WELCOME TO FINANCIAL AID 101

Types of Financial Aid

TYPES OF NEED-BASED AID Grants Federal Grants State Grants University Grants Federal Work Study On-campus positions On-campus community service jobs Off-campus community service jobs *Must say yes when asked if interested on the FAFSA* Scholarships Local Regional National Loans Federal Perkins Loans (5.0%) Federal Direct Subsidized Loans (4.66%)** Federal Direct Unsubsidized Loans (4.66%)** Direct PLUS Loan for parents (7.21%)** **interest rate is likely to increase effective 7/1/2015

Applying for Financial Aid: The Basics

FAFSA Free Application for Federal Student Aid Due March 1 fafsa.ed.gov

DON’T FALL FOR IT… fafsa.com fafsa.com fafsa.com fafsa.com

Myths About Financial Aid “My parents make too much money – I won’t qualify for aid…” “Only students with good grades get financial aid.” “I’m too old to get financial aid.” “The form is too hard to fill out.”

Truths About Financial Aid Everyone should apply, even if you do not think you qualify for financial aid – you may be surprised to get a grant or low-interest loan Students can get financial aid regardless of their high school grades or age The FAFSA is more accessible than ever – do not feel that it is too hard to complete!

FAFSA Resources/Help

studentaid.ed.gov

Can I Get Help With My FAFSA? FAFSA Day will be held for everyone at CCC&TI on February 28. Many people will be there to help you complete the application online. FAFSA Help Line: 1-800-433-3243 FAFSA website: fafsa.ed.gov Additional websites listed on “Agenda” handout

Overview of the FAFSA Process

FAFSA PINs The FAFSA requires the student and parent(s) to each make a PIN (a Personal Identification Number) Your PIN is both a password and a way to “sign” your FAFSA online You should each create a PIN by February 1, as it takes a few days to process

Expected Family Contribution The FAFSA uses your financial information to figure out how much money your family can put towards one year of college This amount is called your Expected Family Contribution (EFC) immediately after filing If you have an EFC of $1,000, this means that your family is expected to pay ~$1,000 towards your college-related expenses for the upcoming year.

Determining Financial Need You will send this information to every college to which your student has applied There, the Financial Aid Office will put together a package of aid to help you pay for one year at their school Total Costs – Your EFC = the amount they will attempt to award you

Determining Financial Need College A= $45,030 College A= $57,530 College B= $24,600 College B= $12,100 Example EFC = $12,500 EFC = $12,500 Formula Cost of Attendance __ (minus) Expected Family Contribution = (equals) Financial Need

Financial Aid Award If accepted, you will receive an award letter from each school that details your grants, scholarships, and loans This should arrive in April if you submit your FAFSA by March 1 You can compare award letters before making your final choice of school

Information Needed to Complete the FAFSA

What Information Do I Need for the FAFSA? You will have to report: Annual Income Investments Bank account information Property values and more NOTE: You should list all Universities to which you applied, including the ones you have not yet received an admissions decision from.

Data Retrieval Tool You can fill out the FAFSA with less hassle by using the IRS Data Retrieval Tool – available February 2 This tool pulls all relevant information from your current tax return and loads it into the FAFSA To use this tool, you must file your taxes by early February. It takes ~2 weeks to be able to use the tool after filing.

CSS Profile Due Date: March 1 NOTE: Not all schools require this form. Helps to determine eligibility for institutional aid Cost: $25 for the initial application. $16 for additional reports WEBSITE: profileonline.collegeboard.org

After You Submit the FAFSA: Next Steps

Student Aid Report (SAR) The SAR gives you basic information about your eligibility for federal student aid, lists your Expected Family Contribution, and lists your answers to the questions on your FAFSA You will receive this within a week if you filed the FAFSA online, provided an e-mail address, and signed with a PIN Make sure that your SAR is correct and complete -if you find a mistake, you will need to correct or update your FAFSA

Verification If your EFC is low or some data in your FAFSA confuses the college financial aid office, you may be selected for verification You will have to send the college financial aid office a current tax receipt (you must request this from the IRS); additional documentation may also be requested such as bank statements They will use this information to verify your FAFSA data You will not receive financial aid from any college that selects you for verification until you complete this process; it is IMPORTANT that you supply all requested information ASAP

Federal Loan Options Filling out the FAFSA enables you to receive federal loans with reduced interest rates. Subsidized Loans are loans that will not begin to accrue interest until after the student has graduated. Unsubsidized Loans are loans that will accrue interest after they are disbursed. Parent PLUS Loans - parents must not have negative credit history to qualify.

Financial Aid Award

Tips and Frequent Questions

Staying Eligible for Aid Make sure to find out what your school’s policy is in regards to staying eligible for financial aid Many schools require that you maintain a GPA of 2.0 or above to stay eligible You must stay a full-time student (>12 credit hours per semester) to remain eligible – give this careful consideration when registering for classes!! Financial aid may be revoked if a student is convicted of a crime, such as a DUI or drug possession Selective Service Requirement

Do I Apply Every Year? YES Your FAFSA is only good for one academic year This way, if your family makes less money while you are a freshman, you will receive more aid in your sophomore year

Timeline January: -Gather and complete tax forms -Create a PIN for the student and parent February: -Complete the FAFSA before March 1 -Submit to every school to which you have applied, even if you haven’t heard back -If selected for verification, submit requested documents ASAP April: -Receive and compare aid award letters May 1: -Make your final decision, pay your enrollment/housing deposit, and celebrate!

QUESTIONS