UNDERSTANDING THE WORLD OF FINANCIAL AID Ellie Geiman McDaniel College THE KEYS TO

WHAT IS NEW !!!!!!!!!  Net Price Calculator Effective Oct , a federal mandate required all colleges to post a net price calculator on their Web sites that factor in everything from living expenses and books to estimated grants for particular institutions.  Deferred Parent PLUS Loan

What does a Net Price Calculator do????  The calculator will take your personal information such as Family income and size to give you an overview of the cost and your expected out of pocket.  Please be aware that colleges calculators may be different. –Example: a college may not show student loans –Example: a college may not show Academic Merit scholarships

What Information do I need?? Net Price Calculator Each college calculator will be different. 1. Age 2. Marital Status (Student & Parents of Dependent Students) 3. Children 4. Family Size 5. Number of Family Members in College 6. Student & Parent Income for Dependents (or Household Income for Independents) 7. Living Status (on campus, off campus, or with parents) 8. Residency Status (in-state or out-of-state) 9. Student academic information: GPA, SAT/ACT, High School class rank 10. Bank statements, Untaxed Info such as :child support, contribution to a retirement plan

Deferred Parent PLUS Loans  One of the tools to assist you in paying your family contribution is a loan in the Parent’s name.  You now have the option to NOT make payments while your student is enrolled at least half time. Interest does accrue.  Parent PLUS loan are done at and it will ask if you want to defer the loan or you can contact Department of Education after the loan is processed

Important Deadlines l FAFSA MARCH 1 st (Date Received) Date used by Maryland State to award need based funds Recommend using the Electronic PIN Signature l School Deadline Verify with College’s Financial Aid Office l Maryland State Due March 1 st RECEIVED l State Draws FAFSA Info for Awards April 1st l Deposit Date May 1 st Commitment to a School (Non refundable)

Time Table Current Seniors in High School FAFSA Due March 1, 2013 Use 2012 Federal Tax Admission Deposit deadline May 1, 2013 Current Juniors in High School FAFSA Due March 1, 2014 Use 2013 Federal Tax Admission Deposit deadline May 1, 2014 Current Sophomores in High School FAFSA Due March 1, 2015 Use 2014 Federal Tax Admission Deposit deadline May 1, 2015 Current Freshmen in High School FAFSA Due March 1, 2016 Use 2015 Federal Tax Admission Deposit deadline May 1, 2016

Required Forms  FAFSA : All Colleges use for Need Based Funds  CSS Profile : College Board Application Required by select colleges (Cost involved) Confirm if college requires and due date  College Institutional Form: Some college have their own form instead of the CSS Profile. Check College website or call to confirm what form are required.  Colleges may require Tax form documentation

FAFSA On-Line  The Federal Government would prefer all FAFSA transactions be done on-line.  Student and Parent must have a PIN number.  The PIN number is an electronic signature.  PIN numbers remain the same for the complete time of a student’s education.  Doing FAFSA on line is timely and accurate.  The FAFSA must be done each academic year.

SOURCES OF FINANCIAL AID FEDERAL GOVERNMENT STATE GOVERNMENT PRIVATE COLLEGE FUNDS SCHOLARSHIP FOUNDATIONS CIVIC ORGANIZATIONS MILITARY

FEDERAL GOVERNMENT u Federal Pell Grant u Federal SEOG Grant u Federal TEACH Grant u Direct Student Loans u Perkins Loan u Federal Work Study u Federal Direct PLUS Loan ( Parent )

TEACH GRANT Federal Government Must teach in high need subject areas Must teach in schools servicing low income families Four year teaching obligation $4000 per year If service is not provided in area designated the grant becomes a loan

State Funding u Need Based Educational Assistance Grant Guaranteed Access Grant u Senator & Delegate Contact your district Senator and Delegates directly u Check Maryland Web Site for other programs u

FEDERAL CALCULATIONS u EFC: Expected Family Contribution u Formula For Need COST OF EDUCATION (From each College) MINUS Expected Family Contribution Student’s Federal Financial Need Example:Cost of ABC College$30,000 Expected Family Cont$ 5,000 Federal Need $25,000

FINANCIAL AID AWARD Cost of College: $30,000/Year Financial Aid: Pell Grant( $2,000) SEOG Grant( $ 500) State Grant( $2,500) Academic Schp( $5,000) Private Grant( $1,000) Direct Loan( $5,500) Total Aid$16,500 Family Owes the College $13,500

How do we cover what we owe?? u Cash Payment u Direct PLUS Loan (parent) 10 year u College Contract Plan (over school year) u Private Education Loans for Parent u Private Education Loans for Student u Home Equity

RESOURCES/RESEARCH u Check the Internet u Employee Benefits u High School Guidance Office u Civic Organizations ( State and Federal Level )

Scholarship Search Find one that is FREE !!!!!!! Build a profile: the more details about yourself that you provide, the better the Scholarships. You still have to do the application and required documentation or essay. Provide an address that you will monitor often is FREE

KEY POINTS TO REMEMBER u FAFSA is due March 1 st before Fall enrollment (FAFSA must be done each year) u Contact colleges for their requirements u Review Student Aid Report u Work with High School Guidance Office for outside scholarships u Meet all deadlines

Contact Information  Ellie Geiman  Associate Director of Financial Aid  McDaniel College  2 College Hill  Westminster, MD  Phone:  Fax: 