Financial Aid and Student Accounts

Berea’s Extraordinary Financial Plan

The Financial Aid Program of Berea College is based on the principle of providing the best possible education for the least cost to the student. Many generations of donors to Berea College have provided a remarkable endowment and tuition replacement fund whereby no admitted student is asked to pay out-of-pocket for tuition. Tuition is the cost to the College for a student's education (faculty and staff salaries, upkeep of non-residential buildings, equipment, etc.). The cost to Berea College of providing educational opportunities (tuition) for the 2023-2024 award year is $48,600 per student. 

Students admitted to the College are guaranteed substantial financial aid through various resources. For the 2023-2024 award year, all students receive a $9,000 Berea Work Scholarship based on their participation in the Labor Program. Additional resources, such as federal and state grant aid, outside scholarships, and donor-designated gifts, ensure tuition is covered. All students are encouraged to apply for outside scholarships to help the College cover the cost of tuition. If students are unable to obtain scholarships to cover tuition, College alumni and donors will help make up the difference.

In addition, most students receive aid to assist with the costs of housing, food, and fees according to the families’ ability to pay as determined by the Free Application for Federal Student Aid (FAFSA). (See Cost of Attendance below for a complete list of expenses.) Each student’s calculated financial need will be met through resources such as the College’s work program, the Federal Work Study program, public and private grants and scholarships, and institutional funds as needed.  While student loans are not included in initial financial aid offers, loans are available to assist families who cannot pay their contribution as determined by the FAFSA.

Because no student has out-of-pocket expenses for tuition, students and families typically cannot claim either of the IRS education credits for tax purposes.

Berea provides all first-year students with a laptop computer that is theirs to keep upon graduation. (See the Information Systems & Services section of the Catalogfor more information.) Financial aid may also be available for special learning opportunities such as education abroad, internships, and domestic independent and team-initiated studies. (See Opportunities Common to Many Fields of Study section of this publication.)

Student Health Insurance

 All students attending Berea College are urged to have health insurance coverage in Kentucky.  If a student is in a plan that does not transport to Kentucky, they can pick up a non-ACA compliant student plan from the College.  The policy provides primary coverage for students with no other insurance.

The insurance premium is part of the Student Expense budget and is reflected as a fee.  Financial Aid is applied to this cost, based on need, as established by the Free Application for Federal Student Aid (FAFSA).  Therefore, most students are not asked to pay the insurance premium for this insurance.

White House Clinic, contracted by the College, asks for information from new students about insurance coverage.  Students must complete all forms identifying their primary health insurance company prior to Fall confirmation.

Cost of Attendance

The cost of attendance, also known as the student budget, is a reasonable estimate of the costs a student will incur during their period of enrollment at Berea College. While tuition is a component of the cost of attendance, tuition is covered through the various sources of aid (as discussed in the previous section). Therefore, the student (and family) is responsible for the non-tuition expenses included in the table below.

A student’s cost of attendance varies depending on where they will live during the academic year. Housing, food, and fee charges will be set by the College and charged to a student’s account (if the student is living on campus and has a meal plan). Other charges are indirect charges that will vary based on personal spending habits.

2023-2024 Cost of Attendance (Fall and Spring Terms)

* Additional fees may be charged for courses that include laboratory sessions or special supplies. These are listed in the course descriptions in this Catalog under Academic Departments and Courses.

Types of Financial Aid

Scholarships and Grants

Scholarships and grants are monetary gifts that do not have to be repaid. Some scholarships and grants defray the cost of tuition and direct student expenses, and others are used for special purposes and programs. Many scholarships and grants are reserved for students who meet specific criteria without the need for additional application procedures. (See Scholarships, Awards, and Prizes for details about some of these institutional scholarships and grants.)

In addition to institutional scholarship and grant funds, Berea College participates in the following federal and state programs: Federal Pell Grants, Federal Supplemental Educational Opportunity Grants, Kentucky College Access Grants, Kentucky Tuition Grants, and Kentucky Educational Excellence Scholarships (KEES).

Earnings from Work

An integral form of financial assistance at Berea College is available through the Student Labor Program. All students enrolled in an academic term (Fall, Spring, or Summer) receive a Labor Grant that is applied directly to tuition each term ($4,500 Fall, $4,500 Spring, and a prorated amount for Summer). In addition, students receive direct scholarship payments based on hours worked each pay period (totaling between $2,000 and $3,000 per year) to assist with educational and personal expenses. Depending on total hours worked, a student receives between $28.00 and $37.00 per hour in scholarship funds.

Loans

While initial award offers do not include loans, low-interest, long-term loans may be obtained from Berea College when needed to pay for essential school expenses. Student Financial Aid Services will counsel students inquiring about a loan to ensure other options have been considered. Most loans do not accrue interest while the student is still enrolled at least halftime.  Loans typically enter repayment six months after a student graduates or leaves the College. Loans must be repaid within an agreed-upon schedule. Non-interest-bearing (or 0%) loans may be available for students with significant financial need.

Berea College participates in the William D. Ford Direct Loan Program. These federal loans have fixed interest rates set by the Department of Education each year. For more information about these types of loans, see https://studentaid.gov or contact Student Financial Aid Services at 859-985-3310.

Financial Aid Eligibility and Satisfactory Academic Progress (SAP)

Satisfactory Academic Progress

Federal regulations require all students who receive any federal financial assistance make measurable academic progress toward a degree. Progress is determined quantitatively (hours attempted versus hours earned and time frame) and qualitatively (GPA). Students must maintain satisfactory progress in all three areas in order to received Federal Financial Aid. Progress is monitored at the conclusion of each payment period (Fall Term, Spring Term, and Summer Term).

Berea College expects all enrolled students to make Satisfactory Academic Progress (SAP) toward completion of degree requirements.  Further, students are responsible for understanding the SAP and graduation requirements and to monitor their academic standing to ensure compliance with these policies. Students who fail to make Satisfactory Academic Progress (SAP) will lose their eligibility for Title IV federal financial aid. These are financial aid standards and do not replace or override Berea College academic policies.

Enrollment

A minimum standard for full-time enrollment is three credits per term. A minimum standard for part-time enrollment (at least half-time) is 1.5 credits per term.

Quantitative

The maximum time frame in which a student must complete their degree cannot exceed more than 150% of the published length of the student’s major. All majors at Berea require a minimum of 32 credits to complete the degree but must be completed in six (6) academic years for financial aid purposes. Berea College students can, therefore, attempt up to 48 credits and still be eligible for aid. Once 48 credits are exceeded, eligibility for federal aid would be suspended.  All repeated courses, failed courses, withdrawals, and transferred hours will count as credits attempted toward the maximum time frame.

In addition, students must earn at least two-thirds or 67% of the credits attempted.

Qualitative

In order to meet qualitative SAP standards, a student must earn the cumulative GPA of 2.0. As indicated below, the only exception to the 2.0 minimum GPA is for the 2^nd and 3^rd terms of attendance (^b if a student is on continued probation).

Evaluation

All enrolled students are evaluated for SAP at the end of each payment period after official grades have been posted.  Students who do not meet SAP standards will receive communication from Student Financial Aid Services. Students who fail SAP for an isolated term will be placed in a Financial Aid Warning Status. Warning status allows students to receive aid for one more period of enrollment. Students who fail SAP for two consecutive terms will be placed in a Financial Aid Suspension Status. With a suspension status, students are not eligible to receive financial aid. However, students placed on suspension status may appeal the suspension. Students granted an approved appeal will be placed on Financial Aid Probation Status. Probation status allows students to receive aid for one period of enrollment.

Appeals

Appeals must be submitted to Student Financial Aid Services in written form. The appeal must speak to the circumstances surrounding the failure to meet the SAP standards of the Berea College this term. The appeal must tell of the plans in place to achieve academic success for the upcoming term and what changes have been made or will be made in order to graduate on time. The appeal must also list the resources students will utilize to support the plan.

Students will be considered in good standing in regard to financial aid eligibility when they again meet the minimum SAP standards or receive approval of a submitted appeal. Sitting out for any length of time does not affect a student’s SAP standing. Students who re-enroll after a period of absence are required to submit an appeal when they return in order to determine financial aid eligibility.

Refund Policy

College Refund Policy

The following regulations govern refunds when proper procedures for withdrawal as outlined in this publication have been adhered to:

Course Fee Charges - A student who drops a course with a fee before the end of the first week of classes during a regular term is entitled to a refund of the course fee. 

Meal Charges - A student who withdraws before the end of a term is entitled to a refund of half of the unexpired portion of the meal charge.

Housing Charge - A student who withdraws during the first two weeks of a term is entitled to a refund of half the housing charge.

• Refunds are made approximately two weeks after notice of withdrawal is received and disbursed in the following order:
• Repayment of federal and state loans and grants made for the current term;
• Repayment of aid granted from Berea College funds;
• Repayment of all amounts due Berea College;
• Balance paid to student account.

Any remaining balance due Berea College must be paid before a transcript is issued. Diplomas will not be issued to students with financial obligations remaining on their Student Account.

Federal Refund Policy

A portion of Title IV grant or loan funds (except Federal Work Study) must be returned to the Title IV programs upon the recipient’s withdrawal from school.

Withdrawal Date

As determined by the school, the date the student withdraws, is the date: 1) the student began the withdrawal process prescribed by the school; 2) the student otherwise provided the school with official notification of intent to withdraw; or 3) the midpoint of the payment period or period of enrollment for which Title IV assistance was disbursed (for the student who does not begin the school’s withdrawal process or notify the school of the intent to withdraw).

If the school determines the student did not begin the withdrawal process or notify the school of the intent to withdraw—due to illness, accident, or other such circumstances beyond the student’s control—the school may determine the appropriate withdrawal date.

Percentage of the Payment Period or Period of Enrollment Completed

The percentage of the payment period or period of enrollment for which assistance was awarded that was completed is determined by dividing the total number of calendar days comprising the payment period or the period of enrollment for which assistance is awarded into the number of calendar days completed in that period as of the day the student withdrew.

Calculation of Title IV Assistance Earned

To calculate the amount of Title IV assistance earned by a student, the school first must determine the percentage of Title IV assistance the student earned. Up through the 60-percent point in time, the percentage of assistance earned is equal to the percentage of the payment period or period of enrollment for which it was awarded that was completed as of the day the student withdrew. If the student withdraws after the 60-percent point, then the percentage earned is 100 percent. That earned percentage is applied to the total amount of Title IV grant and loan assistance disbursed (and that could have been disbursed) to the student, or on the student’s behalf, for the payment period or period of enrollment for which it was awarded as of the day the student withdrew.

Calculation of Title IV Assistance Not Earned

The amount of Title IV grant and loan assistance not earned by the student is calculated by determining the complement of the percentage of assistance the student earned and applying it to the total amount of grant and loan assistance that was disbursed (and that could have been disbursed) to the student, or on the student’s behalf, for the payment period or period of enrollment as of the day the student withdrew.

Differences between Amounts Earned and Amounts Received

The school will follow the regulations for late disbursement if the student received less grant or loan assistance than the amount earned. If the student has received more grant or loan assistance than the amount earned, then the unearned funds shall be returned by the school or the student, or both.

Responsibility of the School

The school shall return the lesser of the unearned amount of Title IV assistance or an amount equal to the total institutional charges the student incurs for the payment period or period of enrollment for which the assistance was awarded, multiplied by the unearned percentage of awarded Title IV grant and loan assistance.

Responsibility of the Student

The student shall return unearned Title IV assistance minus the amount the school returns.

Special Rule

A student (or parent for PLUS loans) repays the calculated amount attributable to a Title IV loan program according to the loan’s terms. A student repays a Title IV grant program subject to repayment arrangements satisfactory to the school or the U.S. Secretary of Education’s overpayment collection procedures. A student shall not be required to return 50 percent of the unearned grant. The College will bill the student for the amount owed and collect repayment. A student who fails to repay may be referred to the U.S. Department of Education or other appropriate agency for collection. The student may be ineligible for further federal student aid funds.

Order of Return of Title IV Funds

Excess funds returned by the school or student are credited to outstanding Title IV loan balances for the student or made on the student’s behalf for which a return of funds is required. Excess funds must be credited to outstanding balances in the following order:

1. Direct William D. Ford loans
2. Direct William D. Ford PLUS loans

Remaining Excesses

If excess funds remain after repaying all outstanding loan amounts, the remaining amount is credited to grant programs in the following order:

1. Federal Pell Grants
2. Federal SEOG
3. Other Title IV assistance for which a return of funds is required.

Refund Policy and Leaves of Absence

An approved Leave of Absence is not to be treated as a withdrawal and no return of Title IV funds is calculated. A student may take a Leave of Absence from a school for not more than a total of 180 days in any 12-month period. The student must have followed the institution’s policy in requesting a Leave of Absence (see “Leaves of Absence” in the Enrollment and Registration section for more information), and the school must have approved the student’s request in accordance with its policy. If the student does not return at the expiration of an approved Leave of Absence, the school calculates the amount of Title IV grant and loan assistance that is to be returned based on the date the student began the leave.

Student Accounts, Term Bills, and Payment Plan

Upon enrollment, each student at Berea College is assigned a Student Account. This account contains charges for housing, meals, required fees, and selected educational items such as books, supplies, and institutional fees and fines. Financial aid for educational costs also is credited to this account.

To confirm enrollment and validate the student ID, student account balances from the previous term must be paid in full.  In addition, all charges for the current term must be paid or resolved prior to the first day of classes for each term.  If the current term charges cannot be paid in full by the first day of classes, a payment plan must be arranged through the Office of Student Financial Aid Services.  Payment plans for the current term may include a combination of payments by cash, check, or credit card; use of labor earning via payroll deduction (50% or more); or additional aid such as institutional or federal loans.

Once the student account is paid for a prior term, students will be able to charge books through the College's on-line Bookstore.  Other educational costs and College fines also may be applied to the account. These charges and any charges remaining as part of a payment plan must be resolved in order to register for upcoming terms. (Continuing students must have paid their Term Bill below $100 before being able to register for upcoming terms.)  Student financial aid cannot be used to cover any fines.

Charges remaining on the account or incurred after registration must be resolved by the end of the term. Special financial aid for upcoming terms (e.g., grants for travel abroad) will not be released until the account balance is paid in full.

The College establishes fees and charges under the following circumstances:

• as a charge for some service or materials to be used by the student;
• as a privilege to do something out of the usual pattern;
• as a means of defraying administrative costs that are involved in making materials and services available; and/or
• as a deterrent (fine or disciplinary charge)