KnowHow2GOIllinois.org Paying for College The Financial Aid Process

These funds may be merit-based, need-based, or non need-based. There are two basic types of financial aid: Types of Financial Aid gift aid self-help aid self-help aid Grants Scholarships Work-Study Loans

Sources of Financial Aid Financial aid comes from a variety of sources. college ( institutional aid) college ( institutional aid) outside/ private sources outside/ private sources federal government federal government state government state government

Sources of Financial Aid The ‘Must-Get-To-Know’ Financial Aid Sources The agency in the State of Illinois that administers state and federal grant, scholarship, loan and prepaid tuition programs. Illinois Student Assistance Commission The federal agency that provides college funding in the form of grants, scholarships, and educational loans. U.S. Department of Education

Illinois Student Assistance Commission State of Illinois Financial Aid Programs ProgramAcronymType of AidAnnual Amount Monetary Award ProgramMAPGrant Need-based up to $4,968 Silas Purnell IL Incentive for Access IIAGrant Need-based $500 IL Veteran GrantIVGGrant Entitlement 120 units (4 yrs) IL National Guard GrantINGGrant Entitlement 120 units (4 yrs) Grants for Dependents of Police, Fire & Correctional Officers Grant 4 yrs Bonus Incentive Grant (BIG) Program BIGGrant $40 to $440

Illinois Student Assistance Commission State of Illinois Financial Aid Programs ProgramAcronymType of AidAnnual Amount IL State Scholars ProgramISSPCertificate of Achievement $0 Merit Recognition Scholarship MRSGrant Need-based $1,000 Not funded Robert C. Byrd Honors Scholarship Scholarship, Merit Federally-funded $1,500 renewable Illinois Future Teacher Corps Program IFTCScholarship $5,000 or $10,000 Minority Teachers of Illinois Scholarship Program MTIScholarship $5,000 Illinois Special Education Teacher Tuition Waiver SETTWWaiver up to 4 yrs

U. S. Department of Education Federal Financial Aid Programs ProgramAcronymType of AidAnnual Amount Federal Pell GrantGrant Need-based $400-$5,350 Federal Supplemental Education Opportunity Grant FSEOGGrant Exceptional Need Campus-based $100-$4,000 Federal Academic Competitiveness Grant ACGGrant up to $750 yr1; up to $1300 yr2 Federal Science & Mathematics Access to Retain Talent SMARTGrant up to $4,000 a yr Federal TEACH Grant Program TEACHGrant up to $4,000 a yr

Federal Work-Study A need-based employment program that provides on- and off-campus jobs to students A completed FAFSA is required The availability of funds is limited; priority deadlines may apply Compensation is at least the current federal minimum wage The student is paid by the college

Source of Loan Source of Loan Repayment ~ Grace Period Repayment ~ Grace Period Interest Rate Interest Rate Loan Programs When evaluating loan options, consider… Know your rights and responsibilities Subsidized vs. Unsubsidized Subsidized vs. Unsubsidized

Federal Loan Programs (for Undergraduate) Program * FAFSA Required** Program Application Required Type Grace Rate Perkins Subsidized5% fixed 9 months Stafford ( ) Subsidized5.6% fixed 6 months Unsubsidized6.8% fixed 6 months PLUS Credit-based8.5% fixed Within first 60 days Note: Stafford Loans (both subsidized and unsubsidized) for Graduate students have a fixed interest rate of 6.8% through 2013.

Avoid Scholarship Scams View with caution any service that requires you to pay While most scholarship services are legitimate, some may be fraudulent and might charge a lot of money for little information. Report Scams Better Business Bureau High School Counselor Financial Aid Office Friends

The Big Three Financial Aid Programs Total = $14,081 * Maximum award for Up to $4,731 Up to $5,350 Up to $4,000 State of Illinois Monetary Award Program (MAP) Federal Pell Grant Federal Supplemental Education Opportunity Grant (FSEOG)

Free Application for Federal Student Aid 3 Ways to Access Paper FAFSA on the Web PDF FAFSA FED-AIDwww.FAFSA.ed.govwww.FSA.ed.gov

Important deadlines * Note: This date is subject to change and is based on funding by the Illinois General Assembly. Deadlines are earlier if funds are depleted. January 1 (First date to submit FAFSA) FAFSA Dates vary by college (Check with each college) College No Later than August 15* (Continuing Applicants) No Later than September 30* (First Time Applicants) MAP Grant June 30 Federal Pell Grant

Other things to know about applying for financial aid: Apply early The information reported on the FAFSA is confidential and is used ONLY to determine financial aid eligibility You may be asked to submit documentation to the financial aid office for verification purposes Supplemental applications or forms may be required Keep track of application DEADLINES! Keep a copy of everything you submit You must reapply every year

Dependency Status For financial aid purposes, questions on the FAFSA will determine the status of the student. Status based on FAFSAReport income and assets Dependent Parents Student Independent Student Spouse

Determining Financial Need A need analysis formula established by Congress determines the student’s Expected Family Contribution (EFC). What?Why?Where? A comparative measure of how much a family can be expected to contribute Used to determine a student’s eligibility for most federal and state assistance Shown on the Student Aid Report (SAR) and the Institutional Student Information Record (ISIR)

Tuition & Fees Room & Board Transportation Books & Supplies Miscellaneous Living Expenses Cost of Attendance (COA) + What are the costs?

To Determine a Student’s Financial Need COA Cost of Attendance COA Cost of Attendance EFC Expected Family Contribution EFC Expected Family Contribution Financial Need Financial Need -=

To Determine Financial Need (examples) College A College B COAEFC Financial Need $3,000 $10,000 $7,000 $3,000 $20,000 $17, = = College C $3,000 $35,000 $32,000 - =

Financial Aid Awards The financial aid administrator at the college will package all available aid and send an award letter for consideration. What is the total cost of attendance? What is the Expected Family Contribution? What is your financial aid eligibility? What types of financial aid are included? Was your financial need met? What is the out-of-pocket cost?

The Financial Aid Process Step 1 Complete FAFSA Step 2 Receive and review the Student Aid Report Step 3 Complete verification process (if required) Step 4 Receive and review Award Letter Step 5 Respond to college Step 6 Complete all pending processes Step 7 Renew FAFSA every year

Plan, find, apply and pay… KnowHow2GOIllinois.org Free access to a wealth of financial aid and college planning information WhatsNextIllinois.org Making college accessible and affordable, one click at a time CollegeZone.com The official web site of the Illinois Student Assistance Commission (ISAC) CollegeIllinois.com The State of Illinois 529 prepaid college tuition plan that locks in the cost of college today IDAPP.org A resource for student loan information

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