College Preparation Handbook Scholarships & Financial Aid

Transcription

1 College Preparation Handbook Scholarships & Financial Aid 1

2 Table of Contents Section Page # Quick Reference 3 Introduction 4 Gateway 6 ASVAB 7 PLAN 8 PSAT / NMSQT 9 SAT 10 ACT 12 AP 13 IB 17 Testing Schedule 18 Websites 20 Books 23 2

3 Quick Reference Germantown High School Address Old Poplar Pike Germantown TN Phone : (901) Fax : (901) Principal : Mike McIntyre mmcintyre@scsk12.org School Code : Contacts Germantown High School Principal Mike McIntyre mmcintyre@scsk12.org Germantown High School IB Coordinator Melinda Keller mkeller@scsk12.org Germantown High School IB Counselor Sheila Merritt smerritt@scsk12.org Germantown High School IB Liaison Yvonne Terrell yterrell@scsk12.org GHS IB-POD Parent Support Group President : Samira Jubran 3

4 Scholarships and Financial Aid Start A College / Scholarship Profile Now is a good time to start an online profile. One of the better-known websites for this is which allows you to enter information about yourself and then receive when a scholarship becomes available that might suit you. You can also visit the website (as well as hundreds of others) to check for scholarships and contests that are ongoing and/or available to underclassmen. Financial Aid Overview: With the total cost of many private colleges now exceeding $30-$35,000 per year, financial aid is a topic on the minds of an increasing number of people. Perhaps the most important thing to keep in mind regarding financial aid is this: You will not know if you qualify for assistance, nor will you receive any aid, if you do not apply. It is not uncommon for more than half of the students at some very well known schools to be receiving some type of financial assistance. Average College Costs Four-year private school tuition $ (up 5.9% from last year) Four-year public school tuition $5,836 (up 6.3% from last year) But Did You Know That About 65% of students enrolled at four-year colleges or universities attend institutions that charge tuition and fees of less than $9,000 per year. 56% of full-time students enrolled in public four-year colleges and universities attend institutions that charge published in-state tuition and fees between $3,000 and $6,000. While private four-year institutions have a much wider range of tuition and fee charges, only about 5% of all students attend colleges with tuition and fees totaling $33,000 or higher per year. Two year public school tuition $2,272 (up 4.1% from last year) Students will pay, on average, from $337 to $386 more than last year for this year s room and board, depending on the type of college. The average surcharge for out-of-state 41% of all students attend two-year colleges. The average full-time student enrolled in a public two-year college received about $4,400 in grants and tax benefits, which reduces the average tuition and fees paid from the published price of $2,272 to a net price of under $100. A record $134 billion in financial aid is available to students and their families. About 62% of all full-time college students receive grant aid. In , aid in the form of grants and tax benefits averaged about $2,200 per student at two-year 4

5 or out-of-district students at public institutions is $4,208 at two-year colleges and $9.947 at four-year colleges. public colleges, over $3,100 at public four-year colleges, and about $9,000 per student at private four-year colleges. For further information, go to There are basically two different types of financial assistance offered by colleges and universities: Need-based and Merit-based. Need-Based Assistance Every school will require that you submit the Free Application for Federal Student Aid (FAFSA) in order to be considered for aid. The FAFSA is available in the Guidance Office at the end of November but cannot be submitted until after January 1. Many schools will also ask you to complete the Financial Aid Profile, also known as the CSS Profile, a second form available in the early fall and with which you must send a processing fee. Most schools do not require this form. Both forms are submitted to processors who then calculate your expected family contribution and forward that information to you and to any schools to which you have asked the information be sent. The FAFSA calculations are based on a federally legislated methodology. The Financial Aid Profile calculations take additional discretionary information into account, as requested by the various schools to which you are applying. Both the FAFSA and the CSS Profile may be completed online. As of this point in time, you cannot print the online FAFSA form, but can complete as much as you can, then return to it as you gather information. The websites are: FAFSA : CSS Profile: WARNING: There are multitudes of other websites that offer help filling out the FAFSA. They charge a fee, and should be avoided like the plague. The true FAFSA website is free. Some colleges ask that applicants for financial aid submit the school s own financial aid form directly to the school, in addition to the FAFSA, and sometimes the Financial Aid Profile as well. If this is the case for a school to which you are applying, be attentive to deadlines and provide complete information. There are basically four possible combinations of forms required for financial assistance: Some colleges will want only the FAFSA. Some will want the FAFSA, Financial Aid Profile, and an institutional form. Others will want the FAFSA and an institutional form. Still others will want the FAFSA and Financial Aid Profile When applying for any type of financial aid, it is important to be accurate and prompt in filing all of your forms. The Financial Aid Office at each institution will take the information provided by the form processor and put together a financial aid package which might be some combination of grant, scholarship, loan, and/or work-study. Unfortunately, an increasing number of colleges are not able to meet 100% of the demonstrated need of their applicants. That means there might be a gap between what you can afford and what the college can provide to assist you. Grants and scholarships are monies given to you by the college that do not have to be repaid. The Pell Grant is the largest of the federal grant programs, and awards up to $4,000. Determination is made on the basis of information provided by review of your FAFSA. The Supplemental Educational 5

6 Opportunity Grant (SEOG) is another federal program (administered by the colleges) for students with exceptional need. Awards range from $100 to $4,000 in excess of the Pell amount. Loans: Loans must be repaid and have different terms. If loans are need-based, interest may be deferred. Information on Federal Student Aid may be obtained from Federal Student Aid Information Center at FED AID. The Stafford Student Loan is a federal program (administered by private lenders) based on need. Starting July 1, 2007, freshmen may borrow up to $3,500. Amounts are increased for upperclassmen. The loan is interest free while the student is in college and until repayment begins. The federal government pays interest while you are still in school and for six months afterwards. Stafford Loans have loan fees of 4%, which are deducted from the disbursement check. These fees consist of a 3% origination fee and a 1% guarantee fee. Starting July 1, 2006, the guarantee fee will be mandatory. Previously, guarantee agencies could waive the fee and many did. The origination fee will drop from 3% to 2% on July 1, 2006, and will drop by a further 0.5% each successive July 1, until it is phased out entirely on July 1, Repayment begins 6 months after graduation and the standard term is ten years. The Perkins Loan is for undergraduate and graduate students with exceptional financial need. This is a campus-based loan program, with the school acting as the lender using a limited pool of funds provided by the federal government. The Perkins Loan is the best student loan available. It is a subsidized loan, with the interest being paid by the federal government during the in-school and 9- monthgrace periods. There are no origination or guarantee fees, and the interest rate is 5%. There is a 10-year repayment period. The amount of Perkins Loan you receive is determined by your school s financial aid office. The program limits are $4,000 per year for undergraduate students and $6,000 per year for graduate students, with cumulative limits of $20,000 for undergraduate loans and $40,000 for undergraduate and graduate loans combined. Unsubsidized Stafford Loans are designed for students who do not demonstrate need. The terms are the same as for the Stafford Loan described above, except that interest must be paid while the student is in college. Repayment of principle begins upon graduation. PLUS Loans (Parent Loans to Undergraduate Students) let parents borrow money to cover any costs not covered by the student s financial aid package, up to the full cost of attendance. There is no cumulative limit. Starting on July 1, 2006, graduate and professional students will also be able to borrow money through the PLUS Loan programs to pay for their own education. PLUS Loans have a fixed interest rate of 8.5% for loans with a first disbursement after July 1, Previously, PLUS Loans had variable interest rates capped at 9%. The interest is not subsidized while the student is in school. The PLUS Loan charges loan fees of 4%, deducted from each disbursement check. Repayment begins 60 days after the funds are fully disbursed, and the repayment term is up to 10 years. There is no grace period as there is with the Stafford Loan program. College Work-Study is employment which you must take while in school. The expectation is that the salary you earn will be applied toward your expenses. The colleges administer the program, and the financial aid or work study office will help you find a job which qualifies. Most work study jobs are part-time and clerical in nature. Merit-Based Aid and Scholarships The Resources Guide has a list of websites and publications which will help you find applicable scholarships. A growing number of colleges and universities are making available scholarship money, which is awarded not on the basis of need, but for some outstanding quality or accomplishment demonstrated 6

7 by the student. The only way to learn of these awards is to seek them out; check the literature you receive from the schools to which you are applying and do a search on the web. Many privately-funded scholarships are also awarded each year, from businesses, associations, civic groups, corporations, and others. The Guidance office makes available any information that they have on scholarship opportunities. The Resources Guide has a list of websites and publications on Financial Aid. There are a variety of categories of merit-based scholarships: Category of Merit-Based Scholarships Examples Academic Performance Regent s, Trustee, President s Scholarships (usually considered with your application or a separate scholarship application for the school) College Major Engineering, Journalism, Business, Talent Scholarships Art, Athletics, Debate, Music, Theatre R.O.T.C. Scholarships Army, Navy, Air Force, Foundations Boettcher Church / Religious Groups Service Organizations Elks, Lions, Rotary Employer Groups IBM, Hewlett-Packard, Target, Ethnic Scholarships Asian, African-American, Hispanic, Native- American For most merit-based scholarships you must complete a separate application. Complete an application form for every scholarship for which you are eligible; of course, the national scholarships are more competitive. Check out the websites, read the college application materials & viewbooks carefully, contact individual departments within the colleges, and check the Guidance Office bulletin board. Psst! Tips: You do not have to have a perfect GPA to apply for scholarships. There are many scholarships that emphasize leadership, community service, talent, and/or athletics. Of course, a high GPA helps! Keep a list of scholarship deadlines, so that you do not miss opportunities. Request transcripts just as you do for college applications. Beware of scholarship scams. You should not have to pay for scholarships; most databases contain the same scholarships, and if you are willing to spend the time, you can research yourself. Many scholarships will be awarded in April or May, so be patient, and keep applying! GHS likes to brag on their graduates at the graduation ceremonies. Please notify the Guidance Office of any of your o Letters of acceptance to a college; and o Offers of scholarships. Financial Aid Tips Start getting your tax information together as SOON AS POSSIBLE! Financial Aid Deadlines can be as early as Feb. 1 st. However, a lot of them are available as early as November 1 st. Check with the college! 7

8 Register for your PIN early. This is the best way to sign your FAFSA form. Both a parent and the student will need to have one. You can apply for the pin by going to: or Don t wait to register for these pins. Do it now! If you re filling out your form close to the deadline and you don t have it, you many not get it in time. PINs are issued by the US Department of Education. If your parent is a student, he or she may already have one. Some schools require a CSS Profile Financial Aid Form. This form requires even more financial information than the FAFSA. This form can also be completed online at If you have taken an SAT test, you may already be registered online. If your school requires you to complete the CSS Profile, there will also be a list of other documents and instructions that your college may require. Read them carefully. Save your PIN numbers and Passwords in a safe place. You may not get back to the website(s) for many months. Complete Worksheet A Close Look at the Bottom Line for each college that you have selected for application. It can be found at the end of this guide, and also in the Worksheets & Forms Guide. The Resources Guide has a list of websites and publications on Financial Aid. Go to your college website and follow the links for Financial Aid. Print out the pages with requirements and deadlines. Put it in the folder for your college, and mark the deadlines for forms you must submit Forms you will have or may have to complete: FAFSA : Free Application for Federal Student Aid Apply online at or pick up the form from the Guidance Office. PIN: Both you and your student will need to apply for a PIN (Personal ID Number) if you plan on completing the FAFSA form online: Go to You can do this at any time so don t wait until the last minute! CSS : College Board Financial Aid Profile (Check with your college). Apply online at Business & Farm Supplement : Check with your college Non-Custodial Parent Statement : Check with your college Steps for Completing Financial Aid Forms: 1. Do an estimate of the Family Contribution. 2. Check with colleges Financial Aid Offices about meeting need. 3. Complete Income Tax in early February, if possible. 4. Obtain FAFSA form in the Counseling Office in December or January. 5. Check with college about other forms (Profile or the college s own form). 6. March or April receive estimate of aid before confirming college acceptance. 7. Check out loans as a last resort. Records you will need: Student s driver s license Student s Social Security number Student s IRS tax form for January of their Junior year to December of their Senior year. Parent s IRS tax form for the same time period. Parents (and students, if applicable) W2s Any records of money earned Records of untaxed income (i.e. Welfare, Social Security, Veteran s benefits, child support, etc) Current bank statements 8

9 Current mortgage and other liability information Business and farm records Records of stocks, bonds and other investments Promissory notes or loan disclosure statements List of any other assets KEEP COPIES of everything you send and responses you receive. 9

10 Worksheet A Close Look at the Bottom Line Adapted from US News College Planner School Names Financial Need Cost of Attendance (COA) 1. Tuition and fees 2. Room and board 3. Books and supplies 4. Travel 5. Other 6. TOTAL COA (add lines 1-5) Your family s expected contribution 7. Expected family contribution (EFC) 8. TOTAL NEED (subtract line 7 from 6) Financial Assistance Gift Aid 9. College grants, scholarships, and other awards 10. Non-college grants, scholarships, and other awards* 11. TOTAL GIFT AID (add 9 and 10) Self-Help Aid 12. Work study 13. Student Loans (eg Stafford, Perkins) 14. TOTAL SELF HELP AID (add 12 & 13) 15. TOTAL ASSISTANCE (add 11 & 14) Your Family s Cost 16. Unmet need (subtract line 15 from 8) 17. EFC (from line 7) YOUR FAMILY S OUT OF POCKET COST (add lines 16 & 17) YOUR FUTURE STUDENT LOAN DEBT (from line 13) * Include private, state, and other outside awards. Check with each college to find out whether these reduce your aid. 10