“Show Me the Money”: Financial Aid Basics Presented by Rodney Jackson

What Is Financial Aid? Money available through federal, state and private sources to help students pay for college.

Agenda College Costs & Student Financial Need Grants Scholarships Loans Work-study Avoiding Common Pitfalls Effective Management of Funds

Apply to FASFA FREE Application for Student Aid www.fafsa.ed.gov

FSA ID (Create now) The FSA ID (username and password) now replaces the PIN for students, parents and borrowers accessing FSA systems. www.fsaid.ed.gov The FSA ID Provides more secure access to user’s information Links to PIN information during registration Offers self–service capability (name change)

Apply to TASFA Who Can Apply? What’s needed? Graduated or will graduate from a Texas high school or received GED certificate in Texas Lived in Texas for high school or receiving GED Lived or will have lived three years leading up to graduation from in Texas for the 12 months prior to starting college Student who will Sign affidavit stating student has filed or will file an application to become a permanent resident at the earliest opportunity (School will provide) Paper Application Must know your SSN or Alien Registration number Taxes, Income information, benefit summaries (Tax Transcript has to be submitted with application) Untaxed income such as child support received

College Costs & Student Financial Need Cost of attendance (COA) Tuition, fees, room & board, books, transportation, personal expenses Expected family contribution (EFC) External scholarships, gifts, earnings, savings, # of family members in college, special circumstances COA – EFC = Student financial need Net price calculators (tuition and fees) minus grants, scholarships, loans and intuitional aid

Grants – FREE Money$ Federal Grants FAFSA – Free Application for Federal Student Aid FSEOG – Federal Supplemental Education Opportunity Grant State Grants Texas Grant (Returning students) Texas Educational Opportunity Grant (TEOG) Texas Public Educational Grant (TPEG TASFA – Texas Application for State Financial Aid Undocumented students eligible under (HB 1403 / SB 1528) http://www.thecb.state.tx.us/reports/PDF/1528.PDF Institutional Grants

Scholarships – FREE Money$ Institutional scholarships Athletic, music, leadership, etc. Merit/academic Private scholarships Civic organizations Foundations

Loans – $ Must be Paid Back Subsidized vs. unsubsidized loans: (Loan rates & fees are set by Congress) https://studentaid.ed.gov/sa/types/loans/interest-rates Perkins—Interest is fixed at 5% PLUS – Parent Loan for Undergraduate Students—Interest fixed at 7% Private loans—Credit based, variable interest rate

Work-study Based on demonstrated financial need Work on-campus or with participating non-profit organization 15-20 hours per week Pay above minimum wage

https://bigfuture.collegeboard.org/scholarship-search/a Finding Additional Money www.fastweb.com AIE.org studentaid.ed.gov www.collegeforalltexans.com https://bigfuture.collegeboard.org/scholarship-search/a Scholarship websites

Avoiding Common Pitfalls Apply early! Don’t assume you are not eligible for grants or scholarships due to income or grades Focus on net price not sticker price Net price calculators Do not borrow any more money than is absolutely necessary Avoid scams Spend financial aid refund wisely

Know The Rules…. Prior-Prior Year (PPY)—Allowed to report tax information for two prior years Pell Lifetime Eligibility Usage—6 years, 100% full-Pell, total of 600% Subsidized Usage Loan Aggregate—Can not exceed 150% of published length of study program Unusual Enrollment History—Attending multiple schools within a 4-year time period without completing a degree or certificate program of study Loan origination fees, first-time borrowers, 30-day loan disbursement delay, multiple loan disbursements Consequences of dropping / adding classes Know your school’s “SAP” policy

School’s Academic & “SAP” Policy Satisfactory Academic Progress (SAP)—To keep receiving financial aid a student must maintain good academics throughout their education Maintain a 2.0 cumulative GPA Complete at least 75% of the classes attempted Must not exceed 150% of the credit hours needed to complete his or her degree program **Students should familiarize themselves with the school’s Academic and “SAP” policy

Effective Management of Funds Develop a monthly budget & stick to it!! Determine timeframe – academic or calendar year Choose a method to help you manage your budget Pay-Yourself-First (PYF) Save for emergencies Review budget every month Free resources – colleges, banks, etc.

How about some Questions?

Thank You! Rodney Jackson info@CapstoneHigherEd.com 713-955-2122 www.CapstoneHigherEd.com