Monticello High School January 2015 PAYING FOR COLLEGE

Welcome! Andrew Lashua Undergraduate Financial Aid Administrator Student Financial Services University of Virginia

 What is Financial Aid?  The Application Process  Helpful Resources  Questions TONIGHT’S AGENDA

WHAT IS FINANCIAL AID?

Funds made available to students & families to help pay for postsecondary educational expenses. These include: Scholarships/Grants – Money that does not need to be repaid Work Study – The student must work to earn funds Loans – The student or parent must pay back what was borrowed, and possibly additional interest FINANCIAL AID Scholarships Grants Work Study Loans

College/University Scholarships Some schools use the application for admission to determine scholarship eligibility. Some schools have a separate application. Some schools may require you to have a completed application for financial aid on file. Private and Community Scholarships Some may require you to file an application for financial aid along with an additional application. You may find them in unexpected places. They may be based on need, merit, talent, athletic ability, artistic skills, or other criteria. SCHOLARSHIPS

institutional state federal  Need-based money awarded by colleges and universities. GRANTS

LOANS fe deral student loans Subsidized or unsubsidized Annual maximum for first year student is $5,500 federal parent loans Parent borrows on behalf of student A credit check is usually required private student loans The student is the borrower A credit check is usually required Money that has to be repaid – repayment may be deferred until after the student graduates

NEED-BASED AWARD THAT PROVIDES AN OPPORTUNITY TO WORK AND EARN MONEY TO HELP PAY FOR EDUCATIONAL EXPENSES. get hired get to work get paid WORK STUDY

THE APPLICATION PROCESS

1 File the FAFSA, available now 2,If required, file the CSS PROFILE, available now 3 institutional financial aid applicationIf required, file an institutional financial aid application 4 tax documentsIf required, submit tax documents HOW DO STUDENTS GET FINANCIAL AID?

FAFSA ON THE WEB

FAFSA STUDENT SECTION

StudentAid.gov

CSS PROFILE

 The FAFSA must be submitted each academic year a student would like to be considered for financial aid.  The FAFSA is available on January 1 of each year.  FAFSA on the web (faster processing, error checks, skip logic) at  If the student is dependent, then both the student and parent must sign the FAFSA.  Federal PIN to sign electronically; register at SUBMITTING YOUR FAFSA

Must be enrolled in (or accepted for enrollment in) an approved program of study Must be pursuing a degree or certificate Must be a U.S. citizen or eligible non-citizen Must have a valid Social Security number Must be registered with Selective Service (if male and required) Must be making Satisfactory Academic Progress (as defined by the school) WHO IS ELIGIBLE TO RECEIVE FINANCIAL AID?

 General student information  Student dependency questions  Student financial data  General parent information  Household information  Parent financial data WHAT INFORMATION IS ASKED ON THE FAFSA?

 Number in the household  Number in college  Earnings from work  Adjusted Gross Income  Income tax paid  Value of cash, savings and checking  Value of other assets and investments  Untaxed income such as child support received for all children EXAMPLES OF QUESTIONS IN THE FAFSA

1) FAFSA information is submitted to the Department of Education for processing. 2) The Department of Education calculates an Expected Family Contribution (EFC). 3) Each school selected by the student will receive the information submitted as well as the calculated EFC. WHAT HAPPENS TO THE FAFSA INFORMATION?

 Your file may be selected by the US Department of Education for federal verification  Financial Aid offices are required to verify income information using either:  IRS Tax Return Transcript  The IRS Data Retrieval Tool (DRT), which is integrated into the online FAFSA. VERIFICATION

Some application requirements and deadlines will vary from school to school. KNOW YOUR SCHOOL’S REQUIREMENTS AND DEADLINES! ARE THERE OTHER APPLICATION REQUIREMENTS?

HOW DO COLLEGES GIVE FINANCIAL AID?

 The FAFSA and other documents are used to determine the Expected Family Contribution (EFC).  Schools use the EFC to determine eligibility for need-based financial aid and to prepare an award package Cost of Attendance – EFC = Financial Need DETERMINING FINANCIAL NEED

Direct Costs Tuition and Fees Room and Board Indirect Costs Books and Supplies Transportation Costs Personal Expenses Loan Fees Computer Expense Direct + Indirect Costs = Cost of Attendance COST OF ATTENDANCE

 Because Cost of Attendance varies by institution, so does financial need.  Financial aid offices attempt to meet a student’s financial need with various types of financial aid available to them. FINANCIAL AID PACKAGES

SAMPLE FINANCIAL AID PACKAGE Cost of Attendance $26,000 EFC - $3,200 Financial Need$22,800 Federal Pell Grant $2,580 Perkins Loan $3,000 University Grant $11,720 Federal Subsidized Loan$3,500 Federal Work Study$2,000 TOTAL AID PACKAGE $22,800

TYPES OF FINANCIAL AID

 Need Based  Aid given to a student based on the amount of demonstrated need, as determined by information within the application.  Examples include the Pell Grant, Subsidized Loans and Federal Work Study.  Non-need Based  Aid given to a student not based on need.  Examples include credit-based loans or regional scholarships.  Merit Based  Aid given to a student based on scholastic or talent achievement.  Examples include awards based on GPA, extracurricular activities, unique talents, and/or leadership potential. TYPES OF FINANCIAL AID

 Federal Grants (need-based)  Pell Grant  SEOG (Supplemental Educational Opportunity Grant)  Federal Work Study (need-based)  Part-time jobs for students through eligible employers, such as their school, or even federal, state or local public agencies  Even though this is a federal program, schools set eligibility criteria  Federal Direct Loans  Subsidized Loans are need-based  Unsubsidized Loans are non-need-based FEDERAL FINANCIAL AID

 Subsidized Loans  Available to undergraduate students with financial need  Loan is in the student’s name, guaranteed by the Federal government through the Department of Education  The government pays the interest while the student is in school  Fixed interest rate for is 4.66%  Unsubsidized Loans  Non-need based loan in the student’s name, guaranteed by the Federal government through the DOE  Federal Government does not pay the interest while the student is in school  Fixed interest rate for is 4.66% SUBSIDIZED VS. UNSUBSIDIZED

YearDependent Undergraduate First Year$5,500 – No more than $3,500 of this amount may be in subsidized loans. Second Year$6,500 – No more than $4,500 of this amount may be in subsidized loans. Third Year and Beyond$7,500 – No more than $5,500 of this amount may be in subsidized loans. Maximum Total Debt$31,000 – No more than $23,000 of this amount may be in subsidized loans. AWARD AMOUNTS FOR DIRECT LOANS

 Perkins Loans (need based)  Federal government pays the interest while the student is in school  Fixed interest rate of 5.0%  Direct Parent Loan for Undergraduate Students (PLUS)  Credit-based educational loan in the parent’s name guaranteed by the Federal government  Fixed interest rate of 7.21%  The government does not subsidize this loan  Maximum amount a student can borrow is the cost of attendance minus all other financial aid OTHER LOANS

 Alternative/Private Loans for Students available through banks or other financial institutions  Loan in the student’s name  Credit check required, student may need a credit-worthy cosigner  May borrow up to the Cost of Attendance minus other financial aid OTHER LOANS

 College Scholarship Assistance Program  Public & private colleges, need-based  Virginia Commonwealth Award  Public colleges, need-based  Virginia Guaranteed Assistance Program  Public colleges, need-based  Virginia Tuition Assistance Grant Program  Private colleges, non-need-based, separate application required. Estimated amount for : $3,100. TYPES OF VA STATE FINANCIAL AID

 Some colleges and universities offer their own institutional scholarships, grants, and loans.  Check out their individual school websites for deadlines and required applications.  Outside Scholarships  Know what kinds of scholarships students can apply for locally. Encourage them to pay close attention to deadlines, and to contact donors with any questions. OTHER TYPES OF FINANCIAL AID

HELPFUL RESOURCES

 Obtain and review admissions and financial aid information from each school.  Submit all applications and requested documentation by the deadlines.  Investigate other sources of aid every year.  Talk to financial aid offices if you or the student has questions or special circumstances. HELPFUL TIPS FOR STUDENTS

All schools required to have a net price calculator Federally mandated Information is for current academic year If you used a net price calculator today, it would reflect costs and awards. Must represent factual data Reflects cost of attendance minus grant aid NET PRICE CALCULATOR

FAFSA: (not.com) Federal Student Aid: CSS Profile: Net Price Calculator: See college’s website WEBSITES

OTHER RESOURCES VPEP Virginia Prepaid Education Program VEST Virginia Education Savings Trust Other state college savings plans PAYMENT PLANS

paying for college family contribution scholarshipsloansgrantswork study

USEFUL TIPS Pay close attention to College/University financial aid deadlines. Use the IRS Data Retrieval Tool! Take advantage of the school’s Net Price Calculator. Continue to look and apply for scholarship opportunities.

QUESTIONS?

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