1. Financial Aid Doesn’t Have To Be Scary!!! Kim Bailey Helena High School 12 th Grade Counselor

2. What is Financial Aid? Scholarships –M–Merit Based Academic Leadership Service Departmental Talent/Skill –N–Need Based –I–Institutional –P–Private –A–Athletic (register with www.NCAAclearinghouse. net)

3. Grants –F–Federal ($5,645) –S–State Employment Opportunities –W–Work Study –S–Summer Internships Loans –S–Stafford Loans –P–Perkins Loans –P–PLUS Parent Loan –O–Other (Federal and state aid along with many university aid and grants are awarded by completing the Free Application for Federal Student Aid at www.fafsa.ed.gov)

4. The Nuts & Bolts of Loans Perkins Loans - $5500/year maximum, need-based; 5% interest, no origination, 9 month grace period before repayment begins Stafford Loans – 1 st year - $5500 maximum (unsubsidized) 2 nd year - $6500 maximum (unsubsidized) 3 rd & up - $7500 maximum (unsubsidized) Subsidized – 3.4% interest; must have demonstrated financial need; government pays interest while student is in school Unsubsidized – 6.8% interest; NO demonstrated financial need necessary to qualify; interest begins accruing upon disbursement All Stafford loans have a 6 month grace period before repayment begins Direct Plus Loans – Parent loan; 7.9% interest; 4% origination fees; payment begins 60 days after disbursement; NO demonstrated financial need to qualify

5. Goals of Financial Aid To assist students in paying for their educational investment To evaluate the family’s financial ability to pay educational costs To distribute limited resources in a fair manner To attempt to provide a balance of scholarships, loans, grants, work study, etc.

6. Cost of Attendance (COA) Tuition and fees Housing Meal plan and additional food and snacks Books and supplies Entertainment Transportation Miscellaneous personal expenses Study abroad costs

7. Definition of Need Cost of Attendance (COA) - Expected Family Contibution (EFC) ________________________________________________ = Financial Need

8. How much will you need?

9. Why do I have to pay so much? As much as they are able, parents have a responsibility to pay for their children’s education Students also have a responsibility to pay for educational costs Family’s are evaluated in their present financial condition

10. How do I qualify? CSS Profile –www.collegeboard.com –register now FAFSA (Free Application for Federal Student Aid) –www.fafsa.ed.gov –register after January 1st

11. Eligibility Accepted to an eligible program of study Must be planning to enroll as a full time student US Citizen or eligible non-citizen Males must be registered with selective service Must not have a drug-related conviction Must have a valid social security number Must maintain satisfactory academic progress as determined by the higher ed. institution

12. Role of the Financial Aid Office Determine eligibility after receiving information from FAFSA or CSS Profile Create an aid package Send award letter to student that includes –COA –Student Need –Types and Amount of Aid Offered –How and When Aid Will Be Dispersed –Student Employment Conditions –Terms and Conditions of Aid Offer

13. Role of the Student Apply to college Talk to your parents about your resourcesTalk to your parents about your resources Contact financial aid offices at your schools Complete the FAFSA and/or CSS Profile Review financial aid award letter Compare school offers Talk to your parents ( AGAIN ) about offersTalk to your parents ( AGAIN ) about offers Accept or reject offers and return paperwork to schools Notify all colleges of your decisions by May 1st

14. Other Sources of Funds and Financing Resident Assistant Benefits Ambassador Programs ROTC/Military Options PACT/529 Plans Personal Loans/Banks University Payment Plans

15. Other Resources www.fastweb.com www.scholarships.com www.scholarshiptree.com www.finaid.org www.studentaid.state.al.us www.students.gov www.alstudentaid.com www.smartmoney.com Student/Parent place of employment Local business and civic organizations