Financial Aid 101 Whitehouse High School October 26, 2015

The Value of a College Education According to the US Bureau of Labor Statistics in 2013, average yearly earnings are higher for college graduates High school diploma $33,852 Bachelor’s degree $57,616 Advanced degrees $79,118

Goals of Financial Aid - Affordability Financial aid is funds provided to students and families to help pay for postsecondary educational expenses Consider Net Cost not Sticker Price

Important Facts To the extent they are able, parents have primary responsibility to pay for their dependent children’s education Students also have a responsibility to contribute to their educational costs Families should be evaluated in their present financial condition A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner

What is Cost of Attendance (COA) Direct costs Indirect costs Direct plus indirect costs equal cost of attendance Varies widely from college to college

What is the Expected Family Contribution (EFC) Amount family can reasonably be expected to contribute Stays the same regardless of college Two components – Parent contribution – Student contribution Calculated using FAFSA data with a federal formula

What is Financial Need? Cost of Attendance - Expected Family Contribution = Financial Need

Need Varies Based on Cost EFC COA (variable) - EFC (constant) = Need (variable)

Free Application for Federal Student Aid(FAFSA) Free A standard form that collects demographic and financial information about the student and family Use it to apply for federal and state student grants, work- study, and loans Complete the FAFSA on-line (FAFSA on the Web)

More FAFSA Info Do not need to have tax returns completed (“Will File”) Do not have to wait until accepted for admission All info “as of the date you complete the form” Use IRS Data Retrieval Tool after taxes filed electronically

FAFSA on the Web Web site: FAFSA available January 1, 2016 FAFSA on the Web Worksheet: Used as “pre-application” worksheet Questions follow order of FAFSA on the Web

Create FSA USER ID To electronically sign the FAFSA, students need to create an FSA User ID and Password Dependent students will also need a parent to create an FSA User ID and Password to electronically sign the FAFSA The following slide shows where to click on to create the user ID and password

Student Financial Aid (SFA) Pin Web site: Sign FAFSA electronically Not required, but speeds processing Can request PIN prior to January 1, 2015 May be used by students and parents throughout aid process, including subsequent school years

Sources of Financial Aid Federal government States Civic organizations and churches Employers Colleges

Common Federal Aid Programs Federal Pell Grant Federal Supplemental Educational Opportunity Grant (SEOG) Teacher Education Assistance for College and Higher Education Grant (TEACH) Federal Work-Study Federal Direct Loans PLUS Loans

College Aid Academic Scholarships Other merit-based scholarships - athletic, music, art, leadership, etc. Endowed Scholarships State Grants based on FAFSA Information

Special or Unusual Circumstances Change in employment status Medical expenses not covered by insurance Change in parent marital status

Estimating your Eligibility for Financial Aid Net Price Calculator – Institutions must now include on their website a calculator that provides the net price for first-time, full-time degree-seeking students.

Financial Aid Calendar Senior Year of High School January/February -- apply for aid March/April -- receive financial aid award letter from college May 1st – national decision date Summer -- apply for loans August/September -- classes begin, aid applied to account

Financial Aid information on the Internet

For Additional Information CONTACT THE LETU FINANCIAL AID OFFICE Ext