Financing Education Beyond High School

Applying for Financial Aid ALL colleges will require the FAFSA (Free Application for Federal Student Aid) Some schools may also require the “PROFILE” application from College Scholarship Service (CSS) or additional applications to award institutional aid/scholarships Contact/view website for each school to find out about required application materials and deadlines

FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA) Apply online at fafsa.gov (not fafsa.com) Required for federal grants, federal loans, work-study and some need based scholarships Complete and submit annually, as soon in January as possible (Don’t wait, estimate!) The FAFSA determines the Expected Family Contribution (EFC) which is used to determine “need”

Do I need to include parent info? Yes! Unless… At least 24 years old by December 31st of the award year covered by FAFSA (born before January 1, 1993) Married (at the time of application) Will be in a graduate program in Active duty in the U.S. Armed Forces for purposes other than training Veteran of the U.S. Armed Forces Have children or legal dependents for whom the student will provide more than half of their support in

Or… Both parents are deceased At age 13 or older, student was in foster care or was a dependent of the court (ward of the court) Emancipated Minor (court approved) Legal Guardianship (court approved) “Unaccompanied Youth” (homeless) Determined to be “independent” by a financial aid administrator based on other unusual circumstances

What Information Goes on the FAFSA? Student Basics Name, address/phone/ , social security number, etc income and assets Answer questions to determine dependency status If “no” to all dependency questions: Parent Info Name, address/phone/ , social security number, etc. Specific information regarding marital status 2015 income and assets Household information (number in household and number of those in college) Other relevant data

What Information Goes on the FAFSA? Schools to Receive FAFSA Results May choose multiple schools with option to add/delete as necessary Indicate housing plans (on/off campus or with parent(s)) Electronic Signature(s) Student and Parent FSA ID (Federal Student Aid) required to submit a valid FAFSA fsaid.ed.gov to obtain FSA ID (OR can obtain during FAFSA filing)

What Happens After I Submit the FAFSA? The application is processed by the U.S. Department of Education The Expected Family Contribution (EFC) is determined Student Aid Report (SAR) is provided and ed to the student Results are sent electronically to the student and all schools listed on the FAFSA

Role of the Financial Aid Office Determines eligibility for federal, state and institutional financial aid Compile student financial aid award package Sends an award notification* that will include: Programs and amount from each program for which the student is eligible How and when aid will be disbursed Terms and conditions of awards *May be sent electronically or by mail, usually in March or April

TYPES OF FINANCIAL AID SCHOLARSHIPS AND GRANTS: Aid that does not need to be paid back, generally based on merit (scholarships) or financial need (grants) WORK STUDY: A need-based award whereby a student gets a job on campus and works to earn a bi-weekly paycheck to help with costs. Many on-campus job in departments may require students qualify for work study. DIRECT LOANS: Student loans that can be subsidized (interest-free while student is in school) or unsubsidized (accumulates interest while in school) based on the “financial need” of applicant. Neither type needs to be paid back until 6 months after student stops attending at least half time (or graduates). PARENT PLUS LOANS: Parents must apply and be credit-approved. The loan is a loan in the parent’s name and can be deferred while student is enrolled at least half time. If approved, parents pay the loan back. If not approved, students can get additional unsubsidized loan funding.

Definition of “Need” Cost of Attendance EFC (as determined by FAFSA) Financial Need

Cost of Attendance Tuition and FeesRoom and BoardBooks and SuppliesTransportationPersonal Expenses Direct Costs Indirect Costs

How Much Does College Cost?

WILL FINANCIAL AID COVER THE BILL? MAYBE…MAYBE NOT. Review Direct Costs: tuition and fees, room and board (if you live on campus), at some schools: books Review Award Letter(s): Subtract all gift aid (scholarships or grants) and any loans you plan to accept. Compare to costs on school website. Remember work study will be paid out in a paycheck and don’t consider loans you don’t plan to accept. If Financial Aid is > than Direct Costs = Potential REFUND to use for other costs If Financial Aid is < than Direct Costs = Must make PAYMENT to school (and cover other costs)

Websites Worth Your Time fastweb.com collegeboard.com fafsa4caster.ed.gov gocollege.com fafsa.gov finaid.org

Closing Thoughts… File FAFSA early: student and parent should both be involved if possible Fully understand the life impact of student loans (don’t voluntarily take on “crushing student loan debt”) Live “within your means” Be aware of school deadlines and your responsibilities Work if you can! Remember college is an investment in your future