FINANCIAL AID 101

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Overview What is Financial Aid? Types of Financial Aid How Financial Aid is Awarded The Financial Aid Process Resources

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Defining Financial Aid Financial Aid is money needed to help pay for college. Financial Aid can come from: Federal government State government Colleges Private organizations

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Who Qualifies for Financial Aid? Financial need HS diploma or GED Valid Social Security number Enrollment at least half time in an eligible institution US citizen or an eligible non-citizen Maintain satisfactory academic progress once in college Certify that federal student aid will only be used for educational purposes Comply with the Selective Service registration, if required

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Types of Financial Aid Gift Aid Work Study Military Loans

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Types of Financial Aid – Gift Aid Gift Aid generally doesn’t need to be repaid Grants:  Based on financial need  From government and colleges  Two federal grants: Pell and Supplemental Educational Opportunity Grant (SEOG) Scholarships:  Based on various criteria  From colleges and other organizations

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Types of Financial Aid – Work-Study Federal Work-Study Program: Provides jobs for undergraduates Students work part time, usually on campus Money earned helps pay for college Programs vary from school to school Colleges award a maximum amount students can earn annually Work–Study amounts are generally included in the Award Letter

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Types of Financial Aid – Military Tuition Assistance: Up to $250 per semester credit ($4500/year). Montgomery G.I. Bill: Service members who commit to 3 years of full-time duty receive up to $37,224 in tuition coverage. College Fund: Combined with the Montgomery G.I. Bill, eligible Armed Services enlistees receive up to $70,000 toward tuition upon honorable discharge. Loan Repayment Each branch of the Military has it’s own version of this program, which enables service people to pay back part or all college debt while serving.

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Types of Financial Aid – Loans Three types of loans: Federal Private Home Equity

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Types of Financial Aid – Loans Federal: Stafford Loans Borrower: Student Offer both subsidized (needs-based) and unsubsidized (non-need based). Loan limit is $5,500 for freshman Interest rate fixed at 6.8%* Repayment begins 6 months after graduating or dropping below half- time status

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Types of Financial Aid – Loans Federal: PLUS Loans Borrower: Parent Not based on need Loan limit is the cost of tuition Interest rate fixed at 8.5%* Repayment begins immediately after loan is made.

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Types of Financial Aid – Loans Federal: Perkins Loan Borrower: Student Based on need Loan limit is $4,000/year Interest rate is 5%* Repayment begins 9 months after graduating or dropping below half- time status

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Types of Financial Aid – Loans Private Loans Designed to supplement federal loan programs Credit-based loans offered by private lenders Terms and conditions vary Should be considered last

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Types of Financial Aid – Loans Home Equity Parents can borrow against money already put into your home Generally carry low interest rates and high fees Typically a term loan or a line of credit

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 How Financial Aid is Awarded The following types of aid are based on financial need Grants Perkins loans Subsidized Stafford loans Federal Work-Study Program

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 How Financial Aid is Awarded How much aid you will receive to pay for college is determined by using the following factors Cost of Attendance (COA) Expected Family Contribution (EFC)

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 How Financial Aid is Awarded Cost of Attendance (COA) Tuition Room & Board Books Transportation Personal expenses

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 How Financial Aid is Awarded Expected Family Contribution (EFC) The amount you may be expected to contribute annually You don’t pay it up front Used to determine how much aid you’re eligible for Calculated from student and parent financial information you provide

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Financial Aid Process- Applying Applying for Financial Aid To get aid you must apply  FAFSA (Free application for Federal Student Aid)  Additional Forms (may be required by the college)  Scholarships Apply regardless of family income  No one makes too much or too little to apply

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Financial Aid Process- Applying To get aid you must apply! No one makes too much or too little !

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Financial Aid Process - Applying FAFSA : The Free Application for Federal Student Aid Determines Financial Aid you will receive from the Federal Government It is FREE! Complete online or on paper as soon as possible after January 1 st Must be completed every year by each student

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Financial Aid Process - Applying Getting ready for FAFSA: Apply for a Department of Education PIN # at  Needed every year when applying for aid  Parents and students need separate PIN’s Complete the Pre-Application Worksheet for FAFSA (available online):  Available January 1 st  Collect information and prepare answers for FAFSA – organized like FAFSA

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Financial Aid Process - Applying To complete your FAFSA application you will need financial information for both parents and students: Bank statements Income amounts (W-2 or tax returns) Investment records Other

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Financial Aid Process - Submitted Now that FAFSA is complete….. Check if additional forms are required by the college Apply for scholarships Use free scholarship searches

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Financial Aid Process - Submitted Student Aid Report (SAR) Sent to you after FAFSA is processed Contains your Expected Family Contribution (EFC) Information automatically sent to colleges you listed Check the information and make corrections if needed

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Financial Aid Process - Submitted Award Letters and Offers: Colleges start sending Award letters in March Received from the college financial aid office Compare different college offers:  Aid vs. COA  Gift award vs. borrowed money  Types of loans Accept an offer from the college you are going to attend Select lenders and sign Master Promissory Notes (MPN’s) for accepted loans Funds directed to college

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Resources

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Resources - PrepHQ Financing College: Provides additional information on this presentation onTrack: Helps to compare award packages and applying for college-specific financial aid and scholarships

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Resources – PrepHQ Financing College link in PrepHQ

FINANCIAL AID 101 Resources – PrepHQ December 5, 2008Prepared by S. Meyer ConnectEDU Calculating the Expected Family Contribution in PrepHQ

December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Resources – PrepHQ - onTrack onTrack link in PrepHQ Students can join onTrack in PrepHQ for customized financial aid information – indicate the colleges you are interested in and let PrepHQ calculate how much it will cost you to attend. onTrack also has worksheets, tutorials and

December 5, 2006Prepared by S. Meyer myFootpath, LLC FINANCIAL AID 101 Resources – PrepHQ - onTrack