Financial Aid 101 by Daniel Yarritu, Associate Director UTRGV Financial Aid Office

What is Financial Aid? Federal, State and/or Institutional funds provided to students to help pay for higher education expenses. Funds can include grants, scholarships/sponsorships, waivers/exemptions, work-study and student loans. US Citizens and US Legal Permanent Residents: Eligible for ALL (Federal/State/Institutional) Funds

Who is eligible to apply for Federal Financial Aid using the FAFSA? Any student who is a US Citizen or a Legal Permanent Resident. Students who have an Employment Authorization Card and a SS# under the Deferred Action (DACA), are not eligible to apply for Federal Financial Aid. Students who are not US Citizens or Legal Permanent Residents (SB1528) are not eligible for Federal Financial Aid, only for State Financial Aid commonly referred as “State Aid”.

Determining eligibility Eligibl e Not Eligible

Dependency Status Your dependency status determines whose information you must report on the Free Application for Federal Student Aid (FAFSA ® ).Free Application for Federal Student Aid (FAFSA ® )  If you’re a dependent student, you will report your and your parents’ information.*  If you’re an independent student, you will report your own information (and, if you’re married, your spouse’s). *Most cases at the high schools.

Understanding how Financial Aid works: Cost of Attendanc e (COA) Expected Family Contribut ion (EFC) Financial Need

Cost of Attendance (UTRGV example) UNDERGRADUATE COS T OF ATTENDANCE FOR UTRGV AS PUBLISHED BY THE STATE OF TEXAS Undergraduate Cost of Attendance for Full Time Enrollment (based on enrollment of 15 credit hours per semester)

Expected Family Contribution (EFC) This is the number that’s used to determine your eligibility for federal student financial aid. This number results from the financial information you provide in your FAFSA ®, the application for federal student aid. Your EFC is reported to you on your Student Aid Report (SAR).

Financial Need (The gap between COA & EFC) Example: COA$17,740 EFC$1,000 Financial Need$16,740 - Pell Grant$4,700 - TX Grant$5,000* - Work-Study$3,500* Unmet Need$3,540 The Financial Aid Office is able to award funds up to the ‘Financial Need’ amount for the student, but is NOT required. Some students may not qualify for the full Pell Grant or for the TX Grant. Some students may not want to participate in the Work-Study program. Some students may not apply for scholarships or other forms of aid. Therefore the aid awarded could be less than financial need!

Types of Financial Aid Grants - Funds that do not need to be repaid, often called ‘gift aid’ or ‘free money’. Mostly based on ‘financial need’. Federal – Pell Grant and SEOG State – TEXAS Grant, TPEG Scholarships - Funds that do not need to be repaid, also ‘gift aid’ or ‘free money’. Mostly based on ‘merit’. National – National Hispanic Fund, Bill Gates State – Top 10%, Nursing, Final Stretch Institutional – Schools and/or Colleges (Scholars Program) Company Sponsorships – HEB, Coca Cola, Chik-fil-A

Types of Financial Aid Work-Study – Funds that are earned through work Federal or State Student Loans – Funds that must be repaid with interest Direct Subsidized, Direct Unsubsidized, Perkins Parent Loans – Funds that must be repaid with interest Exemptions - Funds that waive or deduct tuition Foster/Adopted Care, Blind, Deaf, Hazelwood Waivers - Funds that reduce tuition Senior Citizen, Military

Federal Pell Grant Awarded based on need to eligible undergraduate students. Maximum amount per year $5, (2015/2016) Actual award amounts based on Cost of attendance (COA) Expected Family Contribution (EFC) and Enrollment Status. Pell Grants do not have to be repaid. Eligibility for the Pell Grant is determined by the Department of Education based on results of your FAFSA. The student must be making satisfactory academic progress. Students do not have to be registered full time to receive the Pell Grant.

TEXAS (Towards EXcellence, Access and Success) Grant To receive a basic initial award through the TEXAS Grant Program, a Baccalaureate student must: * Apply by Priority Deadline March 15 th * Be registered with Selective Service, or be exempt; * Have a 9 month EFC of no more than $5,088; * Be classified by the institution as a Texas resident; * Have not been convicted of a felony or crime involving a controlled substance; * Be enrolled at least three-quarter time as: A Baccalaureate student who: graduated from an accredited public or private high school in Texas; completed the Foundation, Recommended, or Distinguished Achievement high school program (or the equivalent); andor the equivalent enrolled in an undergraduate degree or certificate program at an approved institution within 16 months from high school graduation having not accumulated more than 30 SCH’s (excluding credits for dual enrollment or by examination).

Student Loans Money that students and parents borrow that must be repaid. Repayment begins six months after the student graduates, withdraws, or stops attending school. Only borrow what is really needed. Look at loans as an educational investment.

Direct Subsidized Loans: 4.29% The Direct Subsidized Loan is a need-based loan. You must have financial need as determined by your FAFSA results to qualify for a Direct Subsidized Loan. The federal government will pay the interest on the loan while you are in school (at least half time) and during any deferment period. You begin repaying (both principle and interest) when you stop attending school on at least a half time basis. You have a six month grace period between leaving school and your first loan payment. Eligibility  Show financial need (complete your FAFSA)  Enroll at least half time  Undergraduate students: 6 credit hours  Maintain Satisfactory Academic Progress (SAP)  Do not borrow more than the annual or lifetime student loan limits

Direct Unsubsidized Loans: 4.29% You do NOT have to demonstrate financial need to qualify for a Direct Unsubsidized Loan. However, interest begins to accrue on the loan as soon as the first disbursement is made—that is, while you are in school. You can either pay the interest while attending school, or have the interest added to the balance of their loan. You begin repayment when you earn your degree or stop attending school on at least a half time basis. You have a six month grace period between leaving school and your first loan payment. Eligibility  Show financial need (complete your FAFSA)  Enroll at least half time  Undergraduate students: 6 credit hours  Maintain Satisfactory Academic Progress (SAP)  Do not borrow more than the annual or lifetime student loan limits

Direct Parent Loan (PLUS): 6.84% The Direct Parent Loan is for parents of dependent, undergraduate students. Interest accrues while you are in school. Your parent(s) will begin repaying the loan 60 days after the second disbursement, although they might choose deferment options while you are in school, enrolled at least half time. Eligibility  Complete your FAFSA  Enroll at least half time  Undergraduate students: 6 credit hours  Maintain Satisfactory Academic Progress (SAP)  Your parent must pass a credit check  If your parent is denied the PLUS Loan based on the credit check, you may apply for additional unsubsidized loan funds  Your parent cannot borrow more than the cost of attendance (less all other financial aid)

Work-Study Program One way you can help pay for your education is through a work-study job. Your work-study job is likely to be on campus or nearby. Through work- study, you gain job skills, working experience, and a paycheck that will help you pay for your education. But it’s more than an ordinary part-time job. Work-study is a form of financial aid, awarded by the federal or state government. It is a form of “self-help” aid, so you don’t have to pay it back. However, after applying and being awarded the opportunity, you will need to find a work-study job, work your assigned hours, and receive a paycheck for those hours. To get a work-study job, you must complete your FAFSA. Pay: Minimum wage / 20 hours per week maximum.

Work-Study UTRGV ($8.00/Hour) The Federal Work-Study Program allows you to work on campus with a specific department or off campus with a community service partner. You must:Federal Work-Study Program Submit the FAFSA and have financial need Be a U.S. citizen or permanent resident Be enrolled for at least half time. Meet UTRGV’s Satisfactory Academic Policy Requirements If you live in Texas, the Texas College Work-Study Program allows you to work on campus with a specific department. You must:Texas College Work-Study Program Submit the FAFSA/TASFA and have financial need Be a Texas resident Be enrolled for at least half time Meet UTRGV’s Satisfactory Academic Policy Requirements Have an Employment Authorization Card (if you are not a U.S. citizen or permanent resident)

Scholarships  Scholarships are financial assistance that do not require repayment.  There are scholarships specifically designed for entering freshmen, transfer students, graduate students, and undergraduate students.  Scholarships are awarded based on merit, need, and achievement in academics, athletics, the arts, or other scholarly areas.  Deadlines, criteria and applications are different  Competitive process

Scholarships UTRGV General Scholarships Administered by the UTRGV Financial Aid Office. Institutional Scholarships Administered by UTRGV schools, colleges, departments and campus organizations. State Scholarships Administered by the state (Top 10% Scholarship) Private Scholarships Administered by private agencies, organizations and individual donors (Gates Millennium, Coca-Cola, VAMOS, Hispanic Scholarship Fund, STARS, etc.)

More about Scholarships… Further the scholarship search by using scholarship search engines: Fresch! Free Scholarship Search Fast Web Hispanic Scholarship Fund College Net College Board

Keeping your Financial Aid Making satisfactory academic progress toward the completion of a program of study. Currently requires you to maintain a 2.0 cumulative GPA and 67% completion of the credit hours you attempt. Frequently check your s!

Questions?