Danette Burgess American University Neophyte 2018 Types of Financial Aid Danette Burgess American University Neophyte 2018

OBJECTIVES: Provide a high level summary of the primary types of financial aid Provide examples of alternative financial aid options Discuss some of the applications involved when applying for financial aid Share financial aid resources between your fellow Neophytes!

GRANTS Funds that DO NOT HAVE TO BE PAID BACK Eligibility varies: Need-based (income, EFC) Merit-based (G.P.A., test scores) Often geared towards undergraduate students Terms may vary (one-time, renewal, applications required, etc.) Most grants are going to be geared toward undergraduate students. Graduate students NOT eligible for Pell or FSEOG.

What are other grants your school sees often? GRANTS SEEN MOST OFTEN Federal Pell Grant – Need based, FAFSA Federal Supplemental Educational Opportunity Grant (SEOG) – Need based, FAFSA University Grants – i.e., AU Grant, CSS Profile What are other grants your school sees often?

SCHOLARSHIPS Funds that DO NOT HAVE TO BE PAID BACK Eligibility typically based on a student’s skill, ability or a combination of all criteria May require an application process outside of standard forms (i.e. essays, letters of recommendation, etc.) Terms may vary (one-time, renewal, applications required, etc.) May hear the term GRANTS and SCHOLARSHIPS used interchangeably

WORK STUDY Provides funds for part-time employment for undergraduate and graduate students while in school Federal Work Study (FWS) is based on financial need and requires a FAFSA to qualify For students who do not have the financial need, some schools offer student wage positions

WORK STUDY (CONTINUED) Schools determine an allotted amount of FWS across the board, representing the amount a student can earn a year (i.e., $1,800 per academic year) Is applied as part of the student’s overall financial aid package, students must work to receive the funds Students are paid hourly and must be paid at least once a month NOTE: FWS must be EARNED, make that clear to students!

William D. Ford Federal Direct Loan Program LOANS Funds which students can BORROW, and must be paid back Student loans may come from private loan companies, but most often are from the Department of Education William D. Ford Federal Direct Loan Program Direct Subsidized Direct Unsubsidized Direct PLUS Unsubsidized loan is typically the next

FEDERAL DIRECT LOAN PROGRAM Direct Subsidized (FAFSA) - eligible to undergrad students who demonstrate financial need Government pays interest while student is in school Limits to amount student can borrow per academic year Direct Unsubsidized (FAFSA) - eligible to undergrads, grads, and professional students (student does not have to demonstrate financial need) Accrues interest while student is in school SUBSIDIZED AND UNSUBSIDIZED Payments don’t start until 6 months after graduation, but interest will accrue during this grace period!

FEDERAL DIRECT LOANS (CONT.) Direct PLUS (app determined by school) - (credit-based) eligible to graduate, professional students, and parents of dependent undergraduates to help pay for expenses not covered by other financial aid - Repayment starts immediately unless deferment until after graduation selected

POP QUIZ!!! Write down: A) First year annual loan limit for dependent students B) First year annual SUBSIDIZED loan limit for dependent students C) Graduate student annual loan limit D) Graduate student aggregate loan limit

ANSWERS: A) $5,500 B) $3,500 C) $20,500 D) $138,500

HOW MUCH CAN STUDENTS BORROW? Source: Federal Student Aid Website - https://studentaid.ed.gov/sa/types/loans/subsidized-unsubsidized

SPECIALTY FINANCIAL AID Veterans Benefits ROTC Benefits Endowed Scholarships Athletic Scholarships Fellowship Funds Stipends Tuition Reimbursement May or may not come through the financial aid office!

HOW CAN STUDENTS OBTAIN THESE FUNDS? Federal Government (www.fafsa.ed.gov) Pell and SEOG Grants Direct Loan Program Other Federal Grants (TEACH Grants) State Government MHEC (MD residents) www.mhec.state.md.us DC-CAP (DC residents) www.dccap.org DHEO (DE residents) www.doe.k12.de.us/Page/316

HOW CAN STUDENTS OBTAIN THESE FUNDS? Private Organizations Private Loans Private Scholarship Organizations Institutions AU Grant Professional Organizations American Counseling Association, NAACP, etc. Although some of these “other” scholarships may not come from the financial aid office, it can affect the packages that student’s have

PUTTING IT ALL TOGETHER Financial aid is a dynamic industry, so expect change! Ask questions often as you learn the various options Share scholarship knowledge you may already have with potential students, and keep your ears open for others Follow news and events related to financial aid (NASFAA, Tri-State, Congress) Check with your management about how different types of financial aid affect each other (outside scholarships, loans, etc.) If there are things you don’t understand about the financial aid options for students, ASK

SHARE WHAT YOU KNOW!! Get together in groups, and come up with a list of financial aid options (scholarships, grants) that you are aware of. Be prepared to share a few from each group!

Contact Information Danette Burgess burgess@american.edu American University