Financial Aid 101

Valerie JensenCoordinator, New Students and Outreach

Office of Student Financial Services

What’s happening tonight?

• What is financial aid?• When and how do I apply?• What is an Expected Family Contribution?• What is an Award Letter?• Financial Aid Timeline

What is Financial Aid?

• Scholarships

• Grants

• Loans

• Employment Opportunities

How Do I Apply?

• FAFSA• Free Application for Federal Student Aid• Calculates student’s Expected Family

Contribution (EFC)

• CSS/Profile• Required by some colleges and universities• Requests additional information• Involves a fee

Where do I Apply?

• Web site: www.fafsa.ed.gov

• 2015-2016 FAFSA on the Web will become available on January 1, 2015

When Should I Apply?

The FAFSA should be completed between January 1 and March 1

of student’s senior year of high school.

• Most need-based aid awarded on “first-come, first-served” basis

• Plan to submit FAFSA before each school’s priority deadline

• FAFSA must be completed each year the student is enrolled

What Can I Do Now?

• PIN Registration

• FAFSA on the Web Worksheet

• Forecast your EFC

• Net price calculators

PIN Registration

• Web site: www.pin.ed.gov• You can get your PIN

before youfile the FAFSA

• Student and parent will each need PINs

• Will be used by student and parents throughout aid process,including subsequent school years

FAFSA Practice Tools

2014-2015 FAFSA on the Web Worksheet• Four page booklet

containing• FAFSA instructions• Four Sections

• Student Info• Student Dependency

Status• Parent Financial

Information• Student Financial

Information

FAFSA4Caster• www.fafsa4caster.gov• Forecasts a ballpark figure

of what EFC may be• Allows families to become

familiar with FAFSA

Net Price Calculator• Each school required to

have within 2 clicks of homepage

• Gives better idea of what you’ll pay at each school

How is the EFC calculated?

• Federal methodology is the formula created by Congress to determine the EFC

• Determined by the Dept of Education, not the individual schools

• Uses student and parent income and assets

• Includes provisions and exceptions for your family and cost-of-living

Need Varies Based on Cost

1

2

1

3

EFC

X

Y

Z

Cost of Attendance

(Variable)

Expected Family

Contribution (Constant)

Need(Variable)

Award Letter

• Lists scholarships, grants, loans, and work opportunities based upon FAFSA

• Sent out by schools in earlyMarch

Saint Louis University Merit-Based Scholarship Opportunities

• Merit-based• $3,000 to $16,000• Based upon ACT/SAT scores, GPA

• Presidential Scholarship• Full Tuition • December 1st Deadline

• Martin Luther King Scholarship• Stackable award for 2015-2016 academic year• February 1st Deadline

Private Scholarship Search

Free Internet scholarship search engines:• FastWeb www.fastweb.com• Scholarship Foundation www.sfstl.org

of St. Louis• FinAid on the Web www.finaid.org• College Board

www.collegeboard.com• Wired Scholar

www.wiredscholar.com• GoCollege www.gocollege.com• Saint Louis University finaid.slu.edu/scholarships

Avoid Being Scammed

To check the legitimacy of scholarship search services or individuals, for information about financial aid scams, and tips to avoid being scammed, visit these websites:

• U.S. Department of Education:www.studentaid.ed.gov/types/scams

• Federal Trade Commission:www.consumer.ftc.gov/scam-alerts

• Better Business Bureau: www.bbb.org

Different Types of Federal Aid

• Pell Grant

• Supplemental Educational Opportunity Grant (FSEOG)

• Federal Work Study

Federal Work-Study

• FWS is an opportunity for students to earn money at an hourly wage. FWS is not immediately applied to a student’s account.

• FWS jobs tend to be very flexible and accommodating with student schedules.

• Undergraduate, graduate, and professional students may be eligible to earn FWS.

• Employment may be on or off campus.

Perkins/Direct LoansPerkins Direct Subsidized

LoanDirect

Unsubsidized LoanHow much can I

borrow?Up to $5,500

SLU awards new students up to $2,000

$3,500 $5,500**Less any borrowing

of the Direct Subsidized Loan

Is it based on need? Yes Yes No

What is the interest rate?

Fixed 5% Fixed 4.66% Fixed 4.66%

When do I begin repayment?

9 months after graduation or below ½

time status

6 months after graduation or below ½

time status

6 months after graduation or below ½

time status

Future Amounts Up to $5,500 $4,500 for So year$5,500 for Jr year$5,500 for Sr year

$6,500 for So year*$7,500 for Jr year*$7,500 for Sr year*

*Less any borrowing of the Direct

Subsidized Loan

Tackling your remaining balance

• Payment Plans• Most schools offer at least one type of payment plan

• Parent PLUS loan• Federally guaranteed• Credit-based

• Private/Alternative Loans• Do some research now!

Parent Loan vs. Private Student Loan

Parent PLUS Loan Private/Alternative Loan

Who is the borrower? Parent Student

What is the interest rate? Fixed 7.21% (for 2014-15) Variable---------------------

Tied into Prime or Libor IndexIs there an origination fee? Yes – 4.292% (for 2014-15) Varies by lender

When is the loan repaid? 60 days after disbursement. Forbearance options may be available to defer payments

6 months after graduation or below ½ time status

How much can I borrow? Up to the cost of attendance minus any other aid received

Up to the cost of attendance minus any other aid received

Aggregate limits may apply

Do I need a co-signer? No Yes, in most cases

Is the loan based on credit? YesIf denied, the student is

awarded $4,000 unsub loan

Yes

Timeline for Senior Year

August-December 2014 Admission Applications and College Visits

By December 2014 Apply for your PINs

January-March 2015 Submit FAFSA

March 2015 Receive your Award Letter

May 1, 2015 Submit Deposits and Accept Financial Aid

May-August 2015 Finalize Payment Arrangements, Enroll, Move-In!

Let us help you!

Plan to attend a FAFSA Workshop on SLU’s campus

January 11, 25, 28, February 8, 15 and March 8

Online ChatsJanuary 21, February 3 and 12

www.slu.edu/student-financial-services/outreach

Thank You!

Contact us1.800.758.3678 (Toll Free)

314.977.2350 (Main)314.977.3437 (Fax)sfs@slu.edu (Email)http://finaid.slu.edu

http://slu.financialaidtv.com