Download The Financial Aid Office Presents…

The Financial Aid
Office
Presents…
Financing
Education Beyond
High School
What You Need to Know
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What is financial aid
General Eligibility Requirements
Understanding EFC & COA
Categories, types, and sources of financial
aid
• Free Application for Federal Student Aid
(FAFSA)
• Special circumstances
What is Financial Aid?
• Financial aid typically refers to funds provided by
the federal government, state or private sources to
students and families to supplement a family's
ability to pay for college costs and may include:
- tuition/fees,
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room and board,
books and supplies,
transportation
other educational costs
General Eligibility Requirements
• Must be enrolled and pursuing an eligible
degree or certificate at your college (check
with FA Advisor)
• Must be a U.S. citizen or eligible noncitizen
• Must be registered with Selective Service
(if male and required to be)
• May not have a recent drug-related
conviction
General Eligibility Requirements, cont.
• Must have a valid Social Security Number*
• May not be in default on a federal student
loan or owe repayment of a federal grant
• Must have a HS Diploma, GED or pass ATB
• Must be making satisfactory academic
progress as defined by the school
*Some funds available for SB 1528 students
Dependent Student
• A student who is under 24 years of age
• Unmarried
• Not an orphan or ward of the state
• Has no legal dependent (s)
• Not a veteran of the U.S. Armed forces
• Is not working on a graduate degree
Independent Student
• 24 years of age or older
• Married
• A veteran
• An orphan or a ward of the court
• Has a legal dependent other than a spouse
• Is working on a graduate degree or higher
What is the Expected Family
Contribution (EFC)
• Amount family can reasonably be expected
to contribute
• Stays the same regardless of college
• Two components
– Parent contribution
– Student contribution
• Calculated using data from the federal
application form and a federal formula
EFC for Dependent Student
Parent contribution calculated from
income and assets
+ Student contribution calculated from
available income and assets
= EFC (Expected Family Contribution)
What is Cost of Attendance (COA)
Often referred to as the “budget”. Is an estimate of the total
expenses a student would incur for attending a particular
college:
• Typically includes the following:
- Direct costs (such as tuition and fees), and
- Indirect costs (such as transportation, room and
board, books and supplies, etc.)
• Standard COE includes costs for 9 months
• Your total financial aid package, including grants, loans
and outside scholarships cannot exceed your budget
• Varies widely from college to college
What is Financial Need
Cost of Attendance
–
Expected Family Contribution
=
Financial Need
Generally speaking, the higher the financial need,
the more likely you’ll be eligible for grants.
Categories of Financial Aid
• Need-based
• Non need-based
Types of Financial Aid
• Grants – Usually “gift” aid that does not need to be
paid back
• Loans – DO need to be paid back
• Employment – Only paid for hours worked.
• Scholarships – Private and Institutional. Some are
“gift” aid; others require obligations be fulfilled in order
to be eligible for the money (e.g. athletic scholarships).
Financial Aid: Grants
• Pell Grant
– Need based.
– Given to those student’s determined to have
the highest need (i.e., lowest EFCs)
• Supplemental Grants
– Federal grants (i.e., ACG/Smart/Teach)
– State grants (i.e.,
TPEG/TXG/TEOG/LEAP/SLEAP)
– Typically need based
– Often linked to priority deadlines
Financial Aid: Loans
• Subsidized Stafford loans
– Must demonstrate “financial need”
– Government pays interest while in school
• Unsubsidized Stafford loans
– Need is not a consideration
– Interest capitalizes and accrues while the
student is in school
• Parent PLUS loan
– For dependent student’s only
Employment: Federal Work Study
• Allows student to earn money to help pay
educational costs
– On campus, need-based employment
– Some schools may provide non-monetary
compensation, such as room and board
– Students limited to 20 hrs/week
Scholarships
• A scholarship is money given by individuals,
companies or organizations based either on need,
merit, or both. It is the student’s responsibility to
research and apply for scholarships.
• At Collin, Financial Aid Advisors do not award
private scholarships. Scholarships are awarded
through the Foundation Office.
• Some limited information available at the Financial
Aid office and more in-depth info on the Collin
website.
http://www.colllin.edu/foundation
Sources of Financial Aid
• Federal government
• States
• Private sources
Federal Government
• Largest source of student aid in America
- Their programs provide more than $100 billion a year
in grants, loans and work study assistance
• Aid awarded primarily on the basis of
financial need
• Must apply every year using the Free
Application for Federal Student Aid
(FAFSA)
State Aid
• Residency requirements
• Most aid awarded on the basis of both merit
and need
• Uses information from the FAFSA
• Deadlines vary by state; check paper
FAFSA or FAFSA on the Web site
Private Sources
• Foundations, businesses (inc. employers),
charitable organizations
• Civic Organizations and churches
• Deadlines and application procedures vary
widely
• Begin researching private aid sources early
(NLT spring senior year)
• Do not overlook low $ scholarships. They add
up!!!
How do I apply?
• Electronic FAFSA application on the web
- website is www.fafsa.ed.gov
• Both student and one parent apply for PIN
- PIN used to “sign” the FAFSA
• Include (up to 6) school code(s) (Collin=016792)
• Submit
• Follow up with school!!!
When can I fill out a FAFSA?
• May be filed at any time during an academic
year, but no earlier than the January 1st
prior to the academic year for which the
student requests aid
• For the 2010-11 academic year, the FAFSA
may be filed beginning January 1, 2010
• Colleges may (and usually do!) set FAFSA
filing deadlines
Personal Identification Number (PIN)
• Web site:
www.pin.ed.gov
• Sign FAFSA
electronically
• Can request PIN
before January 1, 2010
• Not required, but speeds
processing
• May be used by students and parents throughout
aid process, including subsequent school years
FAFSA on the Web Worksheet
• Web site: www.fafsa.ed.gov
- click on “Before Beginning a FAFSA”
• FAFSA on the Web Worksheet:
- Used as “pre-application” worksheet
- Questions follow order of FAFSA on the Web.
- Can help reduce stress and confusion for firsttimers
FAFSA4caster
• Provides you with an early estimate of your eligibility
for federal student aid
• Gives you an experience similar to FAFSA on the Web
• Allows you to transfer the data to FAFSA
• Increases your knowledge of the financial aid process
and provides information about other sources of aid.
Another feature of FAFSA4caster is the "FAFSA4caster Tip".
These tips appear throughout the site and provide you with
information that will help make preparing for college and the
financial aid process easier.
Frequent FAFSA Errors
• Social Security Numbers
• Divorced/remarried parental information
• Income earned by parents/stepparents
• Untaxed income
• U.S. income taxes paid
• Household size
• Number of household members in college
FAFSA Processing Results
Central Processing System (CPS) notifies student of
FAFSA results via a Student Aid Report (SAR) by:
• E-mail notification in 3 – 5 days containing a direct link to
student’s on-line SAR if e-mail was provided
• Paper Student Aid Report (SAR) mailed in 7 – 10 days if
FAFSA was filed and no e-mail address was provided
• Student with PIN may view SAR on-line at www.fafsa.ed.gov
The SAR summarizes all the information you provided on
your FAFSA. Will usually show your EFC if enough info
was provided.
FAFSA Processing Results – cont.
• Institutional Student Information Record (ISIR)
sent to colleges listed on FAFSA approx. 7 to
14 days after FAFSA submitted
• College reviews ISIR
– May request additional documentation, such
as copies of federal tax returns
– Most additional docs flagged by FAFSA.
May also be for institutional aid
Making Corrections
If necessary, corrections to FAFSA data may
be made by:
• Using FAFSA on the Web (www.fafsa.ed.gov)
if student has a PIN;
• Updating paper SAR, or
• Submitting documentation to college’s
financial aid office
If school has already received the ISIR, submit correction
information to the school; do not update on SAR or on the
web.
Special Circumstances
• Cannot report on FAFSA
• Send explanation to financial aid office at
each college
• College will review special circumstances
– May request additional documentation
– Decisions are final and cannot be
appealed to U.S. Department of
Education
Special Circumstances (cont)
Special Circumstances may include:
• Change in employment status
• Medical expenses not covered by
insurance (and above the income protection allowance)
• Change in parent marital status
• Unusual dependent care expenses
• Other catastrophic events
CAUTION!!!
• Avoid being charged a fee to complete the
FAFSA!
– Completing and processing the FAFSA
application is FREE. (FAFSA means
Free Application for Federal Student
Aid)
– FAFSA is located at www.fafsa.ed.gov
– Contact the financial aid office if you have
questions
If It Sounds Too Good To Be True….
• If you are considering hiring a scholarship
or financial aid consultant, do your research
first!
– The Department of Education’s finaid
website has a lot of great information on
scholarship scams and questionable
consultant tactics. Before you hire anyone,
go to:
www.finaid.org/scholarships/scams.phtml
Free Resources
http://www:
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Brokescholar.com
Fastweb.com
Scholarships.com
Nextstudent.com
Studentaid.org
collegeboard.com
finaid.org
collegetoolkit.com
collegenet.com
freschinfo.com
• Be cautious about entering scholarship
contests that require a fee.
* DON’T MISS DEADLINES!!
Maximizing Your Aid Eligibility
• Finaid.org web site has an entire section on
maximizing your need-based financial aid
• The information is based on loopholes in the need
analysis methodology and are COMPLETELY LEGAL
(at this time)
• This is often the information that consultants provide
for a fee
• Many of these strategies are just good, sound
financial planning
• Be very careful about following any unethical advice
www.finaid.org/fafsa/maximize.phtml
After the FAFSA: Follow up with School
• FAFSA information takes 7 to 14 days to
electronically arrive at the school.
• Each school may have their own in-house
paperwork you have to complete.
• Processing takes 4 to 6 weeks under normal
circumstances (longer during peak times).
• You do not have financial aid until you receive an
award letter from the school and accept it online.
Review
• Complete your tax return early and gather other
necessary information
• Complete the FAFSA online – sign electronically
with PIN
• Follow up with your school and complete any
required paperwork. Be sure to check priority
deadlines!
• Once awarded, review and accept awards online
• Research and contact other sources of financial
aid (i.e., scholarships, private sources, etc.)
Good Luck!