1. Welcome Thank you for coming. Mrs. Susan Teerlink GRASP Advisor

2. Why Learn About Financial Aid? What you don’t know can cost you money College costs are increasing faster than inflation Current one year average cost of our in-state public 4 year colleges: over $20,000 not including books, transportation, and personal expenses (another $3000 per year) Costs range between $28,000 (William & Mary) and $16,176 (Norfolk State)

3. Two Kinds of Money Your Money Other People’s Money

4. Your Money Income Savings 529, prepaid tuition UTMA, UGMA Annuities Check with your financial advisor and accountant to determine appropriate investments.

5. Other People’s Money Federal Financial Aid State Financial Aid College’s own money Community Scholarships

6. Jargon COA—Cost of Attendance, determined by the colleges EFC—Expected Family Contribution, calculated by the FAFSA SAR—Student Aid Report, generated by the FAFSA and sent to the family Need—amount of money the college will try to provide Gap—COA-(EFC + Financial Aid awarded)

7. Federal Financial Aid FAFSA—Free Application for Federal Student Aid If you do it yourself, you shouldn’t have to pay fees; www.fafsa.gov (don’t use www.fafsa.com)www.fafsa.gov www.fafsa.com If you want to hire someone to do this, be sure they have done hundreds of forms (kind of like hiring a tax accountant)

8. FAFSA Data collection form only. Does not provide money Available January 1 of student’s senior year Income of parents and student Non-retirement assets of parents and student, doesn’t include the home you live in Family size Number of students in college

9. Overriding Formula COA – EFC = Need Additional Research: Percent of Need Met Averages, your student is not an average. Use for comparison purposes only.

10. Examples State College Cost of Attendance=$22,000 Expected Family Contribution=$10,000 $22,000 (COA)- $10,000 (EFC)= $12,000 (Need) Private College Cost of Attendance=$50,000 $45,000 (COA)- $10,000 (EFC)= $35,000 (Need)

11. Percent Need Met State College meets 45% of need $12,000 (Need) *.45 = $5400 Gap $6600 Family pays $16,600 (EFC + Gap) Private College meets 82% of need $35,000 (Need) *.82 = $28,700 Gap $6300 Family pays $16,300

12. Federal Money Used to Meet Need Pell grant (income close to free or reduced lunch eligible.) Max: $5730 Work study. Cannot be used to pay tuition, fees, room, or board. Student loans. Interest, fees and limits.

13. Direct Student Loans Unsubsidized…in student’s name only, fees, interest starts accruing, may be capitalized. Subsidized…in student’s name only, fees, interest is paid by the government until student is no longer enrolled at least half time. Payments start after the student is no loner enrolled at least half time. 10 year pay off.

14. Current Interest Rates and Fees Subsidized and unsubsidized direct Undergraduate student loan: June T-bill rate plus 2.05%, cap: 8.25% Current rate: 4.66%; Fee 1.072% Unsubsidized direct Graduate student loan: June T-bill rate plus 3.6%, cap: 9.5% Current rate: 6.21%; Fee 1.072%

15. Loan Limits Undergraduate yearly limits Freshman--$5500 ($3500) Sophomore--$6500, ($4500) Junior and Senior--$7500 ($5500) Aggregate limit: $31,000 ($23,000) Graduate yearly limits $20,500 Aggregate limit: $138,500

16. Direct Parent Loan Credit check Payments start within 30 to 60 days of the total loan disbursement Fees and interest 10 year pay off If you need this loan for first year, how much will you borrow after 4 or 5 years, for more than one child?

17. Current Interest Rates and Fees Direct Parent Loan (PLUS Loan): June T-bill plus 4.6%; cap 10.5% Current rate: 7.21%; fee: 4.288%. Borrowing limit is the difference between financial aid and the cost of attendance.

18. More Parent Loan Information Example: Cost of Attendance: $23,000 for current year. Financial aid: $10,000 for current year. $23,000-$10,000=$13,000 from family Also called EFC ($10,000) plus Gap ($3000) Parent loan limit: $13,000

19. State Money In Virginia: Public colleges: VGAP, CSAP, Commonwealth Private colleges: VTAG (last year $3100) in danger because of budget cuts Additional grant programs with specific requirements To be eligible for state money you must be attending an in-state school. Residency is determined with different rules in each state.

20. Colleges Own Money Merit money is based on test scores, cumulative GPA, talent, or something else the school wants. Can be renewed based on rules. Grant money, given to needy families as determined by the college. 97% of free money awarded comes from federal, state, and college’s own money.

21. Maximize Merit Opportunities Research average ACT and SAT scores Research average GPA Try to be in the top 10% of incoming freshmen Research opportunities at each colleges, you can use www.meritaid.comwww.meritaid.com Research applications and deadlines…to be eligible for merit money at VCU, you must apply by Dec 1, not the regular admission deadline Jan 15.

22. Community Money Community Scholarships Find by asking guidance, banks, credit unions, community service groups, friends, family, internet. Start with local scholarships, then area, then state (think smallest competitive pool of applicants.) Only about 3% of total money awarded nationally.

23. Community Scholarships Usually based on some or all of the following: Grades Test scores Family income Essays Affiliations Other odd requirements

24. Scholarships and Paying for College Many colleges will not allow you to use community scholarship money to pay your Expected Family Contribution. These colleges will reduce your financial aid by the same amount—usually the student loans.

25. Example COA--$20,000 EFC--$10,000 Need--$10,000 Financial Aid Award--$10,000 (100% need met is unusual) $5500 loan, $1500 work-study, $3000 college grant. Student earns $3000 in community scholarship money. College reduces loan to $2500. Family still needs to pay $10,000.

26. Independent Student You must answer yes to at least one: Are you at least 24 years old? Are you married? Are you in a graduate program? Are you on active duty in the armed services? Are you a veteran of the US armed services? Do you have children you support? Do you have other dependents you support?

27. Independent Student cont. Are both your parents deceased? Have you been in foster care since you were 13? Are you a dependent or ward of the court? Are you an emancipated minor? Are you in legal guardianship? Have you been determined to be homeless? Have you been determined to be an unaccompanied minor, self supporting, or homeless?

28. Independent Students Will have access to higher loan limits. May have access to additional money from the college. Extra $4000 for each of the freshman and sophomore years Extra $5000 for each of the junior and senior years

29. CSS Profile Required by some colleges In Virginia: William and Mary, UVA, Washington and Lee, University of Richmond All Income for both parents and student All Assets for both parents and student Fees: currently $9 for the form plus $16 per school Find at www.collegeboard.org, Paying for Collegewww.collegeboard.org

30. Remember… This is just a general overview. Each family has an unique set of circumstances that the fine points of the process will treat differently. If you have a farm, a business, or other unusual circumstances, you will want to consult with a financial aid specialist. The college has no incentive to give you money; be polite but skeptical.

31. Any Questions?

32. THANK YOU FOR COMING