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Financial Aid Process & Types of
Aid
GOAL: Demystify All Things Financial Aid
Terminology Process Types of Aid
A Funding Puzzle Savings Work Family Scholarships Merit Need Athletic Military Other Assets Financial Aid
Terminology FAFSA
www.fafsa.gov File by Feb 1st annually Don’t wait - estimate!
SAR EFC COA MPN Dependency
Dependency 24 years old Married Child/Dependent
(that you provide more than 50% of financial support for)
Working on Graduate degree Orphan/Ward of Court Military Veteran Emancipated Minor Homeless
…Who is my parent? …Special Circumstances
Eligibility
HB 1079 Scholarships REAL HOPE ACT
WASFA http://www.readysetgrad.org/wasfa
Apply by February 15th every year DACA Work/Savings
Filing criteria Types of Aid “Financial Aid” includes grants,
work-study, scholarships, AND loans
The Financial Aid Process
FAFSA(FREE
APPLICATION FOR FEDERAL STUDENT AID)
PRIVATE SCHOLARSHIP
AND GRANT APPLICATION
CSSFINANCIAL AID
REQUIRED BY SOME
COLLEGES
SAR(STUDENT AID REPORT)
EFC(EXPECTED
FAMILY
CONTRIBUTION)
FEDERAL AND STATE GRANTS & LOANS
COLLEGE SCHOLARSHIP
SERVICE
PRIVATE SCHOLARSHIPS
& GRANTS
YOUR FINANCIAL
AID PACKAGE
FAFSAPROFILEPRIVATE SOURCES
TARGET COLLEGES
Non FAFSA Filers
FEDERAL CENTRAL PROCESSOR
START HERE
33%
Types of Aid Gift Aid :
Federal Grants State Grants Institutional Grants Scholarships
Self-Help Aid:
Work-Study Loans
Stafford Loans
• Subsidized• Unsubsidized• Not credit based• 5 repayment
plans• Cancellation
Repayment Plan Options
1. Standard: fixed monthly amount for 10 years2. Extended: fixed monthly amount for 12-30 years3. Graduated: Starts off lower, gradually increases 12-30 years4. Income Contingent: Payments based on income & total
amount of debt up to 25 years5. Income Based: Similar to Income Contingent but at a lower
percentage
Annual Borrowing LimitsDependent Independent Class$5,500 $9,500 Freshman$6,500 $10,500 Sophomore$7,500 $12,500 Junior/Senior N/A $20,500 Graduate
Lifetime Borrowing Limit$31,000 Dependent$57,500 Independent$138,500 Graduate
Perkins Loans Not credit based Subsidized interest Grace period Repayment Deferment/Forbearance Cancellation
Other Loan Options Parent PLUS
Interest bearing Credit based Repayment Denial Provisions
Private Loans Interest bearing –
terms vary by lender
Cost of Attendance
Capturing and comparing the costs of college
What is Cost of Attendance (COA)? Varies by school The total estimated cost associated with attending that institution.
Includes both direct (tuition, fees, books) and indirect costs (transportation, childcare, personal expenses). Room/Board component – IF a student is living on campus – then R/B a direct cost – however, if
living off campus then an indirect cost.
Typically full-time, full academic year.
Helps students and families budget for the year.
Establishes the limits for financial aid available to the student.
WASHINGTON FINANCIAL AID ASSOCIATION
WFAA
How is COA used to determine aid?
Cost of Attendance (COA)established and varies by school
- Expected Family Contribution (EFC)determined by FAFSA and same for all schools
= Financial “Need”
WFAA
COA ExamplesTwo Year Community College
Four Year Washington University
Four Year Private University
Direct CostTuition & Fees $ 4,335 $ 11,386 $ 36,180 Wellness Plan $ - $ - $ 350
Indirect Costs $ 960 (books - no supplies)
Personal Expenses $ 1,602 $ 2,108 $ 1,820
Transportation $ 1,647 $ 1,434 $ 648 Room & Board $ 3,222 $ 10,868 $ 10,230
Total COA $ 11,836 $ 26,756 $ 50,258
Books & Supplies $ 1,030 $ 1,030
WFAA
Comparing & adjusting costs for individual needs
WFAA
How is COA used to determine financial aid award?
2 Year College
4 Year – Public
4 Year- Private
COA $ 11,836
$ 26,756
$ 50,258
- EFC $ 6,500
$ 6,500
$ 6,500
= “Need” $ 5,336 $ 20,256 $43,758
Financial Aid Award Letters
Getting to your bottom line
When Award Letters Start to Arrive . . .
Schools will produce award letters at varying points in the application process; Some require you to be admitted, others require verification to be completed.
Award letters may come to you in the mail or as an email to login to the school’s secure website.
Award letters are released between mid-to-late February through May and into the summer, depending on the school.
Some schools will send scholarship letters in the fall, based on your academic record.
Award Letter Essentials . . . How much does it cost to attend? How much & what kind of aid will You receive? What is your “Net Cost”
Total Cost of Attendance-Total Gift assistance=Net Cost
“Net Cost” should be reasonably close to the figure you get from the school’s Net Price Calculator
It would also be nice to know: What is my “bottom Line” – what do I owe the school? Where can I get additional information? e.g. Washington Opportunity Pathways What other resources are available to help with my
owing balance or other educational costs?
Sample Award Letters Two Year Community College Four Year WA University Four Year Private University
$0 EFC Dependent Student, College Bound eligible, filing on time at all institutions.
Sample Award Letters:WashingtonCommunity Colleges
Type & amount of aid
Contact Information
Additional Information
Sample Award Letter:4 Year Public Universities
Type & amount of aid
Additional & Contact Information
Cost of Attendance
Sample Award Letter:4 Year Private Universities
Cost of Attendance
Additional Resources & Contact Information
Types & Amount of Aid
Provided by schools who have agreed to comply with Executive Order 13607, intended to provide consistent information to students with V.A education benefits.
Additional Information & Contact Information
Graduation Rate
Default Rate
Median Loan Debt
Shopping Sheet
ScholarshipsHow, when and where to apply
WFAA
Topics
“I wish it grew on trees, but it takes
hard work to make money.”
- Jim Cramer
What is a scholarship? Who needs a scholarship -
EVERYONE Where to find scholarships Scholarship Tips Make your essay stand out Scholarship Scams Submitting the Application Who can use scholarship funds? When your offered scholarship Questions
WFAA
What is a scholarship?Scholarships are usually monetary awards given to students by an organization or donor to help pay for the students' education. Students must meet the organization's or donor’s criteria — such as pursuing a certain program of study, having financial need, or being an exemplary student.
WFAA
Everyone can use scholarship funds
**Sub Loan - $350018%
Unsub Loan (dep) - $200010%
Unmet Need43%
*Grants (Maximum Pell) - $5730
29%
Assume Cost of Attendance is $20,000 a year
The Unmet need can be filled with a
Parent Plus loan or a private loan;why not fill it
with SCHOLARSHIP
funds!
*This slide would assume someone is getting a full Pell grant**This is the assumption that the student is a freshman and eligible for the full sub loan.
WFAA
Where to find scholarshipsLocal High School Financial Aid Office
ONLINEwww.thewashboard.org
Community/Parent organizations
WFAA
Scholarship Tips – Get Organized Organization
Create a scholarship email – one that you can check throughout the week.
Keep the scholarships that you are working on separate from the ones not started
Track the scholarships you have already applied for
Know the time frame to apply, allow plenty of time to get any additional information
Check the deadline – Post mark or received by that date.
WFAA
Scholarship Tips – Double Check your Application Have someone double check your application when
possible. Check spelling and grammar on ALL material being
submitted. Make sure EVERYTHING is answered and accounted for Make sure that your application is presented well
Type the essay, put content in order, etc..
WFAA
How to make your Essay stand out….Don’t just answer the essay question, consider...
How have your achievements impacted you? How will obtaining a degree impact your future? How will a degree impact your community? How have others inspired you? How did they help
shape your life?
WFAA
Search Engines Building a profile
Name Academic standings – GPA, Test Scores Interests – Athletics, Religious
Organizations Volunteer work - Clubs Grade level Career Goals Special Circumstances Military Affiliations
WFAA
Scholarship Scams It likely is a scam if:
It is Guaranteed you will win money
There is a fee FREE money should NOT cost money
No valid contact information
They request personal account information Checks will be sent to the school – not
your personal account
WFAA
When you are offered a scholarship…. Make sure to inform the financial aid department Read the award letter and make sure to follow up with
any additional information requested The organization may require that you show proof of
enrollment to college
Final thoughts… Resources
College Goal Washington www.collegegoalsundaywa.org
State-wide Scholarship Search www.thewashboard.org
Paying for College Info www.readysetgrad.org
Social networking Ask for help! Never give up!!