non-Custodial Parent’s Statement. Eligibility for Georgetown scholarship assistance is based on either the income and assets of the custodial parent and step-parent or the custodial parent and non-custodial parent (with step-parent information discounted from the need analysis). A contribution towards college expenses will be sought from only two of the three (if applicable) parties, but information is collected from all three in order to determine ability to contribute towards educational expenses.

In a limited number of special cases, the following criteria are considered to evaluate requests to waive the requirement for non-custodial parent information. Meeting one or more of these criteria does not automatically qualify students for a waiver; a combination of these criteria must be present for Georgetown to consider waiving the requirement. Independent third party documentation may be requested to support requests for waivers. The criteria considered in combination are:

• Can the non-custodial parent be located by the applicant or custodial parent? If not, documentation of unsuccessful attempts to contact the non-custodial parent is required to support a request for waiver, e.g., copies of court records or requests for assistance from state or local government agencies;
• Is the non-custodial parent completely incapable of making a financial contribution due to lack of income/assets? The non-custodial parent’s inability to contribute must be documented to support a request for waiver, e.g., non-custodial parent’s receipt of need-based government assistance such as food stamps, welfare, or SSI benefits, or incarceration of non-custodial parent would document incapacity;
• Has the non-custodial parent made child support payments recently and consistently? If not, a statement to that effect and/or documentation of unsuccessful attempts to obtain child support payments is required to support a request for waiver;
• Did the divorce or separation take place so long ago that it is unreasonable to expect a contribution from the non-custodial parent? If the divorce or separation took place more than five years ago, and if other criteria for waiver are met (such as lack of child support payments), it is more likely that the requirement for non-custodial parent information will be waived.

Georgetown University expects parents and students to contribute jointly to student educational expenses. In cases where parents are unwilling to provide financial support for a college education, students do not automatically become independent. Except in rare cases where independence is recognized (as described below), eligibility for Georgetown University assistance is based on parent’s and student’s ability, rather than willingness, to contribute to educational costs.

Students who claim to be self-supporting at the time of their enrollment at Georgetown University must meet the federal definition of financial independence to qualify for federal aid as an independent applicant. For the 2009–2010 academic year, students who were born before January 1, 1986, or are veterans of the U.S. Armed Forces, or are wards of the court, or whose parents are deceased, or students who are legally married or separated, or have legal dependents other than a spouse, meet this definition.

To be considered for a Georgetown scholarship, all applicants are expected to provide parental income and asset information, regardless of their federal dependency status. With few exceptions, all applicants who wish to be considered for Georgetown scholarship assistance must provide parent information on the Free Application for Federal Student Aid (FAFSA) and the College Scholarship Service (CSS) Financial Aid Profile Form.

In a very limited number of special cases, the requirement to provide parent information on the FAFSA and the Profile Form may be waived. Applicants who are wards of the court or whose parents are deceased are automatically accepted as “independent” for all types of aid, including Georgetown Scholarships. Other exceptions to this policy are made on a case-by-case basis. The criteria considered in combination are:

• Can the applicant document self-support for several years prior to entering college? Students must provide evidence that they were able to financially support themselves, e.g., tax returns showing a level of income that would support the student independent of outside resources;
• Can the applicant provide documentation from independent third parties regarding the complete absence of a parent/student relationship for an extended period of time?
• Is the applicant of an age that would imply independence? Waiving the requirement for parental information becomes more reasonable as the age of the applicant increases, if the other criteria are met.

International Students Georgetown University has extremely limited financial assistance for students who are not citizens or eligible permanent residents of the United States.

Financial aid is offered by the United States government and (with few exceptions) by Georgetown University only to students who are either U.S. citizens, or U.S. permanent residents who have an Alien Registration Receipt Card (I-551), or non-U.S. citizens with an Arrival-Departure Record (I-94) from the U.S. Immigration and Naturalization Service showing one of the following designations: (a) “Refugee,” (b) “Asylum Granted,” (c) “Indefinite Parole” and/or “Humanitarian Parole,” (d) “Cuban-Haitian Entrant”, or conditional permanent residents (I-551C).

Each year a small number of international students who are not citizens or eligible permanent residents of the U.S. are offered scholarship aid from Georgetown University, based on demonstrated financial need. Typically these scholarships are renewed for four years of undergraduate study if the recipient continues to demonstrate financial need. Students who wish to be considered for this very limited number of scholarship awards from Georgetown should indicate their intent on the application for admission and submit an International Student Financial Aid Application to apply for these very limited awards. The International Student Financial Aid Application can be downloaded from our website at http://finaid.georgetown.edu by clicking on the “International Students” link.

Although financial aid is limited for international students, Georgetown does offer monthly payment plans for all its students, and there are low-cost educational loans available to students who wish to borrow with a U.S. citizen as co-signer. It is strongly suggested that international students who require additional financial assistance investigate the possibility of aid through their own government agencies or other independent sources.

State Scholarship Applications Students residing in states that offer portable scholarship programs may be required to complete a state aid application in addition to the applications required by the federal government and Georgetown University. Further information is available from state educational agencies or the Georgetown University Office of Student Financial Services.

To ensure priority consideration for all types of aid available from Georgetown University, students must complete financial aid applications by the following deadlines:

Students who file the FAFSA and Profile Form by the applicable deadline will receive priority consideration for all aid programs available at Georgetown. Early processing of the FAFSA and Profile Form is critical if students are to be informed of eligibility for financial aid when they receive notification of the admissions decision on April 1 (for first-year students) or June 1 (for transfer students). Continuing undergraduates who apply for financial aid by April 15 are notified of their eligibility by late June or early July.

Need for financial assistance is reevaluated annually to ensure continued fairness in the distribution of aid. Because the amounts and sources of financial aid program funding change each year, and because families’ financial circumstances may also change, students are required to complete a new financial aid application each year.

Financial aid recipients can be reasonably assured of continuing financial support for four undergraduate years at Georgetown provided the funding sources are available, students continue to demonstrate the same level of financial need, make satisfactory academic progress, and are in good standing with the University.

Maintaining Satisfactory Academic Progress To maintain eligibility for financial aid students must typically maintain a cumulative QPI of 2.00 on a scale of 4.00 and enroll for a minimum of 24 credits during an academic year that consists of a Fall, Spring, and summer term. The GU Office of Student Financial Services reviews each financial aid recipient’s academic progress at the end of each academic year and may revoke the financial aid funding of any student who fails to meet these minimum academic progress standards. If a student fails to meet the required academic progress standards to qualify for financial aid, the requirements may be waived by the Deans of the Undergraduate Schools when in their judgment, special circumstances so warrant.

Students placed on academic probation at the end of any semester are expected to improve their academic progress in the following semester. Students who have been suspended from the University who wish to return to the University must re-apply for financial aid as well as for admission.

Financial Aid is offered in the form of a package that has three basic components: loan, employment, and grant or scholarship.

The combination of loan and employment is known as “self-help.” The amount of self-help awarded in a Georgetown financial aid package is reviewed and revised annually and will generally increase as the student progresses from the first to the fourth year.

Some students are also eligible for state-funded grants, and/or federally funded grants (e.g. Federal Pell Grants and Federal Supplemental Educational Opportunity Grants). In addition, students who demonstrate sufficient financial need receive Georgetown University scholarships to meet 100% of their demonstrated financial need. Georgetown University scholarship awards range in value from $1,000 to more than $50,000 per year for eligible individuals. Further information about each of these aid programs can be found on the GU Office of Student Financial Services website at http://finaid.georgetown.edu.

Financial Aid packages prepared for students based on initial aid application information are revised for the reasons explained below.

Students who change their enrollment status from full time to part time in either semester, or students who withdraw from the University prior to the end of either term, will be eligible for less financial aid than students enrolled full time for an entire academic year. Students considering a change in their enrollment status should contact the Office of Student Financial Services to determine what impact an enrollment change will have on eligibility for financial assistance.

Students who receive need-based financial aid from Georgetown and outside sponsored scholarships may be able to use their outside scholarships to reduce or eliminate the GU adjustments to their expected family contribution (when the GU family contribution is higher than the Federal family contribution), and/or to reduce or eliminate their Federal Work-Study employment, and/or to reduce or eliminate their student loan before any adjustment is made in their Georgetown Scholarship award.

If the total amount of a student’s outside scholarships exceeds the amount of adjustments that can be made to expected family contribution, and/or work, and/or loan, then the outside scholarship may affect the student’s eligibility for Georgetown Scholarship. Under federal law and Georgetown University policies, no student may receive more financial aid than meets his/her demonstrated financial need.

The above policy does not apply to Federal Pell Grant or various types of benefits payments; these awards are used to meet a student’s need for Georgetown Scholarship aid and therefore will reduce the student’s eligibility for Georgetown Scholarship aid 100% on a dollar-for-dollar basis.

Changes in family circumstances can often prompt students to seek additional financial assistance in meeting college costs. If a student and/or his/her family has experienced a significant reduction in income or assets due to illness, accident, unemployment, business failure, or other circumstances, the Office of Student Financial Services can help. A request for an additional review of an aid application based on a change in financial circumstances must be made in writing and should include details and relevant documentation where possible. Students are encouraged to discuss their concerns with a counselor in the Office of Student Financial Services to examine the options available to meet their changed circumstances.

The programs offered by Georgetown University to help students meet college costs are briefly described on the following pages. To apply for assistance under most of these programs the applicant must complete the Free Application for Federal Financial Aid (FAFSA) and the College Scholarship Service (CSS) Financial Aid Profile Form. For the most current and more detailed information about these financial aid programs visit the GU Office of Student Financial Services website at http://finaid.georgetown.edu.

Georgetown Need-Based Scholarships

Each year Georgetown University awards many hundreds of need-based scholarships to eligible undergraduates. Individual awards range in value from $1,000 to more than $50,000 per year, depending on the student’s eligibility for scholarship assistance.

Georgetown University (GU) and Incentive Scholarships are typically awarded on the basis of demonstrated financial need using a nationally-recognized formula for determining that need. Each student’s financial need is re-evaluated annually to ensure continued equity in the distribution of University scholarship assistance.

Georgetown’s GU Scholarship program provides need-based awards to eligible undergraduates to meet 100% of their demonstrated financial need for scholarship assistance. Some GU Scholarship awards are named by the donors who provided the financial support to fund these awards.

Georgetown also offers Incentive Scholarship awards that are designed to assist in the recruitment and retention of talented undergraduates. Often these awards are made to students who are pursuing certain academic or extra-curricular interests. Incentive Scholarships typically reduce the “self-help” student loan or work components of a standard need-based Georgetown financial aid package. Examples of some of the Incentive Scholarship programs at Georgetown include Athletic, Baker, Bellarmine, Ignatian, GSP, John Carroll, and others.

A significant portion of the scholarship assistance that Georgetown offers to eligible undergraduates each year is funded by the generous gifts of University benefactors. Without this support from alumni and friends of the University, Georgetown would not be able to continue to meet the full financial need of all our aid applicants, nor effectively recruit and retain talented individuals. A complete list of the named funds that have been donated to the University to support GU and Incentive Scholarship awards for undergraduates, and the application requirements for these programs, can be found on the GU Office of Student Financial Service’s website at http://www.georgetown.edu/students/student-aid/grantnamed.htm.

Many of our donors take a personal interest in the students who receive named GU or Incentive Scholarships funded by their gifts. Students selected for some of the named GU or Incentive Scholarship awards listed on the Office of Student Financial Service’s website may be asked to write a letter of appreciation to the donor of the named GU Scholarship fund, or to attend events to acknowledge the generosity of the donor. Students are strongly encouraged to participate in these activities in support of continued fundraising for the University’s financial aid programs.

Federal Pell Grants ranging in value from $400 to more than $5,350 per year are available to support undergraduate study for students who demonstrate significant financial need.

Georgetown receives a small allocation of funds for Federal Supplemental Educational Opportunity Grants (FSEOG) from the U.S. Department of Education each year. These funds must be awarded to students with the greatest financial need, most of whom will also be Federal Pell Grant recipients. FSEOG funds are used in conjunction with Georgetown University Scholarship funds to meet the need for undergraduate scholarship assistance.

The Federal Academic Competitiveness (AC) Grants and National Science and Mathematics Access to Retain Talent (SMART) Grants were created by a 2005 Act of Congress to encourage students to take more challenging courses in high school and to pursue college majors in high demand in the global economy, such as science, mathematics, technology, engineering and critical foreign languages. For certain Federal Pell Grant recipients, an AC Grant of up to $750 is awarded to eligible first-year students, and an AC Grant of up to $1,300 is awarded to eligible second-year students. A National SMART Grant of up to $4,000 is awarded to eligible third and fourth year students.

For AC Grants, students must (1) apply for financial aid by submitting the Free Application for Federal Student Aid (FAFSA) and have been determined to be eligible for a Federal Pell Grant, and (2) must be a U.S. citizen or an eligible non-citizen, and (3) must be enrolled at least half-time in a two or four-year degree program, and (4) must be in their first or second academic year of a two or four-year degree program, and (5) first-year students must have completed high school on or after January 1, 2006, and (6) second-year students must have completed high school on or after January 1, 2005, and (7) all AC Grant students must have completed a rigorous high school program of study as designated by their state, and (8) all second-year AC Grant students must have a grade point average (GPA) from their first year of at least 3.0.

For National SMART Grants, students must (1) apply for financial aid by submitting the Free Application for Federal Student Aid (FAFSA) and have been determined to be eligible for a Federal Pell Grant, and (2) must be a U.S. citizen or an eligible non-citizen, and (3) must be enrolled at least half-time in a four-year degree program, and (4) must be in their third or fourth academic year of a four-year degree program, and (5) must be pursuing a major in mathematics, science (including physical, life, and computer sciences), technology, engineering, or a critical foreign language, such as Arabic, Chinese, Korean, Japanese and Russian, and (6) must have a grade point average (GPA) of at least 3.0.

For further information about these grants contact the GU Office of Student Financial Services.

Students residing in certain states that offer portable funding may be eligible to receive state grants for study at Georgetown University. Most states provide information about application procedures and deadlines to high school guidance offices, and further information is available from each state’s education agency. In addition, every state in the nation awards four-year $1,500/year Robert C. Byrd Honors Scholarships to selected high school graduates who demonstrate outstanding academic achievement.

Reserve Officer Training Corps (ROTC) scholarships are available for up to four years of undergraduate study at Georgetown University. The Army ROTC program is based at Georgetown University, and students may participate in the Air Force and Navy programs through the Washington Consortium of Universities.

Many philanthropic organizations and others offer scholarships for college study. To obtain information about these funding opportunities, students are encouraged to use the free online scholarship search engines linked on Georgetown’s website at http://www.georgetown.edu/students/student-aid/schships.htm.

Many employers offer to pay all or part of the college tuition of their employees and their dependents. Typically the organization’s personnel or human resources office can provide information about tuition benefits for employees and their dependents.

Georgetown provides tuition benefits to eligible University employees for various types of educational expenses. Further information is available from the GU Office of Human Resources, located in Healy Hall, or by calling that office at (202) 687-2500.

Students who believe they may be eligible to receive educational benefits through the Veterans Administration may obtain information and assistance from the GU Registrar’s office, located in the White Gravenor Building, or by calling that office at (202) 687-4020.

Federal Work-Study

The Federal Work-Study program ensures employment opportunities for eligible students by providing a federal subsidy to the salaries that are paid to program participants by their employers. Each year more than 1,000 Georgetown undergraduates are employed at the University and off-campus through this program. Many Work-Study jobs offer opportunities for community service: students are employed to help solve problems related to health care, literacy training, education, welfare, social services, transportation, public safety, crime prevention and control, and community improvement.

This federally supported program, based at Georgetown’s Office of Student Financial Services, helps enrolled GU students locate part-time, temporary, and/or summer employment in the District of Columbia metropolitan area.

Federal Stafford Student Loans

Under the subsidized Federal Stafford Loan Program, interest on the loan is paid by the federal government and repayment is deferred as long as the student remains in school on at least a half-time basis. Unsubsidized Stafford Loans with attractive repayment terms are also available for students who are not eligible for the need-based federal interest subsidy. Eligible undergraduates may borrow from $3,500 to $5,500 per year based on their year in school, to a maximum of $31,000 for dependent students. Independent undergraduate students may borrow higher amounts under the program.

The interest rate for subsidized Stafford loans is 5.6% and for unsubsidized Stafford loans is 6.8%.

Georgetown offers these loans to applicants who demonstrate exceptional financial need. The interest rate for Federal Perkins and Nursing Student Loans is 5 percent, and no interest accrues while the borrower remains in school on at least a half-time basis. Eligible undergraduates may borrow up to $5,500 per year, up to a maximum of $27,500, for undergraduate study under the Perkins Loan Program. Eligible undergraduate nursing majors may borrow up to $2,500 per year for the first two years of study and up to $4,000 per year for the final two years of study, to a maximum of $13,000, under the Nursing Student Loan Program.

Under this federally sponsored program, each year parents can borrow an amount equal to the cost of attendance at Georgetown minus other aid for which the student is eligible. The interest rate for Federal PLUS loans is fixed at 8.5%.

Many lending institutions offer supplemental loan and financing options to help families meet educational expenses. These programs usually offer attractive interest rates and flexible repayment terms, including deferments on payments while the student is enrolled in college. For current information about private loan programs for parents and students, visit the GU Office of Student Financial Services website at http://finaid.georgetown.edu.

GU Monthly Payment Plan

Through Georgetown University’s monthly payment plans, all or a portion of the cost of attendance may be paid in monthly scheduled installments. For additional information about the payment plans visit the GU Office of Student Accounts website at http://www.georgetown.edu/finaff/studacct/.

The A.W.G. Dewar Company offers Georgetown families the opportunity to insure their payments of tuition, fees, room, and board to the University. If an insured student withdraws from school up to 100 percent of University charges are refundable for covered students.

To assist enrolled Georgetown students meet unanticipated expenses in exceptional circumstances, the GU Office of Student Accounts administers an Emergency Loan fund. Georgetown undergraduates may borrow up to $400 per semester; usually only one loan may be obtained per semester. Approved loans are charged directly to the student’s billing account record and are subject to the service charges imposed on unpaid balances due to the University. Applications and additional information may be obtained from the GU Office of Student Accounts, located in the White Gravenor Building, or by calling that office at (202) 687-7100.

Students who indicate an intention to enroll at Georgetown by paying an enrollment deposit or preregistering for classes will receive a bill from the GU Office of Student Accounts in July for the fall semester and December for the spring semester. Each student’s Billing Statement of Student Account will include actual tuition charges and required fees, as well as any other known charges such as room and board for students living on campus.

Students who apply for financial aid also receive a financial aid award letter from the GU Office of Student Financial Services. New first-year students typically receive their award letters in April; transfer students receive their letters in May and June; continuing students typically receive their letters in late June and early July. The financial aid award letter is not a billing statement. The award letter reports the assistance a student is eligible to receive for the academic year based on the average cost of education at Georgetown, which includes items billed by Georgetown (e.g. tuition, fees, on-campus rooms, on-campus board plans), and non-billed expenses (e.g. books, supplies, travel, and personal expenses), and the expected contribution from the student and his/her family toward those expenses. Students should use the information in the financial aid award letter to plan how they will pay the amount owed to the University as reflected in the billing statement they receive from the University Office of Student Accounts, and pay for other educational expenses not included in the University’s bill, e.g., books or supplies.

Enrolled students who have accepted their offer of financial aid will receive an actual or an estimated credit on their bills for most of the financial aid awards accepted. Some credits for financial aid awards may appear as “estimated” if additional actions on the part of either the student or the sponsor of the aid are required before the funds can be disbursed to the student’s account. “Estimated” financial aid awards will reduce the amount the student must pay by the payment deadline, but will not be credited in full to the student’s account until all requirements for disbursement have been met by the student.

A typical example is the requirement for student loan borrowers to receive “entrance” counseling. Until the student borrower completes this requirement, the loan funds will appear on his/her account as estimated; once (s)he completes the requirement, the loan will be disbursed to his/her account.

Expected earnings from part-time employment through the Federal Work-Study program will not appear as credits against the balance due on the bill and students may not subtract these expected resources when computing the amount that must be paid to the GU Office of Student Accounts by the announced due date. This resource is not allowed against the amount due because student employment earnings are paid directly to the student.

Enrolled students who have reported their outside-sponsored scholarships to the Office of Student Financial Services will receive an actual or estimated credit on their bills for any payments reported. Some outside-sponsored scholarship credits may appear as “estimated” if the sponsor has not yet sent the payment to Georgetown, pending confirmation of enrollment or grades.

If all or a portion of a student’s bill will be paid by an outside third party (i.e., a government agency, embassy, or corporation) that requires a bill before it will pay, students must present authorization to bill to the Office of Student Accounts. If the documentation presented includes proper authorization to bill, the Student Account’s Outside Billing Representative will send an invoice to the third party to collect the appropriate payment on behalf of the student.

U.S. Citizens--Taxable Aid

Under current law, some forms of financial aid may be considered taxable by the Internal Revenue Service (IRS). The amount of a student’s total scholarships and/or fellowships that exceed the cost of tuition, fees, books, supplies, and equipment is considered by the IRS to be taxable income. Disbursements under the Federal Work-Study Program are earned income and as such are subject to federal, state, and local tax withholding. Students employed under the Federal Work-Study program at Georgetown University will receive a W-2 form documenting all earnings at Georgetown (including Federal Work-Study Program earnings) and students must report those earnings as income on federal, state, and local tax returns. Families should consult their tax advisors for further information.

Provisions of the Taxpayer Relief Act of 1997 offer many tax benefits to families investing in higher education, including the Hope Scholarship Tax Credit, a Lifetime Learning Tax Credit, and an interest deduction for student loan interest paid. Families are encouraged to consult their tax advisors for more detailed information about these benefits.

The Internal Revenue Service (IRS) requires special tax treatment and reporting of payments made to non-United States citizens. Students who are not citizens of the United States and who receive financial assistance, scholarships, fellowships, tuition waivers, or compensation for services performed are subject to the IRS withholding and/or reporting requirements.

For more information about requirements associated with payments made to foreign students, please contact the Georgetown University Tax Accounting Office at (202) 687-5449.

Undergraduate Bulletin 2009-2010 Table of Contents
Copyright 2009, Georgetown University.