Download presentation
Presentation is loading. Please wait.
Published byMarjorie Parker Modified over 9 years ago
1
Financial Aid 101 Whitehouse High School October, 2014
2
The Value of a College Education According to the US Bureau of Labor Statistics in 2010, average yearly earnings are higher for college graduates High school diploma $32,552 Bachelor’s degree $53,976 Advanced degrees $70,252
3
Goals of Financial Aid - Affordability Financial aid is funds provided to students and families to help pay for postsecondary educational expenses To provide Access -- regardless of income To provide Choice -- regardless of cost To Recruit -- desirable students Consider Net Cost not Sticker Price
4
Principles of Need Analysis 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 educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect its ability to pay
5
What is Cost of Attendance (COA) Direct costs Indirect costs Direct and indirect costs combined into cost of attendance Varies widely from college to college
6
What is the Expected Family Contribution (EFC) Amount family can reasonably be expected to contribute Stays the same regardless of college Two components – Parent contribution – Student contribution Calculated using FAFSA data and a federal formula
7
Financial Aid Formula Cost of Attendance - Expected Family Contribution = Financial Need
8
Need Varies Based on Cost 1 2 1 3 1 2 3 EFC COA (variable) - EFC (constant) = Need (variable)
9
Financial Aid Applications Free Application for Federal Student Aid (FAFSA) Institutional Financial Aid Application
10
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 May complete the paper FAFSA or on-line (FAFSA on the Web)
11
FAFSA on the Web Web site: www.fafsa.govwww.fafsa.gov 2014-2015 FAFSA available January 1, 2014 FAFSA on the Web Worksheet: Used as “pre-application” worksheet Questions follow order of FAFSA on the Web
12
Student Financial Aid (SFA) Pin Web site: www.pin.ed.govwww.pin.ed.gov Sign FAFSA electronically Not required, but speeds processing Can request PIN prior to January 1, 2014 May be used by students and parents throughout aid process, including subsequent school years
13
Tips before starting Read instructions Do not need to have tax returns completed (“Will File”) Do not have to wait until accepted for admission All info “as of the date you complete the form”
14
Frequent FAFSA Errors Parent and student social security numbers Divorced/remarried parental information Income earned by parents/stepparents Untaxed income U.S. income taxes paid Household size Number of household members in college Real estate and investment net worth
15
Paying for college Historical approach - work, pay as you go, or save up enough money Current approach 1.Past - save from day one, plan ahead 2. Present - adjust lifestyle, use current income, grants and scholarships 3. Future - loans, long term payments
16
Categories of Financial Aid Need-based Non need-based
17
Sources of Financial Aid Federal government States Private sources Civic organizations and churches Employers
18
Common Federal Aid Programs Federal Pell Grant Federal Supplemental Educational Opportunity Grant Teacher Education Assistance for College and Higher Education Grant (TEACH) Federal Work-Study Federal Perkins Loan Federal Direct Loans PLUS Loans
19
College Aid Academic Scholarships Other merit-based scholarships athletic, music, art, leadership, etc. Endowed Scholarships Need-based Grants (State)
20
Other Sources National and Community Service (AmeriCorps) Veterans Benefits Military Service Scholarships (ROTC) Bureau of Indian Affairs (BIA) Grants Vocational and Educational Services for Individuals with Disabilities (VESID)
21
America Recovery and Reinvestment Act of (ARRA of 2009) American Opportunity Tax Credit – Up to $2,500 per student for families with incomes less than $160,000
22
Special or Unusual Circumstances Change in employment status Medical expenses not covered by insurance Change in parent marital status Unusual dependent care expenses
23
Estimating your Eligibility for Financial Aid FAFSA4caster.ed.gov – estimates your eligibility for federal student aid Net Price Calculator – Institutions must now include on their website a calculator that provides the net price for first-time, full-time degree-seeking students.
24
Helpful Hints Apply Beware of scams Pay attention to deadlines Importance of grades Ask questions!
25
Financial Aid Calendar Senior Year of High School January/February -- apply for aid March/April -- receive financial aid award letter from college May 1st -- reply date Summer -- apply for loans August/September -- classes begin, aid applied to account
26
Financial Aid information on the Internet www.finaid.org www.students.gov www.fastweb.com www.nasfaa.org www.Mapping-your-future.org www.collegeboard.org www.salliemae.com www.brokescholar.com www.collegefortexans.com www.collegeweeklive.com www.college.gov www.studentaid.ed.gov
27
For Additional Information CONTACT THE LETU FINANCIAL AID OFFICE 800.759.8811
Similar presentations
© 2024 SlidePlayer.com. Inc.
All rights reserved.