1. Whitehouse High School
2/22/2010
Financial Aid 101
Whitehouse High School
November 07, 2016

2. The Value of a College Education
2/22/2010
The Value of a College Education
According to the US Bureau of Labor Statistics in 2015, average yearly earnings are higher for college graduates and unemployment rates are lower:
Master’s degree $69,732
Bachelor’s degree $59,124
High school diploma $35,256
Highest
Degree
Unemployment Rate
Master’s
2.4%
Bachelor’s
2.8%
High School
5.4%

3. Goals of Financial Aid - Affordability
2/22/2010
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

4. Important Information
2/22/2010
Important Information
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 education costs must be evaluated in an equitable and consistent manner

5. Financial Aid Applications
2/22/2010
Financial Aid Applications
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
Institutional Financial Aid Application

6. 2/22/2010
Early FAFSA
In October 2015, through an act signed into law by President Obama, two major changes to the FAFSA process were announced.
1. Can apply beginning in October (rather than January)
2. Will use “prior-prior” year tax return
For students planning to enroll in fall ‘17, the FAFSA will be available October 1, 2016

7. Why changes to the FAFSA process?
2/22/2010
Why changes to the FAFSA process?
Better align the admissions and financial aid processes
Give students and families an earlier and more accurate idea of their anticipated financial aid and college costs
Allow the use of actual rather than estimated tax information when submitting the FAFSA
May result in reduced paperwork for verification

8. FAFSA If you plan to attend College From You can submit the FAFSA From
2/22/2010
FAFSA
If you plan to attend College From
You can submit the FAFSA From
Using Tax Info From
July 1, 2015-June 30, 2016
Jan. 1, 2015 – June 30, 2016
2014
July 1, 2016-June 30, 2017
Jan. 1, 2016 – June 30, 2017
2015
July 1, 2017-June 30, 2018
Oct 1, 2016 – June 30, 2018
July 1, 2018-June 30, 2019
Oct 1, 2017 – June 30, 2019
2016

9. Getting the FAFSA started
2/22/2010
Getting the FAFSA started
Create a Federal Student Aid ID (FSA ID)
Available to create FSA ID (username/password) TODAY
Students and parents should EACH create their own Federal Student Aid ID
fsaid.ed.gov

10. Tips for starting the FAFSA
Make sure the FSA ID has been created
Read questions carefully – student vs. parent
Do not need to have tax returns completed but most will since based on prior tax return
Do not have to wait until accepted for admission
All info “as of the date you complete the form”

11. 2/22/2010
IRS Data Retrieval
While completing the FAFSA, applicant may submit real-time request to IRS for tax data
IRS sends real-time results to applicant in new window
Applicant chooses whether or not to transfer data to FAFSA
Tax returns must already be filed
Could reduce documents requested by financial aid office

12. What is Cost of Attendance (COA)
2/22/2010
What is Cost of Attendance (COA)
Direct costs
Indirect costs
Direct plus indirect cost equal cost of attendance
Varies widely from college to college

13. What is the Expected Family Contribution (EFC)
2/22/2010
What is the Expected Family Contribution (EFC)
Calculated using FAFSA data with a federal formula
Stays the same regardless of college
Two components
Parent contribution
Student contribution

14. Expected Family Contribution
2/22/2010
Financial Aid Formula
Cost of Attendance
Expected Family Contribution
= Financial Need

15. Need varies based on cost
2/22/2010
Need varies based on cost X Y Z
Cost of
Expected Family
Need
Attendance
Contribution
Variable
Constant 1 2 3
EFC

16. Financing a College Education
2/22/2010
Financing a College Education
Combination of Resources
Family
Federal Government
State Government
College
Private Sources

17. Federal Financial Aid Programs
2/22/2010
Federal Financial Aid Programs
Federal Pell Grant
FSEOG
Federal College Work-Study Program
Federal Perkins Loan
Federal Direct Loans
Subsidized Federal Direct Loan
Unsubsidized Federal Direct Loan
Parental Loan for Undergraduate Students (PLUS)

18. 2/22/2010
State Grants
Texas Tuition Equalization Grant awarded at private institutions
Check out collegeforalltexans.com for grant availability at public institutions
Discuss briefly

19. College Aid Academic Scholarships
2/22/2010
College Aid
Academic Scholarships
Other merit-based scholarships athletic, music, art, leadership, etc.
Endowed Scholarships
Need-based Grants

20. Private Sources Local community organizations and foundations
2/22/2010
Private Sources
Local community organizations and foundations
Alternative education loans
Employers
Internet
Small scholarships add up!

21. Estimating your Eligibility for Financial Aid
2/22/2010
Estimating your Eligibility for Financial Aid
FAFSA4caster.ed.gov - estimates your eligibility for federal student aid
Net Price Calculator – Institutions must include on their website a calculator that provides the net price for first-time, full- time degree-seeking students

22. Financial Aid Websites
2/22/2010
Financial Aid Websites
finaid.org
studentaid.ed.gov
fastweb.com
mappingyourfuture.org
nasfaa.org

23. Financial Aid Calendar for Enrollment in Fall ‘17
2/22/2010
Financial Aid Calendar for Enrollment in Fall ‘17
Late summer/early fall 2016 – apply to college
October/November apply for aid
November 2016 – March receive financial aid award letter from college
May 1st, reply date
Summer apply for loans
September classes begin, aid applied to account

24. 2/22/2010
Brenda Thomas Nicole Vandegriff LeTourneau University Financial Aid Counselors ext 4350