Financial Aid 101 Claudia Wenzel Director of Financial Assistance John Carroll University

 What is financial aid?  Where does it come from?  What aid is available?  Who is eligible?  How do I apply?

Types of Aid  Gift aid: Grants and scholarships (need- based or merit- based)  Self-help aid: Loans and employment (need-based or non- need-based )

Goals of Financial Aid  Primary goal is to assist students in paying for college and is achieved by: Evaluating family’s ability to pay educational costs Distributing limited resources in an equitable manner Providing balance of gift aid and self-help aid ***PAST, PRESENT, FUTURE**

Definition of Need Cost of attendance (COA) – Expected family contribution (EFC ) = Need

COST OF ATTENDANCE FIXED  TUITION & FEES  ROOM  BOARD VARIABLES  BOOKS & SUPPLIES  TRANSPORTATION  PERSONAL EXPENSES

Federal Methodology Federal Methodology is the formula created by Congress to determine the EFC ***EFC determines eligibility for state/federal programs not necessarily what a family will pay out of pocket

Calculating the EFC for a Dependant Student  Student & Parent Income  Taxes Paid/Income Protection Allowance  Family Asset Equity (excludes home)  Family Size  Number of family members in college  Age of older parent  Start now with Net Price Calculators ***EFC determines eligibility for state/federal programs not necessarily what a family will pay out of pocket

Need Varies Based on Cost

Application Process  Submit FAFSA prior to school’s deadline  Most aid awarded on “first-come, first-served” basis  To ensure maximum consideration for federal, state, and institutional aid, check information from each school to determine: Required application materials  CSS Profile  Institutional Applications Application deadlines

 Collects family’s personal and financial information used to calculate student’s EFC  Available in English and Spanish  FAFSA filed electronically at

PIN Registration  Web site:  Can request PIN before January 1  Not required, but speeds processing  Will be used by students and parents throughout aid process, including subsequent school years

Sources andTypes of Financial Aid Federal Pell Grant Supplemental Educational Opportunity Grant (SEOG) TEACH Grant Perkins Loan Stafford Loan (Subsidized and Unsubsidized) Federal College Work-Study State Ohio College Opportunity Grant Institutional Aid Merit and Gift Awards Outside Scholarships

Loan Programs Student Loans  Perkins Loan- 5%interest rate/9 month Grace  Federal Direct Stafford Loan Subsidized vs. Unsubsidized- 4.6% interest Parent/Co-signer Required  Federal Direct PLUS Loan -7.21% interest  Private Loans  Home Equity

Private Scholarship Search Free Internet scholarship search engines:  FinAid on the Web:  College Board:  FastWeb:  Scholarship Resource Network Express:  GoCollege: The Collegiate Websource:

Common Errors and Myths  Families need to hire a financial aid consultant to navigate the process  FAFSA.com  Independent status  You will be responsible for whatever is calculated as your family contribution  Reporting assets  Parental data in situations of divorce and remarriage  You can “negotiate” a financial aid award by pitting colleges against each other

TIPS FOR SUCCESS  Start early and ask questions  Know the importance of deadlines  Read everything  Don’t assume you don’t qualify Net Price Calculator (NPC)  Don’t rule out any college because of cost  Involve the student

Good Luck!