Welcome to Financial Aid Night 2018-2019 Academic Year Amanda McLaughlin, Assistant Director of Financial Aid Matt Pfannenstiel, Dean of Admissions and Financial Aid

Topics We Will Discuss Tonight What is Financial Aid? Categories, types, and sources of financial aid Free Application for Federal Student Aid (FAFSA) How do I apply for an FSA ID? What does EFC really mean? Special Circumstances Financial Aid Resources for Families

What is Financial Aid? Types of Financial Aid Money supplied by a source other than the family to assist with the costs of a student attending college. Types of Financial Aid Grants Scholarships Loans Employment / Work Study

Grants Free money or Gift aid Does not have to be repaid Federal grants Supplemental grants Does not have to be repaid Often based on financial need

Scholarships Free money or Gift aid Does not have to be repaid Based on academic achievement, merit, athletic ability, skills, etc.

Loans Money that students and parents borrow to help pay for college Repayment usually begins after education is finished (typically 6 month grace period) Only borrow what is really needed

Employment Allows students to earn money to help pay educational costs A paycheck Non-monetary compensation such as room and board

Sources of Financial Aid Federal Government States Colleges Private Sources Civic Organizations and Churches Employers

Federal Government Largest source of aid Aid awarded primarily on the basis of need Must apply EVERY YEAR using the FAFSA

States Residency requirements Award aid on the basis of both merit and financial need Use information from the FAFSA Deadlines vary by state

Private Sources Foundations, businesses, charitable organizations Deadlines and application procedures vary widely

Civic Organizations and Churches Research what is available in the community To what organizations and churches do student and family belong? Application process usually spring of senior year Small scholarships add up!

Employers Many companies may have scholarships available to the children of employees Some employers may pay for a portion of college expense provided that the student work there for X amount of years afterwards

Scholarship Sources Web Searches Over 32 million options so refine searches www.fastweb.com www.collegeboard.org/scholarship-search www.scholarshipexperts.com www.scholarships.com https://www.salliemae.com/plan-for-college/scholarships/ www.hispanicfund.org www.uncf.org www.chegg.com For links to variety of federal scholarships www.studentaid.ed.gov

How Do I Know They’re Safe Basic Web Evaluation Tools Read everything before you submit an application Check the site for a physical addresses Use Google Maps to locate the address listed Search Better Business Bureau BBB.org Check for additional requirements Do you have to “Like” them on Facebook? Do you have to link their site on a blog? Is it based, even partially, on how many others like your entry? Are they just looking for students to build them free advertising?

Scholarship Scams Avoidance Tips Be cautious with anything that requires a fee Avoid giving non-relevant personal information Be wary of any “Guaranteed” scholarships “Free” seminars with an up-sell Never give out bank/credit card account numbers! Avoid interviews in hotels or restaurants If it’s too good to be true – it probably is www.finaid.org/scholarships/scams.phtml

Federal Aid Programs Federal Pell Grant Federal Supplemental Educational Opportunity Grant Federal Work Study Direct Student Loans Direct PLUS Loans

Federal Pell Grant Award amount based solely on need Uses cost of attendance, expected family contribution, and enrollment status (full time or part time) Maximum award for 2018-2019* is $6,095

Federal Work Study Allows students to work on or off campus Provides part-time employment while you are enrolled in school (typically no more than 20 hours) Even if you don’t qualify for FWS, you may still be able to have an on campus job!

Federal Student Loans The current interest rate on Direct Student loans for undergraduates is 5.05% Repayment begins after 6-month grace period Subsidized U.S. Department of Education will pay the interest that accrues while in school Must demonstrate need Unsubsidized Not based on need Interest accrues from the date of disbursement

Direct Student Loan Limits Classification Dependent Sub./Unsub. Total Independent Freshman $5,500 $9,500 Sophomore $6,500 $10,500 Each Remaining Year $7,500 $12,500 Graduate Student N/A $20,500 Annual Loan Limits (combined subsidized and unsubsidized)

Direct PLUS Loans Parents of dependent undergraduate students Repayment begins after disbursement unless parent chooses to defer payments Deferment during enrollment period Deferment during 6 month grace period Direct PLUS interest rate is currently 7.6% If a parent is unable to borrow (denied) a parent PLUS loan, a student may be eligible for additional unsubsidized loan money

How Do I Get Federal Aid? Free Application for Federal Student Aid (FAFSA) A standard form that collects demographic and financial information about the student and family Filed Electronically Information is used to calculate the expected family contribution Colleges then use the EFC to award financial aid

Federal Student Aid ID (FSA ID) www.fsaid.ed.gov Allows you to sign FAFSA electronically and utilize other Federal Student Aid Systems Will be used for subsequent years Each user will create an FSA ID with a unique email address

FAFSA 2019-2020 FAFSA – Available Oct. 1, 2018 As soon as you start freshman year, you will begin to plan for your sophomore year Prior-prior year data helps avoid costly delays Especially by using the IRS Data Retrieval Tool (DRT) for tax information Colleges may set FAFSA filing deadlines of their own

FAFSA on the Web Web site: www.fafsa.gov

Frequent FAFSA Errors Social Security Numbers Divorced/remarried parental information Income earned by parents/stepparents Untaxed income U.S. income taxes paid Household size Number of household members in college Real estate and investment net worth What assets to include

FAFSA Processing Results A summary of your application is created for your review & sent to your selected schools electronically Summary is called a Student Aid Report (SAR) Students with FSA IDs may view SAR online at www.fafsa.gov If schools require further information or documentation, they will contact the student directly Make sure students know how each school communicates with them Watch for award notifications

Special Circumstances College reviews special circumstances and will request additional documentation as needed Special Circumstances could be Change in employment status Medical expenses not covered by insurance Change in parent marital status Unusual dependent care expenses Decisions are final and cannot be appealed to U.S. Department of Education

CAUTION! Avoid being charged a fee to file the FREE Application for Federal Student Aid Completion and processing of the FAFSA are FREE www.fafsa.ed.gov

Where do I go from here? Obtain and review admissions and financial aid websites and materials for each school to which you are applying Meet all application deadlines Complete FAFSA and other application materials Submit all requested follow-up documents Investigate other sources of aid

Questions?

Thank You!! You are important in this process. If you have any questions, you can contact your admissions counselor or financial aid counselor. There are no dumb questions! Contact Information Matt Pfannenstiel 785-798-5697 pfannenstielmm@bethanylb.edu