1. ©2016 Discover Bank. Member FDIC
College Financial Aid 101
Presenter:
Rodney Landrum
©2016 Discover Bank. Member FDIC

2. ©2016 Discover Bank. Member FDIC
Financial Aid Fact
Eligible college students receive over $150 billion in federal student aid every year.
Source: U.S. Department of Education
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3. Common Financial Aid Myths
Students with the highest GPAs receive the most aid.
Aid from one school will automatically transfer to another.
I don’t need to fill out the FAFSA because I make too much.
The first Award Letter from the school is the final offer.
My child should attend the school that provides the most aid.
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4. What We Will Cover Today
What Is
Financial Aid?
The Financial Aid Process
The Financial Aid Formula
The Financial Aid Award Letter
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5. ©2016 Discover Bank. Member FDIC
What is Financial Aid?
The money the government and other organizations provide to students and families to help pay for college. 5
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6. Federal & Private Loans
What is Financial Aid?
Grants
Scholarships
Federal Work-Study
Federal & Private Loans
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Grant Programs
Pell Grant
Supplemental Educational Opportunity Grant
Teacher Education Assistance for College and Higher Education (TEACH)
State Grants
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Types of Scholarships
Local
Ethnic
Community Service
Institutional
Employer & Military
Corporate & Private
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9. Students work either on-campus or off-campus.
Federal Work Study
Students work either on-campus or off-campus.
Students are paid by the hour and earn at least the federal minimum wage.
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10. Types of Loans Available
There are a variety of loan types for families to consider:
Federal Direct Subsidized Loans
Federal Direct Unsubsidized Loans
Federal Direct PLUS Loans
Private Student Loans
Institutional Loans
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11. Compare Your Loan Options
If you need to borrow, compare federal and private student loans and choose the loans that best fit your needs.
When evaluating student loan options, consider:
Fees
Interest Rates
Monthly Payment
Total Loan Cost
Student loan options should be evaluated based on your financial situation.
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12. The Financial Aid Process
Understanding how and when to apply for aid. 12
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13. Financial Aid Process PRE REQUISITES
Student selects colleges and applies for admission.
OCTOBER
FAFSA is submitted.
FEBRUARY Student receives SAR and completes all applications for Financial Aid.
APRIL / MAY
Student accepts the award and commits to school.
MARCH Colleges notify students of acceptance.
APRIL / MAY
Family compares and /or appeals awards.
APRIL / MAY
Colleges may offer a financial aid award based on eligibility.
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14. Financial Aid Begins with the FAFSA
FAFSA® (Free Application for Federal Student Aid)
Submit your application on or after October 1st of your child’s senior year in high school.
Use the previous year’s estimated income if your taxes are not completed when you file.
Apply online at: FAFSA.ed.gov
*FAFSA is a registered service mark of the U.S. Department of Education
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15. The Importance of Early Planning
Planning ahead can help minimize surprises later on.
FAFSA4caster.ed.gov: Get an early estimate of your Expected Family Contribution (EFC).
Net Price Calculator: View the school’s website to determine how much you can expect to pay.
Federal Student Aid ID (FSA ID): Required to confirm your identity, access financial aid information, and electronically sign federal student aid documents.
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16. Partners in the Process
College Financial Aid Administrators
College Admissions Officers
College Department Heads
High School Counselors
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17. The Financial Aid Formula
Understanding how schools decide what to offer you. 17
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18. ©2016 Discover Bank. Member FDIC
The Formula
Need-Based Financial Aid Eligibility
COA
EFC:
Cost of Attendance
Expected Family Contribution
The school subtracts the EFC from their COA to determine your financial need.
The COA is determined by the school and listed on the school’s website.
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19. Estimated Cost of Attendance
Estimated Expense
Public College In-state
Private College
Tuition & Fees
$9,410*
$32,405*
Room & Board
$10,138*
$11,516*
Books & Supplies
$1,298*
$1,249*
Personal & Transportation
$3,215*
$2,661*
Helpful Savings Tips:
Live at home or with relative
Take advantage of in-state tuition
Accelerate course work
*Average - Source: College Board, Trends in Higher Education 2015
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20. Expected Family Contribution
The number used by schools to calculate how much financial aid a student or family is eligible to receive.
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21. FAFSA Need-Based Eligibility
Income is an important factor in determining eligibility for need-based aid.
Other Factors Include:
Accumulated Savings
Number of Students Enrolled in College
Student’s Personal Finances
Additional Home or Properties
Paid Taxes
Student Earnings
Family Size
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22. FAFSA Need-Based Eligibility
Factors Excluded:
Co-op Earnings
Personal Debt
Primary Home
Retirement Savings
Federal Work Study Earnings
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23. The Financial Aid Award Letter
The Award Letter outlines how much financial aid you will receive. 23
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24. Award Letters Typically Sent in Early April to Mid-May.
The Award Letter may include:
Expected
Family Contribution
Grants and Scholarships
Cost of Attendance
Unmet Need
Work-Study
Federal Loans
Award Letter templates can vary, so carefully review each letter as you compare financial aid packages.
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25. College Funding Appeals
Circumstances That May Increase Financial Aid Eligibility Include:
Medical / Dental Expenses Not Covered by Insurance
Unusually High Child Care Costs
Recent Unemployment
Changes in Income
Affected by a Natural Disaster
How to Appeal:
Appeal in Person, If Possible, or Submit a Well-written Letter
Explain Your Situation
Provide Specifics and Documentation
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26. In Review: Financial Aid Basics1. 2. 3. 4. 5.
Use planning tools to estimate the costs.
Submit your FAFSA early at: fafsa.ed.gov
Apply for grants and scholarships.
Review your Award Letters.
If you need to borrow, compare loan options and choose the loans that best fit your needs.
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27. Use Our Free FAFSA® Assistant
Want More Information?
Visit CollegeCovered.com/Assist to learn more about planning and paying for college.
Use Our Free FAFSA® Assistant
Scholarship Search
College Prep Tips
Scholarship Award
Eligible high school seniors and undergraduate college students 16 years and older can enter to win one of forty $2,500 scholarships through February 28, No purchase or loan necessary. Visit CollegeCovered.com/do/rules for official rules.
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28. ©2016 Discover Bank. Member FDIC
Questions
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29. Thank you for joining us today!
Rodney Landrum
Thank you for joining us today!
CollegeCovered.com/Assist
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