PAYING FOR HIGHER EDUCATION

PRESENTER:ARTHUR APIYO

ASSISTANT DIRECTOR of FINANCIAL AIDBOWIE STATE UNIVERSITY

COST OF ATTENDING COLLEGE

> Tuition and Fees

> Room and Board

> Books and Supplies

> Transportation

> Personal Expenses

GENERAL EXPECTATIONS

Parent will Pay for portion of college expenses To the extent they are able, parents have the primary responsibility to pay for their children’s educational expenses

> Student will help pay for collegeTHE FACTOR OF ESTIMATED FAMILY CONTRIBUTION (EFC)

HOW STUDENTS AND PARENTS PAY FOR COLLEGE

> PARENTS

• College Savings

• Borrow Loans

• Pay Out of Pocket

• Gifts

> STUDENTS

• Get Good Grades

• Honors Students

• Federal Work Study Program

• Work Part-Time

FINANCIAL AID

SOURCES OF FINANCIAL AID

• FEDERAL GOVERNMENT >>>>• STATE GOVERNMENTS >>>>

• PRIVATE INSTITUTION >>>>• COLLEGES AND UNIVERSITIES

EXAMPLE OF ENTITIES

• U.S. DEPARTMENT EDUCATION• MHEC (Maryland Higher

Education Commission)• Churches and Credit Unions• University Scholarships, Grants

HOW TO APPLY FOR FINANCIAL AID

• COMPLETE F-A-F-S-A• F F FREE !!!!!!.• A : APPLICATION for• F : FEDERAL• S : STUDENT• A : AID

WHAT GOES INTO FAFSA

• Social Security Numbers (Parents & Students)• Most Recent Tax Information Number• Other Records of Money Earned• Bank Statement and Records of Investments (if applicable)• Records of Untaxed Income

WHO USES FAFSA & HOW IS IT ACCESSED

• Federal Government (Department of Education)• January 1st to Early September • State (Maryland Higher Education Commission)• March 1st Deadline for State Eligibility • Colleges & Universities• *Student Select which Colleges to grant access to FAFSA. • *Enter School Code (002062)

WHO IS ELIGIBLE FOR FINANCIAL AID

• U.S. CITIZENS and U.S. PERMANENT RESIDENTS• HIGH SCHOOL GRADUATES/GED HOLDERS• MALES WHO ARE REGISTERED FOR SELECTIVE SERVICE• DEPENDENT OR INDEPENDENT STUDENTS WHO ARE PURSUING

ELIGIBLE DEGREE PROGRAM IN COMMUNITY COLLEGES, PUBLIC OR PRIVATE UNIVERSITIES ETC

• RECIPIENT HAS TO BE ENROLLED IN ACCREDITED INSTITUTION AND PROGRAM

THE FINANCIAL AID PICTURE • ESTIMATED FAMILY CONTRIBUTIONS (EFC)

• COST OF ATTENDANCE (COA)

• FINANCIAL AID NEED

• FINANCIAL AID EQUATION:COST OF ATTENDANCE

(-) ESTIMATED FAMILY CONTRIBUTION

FINANCIAL AID NEED

FINANCIAL AID PACKAGE

• Federal Pell Grants

• Federal Stafford Loans:

- Subsidized Stafford Loans

- Unsubsidized Stafford Loans

• Federal Parent Plus Loans

• Graduate and Professional Student Plus Loans

• Campus Based Programs :

- Federal Supplemental Educational Opportunity Grants

- Federal Work-Study Programs

- Federal Perkins Loans

FINANCIAL AID PACKAGE

• Institutional Aid From Colleges :Scholarships/Grants/Merit/Honors• Senatorial Grants • Delegate Grants • Merit-Based Aid-Require Certain Level of academic performance-Application Process determined by organization that provides the aid-Criteria for selecting winner s determined by organization providing aid

FINANCIAL AID ANNUAL LOAN LIMITS

Grade Level DependentUndergraduate Student

IndependentUndergraduate Student

Freshman $5,500(max $3,500 subsidized)

$9,500(max $3,500 subsidized)

Sophomore $6,500(max $4,500 subsidized)

$10,500(max $4,500 subsidized)

Juniors, Seniors and Beyond $7,500(max $5,500 subsidized)

$12,500(max $5,500 subsidized)

Cumulative Limit $31,000(max $23,000 subsidized)

$57,500(max $23,000 subsidized)

FINACIAL AID PELL-GRANT PACKAGE

* Students Must file the FAFSA each year

* Pell Grants do not have to be paid back

* The maximum award may change each year and depends on program funding

* Students must demonstrate financial need and have an EFC within a certain range

* Do not have to be full time student to receive Pell Grant

• Must be an undergraduate without a bachelor’s or professional degree

• 2014-2015 $5,730 – 2015-2016 $5,775

FINANCIAL AID SEOG PACKAGE

* FSEOG does not have to be paid back

* For undergraduates with exceptional financial need

* Financial Aid Office at the college determines amount of the award

* Full time and part-time students may be eligible, however, the grant may be reduced if student is part-time

FINANCIAL AID TEACH GRANT

* Complete the FAFSA form

* U.S. citizen or eligible non-citizen

* For undergraduates, post baccalaureate or graduate student

* Enrolled in coursework that is necessary to begin a career in teaching or plan to complete such coursework

* Be in 75th percentile on one part of a college admission test or maintaining a cumulative GPA of 3.25

* Sign a TEACH grant agreement to serve