The Financial Aid Office Presents. Financing Education Beyond High School

Transcription

1 The Financial Aid Office Presents Financing Education Beyond High School

2 What You Need to Know General Eligibility Requirements Understanding EFC & COA Categories, types, and sources of financial aid Free Application for Federal Student Aid (FAFSA)

3 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

4 General Eligibility Requirements, cont. Must have a valid Social Security Number* Must have a HS Diploma or GED Once in school, continuing requirements: May not be in default on a federal student loan or owe repayment of a federal grant Must be making satisfactory academic progress as defined by the school *Some funds available for SB 1528 students

5 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

6 What is the Expected Family Contribution? (EFC) Amount family can reasonably be expected to contribute from their income & assets* Stays the same regardless of college Calculated using data from the (FAFSA) and a federal formula * A more accurate description of EFC = an index number that helps schools determine what types of aid the student is eligible for. Families do not actually pay this amount out-of-pocket.

7 EFC for Dependent Student Parent contribution calculated from income and assets + Student contribution calculated from available income and assets = EFC (Expected Family Contribution)

8 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 (Fall/Spring) Your total financial aid package, including grants, loans and outside scholarships cannot exceed your budget Budgets vary widely from college to college

9 What is Financial Need? Cost of Attendance (COA) Expected Family Contribution (EFC) = Financial Need Generally speaking, the higher the financial need, the more likely you ll be eligible for grants.

10 Categories of Financial Aid Need-based aid (student must demonstrate financial need in the formula COA EFC = + number) Grants FWS (Federal Work Study) Subsidized loans Non need-based aid (financial need not a consideration. COA EFC = 0 or negative number) Unsubsidized loans Most scholarships

11 Types of Financial Aid Grants Considered gift aid that does not need to be paid back (with a few exceptions) Student Loans DO need to be paid back Employment (FWS) 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).

12 Financial Aid: Grants Pell Grant (Federal aid) Need based Amount based on # of hours enrolled per fed chart 600% lifetime limit (i.e. 6 years at full time) Supplemental Grants - Need based - Often tied to priority deadlines - Amount based on # of hours enrolled. Schools determine FSEOG & TPEG award amounts FSEOG (Federal grant) TEOG (State grant) TPEG (State grant)

13 Financial Aid: Loans Subsidized Stafford loans ( For 15/ %) Must demonstrate financial need Government pays interest while in school Beginning July 1, 2013, new students limited to 150% of program length Unsubsidized Stafford loans (For 15/ %) Need is not a consideration Interest capitalizes and accrues while the student is in school Parent PLUS loan (For 15/ %) For dependent student s only

14 Employment: Federal Work Study Allows student to earn money to help pay educational costs Need based Typically on-campus Currently $10.25/hr. (varies by school) Some schools may provide non-monetary compensation, such as room and board Students limited to 20 hrs/week

15 Scholarships A scholarship is money given by individuals, companies or organizations based either on need, merit, or both. At Collin, scholarships are awarded through the Foundation Office in Fall and Spring. (see link below) Scholarships do not usually require you to fill out the FAFSA

16 Sources of Financial Aid Federal government largest source of need-based aid States varies from state to state Colleges & Universities primarily from private and corp. donations or generated from institutional revenue Private sources donors often set their own eligibility criteria & application procedures

17 How do I apply? Electronic FAFSA application on the web - website is Both student and one parent apply for FSA ID - FSA ID used to sign the FAFSA Include (up to 10) school code(s) (Collin=016792) Use IRS Data Retrieval Tool Submit Follow up with school!!!

18 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 academic year, the FAFSA may be filed beginning January 1, 2015 Colleges may (and usually do!) set FAFSA filing deadlines. CHECK your college for early and late deadlines!

19 FSA ID Web site: Sign FAFSA electronically Sign into certain Dept. of Ed websites Can request FSA ID anytime For dependent students, both student and 1 parent must apply for (separate) FSA ID May be used by students and parents throughout aid process, including subsequent school years If you have a PIN, will be prompted to create an FSA ID the first time you log in. PIN no longer required.

20 FAFSA on the Web Worksheet Web site: - click on Student Aid on the Web on the top menu bar - click on Tools and Resources on left menu - scroll down and click on FAFSA on the Web Worksheet 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 first-timers

21 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.

22 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 * Using the IRS DRT greatly reduces errors

23 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 Contact the financial aid office if you have questions

24 If It Sounds Too Good To Be True. If you are considering hiring a scholarship or financial aid consultant, do your research first! The website has a lot of great information on scholarship scams and questionable consultant tactics. Before you hire anyone, go to:

25 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

26 Free Resources Nerdwallet.com collegeboard.org Fastweb.com college-scholarships.com Scholarships.com collegetoolkit.com Wiredscholar.com collegenet.com Scholarshipexperts.com finaid.org Be cautious about entering scholarship contests that require a fee. * DON T MISS DEADLINES!!

27 After the FAFSA: Follow up with School FAFSA information can take 7 to 14 days to electronically arrive at the school. Each school may have their own in-house paperwork you have to complete. Processing may take 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.

28 CSS PROFILE The PROFILE is an online application that collects information used by certain colleges and scholarship programs to award institutional funds (NON-federal funds). For the year, the PROFILE can be filed as early as October 1, 2014, but no later than 2 weeks before the earliest priority deadline of the schools you re applying to. Check your college s/program s information to determine if they require the PROFILE (can find a list on collegeboard.org).

29 CSS PROFILE cont. You can print the Pre-Application Worksheet and Instructions to review with parents and fill out at home before applying online. The fee for the initial application and one college or program is $25. Additional reports are $16. Fee waivers* are granted automatically based on the information entered on the PROFILE application to students who are first-time college applicants and are from families with low incomes and assets. (Int l students are not eligible for fee waivers). *pays for up to 8 colleges/scholarship programs

30 Good Luck!