Download Financing Your Education

Financing Your Education

What we plan to discuss tonight:

How do scholarships and financial aid differ

When should we apply for financial aid

How do we apply for financial aid

What financial aid options are available

Who determines our aid

Deadlines and timeframes
Scholarships vs. Financial Aid



Scholarships are monies universities have to award at
their discretion. The universities determine criteria for
awarding merit based scholarships, and values of
scholarships
Scholarships can be general academic, departmental,
alumni, special talent, and/or community based
Financial aid is government funded aid awarded on the
basis of “Demonstrated Financial Need”. A federally
derived formula determines your financial need
When should we apply for aid?




It is important to remember to apply early!!! Priority
application deadline is April 1st
The Free Application for Federal Student Aid (FAFSA) is
available online after January 1st at www.fafsa.ed.gov
.Paper application is typically available mid-January
You must be admitted to the university prior to applying
for financial aid
Important to remember to apply every year your child is
in enrolled in college
What the FAFSA determines


The FAFSA determines your Expected Family Contribution
Your Expected Family Contribution does not change
based upon the cost of attendance at a university
Cost of Attendance
-EFC (Expected Family Contribution)
=Demonstrated Financial Need
What is my EFC


Your EFC (Estimated Family Contribution) is the value of
your income earned from the previous tax year, your
taxes paid, and the value of your assets.
Your EFC does not include the value of your home.
Cost of attendance includes both direct and indirect cost!!
Do’s and Don'ts


Do not estimate! Use your completed Federal Income
Tax returns to complete the FAFSA. If you estimate, you
may be required to correct your information, which
could cause delays.
If the questions says “leave blank”, then leave blank. If
the questions says “Insert Zero” then insert a zero.

Keep photocopies for your personal records.

Make sure your social security # is correct.
Types of Aid

Grants



Grants are “free money” that you actually qualify for
because of demonstrated financial need
Pell Grants are grants that do not have to be repaid .
Typically hard to qualify for; few do, so don’t panic.
Maximum Pell Grant award $5700
Loans


Federal Perkins Student Loan (5%)
Stafford Student Loan (6%)



Subsidized is need-based and government pays the
interest while student is enrolled at least ½ time
Unsubsidized is not need-based and interest will
accumulate from date of origination and be capitalized
PLUS Loans (8.5%)
Be prudent and only take what you need. Loans make college
a viable option and should be viewed as an investment!
Loans (continued)

Loan amounts undergraduate dependents
can borrow through the Stafford Student Loan

$3500 – freshmen year maximum

$4500 – sophomore year maximum

$5500 – junior & senior year maximum
Loan eligibility amounts increase as you demonstrate
your ability to progress successfully through college
Work Study





Federal Work Study Program provides jobs for students
with financial need. It is considered financial aid
because the government pays 75% of the student’s
salary and the college pays the remaining 25%
Encourages community service and work related to
course of study
At least minimum wage
Paid by the hour in regular pay period
Jobs are both on and off campus
Studies show college students who work 10-14 hours per week have higher GPA’s and
more likely to graduate
FAFSA on the Web

Good reasons to file electronically:






Built-in edits to prevent errors
Skip-logic allows for skipping of unnecessary questions
Provides timely submission of original application and any
necessary corrections
More detailed instructions and “help” for common
questions
Ability to check application status on-line
Simplified renewal application process
You will need your PIN which can be obtained at
www.fafsa.ed.gov
Search the Web

FastWeb Scholarship Search www.fastweb.com

Peterson's/NASFAA www.collegequest.com

FinAid www.finaid.org

Super College www.supercollege.com
Kathy Dean
Sulligent High School
Guidance Counselor
[email protected]
205-698-9254 ext 2020