1. Financial Aid By TONY GRABER BETHEL COLLEGE

2. What is Financial Aid? Scholarships Scholarships Grants Grants Loans Loans Employment Opportunities Employment Opportunities

3. Two Categories of Aid Merit-Based Merit-Based Need-Based Need-Based

4. Merit Aid Academic Scholarships Academic Scholarships Performance Scholarships Performance Scholarships Community/Clubs/Churches Community/Clubs/Churches Scholarship Search Agencies Scholarship Search Agencies www.finaid.org

5. NEED-BASED AID Financial Need = Financial Eligibility

6. Principles of Need Analysis To the extent they are able, parents have primary responsibility to pay for their dependent children’s education 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 Students also have a responsibility to contribute to their educational costs Families should be evaluated in their present financial condition (Professional Judgment) Families should be evaluated in their present financial condition (Professional Judgment) 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 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

7. Definition of Need (Eligibility) Cost of Attendance Cost of Attendance - EFC (Expected Family Contribution) - EFC (Expected Family Contribution) = Aid Eligibility = Aid Eligibility A B C A B C $20,000 $10,000$6,000 - 6,000-6,000 6,000 $14,000 $ 4,000 $ 0 $14,000 $ 4,000 $ 0

8. Cost of attendance Tuition and fees Tuition and fees Room & board Room & board Books & supplies, transportation, and miscellaneous personal expenses Books & supplies, transportation, and miscellaneous personal expenses Loan fees Loan fees Study abroad costs Study abroad costs Dependent or elder care expenses Dependent or elder care expenses Expenses associated with a disability Expenses associated with a disability Expenses for cooperative education program Expenses for cooperative education program

9. Definition of Need (Eligibility) Cost of Attendance -EFC Expected Family Contribution = Aid Eligibility

10. Free Application for Federal Student Aid (FAFSA)  Apply January-March First: apply for a pin at www.pin.ed.gov First: apply for a pin at www.pin.ed.govwww.pin.ed.gov Second: go to www.fafsa.gov and fill out application and sign it. Both student and one parent needs to sign. Second: go to www.fafsa.gov and fill out application and sign it. Both student and one parent needs to sign.www.fafsa.gov ** IRS DATA RETRIEVAL ** ** IRS DATA RETRIEVAL ** Browse Help, Getting Started, FOWW

11. Asset & Income Guidelines STUDENTIncome First $6, 000 protected 50% of difference used Example: Student earns $6,500 – 6,000 =500 X.50 = $250 X.50 = $250 Assets Assets 20% of cash, checking, savings PARENT Income Varies depending on number in family Assets Depends on age of oldest parent. Example: Age 40 equals approx. $38,000 protected. Do not count home equity, retirement funds, vehicles. (Business)

12. AID ELIGIBILITY (need) FEDERAL AID GRANTS Pell $602-5550 (EFC = 0 = $5550; EFC = 4995 = $602) FSEOG$100-4,000 (Federal Supplemental Educational Opportunity Grant)

13. TEACH GRANT Teacher Education Assistance for College and Higher Education Teacher Education Assistance for College and Higher Education $4000 year grant $4000 year grant Math, Science, Spec Ed., Bilingual, Foreign Language, ESL or Reading Specialist Math, Science, Spec Ed., Bilingual, Foreign Language, ESL or Reading Specialist 3.25 GPA or top 25% on ACT/SAT 3.25 GPA or top 25% on ACT/SAT Must teach in Title I school 4 out 8 years Must teach in Title I school 4 out 8 years Reverts to loan if requirements are not met Reverts to loan if requirements are not met

14. LOANS Stafford Loan (Subsidized) $3500 / 4500 / 5500 / 5500 6.8% ?? on Subsidized $2000 (Unsubsidized) 6.8% – 8.25% fixed 6 month grace period ---Forgiveness options www.studentaid.ed.gov www.studentaid.ed.gov Perkins Loan (Subsidized only) $100-5,500 5% fixed rate 9 month grace period

15. PLUS Parent Loan for Undergraduate Student Parent Loan for Undergraduate Student Amount can go up to the difference between the amount of aid the student receives and the cost of the school. Amount can go up to the difference between the amount of aid the student receives and the cost of the school. Interest is fixed at 7.9%-9.0% Interest is fixed at 7.9%-9.0%

16. WORK STUDY Amounts not guaranteed Amounts not guaranteed Normally minimum wage Normally minimum wage

17. KANSAS GRANTS Kansas Comprehensive Grant Kansas Comprehensive Grant Deadline April 1 Deadline April 1 $200-3,500 at private Kansas colleges 100-1,500 at Kansas state schools Can not be used at a community college Apply by filling out the FAFSA

18. Kansas State Scholarship $1,000 Renewable $1,000 Renewable Deadline May 1 Deadline May 1 Students must have completed the Kansas Scholars Curriculum and have eligibility Students must have completed the Kansas Scholars Curriculum and have eligibility (4 years English & Math; 3 years Science, Social Studies; 2 years Foreign Language) (4 years English & Math; 3 years Science, Social Studies; 2 years Foreign Language) Avg. GPA 3.90 & 30 ACT score Avg. GPA 3.90 & 30 ACT score

19. Kansas Ethnic Minority Scholarship $1850 a year (Deadline May 1) $1850 a year (Deadline May 1) Must have one of the following: Must have one of the following: 1.ACT score of 21 or SAT of 990 2.Cumulative GPA of 3.0 3.High School rank in top 33% 4.Completion of Ks. Scholars Curr. 5.Selection by National Merit in any category 6.Selection by College Board as a Hispanic Sch.

20. Kansas Nursing Scholarship $2500-3500 (Deadline May 1) $2500-3500 (Deadline May 1) Must have a sponsor and agree to work for that sponsor for each year you receive the award

21. Kansas Teacher Service Scholarship $5,482 a year for the Junior/Senior years. $5,482 a year for the Junior/Senior years. Deadline May 1 Deadline May 1 Year for year service requirement Year for year service requirement Hard to fill areas: Special Ed, Math, Science, Foreign Language & ESL Hard to fill areas: Special Ed, Math, Science, Foreign Language & ESL Underserved Geographic areas: Topeka, KC Kansas, Wichita & Western 1/3 of Ks Underserved Geographic areas: Topeka, KC Kansas, Wichita & Western 1/3 of Ks Avg GPA 3.5 Avg GPA 3.5

22. Vocational Scholarship $500 each $500 each Applicants must take vocational exam in November or March. Applicants must take vocational exam in November or March. www.kansasregents.org www.kansasregents.org

27. FINANCIAL AID NUMBERS www. Nasfaa.org National Assoc. of Student Financial Aid Admin. www. Nasfaa.org National Assoc. of Student Financial Aid Admin. www. Finaid.org Financial Aid Information and Free Scholarship search and Estimators www. Finaid.org Financial Aid Information and Free Scholarship search and Estimators www.ed.gov Dept. of Ed www.ed.gov Dept. of Ed www.ed.gov 1-800-433-3243 Dept. of Ed 1-800-433-3243 Dept. of Ed

28. Increasing Aid Eligibility  Roth IRA (in student’s name)  Not counted as an asset  May be withdrawn for educational purposes without penalty

29. 529 Saving Plans Kansas Plan is called “Learning Quest 529 Education Savings Program” Kansas Plan is called “Learning Quest 529 Education Savings Program”  Federal and State income tax advantages www.learningquestsavings.com www.learningquestsavings.com www.collegesavings.org www.collegesavings.org

30. American Opportunity Tax Credit 100% Tax Credit for the first $2000 of qualified tuition and expenses. 25% credit for the next $2000 in expenses for a total tax credit of $2500. Credit is phased out if income is over $160,000-180,000. 100% Tax Credit for the first $2000 of qualified tuition and expenses. 25% credit for the next $2000 in expenses for a total tax credit of $2500. Credit is phased out if income is over $160,000-180,000.

31. Education allows you to stand on the verge of a great world of possibility