MY STUDENT IS ACCEPTED, WHAT’S NEXT?

Financial Aid

Agenda

The FAFSAFinancial Aid AwardsCharges versus Cost of AttendanceQuestions to ConsiderOther Sources of AidFederal Work StudyLoansPayment PlansTN HOPE ScholarshipRemindersQuestions

FAFSA (Free Application for Federal Student Aid)

Collects family’s personal & financial information used to calculate student’s EFC.

File FAFSA electronically via FAFSA on the Web: (www.fafsa.gov) – requires a PIN number

(www.pin.ed.gov) -- need separate parent and student pin numbers to sign the FAFSA.

Can get pin numbers now.

2015-2016 FAFSA available January 1, 2015

Start a file and keep copies of everything!

YOU MUST FILE A FAFSA EVERY YEAR!

CAUTION!

Processes for completing and processing the FAFSA are FREE!

Be sure to go directly to www.fafsa.govWatch out for scam websites

Do NOT go to www.fafsa.com!

Questions to consider after filing FAFSA

Did you use the IRS Data Retrieval? If not, is it required? Are you selected for Verification?

Are there any issues listed on the SAR Report? Selective Service Matching social/date of birth issues

What school did you list first on the FAFSA? The TN HOPE scholarship looks at the first school listed on the FAFSA. If

your student enrolls in a different school, you must update the information with the state of TN. http://www.tn.gov/collegepays/ Forms available in Financial Aid Office

Check with the Financial Aid Office or Admissions Office at the desired school to make sure the FAFSA has been received. A good turnaround from FAFSA receipt to award is about 2 weeks.

EFC for Dependent Student

Parental contribution from income & assets

+ Student contribution from available income & assets

__________________________________________

= EFC

The Expected Family Contribution is the financial result of filing the FAFSA that “qualifies” the student for aid.

Definition of NEED

Cost of attendance (COA)

– EFC

______________________________________

= Financial need

Financial need determines “need based” aid.

(SAME EFC sent to all schools listed on the FAFSA.)

Principles of Need Analysis

How the Federal Government, as determined by Congress, views your ability to pay for college. 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 Family’s estimated ability to pay for educational costs must

be evaluated in equitable & consistent manner, recognizing that special circumstances may affect family’s ability to pay

Financial Aid Awards

Awards will vary from school to school Currently no standard format required Online or physical letter Some awards include Parent PLUS loans up to Cost of

Attendance Some schools (Vanderbilt, Sewanee) require a

separate Financial Aid application before awarding aid

Actual Charges versus Cost of Attendance

Actual Charges—what you are actually charged Tuition Fees Room Board/Meal Plan

Cost of Attendance—inflated number to include other educational expenses, not charged to student directly Allowance for books and supplies Allowance for transportation Allowance for personal expenses

Questions to ask?

Deadlines? For Enrollment Deposit (refundable/not refundable) For Housing Deposit Completed Financial Aid paperwork (verification,

scholarship applications, etc.)Awards guaranteed year to year?GPA requirements to retain scholarships?Payment due date?Financial Aid Award changes?Do you have to live on campus?

Other sources of Aid—It’s not too late!

Ask Financial Aid Office at school for other scholarship opportunities?

Departmental Awards—Music, Biology, ArtOutside scholarships

Some deadlines are early Contact school if your student receives an outside scholarship. This

can help with up front payment requirement and any adjustment to award

Community Foundation of Middle TN (deadline mid-March) Local and/or community scholarships

Residual ACT offered at many schools that can be used to boost academic scholarships. May be taken in summer, check with Admissions Office for times, dates

and fees. Not reported beyond University, does not apply to TN HOPE scholarship

Federal Work Study

Offer varies from school to school If on Financial Aid Award, make sure to read “fine print”. How it works at Lipscomb is pretty common at other schools as well.

Student gets a job on campus Jobs usually posted online through Career Center If the student has a particular place he/she wants to work check with that area

directly Paid every two weeks for amount of time worked, just like a regular job Although Federal Work Study is listed on Financial Aid Award it does not directly

apply to tuition bill Most often used to offset future semester expenses or spending money for

necessities and extracurricular events. The amount indicated is usually just an estimate. Student can receive “up to”

that amount depending on hours worked. If student is not awarded Federal Work Study, may still be able to

work on campus and should still seek to apply in various departments or through Career Center.

Federal Stafford Loans

Every student qualifies for Federal Stafford loans by filing a FAFSA Almost always listed on Financial Aid Award Freshmen eligible for $5,500

Maximum $3,500 Subsidized, must demonstrate need $2,000 unsubsidized, no need required 1.073% Origination Fee

Repayment begins 6 months after graduating or dropping below ½ time

Interest on unsubsidized loan begins immediately at 4.66% fixed interest rate

No pre-payment penalty 10 year repayment with minimum $50.00 per month payment In student’s name, parent not responsible for repayment

Requires Master Promissory Note and Entrance Counseling completed online at www.studentloans.gov

Federal Parent PLUS Loan

Parent PLUS loan is a loan in the Parent’s name, student is not responsible for repayment.

Can borrow up to Cost of Attendance Credit Approval required

Credit Approval good for 90 days, approval for 180 days coming soon 7.21% fixed interest rate with interest accrual immediate Repayment begins upon disbursement or can be deferred until student

graduates or leaves school No pre-payment penalty 4.292% Origination Fee

If Credit Denied Student eligible for additional $4,000 unsubsidized Stafford loan for school

year. Student should request additional funds with Financial Aid Office Appeals and Endorsers also available

Apply at www.studentloans.gov using Parent information and PIN

Payment Plans

Check with Business Office or Bursar’s Office for payment plan options

Most schools use a Third Party to process and collect payment plans

Enrollment fee typically requiredCan be combined with loans, if applicableUsually divided in 3 to 5 month increments

for a semesterTypically only paying one semester at a time

TN HOPE Scholarship

Reminders:Requires a 21 ACT or 3.0 final High School GPA to qualify

$1750 per semester full time at 4-year school for first two years ($3500 a year)

$2250 per semester full time at 4-year school for third and fourth year ($4500 a year)

Available in Summer at any school in TN (conditions apply)TN HOPE Aspire $1,500

Adjusted Gross Income less than $36,000 Could change each year depending on FAFSA results

TN HOPE General Assembly Merit (GAMS) Requires 29 ACT (national test) and 3.75 cumulative High School

GPA Most schools will wait until final GPAs reported to state before

adding to award

Keeping TN HOPE Scholarship

GPAs checked at benchmarks of 24, 48, 72, 96, 120 attempted hours.

Minimum 2.75 cumulative GPA (all schools) up to 48 hour benchmark

At 72 hour benchmark and beyond must have cumulative 3.0 GPA

Dropping below 12 hours in a semester or withdrawing for undocumented medical reasons will cause loss of scholarship forever

Based on cumulative ATTEMPTED hours, be mindful of dropped courses

All rules available at www.collegepaystn.com

Reminders

You must file the FAFSA each yearKeep FAFSA PIN number for student and

parentKnow requirements for TN HOPE ScholarshipKnow requirements for retaining other

scholarshipsDon’t hesitate to contact the Financial Aid

Office—we are your friends!!

QUESTIONS?

Lipscomb Employee Tuition DiscountHow does it work?

Lipscomb Employee Tuition discount combined with other institutional (Lipscomb aid) cannot exceed tuition, general fees and percentage of room/board for on campus students based on years of service.

Example: You have been employed at Lipscomb 11 years and

your student scored a 30 on ACT Your student will be living on campus and receives

both traditional HOPE ($3500) and HOPE GAMS ($1000)

Based on your student starting Fall 2014 (this year)

Employee Example Continued…

Tuition: $25,290

General Student Fee $2,100

Total: $27,390

% of room/board  

1-9 years 15% $1,515

10-19 years 25% $2,525

20+ years 35% $3,535

11 years of service: Total eligible charges would be $27,390 + $2,525 = $29,915. Lipscomb scholarships cannot

exceed this amount. Total Scholarships = $30,467.50

This is more than the eligible charges therefore this amount would be reduced to the maximum total of $29,915

HOPE scholarships can stack for on campus therefore total aid would be $29,915 + $4,500 = $34,415 (on campus is right at $37,500)

Approximate balance for the year would be $3,085 or $1,542.50 per semester

This does not include books, supplies or additional fees.

Scholarships:  

75% Employee disc. $18,967.50

LA Nights $500

Presidential $11,000

Total: $30,467.50

Employee Example Continued

Must complete Employee Tuition Discount form each year and separately in the summer and wintermester

Off campus the maximum coverage is tuition and general student fee. Outside scholarships are applied first therefore Lipscomb

scholarships would be reduced to create a “0” balance. Not eligible for book voucher Not eligible to apply Lipscomb aid toward meal plan if off campus

Lipscomb Employee Tuition discount is not applicable to additional nursing fees or beyond traditional undergraduate program

Please read employee handbook for “do’s and don’ts”Employee Tuition Discount cannot be used toward

Lipscomb travel courses (short term)

QUESTIONS?