Episcopal Theological Seminary of the Southwest

2006-2007 Financial Aid Policies

The Seminary of the Southwest provides scholarship grants to students with demonstrated financial need. Endowments and gifts from supporters provide the resources for this support. As a matter of institutional policy, the seminary seeks to practice good stewardship in the administration of scholarship programs. In so doing, the seminary strongly discourages students from incurring debt in order to attend (indeed, for that reason the seminary does not participate in federal student loan programs), and the seminary awards as much as possible, preferring to err on the side of generosity.

To qualify for consideration for a scholarship grant, an applicant must complete the prescribed form, including full disclosure of available financial resources as well as a proposed budget of income and expenses for the period for which the grant is sought. One’s most recent federal income tax return is part of the documentation required. Normally, financial aid is granted on a year-to-year basis with annual reapplication and review. Recipients of financial aid shall notify the Vice President of Administration and Finance of any significant changes to their personal financial circumstances as soon as they occur; this includes new debt incurred.

The total amount of financial aid granted by the Seminary will not exceed demonstrated need. Demonstrated need is defined as the difference between the total cost of attending this institution and the total resources available to the student from all other sources. In reaching that determination, both applicants and the seminary shall follow these guidelines:

• Applicants shall seek support from their dioceses and parishes, and students are also required to demonstrate that they have applied to major outside sources of support. The seminary will assist students in identifying such sources.

• In reaching a conclusion concerning demonstrated need, the seminary will not normally weigh the value of assets such as retirement accounts, equity in one’s homestead, the cash value of life insurance policies, and college funds for chil­dren.

• The seminary will consider assets such as the following in evaluating need: equity in second or third homes; equity in rental properties; vacation homes; “mother-in-law” homes. In addition, applicants should be prepared to justify a need for multiple automobiles.

• All routine and realistic expenses associated with maintaining a household are allowable, with the following qualifications:

• debt service on an applicant’s own previous student loans shall be deferred for the duration of seminary.

• on a case by case basis, the seminary will evaluate the employment situation of a household before reaching a decision on an award.

• in considering allowable expenses, the seminary shall follow these spe­cific guidelines: 50 percent of tithes and charitable giving will be allowed; automobile debt shall be capped at $20,000; exercise or fitness club expenses shall be capped at $350 annually; life insurance premiums shall be capped at 5 per cent of income; recreation and entertainment expenses shall be capped at 5 per cent of income. In this context, “income” includes scholarship aid.

• expenses not allowed include the following: student loan payments for spouse and children; children’s college tuition; payments to children’s college fund; service on pre-existing credit card debt; storage costs for household goods; debt service, taxes, and other expenses associated with non-owner occupied real estate.

• tuition for required Clinical Pastoral Education classes should be included as an expense item on the financial aid ap­plication. The cost of CPE units beyond the one-unit requirement is not an allowable expense.

M.Div. and M.A.R. Financial aid is available to full-time M.Div. and M.A.R. students. For students matriculating in academic year 2006-2007, aid will not exceed $11,670 in outright grant plus $1,480 in guaranteed work-study pay per year. This repre­sents a full time, full tuition scholarship for M.Div. students. Over the three-year se­quence, the total award is $35,010 in grant plus $4,400 in guaranteed work-study pay, for a grand total of $38,450. M.A.R. annual limits are the same, and the award, over a two-year sequence, is $23,340 plus $2,9,60 in guaranteed work-study pay. In cases where it takes longer than customary to finish the degree, the total award package will be extended over the actual term of the degree; with extensions, the actual term shall not exceed four years for M.Div. and M.A.R. students.

M.A.P.M. and M.A.C. For M.A.P.M. and M.A.C. students, financial aid will not exceed 50% of total tuition, and will not be awarded more than once for a given course. For M.A.P.M. Discipleship and Spiritual Formation students, financial aid may be granted for the minimum 48 credits of the program, including not more than 12 elective credits. For M.A.P.M. Chaplaincy students, financial aid may be granted for 66 credits of the program, including not more than 15 elective credits. (Financial aid is not available for the 6 CPE credits required in the Chaplaincy track.) For M.A.C. students, financial aid may be granted for the minimum 66 credits of the program, including not more than 9 elective credits. Financial aid for M.A.P.M. Discipleship and Spiritual Formation students is additionally limited to a four-year period; for M.A.P.M. Chaplaincy and M.A.C. students, six years.

Single or geographically single students receiving financial aid are expected to live in College Court Apartments if an apartment is available. Exceptions may be made for good cause; however, in such cases the amount budgeted for rent and utilities may not exceed that of College Court Apartments. For these students, the financial aid application should list income and expenses for both residences separately.

When a financial aid award includes a work-study assignment, the student is required to complete the minimum requirements of that assignment. In­creases in tuition may or may not be accompanied by changes in the amount of aid.

Students on probation are not eligible for financial aid and students must maintain satisfactory progress to maintain eligibility for aid.

Priority in the awarding of grants and in the assignment of housing in College Court Apartments is given to those who are postulants and who are enrolled in the M.Div. program or another sequence preparing for ordination in the Episcopal Church.

These policies have been adopted by the Vice President for Administration and Finance, and approved by the Financial Aid Committee and the Dean and President.

March 15, 2006