Financial Aid 101 Claudia Wenzel Director of Financial Assistance John Carroll University.
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Transcript of Financial Aid 101 Claudia Wenzel Director of Financial Assistance John Carroll University.
Financial Aid 101Financial Aid 101Claudia WenzelDirector of Financial AssistanceJohn Carroll University
What is financial aid?
Where does it come from?
What aid is available?
Who is eligible?
How do I apply?
Types of Aid
Gift aid: Grants and scholarships (need-based or merit-based)
Self-help aid: Loans and employment (need-based or non-need-based)
Goals of Financial Aid
Primary goal is to assist students in paying for college and is achieved by:
Evaluating family’s ability to pay educational costs
Distributing limited resources in an equitable manner
Providing balance of gift aid and self-help aid
***PAST, PRESENT, FUTURE**
Definition of Need
Cost of attendance (COA)
– Expected family contribution(EFC)
= Need
COST OF ATTENDANCE
FIXED TUITION & FEES ROOM BOARD
VARIABLES BOOKS & SUPPLIES TRANSPORTATION PERSONAL
EXPENSES
Federal Methodology
Federal Methodology is the formula created by Congress to determine
the EFC
***EFC determines eligibility for state/federal programs not necessarily what a family will pay out of pocket
Calculating the EFC for a Dependant Student
Student & Parent Income Taxes Paid/Income Protection Allowance Family Asset Equity (excludes home) Family Size Number of family members in college Age of older parent Start now with Net Price Calculators
***EFC determines eligibility for state/federal programs not necessarily what a family will pay out of pocket
Need Varies Based on Cost
X
Y
Z
Cost of Expected Family NeedAttendance Contribution (Variable) (Variable) (Constant)
1
2
3
EFC EFC
Application Process
Submit FAFSA prior to school’s deadline
Most aid awarded on “first-come, first-served” basis
To ensure maximum consideration for federal, state, and institutional aid, check information from each school to determine:
Required application materials CSS Profile
Institutional Applications
Application deadlines
Collects family’s personal and financial information used to calculate student’s EFC
Available in English and Spanish
FAFSA filed electronically at www.fafsa.gov
PIN RegistrationWeb site:
www.pin.ed.govCan request PIN before
January 1Not required, but
speeds processing
Will be used by students and parents throughout aid process, including subsequent school years
Sources andTypes of Financial Aid
Federal Pell Grant Supplemental Educational Opportunity Grant (SEOG) TEACH Grant Perkins Loan Stafford Loan (Subsidized and Unsubsidized) Federal College Work-Study
State Ohio College Opportunity Grant
Institutional Aid Merit and Gift Awards
Outside Scholarships
Loan Programs
Student LoansPerkins Loan- 5%interest rate/9 month Grace
Federal Direct Stafford Loan Subsidized vs. Unsubsidized- 4.6% interest
Parent/Co-signer RequiredFederal Direct PLUS Loan-7.21% interest
Private LoansHome Equity
Private Scholarship Search
Free Internet scholarship search engines: FinAid on the Web: www.finaid.org College Board: www.collegeboard.com FastWeb: www.fastweb.monster.com Scholarship Resource Network Express:
www.srnexpress.com GoCollege: The Collegiate Websource:
www.gocollege.com
Common Errors and Myths
Families need to hire a financial aid consultant to navigate the process
FAFSA.com Independent status You will be responsible for whatever is calculated as your family contribution Reporting assets Parental data in situations of divorce and remarriage You can “negotiate” a financial aid award by pitting colleges against each other
TIPS FOR SUCCESS
Start early and ask questions Know the importance of deadlines Read everything Don’t assume you don’t qualify
Net Price Calculator (NPC)
Don’t rule out any college because of cost Involve the student
Good Luck!