KILGORE COLLEGE FINANCIAL AID WORKSHOP The “A, B, C’s” of Financial Aid Presented By: Annette Morgan Financial Aid Officer

Main Financial Aid Sources  Federal Government  State of Texas  Institution or College  Civic or Private Groups

STUDENT AID CATEGORIES u GRANTS o Department of Education o State of Texas u LOANS o Department of Education (Federal) u EMPLOYMENT o College Work Study (Federal) o Institutional Position u SCHOLARSHIPS

GRANTS  Funds for Education u Do not have to be repaid u Awarded on financial “need” basis  MAIN SOURCES Dept. of Education State of Texas

Loans  Funds students & parents borrow to help with educational expenses  Repayment begins after graduation  Minimum Enrollment: 6 hours  May be “need or non-need” based  An investment in a student’s future  Caution: Only borrow funds that are actually needed – (not just desired)!!!

Employment  Allows student to earn money to help pay educational costs Usually need-based  May be funded by the U.S. Dept. of Education or the State of Texas May open the door to future employment, as references will be given on student’s performance

Scholarships  Money that does not have to be paid back to the institution or donor  Sources may include the institution, or “outside agencies” (service clubs, church)  Awarded on the basis of merit, skill or other unique characteristics  Usually require full-time enrollment and a higher academic standard (2.5 to 3.0 gpa)  May be need or non-need based

General Eligibility Requirements  Be enrolled as a regular student in a degree or certificate program u Be registered with Selective Service, if required u Not be simultaneously enrolled in high school u Provide valid Social Security Number u Have high school diploma or equivalent, or demonstrate ability to benefit u Be a citizen, national, or permanent resident of U.S., or other eligible non-citizen.

FAFSA Free Application for Federal Student Aid  First Step in the Financial Aid Process  Students may qualify for Federal aid such as - Work Study, Grants, and Loans  States and Schools use information from the FAFSA to award non-Federal aid such as - Scholarships, State Grants, and credit - based Private Loans

FAFSA Priority Deadlines  Deadlines are usually determined by each State  In Texas, each school sets its own priority deadline - Apply in January to make most deadlines for Texas colleges and universities.

Institutional Verification u Confirms accuracy of FAFSA information u Application selected at random by CPS u Often occurs if information is incomplete or questionable u School may request any document necessary to complete the verification process u Prepare copies for the school, as your originals will not be returned u School is required to verify if selected

Common Documents u BE PREPARED TO FURNISH: Tax Return(s) and W-2(s) – Prior year Child Support Received or Paid Social Security Benefits Welfare Benefits-excluding food stamps Housing, Food or other Living allowances paid to military, clergy,etc Worker’s Compensation Current Checking/Savings Balance Investment, Business and/or Investment Farm Value

WHAT DOES THE COLLEGE DO WITH THE FAFSA DATA ? u Uses the data to create financial “need” and set up the cost of attendance u From this, the student’s aid package is created for the academic year

Need Analysis u Income u Asset equity u Family size u Number in college Not to include parents

Definition of Need Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need

Cost of Attendance u Tuition and fees u Room and board (at home with parents, in dorm or off campus) u Books and supplies u Transportation u Personal expenses u Miscellaneous expenses 5

Expected Family Contribution u (EFC) calculated using Fafsa data and a federal formula u The amount a family can reasonably be expected to contribute u Stays the same regardless of college of choice u Considers household income & size, assets, & number of family in college u Two components: uParent Contribution uStudent Contribution

1 Need Varies Based on Cost 2 3 EFC 1 2 Cost of Attendance (Variable) Expected Family Contribution (Constant) Need ( Variable ) -= 3

Need Based Aid SCHOOL A Cost of Attendance$12,000 - Exp. Family Contribution$ 1,000 Financial Need$11,000 SCHOOL B Cost of Attendance$20,000 - Exp. Family Contribution$ 1,000 Financial Need$19,000

Community College Package Budget (COA) $12,000 - Expected Family Contribution (EFC) 1,000 Need $ 11,000 Federal Pell Grant $ 4,400 Texas Grant $ 1,780 Scholarship $ 1,000 Stafford Loan $ 3,500 Subtotal $ 10,680 Unmet Need $ 320

Public University Package Budget (COA) $22,000 - Expected Family Contributions (EFC) 1,000 Need $21,000 Federal Pell Grant$4,400 Texas Grant$2,960 Federal Sub Stafford Loan$3,500 Federal Unsub Stafford Loan$2,000 Institutional Scholarship$4,000 Subtotal $16,860 Unmet Need $ 4,140

Private College Package Budget (COA)$40,000 - Expected Family Contribution (EFC) 1,000 Need$39,000 Federal Pell Grant $4,400 TEG $2,500 Federal Stafford Loan $3,500 Federal Unsub Loan $2,000 Federal PLUS Loan$10,000 Institutional Scholarship$10,000 Subtotal $32,400 Unmet Need $ 6,600

Evaluating Aid Packages u Biggest is not always the best u Are cost estimates realistic? u Renewable vs. non-renewable scholarships u What are terms and conditions of offered loan(s) u Grant/loan balance u Balance of aid offered What percentage is offered of grant aid? Loan aid? Institutional scholarships?

Common Errors u INCOMPLETE APPLICATIONS - Most errors are caused by the student providing inaccurate or incomplete data on FAFSA (make a copy) u Not meeting required deadlines u Not submitting all required documents u No Admission Application and Official Transcripts on file in Registrar’s Office u Not returning Signed Award Letter by stated deadline

Federal Financial Aid Programs Federal Pell Grant - Largest Grant Program Not repaid unless student withdraws ( $5350) Fed. Academic Competitiveness Grant Awarded to Honors Graduates( $750) Must be Pell Eligible, and Maintain 3.0 gpa Federal SEOG Grant - Supplements Pell for Students with exceptional Need(Max 1000) Federal Work Study – Work Program for eligible students to work on campus and earn federal funds(Amounts Vary)

 Subsidized (DOE pays interest)  Max: $3,500/yr - 1 st yr (Freshman Student)  Max: $4,500 /yr - 2 nd yr (Sophomore Student)  Unsubsidized (interest accrues)  Same amounts as shown above, if not qualified for the Subsidized Loan  Dependent: $2000/yr - 1 st /2 nd yr (if needed)  PLUS (Parent Loan for U. Student)  Interest accrues & Credit Based  Repayment begins: 60 days after last disbur. Federal Stafford Loan Program (Requirement: Min. of 6 hrs. enrolled per Loan)

Facts about Stafford Loans  On Sub & UnSubsidized, there is a 6- month “Grace Period” after Graduation  On PLUS, no “Grace Period”  After “Grace” repayment begins  Interest Rates: o Subsidized = 5.6% over 10 yrs repayment o Un-Subsidized = 6.8% over 10 yrs. repayment o PLUS = 8.5% over the life of the loan  Reenrollment will stop repayment, however, interest will still accrue

State of Texas Funds u Texas Grant – (Toward Excellence, Access and Success) u Texas Public Education Grant – (TPEG) u Texas Educ. Opportunity Grant – (TEOG) u Tuition Exemptions u Professional Nursing Scholships u Vocational Nursing Scholarships

Satisfactory Academic Progress u All Financial Aid categories will have a minimum SAP standard u Academic Progress evaluated by school on a semester or annual basis u Students must make a minimum GPA & complete a % of enrollment to continue to receive all forms of financial aid u Scholarships will carry higher minimum requirements, depending on the award u Check with your school’s financial aid office and pay attention to grades and attendance!

Numbers to Remember u Department of Education (800) u TX Higher Education Coordinating Board (800) u TX Financial Aid Information Center (888) u Kilgore College Financial Aid Office (903)

World Wide Web  ed.gov/studentaid  fastaid.org  AIE.org  fafsa.ed.gov  collegeforalltexans.com  finaid.org  applytexas.org

Pay Attention! u Review each school’s catalogs/website for information and application procedures u Accurately complete and submit correct forms and respond promptly to requests u Know each school’s deadlines and most importantly……MEET THEM u Keep copies of all forms you submit for your records - and Good Luck in !!