WELCOME PARENTS Financial Aid Meeting January 30, 2012

What is financial aid? It is money to help students and families pay for college and other forms of postsecondary educational expenses.

What is Cost of Attendance (COA) Direct costs Indirect costs Direct and indirect costs combined into cost of attendance Varies widely from college to college

SAMPLE COA Undergraduate Texas Resident Nonresident Tuition and Fees (30 hours) $8,230 $17,620 Books and Supplies $1,060 $1,060 Subtotal $9,290 $18,680 Campus Room and Board $7,310 $7,310 _____________________________________________ Total $16,600 $25,990 *Sample from Texas State University; costs are based on average amount and may vary

What is the Expected Family Contribution (EFC) Amount family can reasonably be expected to contribute Stays the same regardless of college Two components –Parent contribution –Student contribution Calculated using data from a federal application form and a federal formula

What is Financial Need Cost of Attendance – Expected Family Contribution __________________________________ = Financial Need

2 Types of Financial Aid Merit-based aid: given to students in recognition of special skill, talent, and /or academic accomplishments Need-based aid: given to students who demonstrate financial eligibility

Merit-Based Aid Type –Scholarships This type of aid is based on the student’s achievements and accomplishments. It can be from academics, sports, or other talents. Sources –Institutional –Private Students must: Research Apply

How do I get Merit-Based Aid? research, research, research apply, apply, apply Where do I find scholarship applications? college or university internet PN-GHS senior newsletters

Scholarships Federal State Institutional Private

Scholarships 1.Apply, apply, apply! 2.Read the senior newsletter every month 3.Search the web (start NOW) FastWeb.com FederalStudentAid.ed.gov 4.Check PN-G High School website Newsletters, Website links, Sr. Handbook, Local Scholarship Application 5.Check the college’s website 6.Meet DEADLINES!!!

Need-Based Aid Types –Grants –Loans (some types) –Work-study This type of aid is based on the financial needs of the student and his family. It is determined by the federal government. Sources –Federal –State –Institutional

Why apply for financial aid? 1.Grants –Usually awarded on the basis of need –Are not repaid –Federal & State Programs 2.Loans –Money students/parents borrow for college expenses. –Have to be repaid You may qualify for support from the government. 3.Work Study –Student earns $ to pay tuition –Does not count as income toward FAFSA 4.Scholarships –Do not have to be repaid

How Do I Get Started? You must complete the FAFSA (Free Application for Federal Student Aid) and submit it to the federal government (for 12 th graders starting college in the fall) (for other students who want to get an idea of what their financial need might be)

How do I apply for financial aid? Step 1 Get a PIN (personal identification number) - Student PIN - Parent PIN Step 2 Complete the FAFSA online - student section - parent section - need tax return or at least W2s

FAFSA on the Web For the 2012–13 academic year, the FAFSA may be filed beginning January 1, 2012 Make sure you go to the “official” website Do not use a search engine You may end up on a site that charges a fee at the end

Free Application for Federal Student Aid (FAFSA) A standard form that collects demographic and financial information about the student and family Information used to calculate the amount of money a student and his or her family may reasonably be expected to contribute towards the cost of the student’s education for an academic year May be filed at any time during an academic year, but no earlier than the January 1 st prior to the academic year for which the student requests aid

IRS Data Retrieval While completing FOTW, applicant may submit real-time request to IRS for tax data IRS will authenticate taxpayer’s identity If match is found, IRS sends real-time results to applicant in new window Applicant chooses whether or not to transfer data to FOTW

IRS Data Retrieval Available early February 2012 for 2012–13 processing cycle Participation is voluntary Reduces documents requested by financial aid office

The Process US Department of Ed (Calculates EFC) Notify student Loan Process Award student School releases funds College Private/Public/ 2-Year School determines need Submit FAFSA SAR to student

Deadlines Deadlines are determined by each state In Texas, each college sets its own priority deadline. It is better to start early because some institutions will give out their $ on a 1 st come 1 st serve basis

Budget (COA)$7,500 Expected Family Contribution (EFC) 1,350 Need$6,150 Federal Pell Grant$2,650 State Grant$ 500 Federal Perkins Loan$1,000 Federal SEOG$ 500 Unmet Need$1,500 Unmet need could be covered by subsidized Stafford. Up to COA could be covered by unsubsidized Stafford and/or PLUS. SAMPLE PACKAGE (for average 4-year university)

Grants Federal Grants (example : Pell Grant) State Grants (example: Texas Grant) State Exemptions (examples: highest ranking graduate, foster care children, blind/deaf students, children of MIA/POWs, orphans of the U. S. Armed Forces or National Guard, children of disabled or deceased firemen, peace officers, game wardens, employees of correctional facilities, etc…) - money that generally does not have to be repaid

Loans What to watch for: Subsidized or Unsubsidized Interest rates Repayment plan Maximum amount - money that must be repaid

Loan Types Federal State College or University

Federal Stafford Loans Subsidized Unsubsidized  Need-based  Not need-based  Interest:  Low interest rate  Federal government pays interest while student is in school (known as “subsidy ”)  Interest: Low interest rate Student responsible for interest that accrues while in school

Work Study Program Provides jobs for students who need earnings from work to help defray the cost of educational expenses School awards funds to students to the extent that funds are available and according to policies Federal and State

Senior Handbook Senior Year

NEWSLETTERS & WEBPAGE Newsletters One each month Update scholarships Calendar of events Helpful websites Informative articles Senior News Updated regularly Links to many helpful and informative WebPages Scholarships files and links Documents and files for downloading Much more…

Thank you for coming …. Tracie Brooks Port Neches-Groves High School Senior Counselor ext. 111 Donna DeRon Port Neches-Groves High School Junior Counselor ext. 113