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How to set yourself apart from everyone else
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How to set yourself apart from everyone else SCHOLARSHIPS Financial Aid
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Financial Aid. SCHOLARSHIPS. How to set yourself apart from everyone else. Objectives. Define financial aid Describe the major financial aid programs Explain the application process Describe what happens after that Show you what aid is available Answer your questions. Financial aid is…. - PowerPoint PPT Presentation
Transcript of How to set yourself apart from everyone else
How to set yourself apart from everyone elseSCHOLARSHIPS
Financial Aid
Financial Aid
Objectives
Define financial aid
Describe the major financial aid programs
Explain the application process
Describe what happens after that
Show you what aid is available
Answer your questions
Financial Aid
Financial aid is…
Gift aid (32% of all aid) Scholarships Grants
Self help aid (68%) Loans (66%) Employment opportunities (2%)
Financial Aid
Financial aid can be…Merit based
Eligibility is based on a specific attribute: grades, community service, athletic ability, etc.
Need based Eligibility is based on the family’s financial situation (as determined by
a federal formula from information provided on the FAFSA). This is what we are primarily covering in this presentation.
Financial Aid
How is need determined?
Definition of need:
Cost of Attendance (school determines)
- Expected Family Contribution (EFC from the FAFSA)
________________________________
= Financial Need
Financial Aid
Different School = Different Need
AB
C EFC EFCa b c
Cost of Attendance (variable)
Expected Family
Contribution (constant)
Need (variable)
_=
Financial Aid
Price vs. Cost
School 1
Cost $26,000
EFC - 8,000
Eligibility = 18,000
Aid $ 18,000
Unmet $ 0
Price $ 8,000
School 2
Cost $14,000
EFC - 8,000
Eligibility = 6,000
Aid $ 5,500
Unmet $ 500
Price $ 8,500
Financial Aid
Principles of Need Analysis
To extent they are able, parents have primary responsibility to pay for dependent child’s education
Students also have responsibility to contribute to educational costs
Families should be evaluated in their present financial condition
Family’s estimated ability to pay educational costs must be evaluated in equitable and consistent manner, recognizing that special circumstances may affect family’s ability to pay
Financial Aid
What is the FAFSA?
Free Application for Federal Student AidFile as soon after January 1st Annual application
Paper version (request by calling 1.800.4.FED.AID) Electronic : www.fafsa.ed.gov (preferred)
Quicker Electronic signature with a PIN (parent and student) More accurate
Information provided determines eligibility for aid Beware of scams….it’s FREE! Watch deadlines!
Financial Aid
Before you Begin
PIN – if filing online – http://www.pin.ed.gov
Documents needed to start the FAFSA:
Your social security number Your driver’s license Your 2009 W-2 Forms and other records of money earned 2009 tax return => 2009 tax return Bank statements, investments, W2’s Veterans benefits records, Child support received Men- if 18 must register w/ the Selective Services
If entering college at 17, can register 6 months prior to 18th birthday
Financial Aid
General Student Eligibility Criteria
Must be enrolled or accepted for enrollment in eligible program of study
Must be pursuing degree, certificate, or other recognized credential
Must be U.S. citizen or eligible non-citizen
Must be registered with Selective Service (if male and required)
May not have eligibility suspended or terminated due to being convicted of a drug-related offense
Financial Aid
Financial Aid
Dependency Status
Were you born before January 1, 1986?
At the beginning of the 2009-2010 school year, will you be working on
master’s or doctorate program ?
Are you currently serving on active duty in the U.S. armed Forces for purposes
other than training?
Are you a veteran of the U.S. Armed Forces?
Do you have children who will receive more than half of their support from
you between July 1, 2009, and June 30, 2010?
Do you have dependents who live with you and who receive more than half of
their support from you, now and through June 30, 2010?
Financial Aid
After the FAFSA
The college: Receives the FAFSA results (EFC)
May ask for additional information Verification: minimum 30%
Uses the EFC to determine eligibility
Sends an award letter to notify the student
Financial Aid
After the FAFSA
The student & family: Receive Expected Family Contribution (EFC) Receive SAR (student aid report)
Review all answers and resubmit if necessary If provided email will receive SAR via email
Receive an award letter from schools Accept/Decline awards If you will need a student loan
Entrance exam and sign MPN
Financial Aid
Major Federal Programshttp://studentaid.ed.gov
Pell Grant Based on EFC…goes to neediest families Maximum of $5,350 a year
FSEOG Federal Supplemental Educational Opportunity Grant Additional grant aid to lower EFC’s $100 minimum $4,000 maximum
Teach Grant Career in teaching or plan to complete such course work Teach in a high-need field (mathematics, special education)
Financial Aid
Major Federal Programs
Academic Competitiveness Grant (ACG) Awarded to eligible 1st and 2nd year college students who have completed a “rigorous”
secondary school program Self Certified Max Award is $750 for 1st year, $1,300 for 2nd year Students who meet minimum requirements will be sent self-certification instructions by
college financial aid office
National Science and Mathematics Access to Retain Talent Grant (SMART)
Awarded to 3rd and 4th year degree seeking full-time students Must major in qualified Sciences, Engineering, Mathematics or Technology Eligible students will be identified automatically $4,000 maximum
Financial Aid
Major Federal Programs
Federal Work-Study
Employment opportunity Usually on campus Paid periodically through payroll
Wages not considered income for FAFSA purposes
Financial Aid
Major Federal Programs
Federal Perkins loans Fixed interest (5%) loan goes to neediest families Nine-month grace period before repayment Up to 10 year repayment Deferment and cancellation provisions
Financial Aid
Major Federal Programs
Federal Stafford loan Subsidized-based on need Unsubsidized-need not considered Yearly undergraduate loan limits
$5,500 1st year - $3,500 sub & $2,000 unsub $6,500 2nd year - $4,500 sub & $2,000 unsub $7,500 Remaining years - $5,500 sub & $2,000 unsub
Financial Aid
Major Federal Programs
Federal Stafford loans (continued) **Fixed Rate 4.5% as of July 1st 2010 Six-month grace period 10 to 25 year repayment period Deferment and cancellation provisions
**Current legislation may change
Financial Aid
Major Federal Programs
PLUS loans for Parents **Fixed Rate 8.5% - July 1, 2010 Loan fees deducted from proceeds
Up to 3% depending on lender Credit based loan Repayment usually begins 60 days after full disbursement
but some lenders allow no payments until student graduates
**Current legislation may change
Financial Aid
State Programs
Grant, scholarship, loan and work programs Colorado Opportunity Fund www.collegeincolorado.org
High school counselors and college financial
aid offices are the best resources
Watch deadlines!
Financial Aid
College and Universities
Schools may offer grant, scholarship, loan and/or work programs
Be informed: Financial aid office Admissions office Publications Website
Watch deadlines!
Financial Aid
Private Sources
Scholarship search - start NOW! Talk with Financial Aid Office Counselors
Beware of scams
Watch deadlines!
Financial Aid
Common Questions
When can I file the FAFSA? January 1st, no earlier; Will need to re-file each year; same PIN
What if I am not going to file my taxes till later? You can use estimated numbers; indicate on FAFSA “will
file”
Financial Aid
Common Questions
I know we don’t qualify so why should we apply? Everyone qualifies for something!
What if our income changes? See the financial aid office at the school.
What if I have special circumstances? See the financial aid office at the school to file a professional judgment / appeal
Financial Aid
Other Financing Options
Private (alternative) loans Variable interest rates (usually higher than PLUS) Possible tax deductions
Credit cards Students BEWARE of on-campus credit card offers
Home equity loans 6 – 9% interest rate Possible tax deductions (itemize)
Financial Aid
ChecklistScholarship search
Admissions applications
Complete the FAFSA Supply additional info the school requests
Receive award letter Respond and select lender if loan is needed
Sign promissory notes if required
Funds are disbursed by school
Financial Aid
Is It Worth It?
Earnings in 2005 by Educational Attainment of the Population 25 Years and Over Full-Time Workers
Source: U.S. Census Bureau, Current Population Survey, 2006 Annual Social & Economic Supplement
Education Level 2005 Annual Income (U.S. $)
High School Diploma $38,344
Associate Degree $47,159
Bachelor’s Degree $67,156
Master’s Degree $81,281
Ph.D. $107,808
Professional Degree $140,551
Financial Aid
Need assistance?
College Financial Aid Office
High School Guidance Counselors
Don’t pay for assistance unless you absolutely want to!
