Howard Community College Financial Aid Services December 2016 Finding the Money Understanding Financial Aid For High School Guidance Counselors Updated 12/18/15 Howard Community College Financial Aid Services December 2016

A college education matters! Average annual earnings in 2015 for fulltime employees 25 to 34 years old by level of educational attainment: Bachelor’s degree $59,124 Associate’s degree $41,496 High school diploma $35,256 *Those who earn an Associates degree earned 25% more than those with a high school diploma. *Those who earned a Bachelor degree earned 68% more than those with a high school diploma. Source: http://www.bls.gov/emp/ep_chart_001.htm

Is cost a factor in choosing a college? The College Board reports that the average annual tuition and fees by type of college is: Private Colleges $ 32,410 Public 4 Year, In state $ 9,410 Public 4 Year, Out of State $ 23,890 Community College $ 3,440 *Other non-tuition expenses average another $10k to $15 per year. That’s about $100,000 at a public, in-state 4-year college live on campus and to earn a and earn a bachelor degree! ($125,000 for 5 years) https://bigfuture.collegeboard.org/pay-for-college/college-costs/college-costs-faqs

What is Financial Aid? Gift Aid Self-help Aid Grants Work-Study Scholarships Self-help Aid Work-Study Federal Loans

Sources of Financial Aid Federal Institutional State Private

Summary of Aid By Sources and Types Federal State College Private Type of Aid Federal State College Private Grants Pell Grant; SEOG Grant; TEACH Grant MD EA & GA Grants; MD Part-Time Grant College Grants n/a Scholarships Senatorial/Delegate; Several occupation-based scholarships Donor Scholarships Loans Direct Loan Programs Bank Loans Work-study Federal Work-study Institutional Work-study N/A* - usually private sources are scholarship. One exception is employee benefits for tuition.

Federal Grants and Work Study Pell Grant Need-based (high need students only) Up to $5,815/year for 2016/2017 Supplemental Educational Opportunity Grant (SEOG) Up to $4,000/year – by school Other Federal Grants TEACH Grant Iran and Iraq Service Grant Federal Work-Study Allows the student to work part-time and earn some spending money Need-based College identifies the jobs Most but not all work-study jobs are on campus Some jobs are tutoring and other community service positions Students can earn up to $3000/year to help with miscellaneous costs Option 1

Federal Loan Programs Direct Student Loans Subsidized Loans (Need Based) Government pays the interest while in school Annual loan limits For dependent students - $3500 freshman; $4500 sophomores; $5,500 juniors/seniors Unsubsidized Loans Interest accrues while in school For dependent students – an additional $2000 per year Parent PLUS Loan Credit Based Up to Cost of Attendance (COA) less other aid received

Maryland State Scholarship Programs Grants and Scholarships Maryland Higher Education Commission (MHEC) administers over 20 programs for the State of MD (www.mhec.state.md.us) Parent and student must be Maryland State Residents. For More Info on MD State Scholarships…….

College Aid Grants Scholarships, including donor scholarships Grants from the institution based on need Scholarships, including donor scholarships Awarded by the institution based on various criteria, such as: financial need academic merit special skills or talents volunteer experience Work-Study Institutional Work-Study

Private Sources of Aid Scholarship Funding From Private Organizations Civic Organizations Professional Associations Private Businesses Use reliable free scholarship search services http://www.fastweb.com http://www.collegeboard.com/student/pay http://www.finaid.org Private Sector Student Loans Credit-based Usually requires co-signers Check with your local bank

What Application Forms? For Federal Aid and MD State Scholarships FAFSA (Free Application for Federal Student Aid) Some state scholarships may require an additional application For College Aid Most colleges have a Scholarship Application Some Schools require the College Board’s “PROFILE” for institutional aid For Private Aid Apply to the source Your church, local community organizations, free scholarship search engines *So the bottom line is TWO FORMS are most important – the FAFSA and each college’s Scholarship Application.

When Should The Student Apply for Fall 2017/ Spring 2018 Aid? 2017-2018 FAFSA (for federal aid, MD state aid, and colleges’ need-based grant) For Federal Aid - October 2016 through May/June 2018 For MD State Scholarships - by March 1, 2017 – FINAL DEADLINE! Some MD State Scholarships have a separate application & deadline For College Need-based Aid – check the website for each college for their deadline! College-Specific Aid Applications (for scholarships and need-based grant) Check the website for each college to find out their deadlines!!! College’s Scholarship application deadline – for donor scholarships PROFILE deadline (If required – private colleges) – for college need-based aid The important deadlines are each college’s deadline for the TWO FORMS that are most important – The FAFSA and each college’s Scholarship Application. Caveat – you can’t complete the FAFSA in June 2017 and be eligible for aid if the Spring term is over already.

A Little Financial Aid “To-Do” Chart College 1 College 2 College 3 College 4 College 5 FAFSA used for college grant aid? FAFSA deadline? Is there a Scholarship Application? URL for Scholarship Application? Deadline for Scholarship Application? PROFILE required? Deadline for PROFILE?

Early FAFSA June 2016 January 1, 2016 2015 June 2017 October 1, 2016 Graduating senior from high school in: The FAFSA will be available starting: The FAFSA will use the following tax year information June 2016 January 1, 2016 2015 June 2017 October 1, 2016 June 2018 October 1, 2017 2016 June 2019 October 1, 2018 2017

Federal Financial Aid Basic Eligibility Requirements The student must: Be a U.S. Citizen or Eligible Non-Citizen Have a valid Social Security Number Have a high school diploma or GED Be enrolled in an eligible degree program Other eligibility criteria, such as: Not be in default on any Federal Student Loan Be registered with Selective Service if you are required to be registered Certify that you will use federal student aid for educational purposes Maintain Satisfactory Academic Progress

FAFSA Application Completion Times Academic Year Completion Time AY2010-11 32 minutes AY2011-12 22 minutes AY2012-13 AY2013-14 20 minutes AY2014-15 19 minutes AY2015-16 24 minutes Per FSA Conference, 2015 – Federal Update

The FSA ID is forever— don’t forget it! Applying for Federal Aid - Creating an FSA ID Students need an FSA ID - a username and password combination that allows you to sign your FAFSA electronically. Request an FSA ID at: fsaid.ed.gov Once the initial process to request an FSA ID is complete, the student may begin work on the FAFSA at fafsa.ed.gov. The FSA ID is will be serve as the student’s login ID for any federal financial aid purposes “forever ”. The student and one parent/guardian must EACH obtain an FSA ID. Each FSA ID must be associated with a unique email address. Parents and students cannot link two FSA ID’s to the same e-mail address. UPDATE for next year: Adding SMS/Text for Password & Username retrieval Simplifying Account Management The FSA ID is forever— don’t forget it!

FAFSA Filing Tips… Use the FAFSA On The Web at fafsa.gov Click on “Start A New FAFSA” for AY2017-2018 Students and Parents must BOTH apply for a FSA ID The FSA ID serves as a valid electronic signature Be sure to sign the FAFSA with both FSA IDs and hit the submit button Have BOTH parent and student’s Social Security Number ready. Social Security Number errors on the FAFSA can cost a lot of time to fix FA applicants should put their SSN on their college admissions applications too! Use the DRT option when completing your FAFSA if possible. It allows tax information to be pulled directly from the IRS (IRS Data Retrieval Tool) Complete all questions as accurately as possible Don’t leave any questions blank List at least 1 Maryland college on your FAFSA UPDATE – Mobile responsive FAFSA for AY18-19!

AY16-17 Tax Transcript Requests Many students are selected for “verification” by the Department of Education, and the school must require additional documentation such as tax information. Tax documentation must be in the form of the IRS’ “Tax Transcript”. Students can obtain a Tax Transcript in these ways: Online at the IRS website - Get Transcript by Mail Automated phone tool (1-800-908-9946) Paper Form 4506T or 4506T-EZ will generate a paper transcript Per FSA Conference, 2015 – Federal Update

COA EFC Will I Be Eligible for Aid? Financial Need Cost of Attendance (COA) Room & Board Books & Supplies Tuition & Fees Transportation Miscellaneous

X Expected Family Contribution (EFC) What is the EFC? Output from the FAFSA It’s a “number” or “Index” representing the dollar value that the family could be “expected” to contribute to the student’s COA, for the purposes of determining aid eligibility. It’s NOT necessarily money that needs to be paid to someone by the parent or student, but it represents a dollar figure in the Need formula. How is the EFC calculated? It is calculated according to a formula established by federal law and does not change based on the institution you are attending The EFC is based on the information you report on the student’s Free Application for Federal Student Aid (FAFSA) Looks at family's taxed and untaxed income, assets, benefits, family size and number in college X

After filing the FAFSA… 1. The student will receive a Student Aid Report (SAR), which shows: The information submitted in the FAFSA The Expected Family Contribution (EFC) If the student is federally selected for verification OR have “failed” any federal database matches, either of which will require the student to submit additional information to the college, so the college can verify or correct the FAFSA data. 2. The schools that listed on the FAFSA will receive the information electronically. 3. Financial Aid Offices will process the student’s FAFSA application If the student needs to submit additional documents to verify the data submitted on the FAFSA, the college will notify the student. The student MUST check his/her college email account!!!! Respond in a timely manner to all information requests, or it will delay the process The student will receive notification of your financial aid eligibility after your file has been reviewed and verified. 4. This application process can take up to 3 months at some colleges. So apply early!

Compare The Financial Aid Award Package Between Schools Students should determine the cost to them for each college the student is interested in! Since both the student’s total costs and the financial aid awards will differ from college to college, each student must compare to determine the “net cost” for the education at each school. Tools for “Comparison Shopping” Most schools use the Financial Aid Shopping Sheet to notify students of their costs and awards. The College Score Card at collegescorecard.ed.gov The Net Price Calculator will also help to compare the cost between schools. Students will find a link to this at each college’s website.

Example #1 – Cost Comparison College A College B Cost $20,000 $40,000 Grant Aid $10,000 $20,000 Net Cost! $10,000 $20,000

Example #2 – Cost Comparison College A College B Tuition & Fees $ 20,000 $ 40,000 Dorms $ 10,000 $ 10,000 Dining $ 5,000 $ 5,000 Total Direct Costs $ 35,000 $ 55,000 College Grants $ 20,000 $ 30,000 Student Loans* $ 10,000 $ 25,000 Total Aid $ 30,000 $ 55,000 Net Balance Due $ 5,000 0 To The College Net Cost! $15,000 $25,000 *Student Loans are a cost to the student so we don’t subtract them from costs when determining the “Net Cost” to the student!

529 Other Ways to Pay for College Tuition Payment Plans 529 Savings & Prepaid Tuition Programs Parents with 529 plan must include the plan on the FAFSA as an asset of the parent. Employer Tuition Reimbursement Plan Military Tuition Assistance Veterans Benefits Tuition Waivers 529

Where can I find more information? Each college’s financial aid office Howard Community College’s Financial Aid Services Office FAFSA Workshops at HCC or Your High School Your high school counselors will let you know about these! Websites U.S. Department of Education — www.ed.gov Maryland State Scholarship — www.mhec.state.md.us National Center for Education Statistics – https://nces.ed.gov Howard Community College’s Financial Aid Services department serves as a community resource for Howard County. We are located in the Rouse Student Services Hall, RCF-222. Find us online at www.howardcc.edu

Thank you! Questions?