Financial Aid and Scholarships Procedure

(Approved by the UCFA on April 19, 2011)

I. Application:

• Students may apply for Financial Aid by filling an on-line application form. A printed signed copy as well as all the required documents must be submitted to the Financial Aid and Scholarships Office within a set deadline. Financial Aid is ordinarily granted for one regular academic year and may be renewed upon re-application if the student’s eligibility is maintained. The granting and continuation of Financial Aid are subject to budget constraints.
• Financial need is determined on the basis of the following sources:
  • A Financial Aid Application form filled out on-line and submitted together with a documented downloaded hard copy signed by both the applicant and a parent or legal guardian.
  • An interview conducted with the applicant’s parent, legal guardian or spouse, if applicable.
  • Other sources of information on the financial situation of students may be sought when necessary.

The information provided is confidential: the University reserves the right to verify it by all lawful means. The applicant may ascertain no privacy claims. Any misrepresentation, inconsistency or withholding of required information may lead to a denial of all Financial Aid. In such cases, the University reserves the right to pursue all possible legal routes to ensure the return of the Financial Aid money paid without the need to obtain judgments authorizing the University to do so.

II.Allocation of Financial Aid:

• The Financial Aid Policy applies to all students regardless of their nationality, race, gender, and religion.
• The Financial Aid Campus Committee makes the final assessment of need.
• Financial Aid packages are awarded according to a matrix combining financial need and academic merit.
• Percentages allocated to the different forms of aid as well as changes in matrix percentages may occur at the beginning of each academic year in line with the recruitment strategy and budget availability.
• Students are required to notify the Financial Aid and Scholarships Office of any outside grants or financial assistance they are receiving.
• The amount of aid received from LAU and other non-LAU sources should not total more than the student’s fees including tuition, medical insurance, NSSF, school liability and association as well as LAU bus fees if any. If it does, then LAU reserves the right to make the necessary deductions from its aid.
• Students may appeal for reconsideration in the subsequent regular term of the academic year or during the same term in case of recent unforeseen documented developments.

III. Financial Aid and Scholarships Eligibility:

• Term Credit Load:
  • A minimum course load of 12 billed credits per term unless the student is graduating. Graduating students or those with course restrictions will have their Financial Aid work-study hours prorated after confirmation by the Registrar.
  • A minimum course load of 3 billed credits in any one of the two Summer terms and work-study hours are prorated over 12.
• Eligibility Credits:
  • New students receiving Financial Aid and/or Scholarships may benefit up to the total number of credits required in their major for graduation.
  • o In case of non-eligibility in a given term, the number of credits passed during that term will be deducted from the balance of the number of credits the student is entitled to.
  • LAU students changing majors/degrees or holding a bachelor degree and shifting to a major in a professional school may benefit from Financial Aid for the remaining number of credits required for graduation in the new major/degree provided that the total number of Financial Aid credits does not exceed the new major’s total credits.
  • Students may benefit from additional credit coverage depending on their major as follows:
    • 6 credits for BA/BS students
    • 9 credits for BE students
    • 9 credits for Interior Architecture
    • 12 credits for BArch students 
    • 6 credits for pre-pharmacy and another 6 for those continuing BPharm
    • Students working towards a Teaching Diploma may benefit from Financial Aid for an additional 21 credits.

Additional credits may be decided upon on a case by case basis.

IV. Financial Aid and Scholarships Disqualification:

• If CGPA drops below 2.0
• Immediately, if a student receives two warnings

N.B.: Students may also disqualify for Financial Aid in subsequent terms if they fail to work satisfactorily and/or to complete the scheduled hours with no valid reason.

V. Forms of Aid:

• Need-Based Forms of Aid:
  • Work-Study:
    • Students proving eligibility for Financial Aid will be granted a uniform number of work-study hours regardless of their need level.
    • The Financial Aid and Scholarships Office has the duty to allocate and re-allocate students in consultation with the supervisor of the concerned offices/departments. Work-study hours should be restricted to academic/administrative work.
    • Students should follow the schedule set with the division or the office they are assigned to.
    • Students are responsible for logging in their work-hours on individual electronic time sheets on a daily basis.
    • Students are responsible in cooperation with their supervisors for arranging to complete their work assignments within the term pre-announced deadline. Any problems regarding this particular point should be reported to the Financial Aid and Scholarships Office ahead of term closure.
    • Students whose registration has been cancelled will not be paid for the worked hours unless the cancellation is the University’s responsibility.
    • Students who do not complete the assigned work hours during a term should reimburse the University the equivalent amount of the un-worked hours as well as the same ratio from loans, and grants, if any. If the absences are justified, the Financial Aid Campus Committee may authorize the student to complete the hours within the same academic year.
  • Loans:
    • LAU loans: the University maintains a revolving loan fund as part of the total Financial Aid program. Loans are extended to undergraduate students, when requested, as part of the total Financial Aid package in accordance with the loan procedure.
    • Bank loans: agreements with certain banks allow some students, during their course of study in specific professional fields, to benefit from interest free loans. The interest amount will be borne by the University up till the students’ exit date after which the interest will have to be covered by the students themselves.
  • Grants:Awarded to students showing an element of need in accordance with the adopted matrix.
  • Hardship Grants:Awarded to students who have completed at least 12 credits at LAU and are able to prove a recent drastic collapse in their financial situation. The grant may reach up to 50% of the student’s tuition in addition to their original Financial Aid package as defined by the matrix.
• Merit-Based forms of aid:
  • Entrance Scholarships:Awarded to newly admitted students in Fall term for that academic year (till end of September) according to a combined rating of their High School and SAT grades. These students may start benefitting from the Scholarship in the Spring term only if they had a remedial course in English at LAU.
  • Honor Scholarships:After the lapse of the first academic year, all students who have completed 24 GPA and/or P/NP credits at LAU and have a CGPA ≥ 3.50 are eligible for an Honor Scholarship covering a certain percentage of tuition fees. Part-time students who are not on Financial Aid are not eligible for an Honor Scholarship. Budget permitting, students with CGPA’s between 3.20 and 3.49 may also be eligible.
  • Merit Scholarships:Awarded to a number of outstanding high school students covering 100% of tuition fees up to the total number of credits required in their major for graduation. A separate application should be filled out by interested candidates and selection is made according to a set criteria. To maintain a Merit Scholarship, recipients should fulfill the following conditions:
    • remain in the same major chosen upon joining LAU
    • register in a minimum of 15 credits per term
    • maintain a CGPA of 3.50 or above. This requirement does not apply for the first term where GPA must not drop below 3.20
    • complete all courses they register in (only 6 credits in withdrawals are allowed)
    • maintain exemplary behavior.

    Cost of summer courses are covered for Merit Scholars only if enrolled in:

    • a professional school ,or
    • specific majors requiring summer enrollment.
  • Other forms of Aid:
    • Athletic/Talent Scholarships:Granted to exceptional students with recognized talent in athletics or other areas. Term by term eligibility is decided upon by a committee based on set criteria. A relevant application should be filled out and documented by potential candidates. Reapplication in subsequent years is not required.
    • Program Grants:Awarded to students majoring in programs requiring special promotional support in line with university enrollment goals.
    • Restricted Grants:Available by individual donors and/or organizations from outside the Financial Aid budget. Such grants are distributed according to donors’ restrictions whenever applicable. Applications, if required, are needed only in the initial stage.
    • Ministers’ Dependents Grants:Three full-tuition Grants shall be granted to the dependents of Ministers from and chosen by the Presbyterian Synod for Syria and Lebanon. When the eligible students are more than three, all grantees shall have to apply for Financial Aid to be granted additional work-study aid to complement the Grant’s portion (100% tuition fees) without the addition of any loan, provided the total of all extended grants does not exceed the equivalence of three full tuitions.
      Ministers’ Dependents Grants are not governed by the Financial Aid Eligibility (III) and Financial Aid Disqualification (IV) outlined above.
    • Dependents Grants: Dependents Grants is a form of Financial Aid granted to a maximum of three dependents of LAU full time faculty and non-teaching employees. These grants are equivalent to full tuition fees until attaining the BS/BA degree or equivalent degree in professional schools provided credit eligibility is maintained.
    • Student Employment:Student Employment at LAU is a supplementary form of Financial Aid that caters to the University cost centers’ needs by providing additional work-force.

VI. Transfer of Financial Aid:

Financial Aid granted will continue without interruption if the student transfers from one LAU campus to another during the academic year in which the Financial Aid was granted.

VII. PharmD program:

Students enrolled in the PharmD program may benefit from any of the following forms of aid:

• Scholarships
• Grants
• Bank loans

VIII. School of Medicine:

Students enrolled in the School of Medicine may benefit from any of the following forms of aid:

• Merit Scholarships
• Grants
• Bank loans

Student Loan Procedure

The Lebanese American University (“the University”) offers educational loan opportunities to promising, needy and deserving students as part of its Financial Aid program.

When available and the applicant is eligible, loans are granted to full-time students on a yearly basis (i.e. per academic year).

When a loan is approved, the student must co-sign with a parent or guardian an overall loan agreement stating the terms and conditions of the loan granted during his/her education.  At the beginning of each term, the student must sign a promissory note at the Business Office for the loan amount granted during that term, thus corroborating his/her awareness and commitment thereto.

Upon graduation or withdrawal from the University, the student must attend an exit interview at the loan department where arrangements for the loan repayment are set up.  Students can choose to either schedule the repayment of their loan over periodic installments or benefit from special cash settlement incentive schemes offered by the University.

In the event where the student opts to schedule the repayment of his loan, such repayment shall never exceed nine years following the end of the original grace period allowed to students by the University.  Exceptional extensions to the grace period can be allotted to students in the following cases:

• Students attending the PharmD program and those who are compelled to attend military service can benefit from an extra 12 months interest-free period.
• Students enrolled in a Masters program at the University can benefit from an extra two years grace period provided they complete at least six courses of the program they are enrolled in.

The applicable interest rate is revised yearly during the month of October of each academic year. It is computed on the basis of 50% of the average Lebanese Pound market credit interest rate.  All repayment schedules are revised yearly to reflect the effect of the new applied interest rates.

The proceeds from the student loan repayments will help the University replenish its funds so that loans can be extended to other needy students.

Any default in honoring the repayment commitment will have a definite adverse effect on the future of the loan program and could jeopardize educational opportunities for future students.

 

 

School of Medicine Loan Procedure

Students joining the School of Medicine program can benefit from a loan program organized between the University and Byblos Bank. This loan program is specially tailored to provide financial support to needy students to carry on with their educational quest, and therefore only students defined by the University as entitled for financial aid support can benefit from this program. The main characteristics of the loan program are outlined below:

Loan Currency:	Lebanese pounds
Borrower/Beneficiary:	Student
Guarantor:	Student parent (father, mother, close relative or tutor)
Disbursement of fund:	Directly to University
Eligibility:	An eligible student must be/have: Lebanese nationality or permanent resident in Lebanon for a minimum of 10 years Age between 18 and 35 years Referred by the Lebanese American University
Eligible Guarantor:	An Eligible Guarantor must be a: Lebanese National Parent, relative or guardian of the borrower Have satisfactory credit history Have satisfactory net worth (income, assets etc…) If the Guarantor is an employee, he/she must: Work in a well reputed institution Have a regular and permanent job Have minimum 2 years of experience Be less than 64 years of age at the end of the loan grace period Have verifiable income of at least $ 600 per month and debt-to-income ratio of less than 45%. If the Guarantor is self-employed, he/she must: Work in an acceptable activity sector to the Bank Have minimum 2 years of experience Be less than 64 years of age at the end of the loan grace period Have verifiable income of at least $ 600 per month and debt-to-income ratio of less than 45%. If the Guarantor is retired or does not meet above requirements, he/she must: Mortgage acceptable Assets (fully owned) to value at least 3 times the total expected loan amount at end of student’s education.
Bank financing:	Up to 40% of tuition fees per annum The remaining 60% shall be financed either by the student/guarantor or by University Grants or Scholarships or combination
Interest rate:	0% during student’s education. Interest shall be borne by LAU until the graduation and for a maximum study period of four years only.   Student only pays as low as 3% interest rate on the personal loan during the post graduation period as per the below loan mechanism
Loan tenure:	Loan tenure is maximum 14 years defined as follows: Under graduation period : maximum 4 years (MED 1 to MED 4) Grace period: Up to 2 years after student graduation Post graduation period: maximum 10 years (inclusive of grace period)
File Fees:	Free file fees during both periods
Life Insurance:	Required for Student only. It must cover natural and accidental death Life insurance is offered free of charge by Byblos Bank during the under graduation period
Referral:	The applicant must be referred through the University

LOAN MECHANISM
Under graduation period:

• The principal loan amount will be rolled-over on a quarterly basis.
• The loan will be renewed on a yearly basis and paid directly to the University.
• No payment for the principal amount will be effected during this period; however accrued interest will be settled at the end of each quarter by LAU.

Grace period:

• Student can benefit up to 2 years grace period before starting principal repayment.
• No payments (principal and interest) will be effected during the grace period.
• After the grace period, the student can stretch the repayment of principal loan amount plus grace period accrued interest up to 10 years (inclusive of grace period) through Byblos Bank Personal Loan Program.

 Post graduation period:

• Student will benefit from personal loan up to 10 years (inclusive of grace period); equal payments will be effected on a monthly basis covering both principal and interest starting the 1st month ending the grace period.
• Student will sign promissory notes.

Pre-payment:

• Pre-payment is allowed without prepayment penalty during both periods (under and post graduation period).

PROCESS

• The University shall forward to Byblos Bank (before each yearly disbursement) a list of students eligible to benefit from a loan with tuition amount.
• The student / guarantor will complete and sign the loan application and CDR request at the Byblos Bank Jbeil 99 (Voie 13).
• The student will submit the following documents at first disbursement:
  • Copy of passport or ID card
  • Extract of family status
  • Proof of residence
• The guarantor will submit the following documents (each year):
  • Copy of passport or ID card
  • Proof of residence
  • If employee, certificate of salary (only at first disbursement), then during remaining years a copy of last payroll if available, if not statement of account showing the salary domiciliation.
  • If self-employed, copy of statement of account for the last 12 months and declaration of income (filled at the bank) for the last 2 years (to be updated on yearly basis).
  • In case of mortgage, copy of free and clean title deed.
• By the end of the graduation period, the bank shall provide the University with the list of students showing those who finalized with the bank the repayment process for the post graduation and signed on the personal loan and accordingly the University will not hand out the graduation certificates to those whose names didn’t appear on the list.

Letter of acknowledgement:
The student and his/her guarantor/guardian are required to sign a letter of acknowledgement with Byblos Bank attesting thereby that he/she agrees to relinquish his/her right to request or collect his/her degree and other documents upon graduation unless and until a statement/notification is issued from the Byblos Bank to the student certifying that the student agreed on the terms of rescheduling the payment of his/her loan with the Byblos Bank.  Based on such statement/ notification from Byblos Bank, the University shall release the requested degree and other documents to the student.
Below are two examples for the personal loan monthly settlements:

• Loan amount of LBP 60.000.000 LBP over 10 years (grace period of 1 year + 108 monthly payments of LBP 653,600 each)
• Loan amount of LBP 60.000.000 LBP over 10 years (grace period of 2 years + 96 monthly payments of LBP 724,700 each)

PharmD Loan Procedure

Students joining the School of Pharmacy PharmD program can benefit from a loan program organized between the University and Byblos Bank.  This loan program is specially tailored to provide financial support to needy students to carry on with their educational quest, and therefore, only students defined by the University as entitled for financial aid support can benefit from this program. The main characteristics of the loan program are outlined below:

Loan Currency:	Lebanese pounds
Borrower/Beneficiary:	Student
Guarantor:	Student parent (father, mother, close relative or tutor)
Disbursement of fund:	Directly to University
Eligibility:	An eligible student must be/have: Lebanese nationality or permanent resident in Lebanon for a minimum 10 years. Age between 18 and 35 years Referred by the Lebanese American University
Eligible Guarantor:	An Eligible Guarantor must be a: Lebanese National Parent, relative or guardian of the borrower Have satisfactory credit history Have satisfactory net worth (income, assets etc…) If the Guarantor is an employee, he/she must: Work in a well reputed institution Have a regular and permanent job Have minimum 2 years of experience Be less than 64 years of age at the end of the loan grace period Have verifiable income of at least $ 600 per month and debt-to-income ratio of less than 45%. If the Guarantor is self-employed, he/she must: Work in an acceptable activity sector to the Bank Have minimum 2 years of experience Be less than 64 years of age at the end of the loan grace period Have verifiable income of at least $ 600 per month and debt-to-income ratio of less than 45%. If the Guarantor is retired or does not meet above requirements, he/she must: Mortgage acceptable Assets (fully owned) to value at least 3 times the total expected loan amount at end of student’s education.
Bank financing:	Up to 50% of tuition fees per annum The remaining 50% shall be financed either by the student/guarantor or by the University Grants or Scholarships or combination
Interest rate:	0% during student’s education. Interest shall be borne by LAU until the graduation and for a maximum study period of four years only.   Student only pays as low as 3% interest rate on the personal loan during the post graduation period as per the below loan mechanism
Loan tenure:	Loan tenure is maximum 6 years defined as follow: Under graduation period : maximum 1 year (PHARM D) Grace period: Up to 2 years after student graduation Post graduation period: maximum 5 years (inclusive of grace period)
File Fees:	Free file fees during both periods
Life Insurance:	Required for Student only. It must cover natural and accidental death Life insurance is offered free of charge by Byblos Bank during the under graduation period
Referral:	The applicant must be referred through the University

LOAN MECHANISM
Under graduation period:

• The principal loan amount will be rolled-over on a quarterly basis.
• The loan will be renewed on a yearly basis and paid directly to the University.
• No payment for the principal amount will be effected during this period; however accrued interest will be settled at the end of each quarter by LAU.

Grace period:

• Student can benefit up to 2 years grace period before starting principal repayment.
• No payments (principal and interest) will be effected during the grace period.
• After the grace period, the student can stretch the repayment of principal loan amount plus grace period accrued interest up to 5 years (inclusive of grace period) through Byblos Bank Personal Loan Program.

 Post graduation period:

• Student will benefit from personal loan up to 5 years (inclusive of grace period); equal payments will be effected on a monthly basis covering both principal and interest starting the 1st month ending the grace period.
• Student will sign promissory notes.

Pre-payment:
Pre-payment is allowed without prepayment penalty during both periods (under and post graduation period).
PROCESS

• The University shall forward to Byblos Bank (before each yearly disbursement) a list of students eligible to benefit from a loan with tuition amount.
• The student / guarantor will complete and sign the loan application and CDR request at the Byblos Bank Jbeil (Voie 13).
• The student will submit the following documents at first disbursement:
  • Copy of passport or ID card
  • Extract of family status
  • Proof of residence
• The guarantor will submit the following documents (each year):
  • Copy of passport or ID card
  • Proof of residence
  • If employee, certificate of salary (only at first disbursement), then during remaining years a copy of last payroll if available, if not statement of account showing the salary domiciliation.
  • If self-employed, copy of statement of account for the last 12 months and declaration of income (filled at the bank) for the last 2 years (to be updated on yearly basis).
  • In case of mortgage, copy of free and clean title deed.
• By the end of the graduation period, the bank shall provide the University with the list of students showing those who finalized with the bank the repayment process for the post graduation and signed on the personal loan and accordingly the University will not hand out the graduation certificates to those whose names didn’t appear on the list.
• In the event where a beneficiary student drops out for any reason whether failure, physical or mental disability or other that may occur to him during his studies, he/she shall become fully bound to pay the related interest effective the date of his drop-out in accordance with the conditions set out in the loan facility agreement.  Interest shall be paid as follows:
  • To the university effective the date of the drop-out and until the quarter end following the occurrence of the drop-out;
  • To the bank effective the first day of the quarter following the quarter during which the drop-out took place.

Letter of acknowledgement:
The student and his/her guarantor/guardian are required to sign a letter of acknowledgement with Byblos Bank attesting thereby that he/she agrees to relinquish his/her right to request or collect his/her degree and other documents upon graduation unless and until a statement/notification is issued from the Byblos bank to the student certifying that the student agreed on the terms of rescheduling the payment of his/her loan with the Byblos Bank. Based on such statement/ notification from Byblos Bank, the university shall release the requested degree and other documents to the student.
Below are two examples for the personal loan monthly settlements:

• Loan amount of LBP 9.000.000 LBP over 5 years (grace period of 1 year + 48 monthly payments of LBP 167,000 each)
• Loan amount of LBP 9.000.000 LBP over 5 years (grace period of 2 years + 36 monthly payments of LBP 172,000 each)