1. Intern- AHHS College Counseling
Financial Aid 101
Zoe McSwain Jackson
Intern- AHHS College Counseling

2. Today’s Topics Federal Student Aid Programs
FAFSA Overview: When/How to Apply
Federal Student Aid Resources
Question and Answer

3. Sources of Money for College
Federal government
Colleges and universities
Private foundations
Employers and private companies
Professional and service organizations

4. Myths About Financial Aid
“...the form is too hard to fill out.”
Reality: The FAFSA is easier than ever, especially if you fill it out online at 4

5. Myths About Financial Aid
“…My child can’t receive financial aid because I am currently in school receiving financial aid. Reality: Just because a parent is receiving financial aid does not mean your child is ineligible. Both the parent and child can receive financial aid. 5

6. Myths About Financial Aid
“…my parents make too much money, so I won’t qualify for aid.”
Reality: There is no income cutoff to qualify for federal student aid. 6

7. Myths About Financial Aid
“only students with good grades get financial aid.” Reality: While in high school, your grades are not a factor in qualifying for federal aid, however, once in college you will have to maintain a certain GPA to receive aid. 7

8. There is more than $150 billion available
Pell Grant
Has been reduced to two semester
Use to be year-round (including fall, summer and spring)
Award has been capped at six years
CAMPUS-BASED AID!!!
Low Interest Loan (5%) for UNDERGRAD & GRAD STUDENTS
Subsidized Loan that is paid back to the SCHOOL
Your INSTITUTION IS YOUR LENDER!!!
Amount YOU received based on WHEN YOU APPLY, FINANCIAL NEED, FUNDING LEVEL OF THE SCHOOL!!
GRACE PERIOD: 9 MONTHS after you COMPLETE SCHOOL!!
There is more than $150 billion available
in federal aid to help students pay for college 8

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11. Stafford Direct Loans Subsidized Loans Unsubsidized Loans
Government PAYS the accrued interest while you are attending college and other eligible periods
Based on Financial Need
Fixed Rate
Undergraduate students
Amount: Up to $5,500
Unsubsidized Loans
The borrowers is responsible for the interest for the life of the loan
NOT Based on Financial Need
Fixed Rate
Undergraduate and graduate students qualify
Amount: Up to $20,500
Depending on grade level and status 11

12. Interest Rates for Federal Loans
 Loan Type
Interest Rates
(First Disbursed between July 1, 2015 and June 30, 2016)
Repayment
Federal Perkins Loan
5% Fixed
9 months after school
Federal Stafford/ Direct Loan Undergraduate
Subsidized
4.29% Fixed
Unsubsidized
6 months after school
Federal Direct PLUS Loan (Parents, Graduate & Professional)
6.84% Fixed Direct Lending Schools
May be deferred until 6 months student drop ½ time or 60 days after loan is fully disbursed 12

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14. Financial Aid 101
What is the FAFSA

15. FAFSA 101
Free
Application
for
Federal
Student
Aid 15

16. The next screen shows us the FAFSA “Home” page
The next screen shows us the FAFSA “Home” page. Notice that it looks exactly like the live FAFSA site. And it performs just like the live site too, with the exceptions that I mentioned earlier. If you want to test an initial FAFSA experience, click on Start a New FAFSA. If you want to use our preloaded data to make a correction, add a school, or something like that, click on Login. 16

17. Must complete the FAFSA every year to receive federal student aid
FAFSA Overview
Must complete the FAFSA every year to receive federal student aid
Both the student and the parent need an FSA ID
Students are encouraged to file their FAFSA as soon as possible starting October 1st of their senior year in high school
The earlier the better!!!
Loans must be repaid
Loan AMOUNT VARIES!!
Perkins Loan
CAMPUS-BASED AID!!!
Low Interest Loan (5%) for UNDERGRAD & GRAD STUDENTS
Subsidized Loan that is paid back to the SCHOOL
Your INSTITUTION IS YOUR LENDER!!!
Amount YOU received based on WHEN YOU APPLY, FINANCIAL NEED, FUNDING LEVEL OF THE SCHOOL!!
GRACE PERIOD: 9 MONTHS after you COMPLETE SCHOOL!! 17

18. Basic Eligibility Requirements
Students must have:
Have a high school diploma, GED certificate, or have completed homeschooling. If you don’t, you may still be eligible for federal student aid if you were enrolled in college or career school prior to July 1, Go to for additional information
A Social Security Number (with limited exceptions)
U.S. citizenship or be an eligible non-citizen
Registered with the Selective Service (Males)
Students also need to:
Be enrolled or accepted for enrollment in an eligible program
Be pursuing a degree, certificate or credential
Maintain ‘Satisfactory Academic Progress’

19. FAFSA Dependency Status
If any of the following criteria applies, the student is considered independent:
24 years or older
Married
Pursuing a Master’s or Doctorate Program
Children and you provide ½ support
In foster care since turning the age of 13
Emancipated minor
Currently or was in legal guardianship
Homeless or self supporting and at risk of being homeless
Veteran or serving active duty in U.S. Armed Force

21. IRS Data Retrieval Tool
Transfer tax information directly into the FAFSA
Takes 2-3 weeks for information to become available in Retrieval Tool Database
Easiest way to provide tax information but NOT required
Available now!!
Remember, that undocumented students can complete the FAFSA too. Private schools and some states can award aid, but this student doesn’t qualify for FSA.
Examples of eligible noncitizens –
a permanent U.S. resident with a Permanent Resident Card (I-551);
(2) a conditional permanent resident (I-551C); or
(3) the holder of an Arrival-Departure Record (I-94) from the Department of Homeland Security showing any one of the following designations: “Refugee,” “Asylum Granted,” “Parolee” (I-94 confirms that you were paroled for a minimum of one year and status has not expired),
“Victim of human trafficking,” T-Visa holder (T-1, T-2, T-3, etc.), or “Cuban-Haitian Entrant.”
. If you are neither a citizen nor an eligible noncitizen, you are not eligible for federal student aid. However, you should still complete the application, because you may be eligible for state or college aid.
Required Financial Information: Assets Taxable Income Child Support, FARM, TANF Food Stamps Alimony, Pensions
NOT REQUIRED: Mortgage 401K Plan

22. What To Expect
Student reviews award package; compares to other award letters; student determines which college to attend
College reviews info and assembles award package for the student
Student completes the FAFSA and signs with FSA ID
FAFSA is processed by FSA; Student receives a SAR; College receives information if listed on the FAFSA
Once you complete the FAFSA you are provided a student aid report (SAR). The SAR will contain your EFC (expected family contribution), which is the number that's used to determine your eligibility for federal student aid. This number results from the financial information you provide in your FAFSA. In addition to the financial info you provide on the FAFSA, you can also list up to 10 schools. Once your FAFSA is complete, the information is sent off the schools you listed and then you will receive an award letter from the schools.

23. College Costs and Financial Need
Cost of Attendance
Tuition & Fees
Room & Board
Books & Supplies
Equipment & Transportation
Miscellaneous Personal Expenses
Child Care
Parent Contribution
+ Student Contribution
= Expected Family Contribution (EFC)
Cost of Attendance (COA)
- Expected Family Contribution (EFC)
= Financial Need
Net price calculator/shopping sheet

24. CSS Profile Similar to FAFSA- created by The College Board
May provide additional funding that the FAFSA cannot
More thorough picture of a family’s financial situation
Not all schools accept the CSS Profile- make sure you check with individual schools!
Remember, that undocumented students can complete the FAFSA too. Private schools and some states can award aid, but this student doesn’t qualify for FSA.
Examples of eligible noncitizens –
a permanent U.S. resident with a Permanent Resident Card (I-551);
(2) a conditional permanent resident (I-551C); or
(3) the holder of an Arrival-Departure Record (I-94) from the Department of Homeland Security showing any one of the following designations: “Refugee,” “Asylum Granted,” “Parolee” (I-94 confirms that you were paroled for a minimum of one year and status has not expired),
“Victim of human trafficking,” T-Visa holder (T-1, T-2, T-3, etc.), or “Cuban-Haitian Entrant.”
. If you are neither a citizen nor an eligible noncitizen, you are not eligible for federal student aid. However, you should still complete the application, because you may be eligible for state or college aid.
Required Financial Information: Assets Taxable Income Child Support, FARM, TANF Food Stamps Alimony, Pensions
NOT REQUIRED: Mortgage 401K Plan

25. Federal Student Aid Resources25

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27. Comparison Shopping – College Navigator 27

28. College Scorecard College Scorecard
An online tool that will make it easier for students and families to compare colleges by comparing information such as: net price; graduation rates; default rates; student loan debt; and earnings potential 28

29. FSAIC 1-800-4-FED-AID (1-800-433-3243)
The Federal Student Aid Information Center (FSAIC) operates a toll-free hotline to provide comprehensive assistance in English, as well as Spanish on:
General information about federal student aid (Title IV programs);
The FAFSA application (paper and online);
FAFSA corrections;
Student loan history
FED-AID ( )
Hours:
Monday through Friday
8:00a.m. – 11:00p.m. ET
Saturday and Sunday
11:00am – 5:00pm 29

30. Financial Aid 101
Questions? 30