Download File

Presented by: Beth Howard
Financial Assistance Meredith College
Session Agenda
• Myths of Financial Aid
• Role of the Financial Aid Administrator
• Financial Aid Basics
• Applying for Financial Aid/FAFSA Overview
• Scholarships & Grants
• Financial Aid Awards
• Financial Aid Tools & Resources
Myths of Financial Aid
1. As a parent, I make too much money, so my child
won’t qualify for aid.
Fact: You won’t know until you try.
2. I only have to fill out the FAFSA once.
Fact: You have to fill it out every year.
3. The estimated family contribution (EFC) number is the
exact amount I have to pay.
Fact: It’s just an estimate; you may owe less.
The Role of the Financial Aid Administrator
Financial aid administrators can assist you with informing and explaining
information on the entire financial aid application process, including areas
such as:
• Explaining various types of financial aid
• Identifying application deadlines
• Completing financial aid forms and supporting documentation
• Explaining smart borrowing decisions
• Making financial aid decisions
Financial Aid Basics
What is Financial Aid?
Financial aid is money (i.e., grants, scholarships, work, loans)
provided to students and their families to help supplement their
ability to pay for postsecondary educational expenses
Sources of Financial Aid
Financial aid comes from sources such as:
• The federal government (the largest source)
• State governments
• Colleges and universities
• Private organizations, such as companies, clubs and faith-based
organizations
FAFSA Overview
The Free Application for
Federal Student Aid (FAFSA) is
an online application that
collects demographic and
financial information about the
student and family.
For the 2016-2017 academic
year, the FAFSA may be filed
beginning January 1st, 2016.
The last date to file is June 30,
2017.
https://fafsa.gov
IRS Data Retrieval Tool
The IRS Data Retrieval Tool allows students and parents to access their IRS tax
information to transfer it directly into their FAFSA.
If the student and family are eligible to use the IRS Data Retrieval Tool, it is highly
recommended that they use the tool for several reasons:
 It’s the easiest way for students and families to provide their tax data.
 It’s the best way of ensuring that the FAFSA has accurate tax information.
Be aware, students may still need to provide a copy of the student’s and/or
parents’ IRS information to the college.
To learn more, visit:
https://studentaid.ed.gov/fafsa/filling-out#financial-info
Expected Family Contribution (EFC)
The Expected Family Contribution (EFC) is the number that is used
to determine students’ eligibility for federal student financial aid.
North Carolina uses the EFC to determine eligibility for state aid;
institutions may also use the EFC to determine eligibility for
institutional aid.
This number is calculated from the results of the financial
information the student and family provide in the Free Application
for Federal Student Aid (FAFSA).
Cost of Attendance (COA)
Cost of attendance
Direct costs typically charged by the college:
Tuition and
fees
+
Cost of living in the dorms
+
Cost of meal plans on
campus
Indirect costs that may not be charged by the college:
Allowance for
Books and supplies
Allowance for
Personal expenses and
+
a few meals out
+
Allowance for
Transportation
Financial Need
Total Cost of
Attendance
Expected
Family
Contribution
(EFC)*
Financial
Need
*Note: This is not the same as the student’s bill or the amount a family will
actually pay for the student to attend college
Net Price
Net price is what undergraduate students pay after grants and
scholarships (financial aid a student does not have to pay back) are
subtracted from the institution’s cost of attendance (COA).
Colleges provide net price calculators on their websites.
The net price on average is considerably less than the sticker price or
total cost of attendance.
Financial Aid Award Notification
A financial aid award
notification is a
communication from a
college that states the type
and amount of financial aid
the student is eligible to
receive if the student
enrolls at the institution.
Grants, Scholarships, Loans & Work-study
• Grants - Financial aid, usually based on financial need. Grants do not need
to be repaid.
• Scholarships - Money awarded to students based on academic or other
achievements to help pay for education expenses. Scholarships do not
need to be repaid.
• Loans – Borrowing money from the federal government or a college is
called taking out a loan. A loan must be paid back with an extra charge
called interest. Loans are financial aid.
• Work-study - The Federal Work-Study Program offers paid part-time jobs to
help students pay for part of their college cost. Not available up front to
pay tuition. Work-study can be earned throughout the academic year.
Federal Government: Need-based Aid
Need-based aid is financial aid that students can receive if they have financial need
and meet other eligibility criteria.
The following are the need-based federal student aid programs:
•Federal Pell Grant - Amounts can change yearly. For the 2015–16 award year, the
maximum award will be $5,775.
•Federal Supplemental Educational Opportunity Grant (FSEOG) - Award amounts
between $100 and $4,000 a year, depending on financial need, when students
apply, the amount of other aid they receive, and the availability of funds at the
college.
•Federal Direct Subsidized Loan - The college determines the loan type(s), if any,
and the actual loan amount a student is eligible to receive each academic year.
To learn more, visit: https://studentaid.ed.gov/types
Federal Government: Non-need-based Aid
Non-need-based aid is financial aid that is not based on EFC. What matters is the students’
Cost of Attendance (COA) and how much other assistance the student has been awarded.
The following are the non-need-based federal student aid programs:
•Federal Direct Unsubsidized Loan – The college determines the loan type(s), if any, and the
actual loan amount a student is eligible to receive each academic year.
•Federal PLUS Loan - The maximum amount a parent can borrow is the cost of attendance
(determined by the college) minus any other financial assistance received.
•Teacher Education Access for College and Higher Education (TEACH) Grant - Provides
grants of up to $4,000 a year to students who are completing or plan to complete course
work needed to begin a career in teaching.
To learn more, visit: https://studentaid.ed.gov/types
National Scholarship and Grant Resources
http://www.fastweb.com/
National Scholarship and Grant Resources
https://bigfuture.collegeboard.org/scholarship-search
National Scholarship and Grant Resources
https://mycollegedollars.hyfnrsx1.com/
Top 5 Things To Note About Financial Aid
Help students remember that they should:
1. Never rule out a college because of cost alone.
2. Compare costs before applying — Net price calculators can provide an
estimate of financial aid eligibility and remaining college costs. Net price
calculators should be available on every college's website.
3. Remember to apply — FAFSA deadlines are available online at
https://fafsa.ed.gov/deadlines.htm. Many colleges and universities also
provide funds through an institutional application and/or a state application.
4. Get advice — The financial aid office at local colleges often provides
workshops or can give advice.
5. Compare awards — Look at grants, loans, and parental contributions before
making a final decision on a college.
Financial Aid Tools & Resources
Federal Student Aid
https://studentaid.ed.gov/
Federal Student Aid Financial Aid Toolkit
http://www.financialaidtoolkit.ed.gov
BigFuture
https://bigfuture.collegeboard.org/
Net Price Calculators
http://studentnpc.collegeboard.org/
•Specific net price calculators should be found on the individual college’s website.
Financial Aid Tools & Resources
College Comparison Tools
College Navigator (NCES) http://nces.ed.gov/collegenavigator/
BigFuture https://bigfuture.collegeboard.org/compare-colleges
Financial Aid Shopping Sheet (US Department of Education)
http://www2.ed.gov/policy/highered/guid/aid-offer/annotatedshoppingsheet.pdf
Award Letter Comparison Tools
https://bigfuture.collegeboard.org/pay-for-college/financial-aid-awards/compare-aid-calculator
Scholarship and Grant Search Tools
Fastweb http://www.fastweb.com/
BigFuture https://bigfuture.collegeboard.org/scholarship-search
My College Dollars https://mycollegedollars.hyfnrsx1.com/
Financial Aid Tools & Resources
FAFSA DAY Saturday, February 20, 2016
9 a.m. to 12 noon (Times may vary, so check our website.)
• Get FREE help from college aid professionals to complete and submit your Free
Application for Federal Student Aid (FAFSA).
• Visit CFNC.org/FAFSAday to find a location near you!
State Employees Credit Union
• Visit a SECU during the week prior to receive assistance from a SECU staff
member.
• You do not have to be a member to receive assistance
Financial Aid Tools & Resources
College Foundation of North Carolina
Financial Aid Basics Online Course
•FREE online course
•Students learn how to manage a budget, about bank accounts, credit
vs debit cards, how to establish credit, and more
•If completed with a score of 80% or higher, the student is entered
into a drawing for a scholarship of $500 through CFNC
http://basics.financialliteracy101.org