FFCHS Financial Aid Information Night OCTOBER 6 TH, 2014

Counselors Ellen Hinckley(A-G) Markus Moeder-Chandler(H-O) Lisa Rogula(P-Z)

A note on Grants/Scholarships from Colleges Avg. Grants and Scholarships from colleges (All income levels) $9,740- All Institutions $6,270- Public College $17,040- Private Non-Profit $4,990- Private For-Profit Only 0.03% of students nationally received enough money from grants and scholarships to cover the entire COA. Only 10% of all students will receive any type of scholarship at 4 year College Only 5.6% of students will receive any type of scholarship at 2 and 4 years Colleges.

Financial Aid Timeline Oct.-Dec. College Applications completed and submitted Prepare Tax Documents for 2015 Complete Institutional Scholarship Applications Complete Private Scholarship Applications Apply for FSA ID (parent & student) https://fsaid.ed.gov/npas/index.htm January File 2015 taxes ASAP Begin 2016 FAFSA

Financial Aid Timeline cont. February Complete FAFSA by Priority Deadline March/April Receive SAR (Student Aid Report) within 4-6 weeks Acceptance letters arrive (if they haven t already) Financial Aid Award Letters Arrive (online as well) Commit to 1 college by the end of April May-July Complete Master Promissory Note Complete Loan Counseling

Understanding EFC EFC Expected Family Contribution Factors Include Family s taxed income Family s untaxed income (Social Security and Unemployment) Number of family members in college Assets Number of Members in the household EFC is NOT the amount of money the family is expected to pay. It is an index score used by colleges to determine eligibility

Understanding EFC cont EFC= 0 Pell Grant Eligible Work Study eligible If your (income-only) EFC is- BLUE then your child should qualify for need-based aid at two-year public colleges; GREEN would qualify at four-year public colleges (in-state tuition); YELLOW would qualify at average four-year private colleges; ORANGE would qualify at four-year elite private colleges, such as the Ivy League colleges and other highly selective and well-known universities RED would not qualify for need-based aid at any colleges or universities. FAFSA4CASTER

Types of Aid Pell Grant 5,750$ for 1 year Divided by semesters Majority of Pell Grants go to students with Family Income below 20,000$/yr Based on EFC Does not need to be repaid

Types of Aid cont. Perkins Loan Up to 5,500$ year Loan is given from the college Not all colleges participate Based on extreme financial need Current Rate- 5.0% Payment begins 9 months after graduation Set to expire this year Write your congressman

Types of Aid cont. Federal Subsidized Loan Based on need Cannot exceed cost of attendance Government pays interest while student is in school 6 months after graduation Current Rate- 4.29% (2015) Locked in for 1 school year Can change each new loan period Exp. 4 different loan years, 4 different loan rates Loan Fee of 1.068%

Types of Aid cont. Federal Unsubsidized Loan Do not need to demonstrate financial need Interest accrues from the minute the loan is taken 6 months after graduation If interest is not paid during loan period before repayment Loan enters forbearance Interest is capitalized and added to loan amount (bad) Current Rate- 4.29% (2015) Can change each new loan period Loan Fee of 1.068%

Types of Aid cont. Parent Plus Loan Used to pay balance not covered by other loans Credit history reviewed Maximum loan = cost of attendance ( ) other loans accepted Current Rate- 6.84% (projected to increase, previously 7.3%) Loan Fee 4.272% of loan Enters repayment the minute loan is disbursed If parent is denied loan student will receive increased Sub. Loan amount

Types of Aid cont. Federal Work Study Provides a job either on or off campus Guaranteed at least the federal minimum wage Paid once per month Awarded a maximum amount of work study $ Based on financial need (similar to Pell Grant)

Loan Repayment Standard Repayment Plan 10 years Pay less interest than other plans Graduated Repayment Plan 10 years Payments are initially lower. Increase every 2 years Extended Repayment Plan 25 years Payments may be fixed or graduated Income Based Repayment Plan 25 years 15% of current income Pay as your Earn Repayment Plan 20 years 10% of income, increases or decreases with income

Loan Repayment 43% of college students in 2013 dropped out Upon dropping out of college- Student loans enter repayment after 6 month grace period Stafford Sub. And Unsub. Loans Upon Dropping below half time (less than 12 credits a semester) Student loans enter repayment after 6 month grace period Stafford Sub. And Unsub. Loans Parent Plus loans in repayment upon disbursement regardless

Loan Repayment ex. Example- CU Boulder Colorado Resident Cost of Attendance- 30,165$ X 4 years (Stafford Sub. And Unsub. Loans) @ 4.66% interest (assuming no change year to year) 1.073% loan fee

Loan Repayment ex. Loan Balance: $120,660.00 Adjusted Loan Balance: $121,968.72 Loan Interest Rate: 4.66% Loan Fees: 1.07% Loan Term: 10 years Minimum Payment: $50.00 Enrollment Status: In Repayment Degree Program: Bachelor's Degree Total Years in College: 4 years Average Debt per Year: $30,165.00 Monthly Loan Payment: $1,273.49 Number of Payments: 120 Cumulative Payments: $152,819.21 Total Interest Paid: $32,159.21

Loan Repayment exp. National Average (Forbes 2 days ago) 30,000$ Loan Balance: $30,000.00 Adjusted Loan Balance: $30,325.39 Loan Interest Rate: 4.66% Loan Fees: 1.07% Loan Term: 10 years Minimum Payment: $0.00 Enrollment Status: In Repayment Degree Program: Bachelor's Degree Total Years in College: 4 years Average Debt per Year: $7,500.00 Monthly Loan Payment: $316.63 Number of Payments: 120 Cumulative Payments: $37,995.86 Total Interest Paid: $7,995.86

Graduation rates and loans Dept of Ed. 40% of students will graduate in 4 years 60% will graduate in 6 years Plan loans accordingly

Loan Disbursement All loans are paid to the College Balance is paid off Excess funds are refunded to student each semester Books, supplies, etc. Excess funds each semester can be paid back to loan provider

Student Loan FYI- 2014

Student Loan FYI

FSA ID https://fsaid.ed.gov/npas/index.htm

FAFSA Website https://fafsa.ed.gov

Info needed for FAFSA Your Social Security Number Your Alien Registration Number (if you are not a U.S. citizen) Your most recent federal income tax returns, W-2s, and other records of money earned. (Note: You may be able to transfer your federal tax return information into your FAFSA using the IRS Data Retrieval Tool.) Bank statements and records of investments (if applicable) Records of untaxed income (if applicable) A Federal Student Aid PIN to sign electronically. (If you do not already have one, visit www.pin.ed.gov to obtain one.)

Info needed for FAFSA clarifications If your parents are divorced or separated and don t live together, answer the questions about the parent with whom you lived more during the past 12 months If you have a stepparent who is married to the legal parent whose information you re reporting, you must provide information about that stepparent as well.

Sample SAR

Sample Financial Aid Award Letter

GI Bill Can be transferred to dependents Contact your VA rep at College Info available at http://www.benefits.va.gov/gibill/post911_transfer.asp Eligibility based off of Terms

GI Bill

College Goal Sunday Sunday February 21 st, 2015 1:00-3:00 pm Pikes Peak Community College University of Colorado Colorado Springs Colorado State University Pueblo More info available at - http://www.collegegoalcolorado.org/

FAFSA Night FFCHS Library Early February Bring Laptops Bring Student Bring Tax info

Colorado FAFSA Priority Deadline March 1 st, 2015 Individual Colleges Vary Most money available to students After March 1 st, 2015 Money still available on first come first served basis

New in 2016 Parents can use taxes from the PREVIOUS 2 YEARS Does not require expedited tax filing Can be completed starting October of 2016! Can use IRS import tool

Resources College Goal Sunday FAFSA http://www.collegegoalcolorado.org/ https://fafsa.ed.gov/ FSA ID Website https://fsaid.ed.gov/npas/index.htm Student Aid.Gov FinAid https://studentaid.ed.gov/ http://www.finaid.org/ College in Colorado- Financial Aid Planning https://www.collegeincolorado.org/financial_aid_planning/_default.aspx FAFSA Forecaster https://fafsa.ed.gov/fafsa/app/f4cform?execution=e1s1

Questions?