$135 BILLION DOLLARS were disbursed last year in financial aid for students.

Transcription

1 FINANCIAL AID 101

2 $135 BILLION DOLLARS were disbursed last year in financial aid for students.

3 WHAT IS FINANCIAL AID? Gift Aid free money that does not have to be paid back Merit-based (academic scholarships, athletic scholarships, etc.) Need-based (Pell grant, state grant) Self-Help Aid loans or employment Need-based (FWS, Stafford loan, Perkins loan) Non-need-based (Alternative loan)

4 FAFSA FREE APPLICATION FOR FEDERAL STUDENT AID

5 FAFSA Collects family s personal & financial information used to calculate student s EFC (Expected Family Contribution) *Electronically via FAFSA on the Web ( NOT fafsa.com! *Requires a PIN number ( need separate parent and student pin numbers to sign the FAFSA. Can get pin numbers now. Start a file and keep copies of everything!

6 FAFSA ON THE WEB Web site: FAFSA will be available on or after January 1, 2011 you will use your 2010 taxes to help complete the FAFSA. Review the FAFSA on the Web Worksheet to help prevent costly errors before you complete the FAFSA.

7 FAFSA PROCESSING RESULTS Department of Education (DOE) notifies student of FAFSA processing results by: notification containing direct link to student s on-line SAR (Student Aid Report) if student s was provided. REVIEW the SAR! Read the What I Must Do Now section. It will tell you if there is a problem and if you are selected for a process called verification. Most Pell Grant recipients are selected for verification. Contact the Financial Aid Office immediately if you are selected. You will need to provide the Office with copies of taxes, W2s and other forms, as needed. Males must register for selective service to proceed. Reminder sent each year-you must file the FAFSA yearly!

8 EFC FOR DEPENDENT STUDENT Parental contribution from income & assets + Student contribution from available income & assets =EFC The Expected Family Contribution is the financial result of filing the FAFSA that qualifies the student for aid. It is not necessarily what you have to pay to the school.

9 DEFINITION OF NEED Cost of attendance (COA) -- EFC = Financial Need Financial need determines receipt of need based aid.

10 ROLE OF FINANCIAL AID OFFICE Determines aid eligibility using EFC. Packages aid depending on availability of funds. Scholarships and grants first Loans last Sends award notification-this could be by traditional mail or . Check with each school the student applied to for award notification details. Helps families determine net cost. Net cost is the key!

11 FEDERAL AID

12 PELL GRANT Awarded to eligible undergraduates pursuing first bachelor s degree Portable Actual award amount based on COA, EFC, & enrollment status ( maximum EFC of $5,273) Maximum Pell Grant for =$5,550

13 SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT (SEOG) Eligible students Undergraduates pursuing first baccalaureate or professional degree Awarded first to students with exceptional financial need (i.e., students with lowest EFCs at that school) Priority to Federal Pell Grant recipients Annual award amounts (determined by the school--receive a limited pool of funds) $100 minimum $4,000 maximum

14 FEDERAL WORK-STUDY (FWS) Undergraduates with need are eligible Employment may be on or off campus Schools must use portion of FWS funds for community service employment activities Schools will either take money off of your balance OR you will receive a paycheck

15 PERKINS LOAN Eligible students Undergraduate students have first priority Priority to students who show exceptional need, as defined by school Loan amount varies (determined by the school) maximum of $5,500 for % interest rate 9-month grace period

16 STAFFORD LOANS Two Types: Subsidized: Must demonstrate need Unsubsidized: Need is not considered Base annual loan limits $3,500 for 1st year undergraduates $4,500 for 2nd year undergraduates $5,500 for each remaining undergraduate year $8,500 for each year of graduate/professional study ALL undergraduates can apply for an additional $2000 unsubsidized Stafford Loan in addition to base loan limits.

17 STAFFORD LOANS - IF PARENT CAN T BORROW Additional unsubsidized loan eligibility for dependent students whose parents are denied the Parent PLUS Loan: $4,000 per year for first & second years of undergraduate study $5,000 per year for remaining years of undergraduate study

18 PLUS (PARENT LOAN FOR UNDERGRADUATE STUDENTS) Credit-based parent loan program for parents of dependent undergraduate students Annual loan limit: COA minus other aid Fixed interest rate, currently 7.9% Repayment begins 60 days after loan is fully disbursed Federal government will allow you to begin payment after student graduates (deferment)

19 ALTERNATIVE LOANS (IN STUDENT S NAME) Credit-based alternative source of funding not a federal program Annual loan limit: COA minus other aid Interest rate is Prime plus a percentage based on credit history Freshmen require a co-borrower Repayments deferred upon approved request Be very cautious! These loans are expensive!

20 PROFESSIONAL JUDGMENTS Adjustments to your EFC to reflect unusual financial changes since filing the FAFSA - job loss, independent status that does not meet the federal criteria. IMPORTANT NOTE: Most students are considered dependents for purposes of financial aid! Secondary School Tuition Documentation required Not available at all schools

21 WHERE DO I GO FROM HERE? Submit Free Application for Federal Student Aid (FAFSA) prior to school s deadline and complete the application process to each school you are considering. Obtain & review admissions & financial aid materials from each school to which you are applying. Review requirements for application deadlines for scholarships Review requirements to retain any academic scholarships or any other aid provided by the school COMPARE, COMPARE, COMPARE!! Investigate other sources of aid

22 OTHER SOURCES OF FUNDS State grants, scholarships, loans, & work programs School need-based & non-need-based programs Academic, athletic, & other talent-based scholarships & grants Private business or employer scholarships Civic organization scholarships Church scholarships

23 PRIVATE SCHOLARSHIP SEARCH Free Internet scholarship search engines: FinAid.org The College Board FastWeb.com Scholarship Resource Network Express GoCollege.com: The Collegiate Websource

24 FINAL ADVICE Start early! Stick with it! Ask questions!

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26 Tennessee Student Assistance Corporation Lipscomb University Nashville, TN December 7, 2010 College Pays... We Can Get You There.

27 Financial Aid Terms Tennessee Student Assistance Corporation Scholarships free money awarded on the basis of merit, skill, or unique characteristic Grants free money based on need Loans money borrowed that must be paid back (LAST RESORT!!!) DO NOT PAY TO APPLY FOR SCHOLARSHIPS OR ATTEND A PRESENTATION GUARANTEEING FREE SCHOLARSHIPS! College Pays... We Can Get You There. 27

28 Financial Aid Sources Tennessee Student Assistance Corporation Federal government (Pell Grant, Stafford Loans, etc.) State (TN Student Assistance Award, HOPE, etc.) Colleges (Institutional Aid) Admissions, financial aid, academic departments Private sources (National/Local Scholarships) School counselor College Pays... We Can Get You There. 28

29 College/Private Aid Tennessee Student Assistance Corporation Process begins NOW!!! Retake ACT/SAT School counselor Visit scholarship websites Attend a college fair Be cognizant of deadlines, apply EARLY, and apply for as many scholarships as you can!!! DO NOT FEAR ESSAYS!!! College Pays... We Can Get You There. 29

30 ACT TEST DATE REGISTRATION DEADLINE LATE FEE DEADLINE October 23, 2010 September 17, 2010 October 1, 2010 December 11, 2010 November 5, 2010 November 19, 2010 February 12, 2011 January 7, 2011 January 21, 2011 March 15, 2011 **JUNIORS** SEE SCHOOL COUNSELOR April 9, 2011 March 4, 2011 March 18, 2011 June 11, 2011 May 6, 2011 May 20, SAT TEST DATE REGISTRATION DEADLINE LATE FEE gdeadline October 9, 2010 September 10, 2010 September 24, 2010 November 6, 2010 October 8, 2010 October 22, 2010 December 4, 2010 November 5, 2010 November 19, 2010 January 22, 2011 December 23, 2010 January 7, 2011 March 12, 2011 February 11, 2011 February 25, 2011 May 7, 2011 April 8, 2011 April 22, 2011 June 4, 2011 May 6, 2011 May 20,

31 Priority Deadlines Tennessee Student Assistance Corporation Tennessee Technology Center(s) NOW!!! University of Tennessee Knoxville November 1, 2010 Middle Tennessee State University December 1, 2010 University of Tennessee Martin February 1, 2011 University of Memphis March 1, 2011 College Pays... We Can Get You There. 31

32 FAFSA Tennessee Student Assistance Corporation FAFSA on the Web Available January 1, (VERY IMPORTANT!) Priority deadline is as soon as possible after January 1, 2011! College Goal Sunday January 30, 2011 and/or February 13, 2011 College Pays... We Can Get You There. 32

33 PIN Tennessee Student Assistance Corporation Obtain PIN(s) before January 1, 2011 for student (and one parent) Please keep PIN(s) to use in subsequent school years College Pays... We Can Get You There. 33

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35 FAFSA Notes Tennessee Student Assistance Corporation Parental information Parent refers to biological or adoptive parent ONLY In case of divorce or separation, give information about the parent you lived with most in the last 12 months; if 50/50, give information about the parent who provided you the most financial support If divorced parent has remarried, information about stepparent is required College Pays... We Can Get You There. 35

36 FAFSA Notes Tennessee Student Assistance Corporation Dependency questions If you can answer yes to any question, you are considered an INDEPENDENT student If you are considered independent, parent information not required; only the student would complete FAFSA If you have a special circumstance and cannot provide parental information, submit FAFSA with only your information and contact the financial aid office at the college(s) you plan to attend in order to complete the FAFSA; professional judgment College Pays... We Can Get You There. 36

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39 FAFSA Tennessee Student Assistance Corporation Tennessee Student Assistance Award (TSAA) $4,000 per year at eligible TN independent institutions; $2,000 per year at eligible four-year TN public institutions; $1,300 per year at eligible two-year TN public institutions; $1,000 per year at TN Technology Centers TN residents, U.S. citizens pursuing first degree and enrolled at least half-time EFC 0 to 2100 Submit FAFSA as soon as possible after January 1, 2011; Awards made until funds are depleted College Pays... We Can Get You There. 39

40 FAFSA Tennessee Student Assistance Corporation HOPE Scholarship $4,000 per year at eligible four-year TN institutions; $2,000 per year at eligible two-year TN institutions TN residents achieving 21 ACT composite OR 980 SAT (Math + Critical Reading) OR final cumulative 3.0 GPA (Homeschool and non-category 1, 2 or 3 private high school requirements are different) An award letter from TSAC will be mailed as soon as eligibility is established in our system and the student s FAFSA is clean College Pays... We Can Get You There. 40

41 FAFSA Tennessee Student Assistance Corporation General Assembly Merit Scholarship $1,000 merit-based supplement to HOPE Aspire Award $1,500 need-based supplement to HOPE HOPE Access Grant Wilder-Naifeh Technical Skills Grant HOPE Scholarship for non-traditional students HOPE Foster Child Tuition Grant College Pays... We Can Get You There. 41

42 FAFSA Tennessee Student Assistance Corporation General Assembly Merit Scholarship* $1,000 merit-based supplement to HOPE 29 ACT composite/1280 SAT (Math + Critical Reading) AND final cumulative 3.75 GPA Aspire Award* $1,500 need-based supplement to HOPE Parents or independent student s (and spouse s) adjusted gross income must be $36,000 or less * Students eligible for both supplements will receive Aspire Award ONLY College Pays... We Can Get You There. 42

43 FAFSA Tennessee Student Assistance Corporation Wilder-Naifeh Technical Skills Grant $2,000 per year at TN Technology Center (TTC) TN residents pursuing certificate or diploma program at TTC Students may be eligible for HOPE Scholarship IF initially HOPE eligible and enroll at an eligible TN postsecondary institution within three years of completing a TTC diploma program Submit FAFSA College Pays... We Can Get You There. 43

44 Online Applications* Tennessee Student Assistance Corporation Ned McWherter Scholars Program Deadline February 15 Robert C. Byrd Honors Scholarship Program Deadline March 1 Dependent Children Scholarship Program Deadline July 15 Minority Teaching Fellows Program (Loan Forgiveness) Deadline April 15 Dual Enrollment Grant Deadlines Vary * Online applications available at College Pays... We Can Get You There. 44

45 Online Applications* Tennessee Student Assistance Corporation Ned McWherter Scholars Program $6,000 per year at eligible TN institutions; highly competitive (50 awardees last year) TN residents, U.S. citizens achieving 29 ACT composite/1280 SAT (Math + Critical Reading) AND 3.5 GPA Application and 7 th semester transcript must be received by TSAC no later than February 15 * Online applications available at College Pays... We Can Get You There.

46 Online Applications* Tennessee Student Assistance Corporation Robert C. Byrd Honors Scholarship Program Award amount based on federal funding ($1,500 last year); attend any U.S. accredited institution except military academies; random selection (125 awardees last year) TN residents, U.S. citizens/permanent residents with 3.5 GPA OR GPA AND 24 ACT composite/1090 SAT (Math + Critical Reading) Deadline March 1 * Online applications available at College Pays... We Can Get You There.

47 What s Next Tennessee Student Assistance Corporation Electronic communication Campus Financial Aid Award Letter(s) Read carefully and ask questions Orientation Register for classes early As early as October 2011, begin reapplying for institutional aid In January 2012, complete FAFSA College Pays... We Can Get You There. 47

48 Contact Information Sam Mullins Outreach Specialist (931) College Pays... We Can Get You There.

49 FAFSA Notes Tennessee Student Assistance Corporation Social Security Numbers, Last Names, and First Names Must match Social Security Card School Codes (Section 2) Enter four-year private schools first, then four-year public schools, and then two-year public schools Yes, provide additional information about your college enrollment plans Check work-study and loans and TEACH Grant if applicable College Pays... We Can Get You There. 49

50 HOME SCHOOL Tennessee Student Assistance Corporation General Assembly Merit Scholarship* $1,000 merit-based supplement to HOPE 29 ACT composite/1280 SAT (Math + Critical Reading) AND during the course of a home school program, enroll in at least 4 courses totaling at least 12 semester hours credit at an eligible postsecondary institution (excluding physical education) and achieve a cumulative 3.0 GPA Aspire Award* $1,500 need-based supplement to HOPE Parents or independent student s (and spouse s) adjusted gross income must be $36,000 or less * Students eligible for both supplements will receive Aspire Award ONLY College Pays... We Can Get You There. 50

51 FAFSA Notes Tennessee Student Assistance Corporation 2010 income information File taxes early and use 2010 income tax return or; Estimate using W-2 forms, previous year income tax return, or last pay stub If you estimate, update FAFSA with actual 2010 information once known; verification Please contact financial aid office at each college if there are special circumstances Student cannot obtain parent information Change in employment status College Pays... We Can Get You There. 51

52 FAFSA Tennessee Student Assistance Corporation HOPE Access Grant $2,750 per year at eligible four-year TN institutions; $1,750 per year at eligible two-year TN institutions 18, 19 or 20 ACT composite/ SAT (Math + Critical Reading) AND final cumulative GPA AND parents or independent student s (and spouse s) adjusted gross income must be $36,000 or less on IRS tax form Nonrenewable after 24 attempted hours; however, may qualify for HOPE Scholarship thereafter Submit FAFSA College Pays... We Can Get You There. 52

53 Online Applications* Tennessee Student Assistance Corporation Dual Enrollment Grant $300 per semester; $600 maximum per academic year Junior or senior (TN resident for one year prior to application deadline) must meet admissions requirements at HOPE eligible institution Deadlines September 15 (fall); November 1 for TTC; February 1 (spring); March 1 for TTC; May 1 for summer (ALL) Complete online grant application EACH semester * Online applications available at College Pays... We Can Get You There. 53

54 HOME SCHOOL Tennessee Student Assistance Corporation HOPE Scholarship $4,000 per year at eligible four-year TN institutions; $2,000 per year at eligible two-year TN institutions For 2 years immediately preceding completion of high school as a home school student, such student shall have been a student in a home school associated with a church-related school as defined by and registered with the TN local school district which the student would otherwise attend as required by (a)(2)(C)(i) or an independent home school student whose parent or guardian has given notice to the local director of a TN school district under (b)(1) of intent to conduct a home school TN residents achieving 21 ACT composite OR 980 SAT (Math + Critical Reading) College Pays... We Can Get You There. 54