Discussion Topics. o What is Financial Aid?

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2 Discussion Topics o What is Financial Aid? o Cost of Attendance & Affordability o Financial Aid Eligibility o Types of Financial Aid o Filling Out the FAFSA (FREE Application for Federal Student Aid) o What s Next? o Tony s Tips

3 What is Financial Aid? Assistance to help make college more affordable for you and your family Money intended for educational expenses

4 Financial Aid Is Not Credit Cards Shopping Buying a Car Partying Spring Break/Vacation

5 Sample Cost of Attendance In-State Out-of-State Tuition & Fees $13,486 $43,476 Room & Board $10,554 $10,554 Books & Supplies $ 1,048 $ 1,048 Per./Misc. $ 2,204 $ 2,204 Total $27,292* $57,282* *This is the maximum amount of financial aid you can receive

6 Cost of Attendance (COA) Direct Costs o Tuition & Fees (Fixed Rate) o Room & Board o Billed twice a year

7 Cost of Attendance (COA) Indirect Costs: o Books/Supplies o Personal/Miscellaneous o Transportation

8 Cost of Attendance Macomb Community College $12,416 Saginaw Valley State University $19,652 Wayne State University $23,980 Western Michigan University $24,972 Michigan State University $26,874 University of Michigan-Ann Arbor $27,812 Bowling Green State University $31,400 Ohio State University $42,959 Harvard University $69,600

9 Expected Family Contribution (EFC) Family s reasonable contribution to child s education Federal formula determined by FAFSA info. Parent + Student Contribution Can range from 0-1,000,000

10 Financial Need $28,000 Cost of Attendance - $5,000 EFC $23,000 Financial Need This is what your financial aid award is based on.

11 Net Price Calculator Interactive tool that provides estimate o Uses institutional data o Can be customized to your individual situation o Check schools Financial Aid websites

12 Grants Scholarships Work-Study Loans Types of Aid

13 Free money Need-Based Grants Must complete FAFSA May have to complete additional documentation for institutional funds

14 Scholarships Free money Awarded on basis of skill, merit, talent, or financial need Have to complete FAFSA and other apps Funds applied to student account

15 Finding Scholarships Use resources available online o Google o o o o o o

16 Quick and Easy Scholarships Zombie Apocalypse Scholarship Make Me Laugh Scholarship Zinch s Weekly Three Sentence Scholarship $2,000 No Essay Scholarship Courage to Grow Scholarship The MoolahSpot $1,000 Scholarship Superpower Scholarship Twitter Short and Tweet Scholarship

17 Think Outside the Box Begin researching private scholarships now Research community opportunities Small scholarships add up! Use some of the same admissions essays for scholarship essays Deadlines and application steps vary widely Apply at each school you re interested in

18 Scholarship Scams Be cautious of scholarship scams! Key signs of a scam are: o Scholarships that request an app. fee o Guarantees that you ll win a scholarship o Everyone is eligible to apply, there should be requirements o Excessive hype or pressure to apply o No telephone number or contact info. o Asking for checking/savings account or SSN Website:

19 Understanding your Scholarships GPA Requirement Credit Hours Renewable scholarships Covers What Costs Any remaining costs? Full Ride Scholarships vs. Partial

20 Work Study Money that you have to work for Students have to search, apply, and interview for job Will earn paycheck to use for educational expenses Hours capped at 20 hours a week

21 Borrowed money Loans Have to be paid back with interest Loans are in student s name and do not affect parent, unless it s a Parent PLUS loan Only borrow what you need Have to complete FAFSA to be offered federal loans

22 Types of Loans Federal Subsidized/Unsubsidized Loan o Interest Rate: 4.29% o 6 month Grace Period Parent PLUS Loan o Interest Rate: 6.84% o After 2 nd disbursement, payment begins o In-school deferment

23 Student Loan Trivia TRUE or FALSE After I drop below half-time enrollment status, student loans will go into repayment. TRUE

24 Completing the FAFSA: Where? FAFSA.GOV

25 Filling out the FAFSA: When? Application is available Jan 1 st, 2016 State deadline for aid is March 1 st Check with your school for their deadline Must complete FAFSA every year

26 Why Fill Out the FAFSA? Determines EFC and your financial aid eligibility Can send to 10 different schools Can be used for multiple sources of aid Available in English and Spanish

27 Who Needs the FAFSA? Each student needs to fill out a separate FAFSA o Parental data can be transferred for multiple children Parent(s) o Both parents (biological, step or adoptive parent) if married o Only one parent if single, divorced, or separated (the one parent the student lives with) o If unmarried but both parents are living together, both incomes must be used

28 Dependent vs. Independent Majority of incoming students are dependent If dependent, parent info must be provided Student may be independent if: o Married o 24 years of age o Have a dependent they provide more than 50% support for o Legal guardianship

29 FAFSA Checklist 2015 Tax Return/ 2014 for estimate Bank Statement/Asset Statements Investments, Rental Property Disability, Child Support Federal Student Aid ID (FSA ID) o Student AND one parent o

30 IRS Data Retrieval Allows applicants to requests and receive their income and tax data from the IRS Available February 2016 for cycle Electronic tax returns = 1-2 weeks Paper tax returns = 6-8 weeks

31 Potential Errors Wrong Social Security Number Household size/number in college Divorced/remarried parental information Rental property and investment net worth Untaxed income

32 Verification Mid-March earliest you ll hear back Additional documentation o 1040 forms o W2 o Misc. questionnaires o Must respond to each school individually Never responding to school= incomplete FAFSA!!

33 Special Circumstances Cannot report on FAFSA Send explanation to financial aid office at each college All special circumstances will be reviewed and a FINAL decision will be made o Cannot appeal this decision to Dept. Ed

34 Tony s Tips Payment Plan Private Scholarships are the way to go Satisfactory Academic Progress (SAP) Take what you need Know the cost before you go

35 Maize and Blue Days Starting in January 2016 Tues and Thurs. 1-7pm University of Michigan Detroit Office o 3663 Woodward Ave, Suite 150 o Detroit, MI o Phone: (313)

36 Contact Information Antonio Junior-Robins o o Maize and Blue Days University of Michigan - Office of Financial Aid Federal Student Aid or