1. 1 October 16 th, 2008

2. Topics:  Completing the FAFSA  Eligibility  Common Mistakes when completing the FAFSA  Different types of Federal Aid  Scholarships  Alternative Student Loans 2

3. Eligibility 3

4. Applying for Federal Aid After being accepted to college the next step for a student is to figure out where the money is going to come from to pay for it. The government is a great place to start. There are several different types of loans, grants and work study a student can qualify for. To be eligible for these loans a student must first file the FAFSA (Free Application for Federal Student Aid) 4

5. Applying for Federal Aid The earliest a student can complete the FAFSA for the 2009- 2010 academic year is January 1, 2009. The earlier the FAFSA is completed the better chance the student has of receiving all aid they are eligible for. Please keep in mind that each college or university will also have there own deadlines for when the FAFSA needs to be completed by. Students must re-apply for aid each year. Renewal notification is sent to students towards the end of each calendar year. 5

6. Applying for Federal Aid The deadline for completing the FAFSA for the 2009- 2010 academic year is June 30 th 2009 for the fall semester. Website: http://www.fafsa.ed.gov 6

7. Applying for Federal Aid 7

8. Completing the FAFSA  Student Social Security Number  Drivers License  Student’s W-2’s  Student and Spouse’s Income Tax Return for prior year  Parents Tax Returns for the prior year (if a dependent)  Most Recent Bank Statements  Resident Alien card or Permanent Resident Card 8 Before a student begins filling out their FAFSA they will need to gather the following items:

9. Completing the FAFSA Signing the FAFSA  The FAFSA application cannot be processed until all signatures have been received.  Students and parents can sign the FAFSA electronically with a government issued PIN number or they can print the signature page and mail it in.  You can apply for the pin through the FAFSA website. Both parents and students should apply for separate PINS. You will want to store these pins in a safe place to use again next year when you complete your renewal FAFSA. 9

10. Common Mistakes when Completing the FAFSA  Filing too Late  The student may not qualify for all aid they were eligible to receive  Failure to provide accurate information  Delays the disbursing of funds.  Information such as an incorrect name, social security number and address can be corrected on the FAFSA website until September 15th 10

11. Common Mistakes when Completing the FAFSA  Filing Independent vs. Dependent  Requirements for Independent Status  Married  Over the age of 23  Active in the Military  Have dependents that receive more then half of your income  Working on a Masters Program or Graduate Degree 11

12. Current Federal Loan Options Federal Subsidized LoansFederal Unsubsidized LoansFederal Parent Plus Loan EligibilityDetermined through filing a FAFSA Interest RateCurrently 6.0% FixedCurrently 6.8% FixedCurrently 8.5% fixed Fees1% Origination Fee 3% loan origination fee Loan Limits for dependent students First Year--$3,500 Second Year--$4,500 Third year and beyond $5,500 First Year--$5,500 Second Year--$6,500 Third year and beyond $7,500 Total for both Subsidized and unsubsidized Cost of Education less any financial aid the student receives Co-Signer In most cases a co-signer is not needed No 12

13. Stafford Loans The Government pays the interest The Student pays the interest Amount awarded is need based This loan is not need based and is and determined by the Student’s awarded based on the Student’s and/or the Parent’s income. and/or the Parents income.  The Government disburses the funds directly to the school.  Payments are deferred for 6 months after graduation.  Six month payment deferment for students who drop below half time. 13 SubsidizedUnsubsidized Common Factors

14. Parent Plus Loans  Taken out solely in the parent’s name  Parent’s are responsible for the repayment of this loan. Payments usually begin within 60 days of the final disbursement for the year.  There are some deferment options available  Funds are disbursed directly to the school 14

15. Three Additional Federal Options Perkins Loan Work Study Grants 15

16. Perkins Loan  Need-based loan  The government disburses the funds directly to the school  Interest accrues immediately and is added to the whole loan balance.  Six month deferment after graduation or once the student is no longer enrolled at least half time.  The loan is fixed at 5% 16

17. Work Study  Student Employment  Student works on-campus usually in a job related to their studies  The financial aid office a great place to start when looking for a job that qualifies  The maximum amount a student can receive is determined by the FAFSA  Usually will be between $1000-$2000 per semester  Funds earned go directly towards the cost of education 17

18. Grants  Amount awarded is based on the Student’s and/or Parent’s income.  The student becomes eligible by filing the FAFSA  Grants can be awarded through 3 different sources:  School  The State the School is located in  The Federal Government  Receiving grants is a very competitive process but there are more then 100 grant programs available to students. 18

19. Federal Aid Acceptance  The majority of federal aid is disbursed from Great Lakes Higher Education  Students will need a lender name and code to complete their Master Promissory Note (MPN).  It is best to check with your financial to get this information.  All Federal loans can be monitored on the Great Lakes website at www.mygreatlakes.com 19

20. Scholarships  Free money  Never has to be paid back  Awarded to students for a variety of programs  Ways to Qualify:  Knowledge  Community involvement  Athleticism  Organization involvement  Leadership 20

21. Scholarships  Where to look:  Local Businesses  Local Clubs and Organizations  Financial Institutions  Employer  On-line  Great Websites that I recommend are:  www.fastweb.com  www.scholarships.com 21

22. Scholarship Scams  Tips to avoid Scams:  Be careful of on-line scholarships  Can you find the scholarship on other sites?  Guarantee  Never give out personal account information  Never pay a fee  Scholarships are free money, you should never have to pay to get them 22

23. When Federal Loans are not Enough  Given the strict limits the government has set, the aid they award is often not enough to cover the cost of tuition, books, and room and board.  Alternative/Private Student loans are designed as a solution to this problem. 23

24. Alternative Student Loans  Places to look for alternative student loans:  local credit unions and banks  On-line  Guidance Counselors office at the High School  Financial Aid offices at Prospective Colleges and Universities 24

25. Alternative Student Loans  Structure will vary  Interest Rates are usually based on an index:  Prime Rate  LIBOR Rate  Repayments will vary 25

26. Good to Know Information  Interest paid on federal and alternative student loans may be tax deductible.  The repayment period is based on the total amount borrowed.  All federal loans can be consolidated together after graduation.  At this time alternative student loans cannot be consolidated with Federal Loans on any of the federal loan programs, but all student loans can be consolidated together on an alternative or private program. 26

27. Commonly Used Websites Completing the FAFSA: www.fafsa.ed.gov Monitoring Federal Loans: www.mygreatlakes.com Scholarships: www.fastweb.com www.scholarships.com 27

28. What questions do you have? 28