1. Family Guide to Financial Aid at Harding

2. Resources Family contribution Tax savings Scholarships Grants
Work Study
Student loans
Parent loan

3. How financial need is determined
Formula established by Congress and implemented by the U.S. Department of Education
Cost of Attendance (COA)
- Expected Family Contribution (EFC)
= Financial Need

4. Cost of Attendance Fixed Costs: Estimated Costs: Tuition & Fees
Room & Board
Estimated Costs:
Books & Supplies
Transportation
Miscellaneous & Personal Expenses

5. Family contribution
Based on federal guidelines, it is assumed that both parents and students are expected to contribute to educational costs, at a rate based upon your financial ability to do so.

6. Expected Family Contribution factors
Parent’s prior/prior year income
Value of parent’s assets
Number of household members
Age of the oldest parent
Student’s prior/prior year income
Value of student’s assets
Number in household attending college

7. Theory of Financial Aid
A B C
COA , , ,000
EFC , , ,500
Need , ,500

8. Filling out the FAFSA Not Difficult
Have completed tax return (for prior/prior year) handy –
IRS Data Transfer
Point in Time Document
Help is available
Must have a FSA ID for both student and one parent (fafsa.gov)

9. Submitting the FAFSA FAFSA on the web - fafsa.gov
Approximate processing time:
3 business days

10. Tax benefits
- Consult your tax adviser or see IRS Publication 970 (available at for information on education tax benefits

11. Important changes for 2017-18!
The FAFSA is available online on October 1, 2016.
It will utilize “prior-prior year” income information. Thus, the FAFSA will require 2015 IRS information, the same as the FAFSA. Going forward, virtually everyone should be able to use the IRS Data Retrieval Tool.

12. Sources of Financial Aid
Federal Government
Pell Grant
SEOG (Grant)
TEACH Grant
College Work Study
Perkins Loan
Fed Direct Stu Loan
Parent PLUS Loan
State Governments
State supported aid
Institutional Programs
Scholarships
Grants
Loans
Private Resources
Comm. & Religious organizations
Corporations

13. Federal grants Federal Pell Grant
EFC of 5328 or less ( )
Ranges from $596 to $5,920 ( )
Apply by submitting FAFSA
Federal Supplemental Educational Opportunity Grant (SEOG)
Extremely high need
$500
Limited funding

14. Federal grants TEACH Grant / Loan www.teachgrant.ed.gov
- $4,000 per year (undergrad/grad) less sequestration reduction
- Academic achievement requirements
- Agreement to serve and counseling requirements
- Must teach in high need field (bilingual education and English language acquisition, foreign language, math, reading specialist, science, special education)
- Must teach in a school serving low-income students on approved list for four years out of eight year period
- If conditions are not met, grant becomes an unsubsidized Federal Direct loan with interest backdated to first disbursement

15. Work Study Apply for federal Work Study by submitting FAFSA
Student seeks job on campus
Two rates of pay offered, based on need:
1. Federal Work Study is need-based (AR minimum $8 per hour)
2. Harding Work is NOT need-based ($6.80 per hour)

16. Federal Direct student loan
Subsidized if need-based (government pays interest in school)
Unsubsidized if not need-based (interest accrues in school)
$5,500 freshmen ($3,500 sub + $2,000 unsub)
$6,500 sophomores
($4,500 sub + $2,000 unsub)
$7,500 juniors/seniors
($5,500 sub + $2,000 unsub)
Fixed interest rate 3.76% ( )
Origination fee 1.068%
6 month grace period
Submit FAFSA to apply
Entrance counseling and Master Promissory Note required (
Aggregate loan limits

17. Federal Direct PLUS parent loan
A parent may borrow up to the cost of attendance minus any other financial aid awarded
Parent borrower must be credit-worthy
Parent cannot obtain PLUS loan without completing FAFSA
Fixed interest rate 6.31% ( )
Origination fee 4.272%
Deferment available while student is in school, but interest will accrue

18. Federal Direct PLUS parent loan
Apply at after April 1
- Sign in as parent using parent FSA ID
- Complete PLUS application and PLUS MPN
If PLUS denied due to adverse credit, student awarded additional Federal Direct unsubsidized loan automatically
$4,000 (freshmen and sophomores)
$5,000 (juniors and seniors)

19. Non-federal student loan
To be utilized only after all other types of aid are awarded
Interest rates and fees vary based on credit worthiness
Credit-worthy co-borrower required for most students
Allow at least 30 days to process
For information visit
and click on “Apply for Student/Parent Loans” and then click on “Alternative Private Loan Search”

20. Applying for financial aid
Free Application for Federal Student Aid (FAFSA)
Obtain FSA ID for parent and student at fsaid.ed.gov (retain to use again)
2) Complete FAFSA at after October 1 but before HU’s February 15 priority deadline
Utilize IRS Data Retrieval Tool within FAFSA
3) If selected for verification, promptly follow instructions in student’s Pipeline account (red flags)
For an early estimate,
use

21. Award notification
After FAFSA is processed, sent and award letter mailed
If “selected for verification”, required documents must be submitted
Tracking notice sent if any requirements are missing
Revised award and tracking notices sent by

22. Important changes for 2017-18!
The FAFSA is available online on October 1, 2016.
It will utilize “prior-prior year” income information. Thus, the FAFSA will require 2015 IRS information, the same as the FAFSA. Going forward, virtually everyone should be able to use the IRS Data Retrieval Tool.

23. Scholarships and info www.harding.edu/finaid www.fastweb.com
(Arkansas residents)
Ask your high school guidance counselor about local scholarships

24. Arkansas Scholarships www.adhe.edu
Arkansas Academic Challenge funded by the Arkansas Scholarship Lottery
Governor’s Distinguished Scholars Program

25. Arkansas Scholarships www.adhe.edu
Arkansas Academic Challenge –
Graduate from an AR high school (public, private or home)
At least a 19 ACT Composite
Apply between Oct. 1 and June 1 at adhe.edu. Click on “YOUniversal” app.
$1,000 for freshman year!*
*Academic Requirements for renewal

26. Arkansas Scholarships www.adhe.edu
Arkansas Academic Challenge –
2-year schools
- $1,000 first year
- $3,000 second year

27. Arkansas Scholarships www.adhe.edu
Arkansas Academic Challenge –
4-year schools
- $1,000 first year (no matter hours earned)
- $4,000 second year
- $4,000 third year
- $5,000 fourth year

28. Arkansas Scholarships www.adhe.edu
Governor’s Distinguished Scholarship -
$10,000 annually*!
1. Achieve at least a 32 ACT (1410 SAT) – prior to 12/31 and have at least a 3.5 high school GPA
- OR -
2. Selected as a National Merit Finalist or a National Achievement Finalist

29. Arkansas Scholarships www.adhe.edu
Governor’s Distinguished (continued) -
Financial need NOT a factor
Arkansas resident for at least 6 months
Apply between October 1 and February 1
Up to 300 scholarships funded each year
*Academic requirements for renewal

30. Arkansas Scholarships www.adhe.edu
Academic requirements for renewal
- At least 12 hours first semester
- At least 15 hours thereafter
- At least 2.5 GPA
- *120 hour limit

31. Arkansas Scholarships www.adhe.edu
- Must have active account
Must accept scholarship by deadline
Different deadlines

32. Institutional Scholarships
4 Types
Academic Scholarships
Athletic Scholarships
Departmental Scholarships
Miscellaneous Scholarships

33. Private Scholarships 1. Businesses & Corporations 2. Employer
3. Church

34. Academic Scholarships
Recommendations
Take ACT/SAT often (Spring exams)
Take on leadership roles
Invest in Study Skills materials

35. For questions or a copy of this PowerPoint
Mark Pruitt