1. Financing Education Beyond High School 2009-10 Don Hilton Panhandle-Plains Student Loan Center NASFAA TASFAA

2.  FAFSA  Institutional Financial Aid Application  Admissions Application  Scholarship Applications ?? Numerous Applications?? Be Aware of Deadlines

3. Goal of financial aid  Help students pay for college  Achieved by: Evaluating family's ability to pay for educational costs, andEvaluating family's ability to pay for educational costs, and Distributing limited resources in a fair and equitable mannerDistributing limited resources in a fair and equitable manner

4. Free Application for Federal Student Aid (FAFSA)  The application for federal aid Many states and schools use it for their own aid Many states and schools use it for their own aid Collects student’s and parents’ financial and demographic informationCollects student’s and parents’ financial and demographic information Information used to calculate Expected Family Contribution (EFC)Information used to calculate Expected Family Contribution (EFC)

5. Two FAFSA formats  Electronic (FAFSA on the Web) www.fafsa.ed.gov www.fafsa.ed.gov Most common and easiest way to applyMost common and easiest way to apply Check status and make corrections onlineCheck status and make corrections online Electronic signatureElectronic signature -www.pin.ed.gov  Paper Beginning 2008-2009, students must call the Federal Student Aid Information Center at 1-800-4-FED-AID to request a paper FAFSABeginning 2008-2009, students must call the Federal Student Aid Information Center at 1-800-4-FED-AID to request a paper FAFSA May also download pdf FAFSA at www.FederalStudentAid.ed.govMay also download pdf FAFSA at www.FederalStudentAid.ed.gov

6. FAFSA on the Web  Good reasons to file electronically: Built-in edits to help prevent costly errors Built-in edits to help prevent costly errors Skip-logic allows student and/or parent to skip unnecessary questions Skip-logic allows student and/or parent to skip unnecessary questions More timely submission of original application and any necessary corrections More timely submission of original application and any necessary corrections More detailed instructions and “help” for common questions More detailed instructions and “help” for common questions Ability to check application status on-line Ability to check application status on-line Simplified renewal application process Simplified renewal application process

7. CAUTION! Avoid being charged a fee to file the FAFSA Processes of completing and processing the FAFSA are FREE Processes of completing and processing the FAFSA are FREE If filing FAFSA on the Web, make sure you go directly to: www.fafsa.ed.gov If filing FAFSA on the Web, make sure you go directly to: www.fafsa.ed.gov www.fafsa.ed.gov 2009-10 FAFSA on the Web available on January 1, 2009 2009-10 FAFSA on the Web available on January 1, 2009 Contact the financial aid office if you need help in completing the FAFSA Contact the financial aid office if you need help in completing the FAFSA

8. Need Help? o Your colleges Financial Aid Office o call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433- 3243) or 1-319-337-5665 ( U.S. Dept of Ed.) o www.fafsa.ed.gov/contact.htm o Your counselor o PPSLC

9. Student Financial Aid (SFA) PIN  Web site: www.pin.ed.gov  Sign FAFSA electronically  Can request PIN before January 1, 2009  Not required, but speeds processing  May be used by students and parents throughout aid process, including subsequent school years

10. General Student Eligibility Criteria  Must be enrolled or accepted for enrollment in eligible program of study pursuing degree, certificate, or other recognized credential  Must be U.S. citizen or eligible noncitizen  Must be registered with Selective Service (if male and required)

11. General Student Eligibility Criteria  Must have valid Social Security Number (SSN)  Must be making satisfactory academic progress (as defined by school)

12. FINANCIAL NEED ANALYSIS  Need calculation Cost of Education (COA)- includes Tuition and Fees, books and supplies, room and board, personal, and travel Cost of Education (COA)- includes Tuition and Fees, books and supplies, room and board, personal, and travel - Expected family contribution (EFC) ----------------------------- = Assistance needed (NEED)

13. Definition of need EFC 7k EFC (Constant) COA (Variable) 21k11k15k Need (Variable) EFC 7k 8k4k14k Private Public 2-year Public 2-year

14. Types of Financial Aid o Grants o Scholarships o Loans o Employment

15. Grants  Money that does not have to be paid back  Usually awarded on the basis of financial need  Federal - Federal Pell Grant, Federal Academic Competitiveness Grant (ACG), Federal SMART Grant, Federal SEOG (FSEOG), Federal Work-Study, TEACH Grant  State - Texas Public Education Grant (TPEG), Toward EXcellence, Access, and Success (TEXAS) Grant, Texas Educational Opportunity Grant (TEOG), Texas Equalization Grant (TEG), Texas Work-Study, Top Ten Percent Scholarship ¨ All eligibility is determined by the school Except for the Federal Pell Grant

16. Scholarships  Money that does not have to be paid back  Awarded on the basis of merit, skill, or unique characteristic  Organizations, Foundations, Employers, Schools

17. Scholarship Information  Check private sources Local organizations/clubs Local organizations/clubs Parents employer Parents employer High School High School  Institutional sources Academic departments Academic departments Financial Aid Office Financial Aid Office Unique scholarship programs Unique scholarship programs Watch out for Scams !

18. Free Internet scholarship search: Free Internet scholarship search:  FinAid on the Web: www.finaid.org  College Board: www.collegeboard.com  FastWeb: www.fastweb.monster.com  Scholarship Resource Network Express: www.srnexpress.com  GoCollege: The Collegiate Websource: www.gocollege.com  Schoolsoup.com

19. Employment  Allows student to earn money to help pay educational costs A paycheck A paycheck Non-monetary compensation, such as room and board Non-monetary compensation, such as room and board

20. Loans  Money students and parents borrow to help pay college expenses  Repayment usually begins after education is finished  Only borrow what is really needed  Look at loans as an investment in the future  Stafford, PLUS, Perkins, CAL, Private

21. FEDERAL STAFFORD LOAN (Subsidized and Unsubsidized) FEDERAL STAFFORD LOAN (Subsidized and Unsubsidized)  Determination of Federal Pell Grant eligibility (FAFSA)  Subsidized Stafford: must demonstrate “need”  Unsubsidized Stafford: need not a factor  Annual loan limits (reduced limits for enrollment of less than one full academic year) $3,500 (1st year undergraduates) $3,500 (1st year undergraduates) $4,500 (2nd year undergraduates) $4,500 (2nd year undergraduates) $5,500 (each remaining year of undergraduate study) $5,500 (each remaining year of undergraduate study) $8,500 (each year, graduate or professional study) $8,500 (each year, graduate or professional study) Additional $2000 unsubsidized per year (2008) Additional $2000 unsubsidized per year (2008)  Delayed repayment and deferment provisions  May have origination fee (.5%)

22. Interest Rates Interest Rates   The interest rate on new subsidized Stafford loans will gradually reduce to 3.4 percent. Interest rates, for new originations only, would be reduced under the following schedule: loans first disbursed on or after July 1, 2009 and before July 1, 2010: 5.6 percent loans first disbursed on or after July 1, 2010 and before July 1, 2011: 4.5 percent loans first disbursed on or after July 1, 2011 and before July 1, 2012: 3.4 percent   Loans with first disbursements after Jul. 1, 2012 would again carry the 6.8 percent fixed rate.   Unsubsidized loans are 6.8% fixed rate

23. FEDERAL PLUS (PARENT) LOAN  Borrowers are parents of dependent undergraduate students  Loan limits Cost of attendance less other aid the student is receiving Cost of attendance less other aid the student is receiving No aggregate limit No aggregate limit  Interest rate is fixed – 8.5% (Direct Loans- 7.9%)  Based on parent’s credit  Repayment begins 60 days after last disbursement  Deferment Available upon request

24. Alternative (Private) Loans  Good Luck  Non-federal student loans Made based on credit score/historyMade based on credit score/history Private consumer loansPrivate consumer loans Interest can be highInterest can be high Use caution and evaluate loan possibilitiesUse caution and evaluate loan possibilities Usually a last option after other more economical sources are exhaustedUsually a last option after other more economical sources are exhausted

25. Awarding  Packaging  Award notification Type of aidType of aid Grant, work-study, or loanGrant, work-study, or loan Source of aidSource of aid Federal, state and/or institutional aidFederal, state and/or institutional aid Amount of awardAmount of award May need to be signed and returned to schoolMay need to be signed and returned to school  Evaluating award offers

26. Comparing Packages Private University State University Jr. College Cost $22,000 $14,000 $7,500 EFC - 1,350 - 1,350 - 1,350 Need $20,650 $12,650 $6,150 Total Gift Aid $15,500 $7,550 $3,850 Unmet Need $ 5,150 $ 5,100 $2,300

27. FAFSA Free Application for Federal Student Aid

28. Special Circumstances  Change in employment status  Medical expenses not covered by insurance  Change in parent marital status  Unusual dependent care expenses

29. Special Circumstances  Cannot report on FAFSA  Send explanation to financial aid office at each college  College will review special circumstances Request additional documentation Request additional documentation Decisions are final and cannot be appealed to U.S. Department of Education Decisions are final and cannot be appealed to U.S. Department of Education

30. The Process US Department of Ed (Calculates EFC) Notify student Loan Process Award student School releases funds College Private/Public/ 2-Year School determines need Submit FAFSA SAR to student

31. THINGS TO DO  Plan on how your going to sign your FAFSA Apply for a Pin # before filling out FAFSA at www.pin.ed.gov (parent and student)  Gather the documents you will need ( Social Security Number, Driver’s License, income tax returns, bank statements, investment records  Pick up or fill out the FAFSA online  Complete all required forms accurately  Pay close attention to the institution’s deadlines  Remember to reapply each year

32. FAFSA on the Web’s Homepage

33. How to Contact our Office  Don Hilton  Mail: Panhandle Plains Student Loan Center  400 Pine Street Suite 720  Abilene, Texas 79601  Phone: 1-800-677-1456 or 915-672-6172  e-mail: donh@ppslc.com  web: www.ppslc.com

34. Questions?

35. Good Luck!