1. THE FINANCIAL AID PROCESS PRESENTED BY EMILY GOLDRICK & MIKE MCGINN OF UNIVERSITY OF CHICAGO

2. WHAT IS FINANCIAL AID? Financial Aid is the term used to describe assistance in funding higher education. Federal Government (Pell Grant, SEOG, Stafford/Perkins) Individual States (Illinois MAP Grant) Individual School Funds (Need-Based Grant Assistance) Private Scholarships (Merit or Need Aid)

3. APPLYING AT ALL SCHOOLS Every school will have different deadlines for admission and financial aid materials Prepare a calendar of admission and aid deadlines Determine which forms are required and the deadlines Visit College & University websites for exact steps and necessary materials The best resource will be the website and the financial aid office

4. APPLYING AT ALL SCHOOLS Applications May Require: 1.FAFSA (Free Application for Federal Student Aid) 2.CSS Profile (www.collegeboard.org)www.collegeboard.org 3.Institutional Aid Application Tax Information Needed: 1.Parents’ and student’s Federal Income Tax Return 2.Parent and student W-2 forms

5. APPLYING AT ALL SCHOOLS Continued: Other Information: 1.Bank/Investment Account Statements, upon request 2.Non-Custodial Parent Information, if applicable 3.Statements of Special Circumstances

6. TYPES OF AID Need-Based Aid vs. Merit-Based Aid What is the difference?

7. MERIT AID & OUTSIDE SCHOLARSHIPS Merit Aid or Merit Scholarships are based on the student’s academics & achievements rather than their demonstrated need Sources of Merit Aid include: 1.Private Sources 2.Private Scholarship Search 3.Civic Organizations & Churches 4.Employers

8. PRIVATE SOURCES Foundations, businesses, charitable organizations, Colleges/Universities Deadlines & application procedures are varied Begin researching private merit aid sources early Utilize free scholarship searches

9. PRIVATE SCHOLARSHIP SEARCH FREE internet scholarship search engines: FinAid on the web: www.finaid.orgwww.finaid.org College Board: http://apps.collegeboard.com/cbsearch_ss/welcome.jsp FastWeb: www.fastweb.comwww.fastweb.com Illinois Student Assistance Commission (ISAC) www.collegezone.com BEWARE OF SCHOLARSHIP SCAMS!

10. CIVIC ORGANIZATIONS & CHURCHES To what church/organizations does the student or family belong? Research availability in your community Application process typically occurs during the spring of senior year Remember: small scholarships add up!!

11. EMPLOYERS Parents’ companies may offer scholarship to children of employees Companies also may have educational benefits for their employees

12. NEED-BASED AID Schools must determine your financial need in order to award you funds: WHAT IS NEED? Cost of Attendance – Family Contribution = Financial Need

13. COST OF ATTENDANCE Tuition & Fees Room & Board Books, supplies, transportation, & miscellaneous personal expenses Loan fees Study Abroad Costs

14. PRINCIPLES OF NEED ANALYSIS Parents have primary responsibility to fund the dependent child’s undergraduate education Students also have responsibility to contribute to educational costs Families will be evaluated in their present financial condition

15. CALCULATING FAMILY CONTRIBUTION Parental contribution is based on a combination of: 1.Previous year’s income 2.Parental assets Student contribution is made of: 1.20% to 25% of student assets 2.A portion of student’s prior year income

16. FORMS & DOCUMENTS FAFSA- Free Application for Federal Student Aid CSS Profile Form Institutional Aid Application Federal Income Tax Return Non-Custodial CSS Profile (NCP)

17. FAFSA WWW.FAFSA.ED.GOV 2014-2015 FAFSA available on January 1, 2014 File online or submit a paper copy Reasons to file online: 1.Direct transfer of taxes, using DRT to IRS.gov 2.Built-in edits to prevent errors 3.Offers detailed instructions and “help” for common questions 4.Simplifies renewal process

18. PIN REGISTRATION WWW.PIN.ED.GOV A PIN number is a 4-digit code used to electronically sign the FAFSA Student and parent must have separate PIN numbers Your PIN may be used subsequent years

19. FAFSA PROCESSING RESULTS CPS notifies student of FAFSA results by: E-mail notification containing link to online SAR (student aid report) Student may view SAR online though www.fafsa.ed.gov

20. CSS PROFILE WWW.COLLEGEBOARD.COM The CSS Profile is required of some, but not all colleges and universities Application is customized to tailor methodology of individual schools Fee may be waived depending on financial information provided on Profile form Non-Custodial Profile (NCP) available when applicable

21. FEDERAL AID Pell Grant FSEOG-Federal Supplemental Educational Opportunity Grant MAP Grant- Illinois Monetary Award Program Grant Federal Work-Study Federal Stafford Loans Federal Direct Stafford Loans Federal Direct Parent Plus Loans

22. FEDERAL PELL GRANT Awarded to eligible undergraduates pursing first baccalaureate degree Award amount based on COA, EFC, & enrollment Annual maximum for 2014-2015 is $5,645 Portable

23. FSEOG Federal Supplemental Educational Opportunity Grant Undergraduates pursuing first baccalaureate degree Awarded to students with “exceptional financial need” (as demonstrated by lowest EFC) Priority given to recipients of Federal Pell Grant Annual award amounts: o $100 minimum & $4000 maximum

24. MAP GRANT Illinois Monetary Award Program Need-base grant available to Illinois residents who enroll in Illinois post-secondary institutions Available to U.S Citizens & U.S. Permanent Residents Eligibility determined from date on FAFSA Current maximum award amount is $4,720

25. FEDERAL WORK-STUDY Eligible students include: undergraduate, graduate, & professional students Schools must use portion of FWS for community service employment activities Employment may be on or off-campus Eligible employers: 1.Schools 2.Federal, state, or local public agencies 3.Select private non-profit & for-profit organizations

26. FEDERAL PERKINS LOAN Eligible students include undergraduate, graduate, & professional students Priority to students who show “exceptional need,” as determined by the school Loan amount varies Maximum annual loan amounts: o $5,500 – undergraduate o $8,000 – graduate & professional

27. FEDERAL DIRECT STAFFORD LOAN Subsidized & Unsubsidized eligibility Base annual loan limits depending on level in College o $5,500 for 1st year undergraduates; maximum subsidized $3,500 o $6,500 for 2 nd year undergraduates; maximum subsidized $4,500 o $7,500 for each remaining undergraduate year; maximum subsidized $5,500

28. SUBSIDIZED FEDERAL DIRECT STAFFORD LOAN Interest rate: 3.86% for loans made from July 1, 2013 to June 30, 2014 Interest does not accrue on subsidized loan while enrolled in school at-least half-time Loan fee based on principal amount of each loan of 1.0%

29. UNSUBSIDIZED FEDERAL DIRECT STAFFORD LOAN Fixed interest rate of 3.86% Interest accrues at first disbursement Loan fee based on principal amount of each loan 1.0%

30. FEDERAL DIRECT STAFFORD LOANS (SUBSIDIZED & UNSUBSIDIZED) Repayment begins 6 months after student drops below 1/2 time enrollment 5 repayment plans, from 10-25 years Deferment, forbearance, & forgiveness provisions available

31. DIRECT PARENT PLUS LOAN Loan program for parents of dependent undergraduate students Annual loan limit: no annual or aggregate amounts, except parent or grad/professional student may not borrow more than the difference between the COA and other financial assistance the student receives Fixed interest rate: 6.4% Interest accrues at first disbursement

32. Questions?

33. Understanding Your Financial Aid Award

34. IMPORTANT TERMINOLOGY Total Cost of Attendance-Total estimate cost to attend for the academic school year Includes: tuition, room & board, personal expenses, travel, books and more. Expected Family Contribution- The amount the school expects the family to provide Sometimes broken into student/parent contributions COA-EFC=DEMONSTRATED NEED

35. TERMINOLOGY, CONTINUED Gift Aid- Funds awarded that do not need to be repaid Includes: grants, scholarships, stipends, etc. Loans- Funds that must be repaid Includes: Stafford, Perkins, & Plus Loans Note! Subsidized Stafford & Perkins Loans are awarded to students with demonstrated financial need Work Expectation- An amount the school expects the student to earn throughout the school year

36. WHY MAY AWARDS DIFFER BY SCHOOL? Merit Awards- You may be offered Merit Scholarships in addition to Need-Based Aid Expected Family Contribution-Some schools utilize different formulas from the FAFSA, ex. CSS Profile Amount of Need Covered by Aid-Some schools cover 100% of need, others less Different Information? Did you provide some information to one office but not others?

37. NET-PRICE CALCULATOR A customized calculator families may use to determine eligibility for institutional aid at select school Facilitated through College Board and specific to individual school Questions include: income, assets, household size, etc.

38. FINAL TIPS! All schools have their own requirements & deadlines Prepare a calendar of admission & financial aid deadlines Determine which forms are required & the deadlines by which they must be submitted. It is imperative you meet these deadlines. Reply promptly to all requests for information or clarification of information submitted Don’t be afraid to ask questions!!

39. Questions?