Financial aid for college Presented by Katie Harris Student Financial Aid and Scholarships Bowling Green State University
Tonight’s topics How to Apply Types of Aid Financial Aid Process
Philosophy of Financial Aid Primary responsibility of family to pay the educational costs to they extent they are able. Student Parents Financial Aid provides access regardless of family income or college costs.
How to Apply Some standard applications are: 1. Admission Application Different schools require different applications, check with the Financial Aid Office and Admissions Office at each school. Some standard applications are: 1. Admission Application 2. Free Application for Federal Student Aid (FAFSA) 3. Other Institutional Application forms (if required) 4. Applications for scholarships
Applying for aid FAFSA is federal form www.fafsa.gov File a new application every year Apply early to meet priority deadlines Available October 1st Institutional and private aid procedures vary Additional forms required by the school Each student will file their own FAFSA
FAFSA (Free Application for Federal Student Aid) Available October 1, 2016 for 2017-2018 year Based on 2015 Federal taxes Apply on-line at www.fafsa.gov FAFSA is FREE!
FSA User ID Used to sign the FAFSA electronically 2/22/2019 FSA User ID Used to sign the FAFSA electronically Log in for any Department of Education website Student and Parent will need separate FSA IDs Apply online at www.fsaid.ed.gov One FSA ID per e-mail address per SSN
Independent or Dependent? Born before 1/1/1994 Married Working on Master’s or Doctorate program Serving active duty in US Armed Forces (not for training) Veteran of US Armed Forces Provides over 50% support for child Provides over 50% for other dependent that lives with student
Independent or Dependent? At age 13 or older, both parents were deceased, were in foster care, or dependent/ward of court Emancipated minor as determined by court In legal guardianship as determined by court On or after 7/1/2016, determined to be an unaccompanied youth who was homeless or at risk of being homeless To at least one dependency question = Independent, provide information about Student and Spouse (if married) To all dependency questions = Dependent, must provide information about Student and Parent information
“Parent” definitions Student’s legal parents Same sex and live in same house = both income info Different sex and live in same house = both income info Separated/Divorced Parent student lived with most in last 12 months (if student lived equally with both, report info for parent who provided more financial support) Include step-parent info if parent is remarried as of day FAFSA is completed
“Parent” definitions
Using IRS Data Retrieval 2/22/2019 Using IRS Data Retrieval
Signing the FAFSA XXX-XX-1234 FALCON 01/16/1950
After the FAFSA is submitted The student receives notification from FAFSA and is issued a summary of the FAFSA called a Student Aid Report (SAR) The Student Aid Report includes the calculated Expected Family Contribution (EFC) Student will receive Award Letters Compare offers: Amount of aid vs. cost of attendance Gift money vs. borrowed money Types of loans CollegeBoard Net Price Calculator Worksheet
Understanding “Need”
Understanding “Need” Expected Family Contribution (EFC) • From FAFSA • Income • Assets • Household members • Considers allowances
Understanding “Need”
Where does aid come from? Federal programs State programs College (institutional) Private organizations
Financial Aid Package Grants – need based aid without repayment Work – Earned aid through employment Loans – Borrowed monies repaid usually after graduation Scholarships – Funds awarded based on specific characteristics
Primary Grants Supplemental Educational Opportunity Grant (SEOG) Federal Pell Grant - 2016-17 academic year Award amount: up to $5,815 Supplemental Educational Opportunity Grant (SEOG) Award ranges between $100-$4000 Ohio College Opportunity Grant - 2016-17 academic year $1,416 for students at most public university main campuses Institution specific
Federal Work-Study (FWS) Employment may be on or off campus Receive paycheck, does not reduce bill owed to college Not counted as income on FAFSA next year Each school own priority deadline
Primary Loans Federal Direct Loans Federal PLUS Loans Alternative/Private Loans Always borrow conservatively!
Federal Direct Loans Interest Rates 3.76% in 2016-17 aid year 6 month grace period before repayment Direct Subsidized Loan – No interest accrues while in school Direct Unsubsidized Loan – Student pays interest while in school or allows it to accrue Interest Rates 3.76% in 2016-17 aid year Will change July 1st, based on Treasury Bill
Federal Direct Loan Limits Dependent Undergraduate Students Class Year Base (Subsidized) Amount Additional Unsubsidized Amount Total Available to Borrow Freshman $3,500 $2,000 $5,500 Sophomore $4,500 $6,500 Junior $7,500 Senior
Parent PLUS Loan Parent loan program for parents of dependent undergraduate students Repayment begins 60 days after loan is fully disbursed for parent borrowers Interest Rate: 6.31% for 16-17 aid year Will change July1st, based on Treasury Bill
TEACH Grant Up to $4,000 per year For students who agree to teach in a high-need field at a school that serves low-income families Must teach at least 4 years within 8 years of graduation, otherwise it converts into a Direct Unsubsidized Loan
Alternative Loans Credit based loan offered through private lenders Student is borrower – will need a credit worthy co-signer Terms and conditions will vary based on creditworthiness
Scholarships Personal Affiliations Scholarship Searches Churches, Fraternal Organizations Scholarship Searches College website Guidance Counselors Public Library www.fastweb.com
Process Submit FAFSA Department of Education processing Student Aid Report (SAR) Request for additional items Verification Promissory Note and Entrance Counseling for loans Award notice (regular mail or e-mail) Funds applied to student’s account
Avoid Being Scammed Do not pay to complete FAFSA Spend the time, not money No guarantees If it sounds too good to be true, it probably is! Never invest more than a postage stamp
Beyond Financial Aid Installment payment plans Employer Tuition assistance Military benefits Tax benefits AmeriCorps
What should you do? Involve student Keep good records Learn your school’s procedures Read Respond promptly Ask questions
Thank you! Questions? Contact the college/university the student plans to attend….. Presentation: harrikl@bgsu.edu