©2016 Discover Bank. Member FDIC College Financial Aid 101 Presenter: Rodney Landrum ©2016 Discover Bank. Member FDIC

©2016 Discover Bank. Member FDIC Financial Aid Fact Eligible college students receive over $150 billion in federal student aid every year. Source: U.S. Department of Education ©2016 Discover Bank. Member FDIC

Common Financial Aid Myths Students with the highest GPAs receive the most aid. Aid from one school will automatically transfer to another. I don’t need to fill out the FAFSA because I make too much. The first Award Letter from the school is the final offer. My child should attend the school that provides the most aid. ©2016 Discover Bank. Member FDIC

What We Will Cover Today What Is Financial Aid? The Financial Aid Process The Financial Aid Formula The Financial Aid Award Letter ©2016 Discover Bank. Member FDIC

©2016 Discover Bank. Member FDIC What is Financial Aid? The money the government and other organizations provide to students and families to help pay for college. 5 ©2016 Discover Bank. Member FDIC

Federal & Private Loans What is Financial Aid? Grants Scholarships Federal Work-Study Federal & Private Loans ©2016 Discover Bank. Member FDIC

©2016 Discover Bank. Member FDIC Grant Programs Pell Grant Supplemental Educational Opportunity Grant Teacher Education Assistance for College and Higher Education (TEACH) State Grants ©2016 Discover Bank. Member FDIC

©2016 Discover Bank. Member FDIC Types of Scholarships Local Ethnic Community Service Institutional Employer & Military Corporate & Private ©2016 Discover Bank. Member FDIC

Students work either on-campus or off-campus. Federal Work Study Students work either on-campus or off-campus. Students are paid by the hour and earn at least the federal minimum wage. ©2016 Discover Bank. Member FDIC

Types of Loans Available There are a variety of loan types for families to consider: Federal Direct Subsidized Loans Federal Direct Unsubsidized Loans Federal Direct PLUS Loans Private Student Loans Institutional Loans ©2016 Discover Bank. Member FDIC

Compare Your Loan Options If you need to borrow, compare federal and private student loans and choose the loans that best fit your needs. When evaluating student loan options, consider: Fees Interest Rates Monthly Payment Total Loan Cost Student loan options should be evaluated based on your financial situation. ©2016 Discover Bank. Member FDIC

The Financial Aid Process Understanding how and when to apply for aid. 12 ©2016 Discover Bank. Member FDIC

Financial Aid Process PRE REQUISITES Student selects colleges and applies for admission. OCTOBER FAFSA is submitted. FEBRUARY Student receives SAR and completes all applications for Financial Aid. APRIL / MAY Student accepts the award and commits to school. MARCH Colleges notify students of acceptance. APRIL / MAY Family compares and /or appeals awards. APRIL / MAY Colleges may offer a financial aid award based on eligibility. ©2016 Discover Bank. Member FDIC

Financial Aid Begins with the FAFSA FAFSA® (Free Application for Federal Student Aid) Submit your application on or after October 1st of your child’s senior year in high school. Use the previous year’s estimated income if your taxes are not completed when you file. Apply online at: FAFSA.ed.gov *FAFSA is a registered service mark of the U.S. Department of Education ©2016 Discover Bank. Member FDIC

The Importance of Early Planning Planning ahead can help minimize surprises later on. FAFSA4caster.ed.gov: Get an early estimate of your Expected Family Contribution (EFC). Net Price Calculator: View the school’s website to determine how much you can expect to pay. Federal Student Aid ID (FSA ID): Required to confirm your identity, access financial aid information, and electronically sign federal student aid documents. ©2016 Discover Bank. Member FDIC

Partners in the Process College Financial Aid Administrators College Admissions Officers College Department Heads High School Counselors ©2016 Discover Bank. Member FDIC

The Financial Aid Formula Understanding how schools decide what to offer you. 17 ©2016 Discover Bank. Member FDIC

©2016 Discover Bank. Member FDIC The Formula Need-Based Financial Aid Eligibility COA EFC: Cost of Attendance Expected Family Contribution The school subtracts the EFC from their COA to determine your financial need. The COA is determined by the school and listed on the school’s website. ©2016 Discover Bank. Member FDIC

Estimated Cost of Attendance Estimated Expense Public College In-state Private College Tuition & Fees $9,410* $32,405* Room & Board $10,138* $11,516* Books & Supplies $1,298* $1,249* Personal & Transportation $3,215* $2,661* Helpful Savings Tips: Live at home or with relative Take advantage of in-state tuition Accelerate course work *Average - Source: College Board, Trends in Higher Education 2015 ©2016 Discover Bank. Member FDIC

Expected Family Contribution The number used by schools to calculate how much financial aid a student or family is eligible to receive. ©2016 Discover Bank. Member FDIC

FAFSA Need-Based Eligibility Income is an important factor in determining eligibility for need-based aid. Other Factors Include: Accumulated Savings Number of Students Enrolled in College Student’s Personal Finances Additional Home or Properties Paid Taxes Student Earnings Family Size ©2016 Discover Bank. Member FDIC

FAFSA Need-Based Eligibility Factors Excluded: Co-op Earnings Personal Debt Primary Home Retirement Savings Federal Work Study Earnings ©2016 Discover Bank. Member FDIC

The Financial Aid Award Letter The Award Letter outlines how much financial aid you will receive. 23 ©2016 Discover Bank. Member FDIC

Award Letters Typically Sent in Early April to Mid-May. The Award Letter may include: Expected Family Contribution Grants and Scholarships Cost of Attendance Unmet Need Work-Study Federal Loans Award Letter templates can vary, so carefully review each letter as you compare financial aid packages. ©2016 Discover Bank. Member FDIC

College Funding Appeals Circumstances That May Increase Financial Aid Eligibility Include: Medical / Dental Expenses Not Covered by Insurance Unusually High Child Care Costs Recent Unemployment Changes in Income Affected by a Natural Disaster How to Appeal: Appeal in Person, If Possible, or Submit a Well-written Letter Explain Your Situation Provide Specifics and Documentation ©2016 Discover Bank. Member FDIC

In Review: Financial Aid Basics 1. 2. 3. 4. 5. Use planning tools to estimate the costs. Submit your FAFSA early at: fafsa.ed.gov Apply for grants and scholarships. Review your Award Letters. If you need to borrow, compare loan options and choose the loans that best fit your needs. ©2016 Discover Bank. Member FDIC

Use Our Free FAFSA® Assistant Want More Information? Visit CollegeCovered.com/Assist to learn more about planning and paying for college. Use Our Free FAFSA® Assistant Scholarship Search College Prep Tips Scholarship Award Eligible high school seniors and undergraduate college students 16 years and older can enter to win one of forty $2,500 scholarships through February 28, 2017. No purchase or loan necessary. Visit CollegeCovered.com/do/rules for official rules. ©2016 Discover Bank. Member FDIC

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Thank you for joining us today! Rodney Landrum rodneylandrum@discover.com 214-272-7272 Thank you for joining us today! CollegeCovered.com/Assist ©2016 Discover Bank. Member FDIC