Financial Aid 101 · U.S. citizen Eligible for PELL Grant Four or two year degree program Full time...

Financial Aid 101

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Cost of attendance

Cost of attendance refers to the cost for attending

college for one year (2 semesters)

Colleges often define total cost of attendance to

include:

• Tuition and fees

• Room and board

• Books and supplies

• Medical expenses

• Transportation

• Personal expenses

Fixed Costs

Variable Costs

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Example: Public College

Below is an example of a cost of attendance at a

State College if you live off campus and are a full

time student

Total cost to attend $16,500

Tuition and fees $4,300

Room and board $8,100

Books and supplies $1,700

Medical expenses (incl. in personal exp.)

Transportation $1,200

Personal expenses $1,200

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Example: Private College

Below is an example of a cost of attendance at a

Private College if you live on campus and are a full

time student

Total cost to attend $44,450

Tuition and fees $34,000

Room and board $8,500

Books and supplies $950

Medical expenses (incl. in personal exp.)

Transportation (Incl. in personal exp.)

Personal expenses $1000

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Where do I find this information?

The estimated total cost of attendance comes

directly from the colleges

• Costs will vary by college

All this information can be found on the colleges’

websites or in their brochures

If you have specific questions, contact a financial aid

counselor

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Financial Aid – The Four Types

Grants come from federal and state governments, colleges and private organizations • Awarded to the student based on need

• Does not need to be paid back

Student Loans are loans designed to help students pay for college • Federal Loans

− Paid back at federally backed low interest rates with helpful terms

− There are federal loans for students (Stafford loans) and parents (PLUS loans)

• Private Loans − Use federal first and be sure to research the rates and terms carefully

if you need a private loan to fill the gap.

Work-study provides financial assistance in the form of part time employment on-campus, or designated off-campus sites • Typically based on need

Scholarships are awarded for a variety of reasons to students • Does not need to be paid back

• Check out our CollegeInvest Scholarship Program

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Start with the FAFSA

Free Application for Federal Student Aid (FAFSA)

• Hard copy in counselor’s office or at college

Available every January 1– apply early!

• Some Financial Aid is awarded on a first come first serve

basis

• The earlier a student applies, the more financial aid they

may receive

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How to Submit the FAFSA

Online application • Processed 72 hours.

• Student and one parent need to get Personal Identification Numbers to sign application electronically

− Go to http://pin.ed.gov to get your PIN

• Information needed to fill out FAFSA (both student and parent):

− Social security numbers, drivers license numbers

− Records of money earned last year, tax returns and bank statements, etc

• Complete the online FAFSA at http://www.fafsa.ed.gov

BEWARE of any service that requires you to pay a fee to submit your FREE application

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Assets Not Included

Life insurance plans

Retirement plans

Equity from primary residence

Investment value of small business • 100 full-time employees or less

Educational savings/investments plans when the

dependent student is the owner

Farm when it is primary source of income

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What Does the FAFSA Do?

The U.S. Department of Education processes the

information on your FAFSA and provides you and

the colleges you selected your Expected Family

Contribution (EFC)

• The information will be used to determine a student’s

eligibility for most federal and state assistance

• The Dept. of Ed. does not expect you to have this amount

in cash

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What Does the FAFSA Do?

Based on the EFC from your FAFSA, the colleges

you applied to determine your financial need

Cost of Attendance

- Expected Family Contribution (EFC)

_______________________________

= Financial Need

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Independent vs. Dependent

Student

Determines if parent information is required on the

FAFSA

A student is considered dependent unless

• Born before January 1, 1984

• Masters or doctoral student in 2007-2008

• Married

• Have children who receive more than half of their support

from the student

• Orphan or ward of the court

• Veteran of the U.S. Armed Forces

• Serving on active duty in the U.S Armed Forces

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Frequently Asked Questions

My parents are divorced. Whose information do I put

on the FAFSA?

I have a stepparent. Do I need to include his/her

information?

I am making less money in the current year than the

last year. How can I reflect this?

My grandmother lives with us. Can she be included

in my household size?

How can I be considered independent even if I have

answered ‘no’ to all the required questions?

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At A Glance…

Step 1 You’ve completed and submitted the FAFSA

Step 2 The government processes the form and

determines your EFC

Step 3 The Student Aid Report (SAR) is sent to you and

all the colleges you indicated on the FAFSA

Step 4 You check the SAR for accuracy

Step 5 The colleges create an “Award Letter”

Step 6 You receive the “Award Letter” from the college

Step 7 You finalize your financial plan

Step 8 Meet the deadline!

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PELL Grant

Eligibility determined from FAFSA

$4,310.00 maximum award for 2007-2008 academic

year

Pro-rated if student is less than full time

Need based grant

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Academic Competitiveness Grant

U.S. citizen

Eligible for PELL Grant

Four or two year degree program

Full time student

$750.00 first year of undergraduate study

• Successfully completed a rigorous high school program

$1,300.00 second year of study

• Second year of undergraduate study have a cumulative

grade point average of 3.0

No specific major required

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The SMART Grant

(National Science & Mathematics Access to Retain Talent)

Available during the third and fourth years of

undergraduate study

U.S. Citizen

Eligible for PELL Grant

Enrolled in a four-year degree granting institution

Full time student

Up to $4,000.00 per year

Major in physical, life or computer science,

engineering, mathematics, technology, or a critical

foreign language

A cumulative 3.0 grade point average

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CollegeInvest

Mile-High GRADS Program

Student loan forgiveness program

Partnership between the City and County of

Denver and CollegeInvest

Partial loan forgiveness upon completion of a post-

secondary degree

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Who Qualifies?

2005-2009 Denver high school graduates

Residents of Denver graduating from a non-DPS school

Other requirements • Meet college admission requirements

• Attend class at least half time

• Graduate within 4 years with vocational certificate or Associate’s degree; or 6 years with a Bachelor’s degree

• Attend a college in or out-of-state that participates in the FFEL program and choose CollegeInvest as your Stafford loan lender

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How Does it Work?

Student must borrow Stafford loan through

CollegeInvest

• Either subsidized or unsubsidized

Upon completion of post-secondary degree

• CollegeInvest will forgive up to $300 principal reduction on

outstanding loan balance for a vocational certificate

• Up to $750 for an Associate’s degree

• Up to $1,500 for a Bachelor’s degree

Loan forgiveness immediately upon graduation

Bottom line to student

• Student loan could pay-off 14 months ahead

of schedule

• Nearly 20% savings over standard

Stafford loan

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CollegeInvest

Graduation Reward Program

Student loan forgiveness program

Partnership between City of Colorado Springs,

El Paso County and CollegeInvest

Partial loan forgiveness upon completion of a

post-secondary degree

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Who Qualifies?

2005-2008 El Paso County high school graduates

Other requirements

• Meet college admission requirements and attend college in

El Paso County

• Enroll in class at least half time

• Graduate within 4 years with vocational certificate or

Associate’s degree; or 6 years with a Bachelor’s degree

• Attend a college that participates in the FFEL program and choose CollegeInvest as your Stafford loan lender

• Attend a post-secondary institution in El Paso County

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How Does it Work?

Must borrow Stafford loan through CollegeInvest

• Either subsidized or unsubsidized

Upon completion of post-secondary degree at an

El Paso County College

• CollegeInvest will forgive up to $300 principal reduction on

outstanding loan balance for a vocational certificate

• Up to $750 for an Associate’s degree

• Up to $1,500 for a Bachelor’s degree

Loan forgiveness immediately upon graduation

Bottom line to student

• Student loan could pay-off 14 months

ahead of schedule

• Nearly 20% savings over standard

Stafford loan

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Loan Incentive For Teachers

(LIFT) Program

Loan Repayment Opportunity for Teachers • Work at least half-time in one of the following disciplines:

Math Science Special Education

Linguistically Diverse Education Low income rural schools

• Be a graduate of a CCHE-approved program of teacher preparation at a Colorado college or university

• Have contracted to teach for the first year in a qualified position after June 1, 2001

• Have an outstanding balance on a − CollegeInvest Stafford or consolidation loan

− Stafford or consolidation loan through a LIFT participating lender

− William D. Ford Federal Direct Loan through the University of Colorado at Boulder

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Other Ways to Save Money

HOPE Scholarship

• Up to $1,000 tax deduction in first year for tuition paid

• Up to $500 tax deduction in second year for tuition paid

Lifetime Learning Credit for college juniors, seniors,

and graduate students

• Up to $2,000 tax deduction thereafter

Student loan interest tax deduction

• Deduction of interest paid

• First 60 months

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College Opportunity Fund

Pays a portion of total in-state tuition per credit hour

• Colorado public institution

• Participating private institutions

Must apply for stipend

Must be admitted to participating institution

Available for undergraduates only

Paid directly to the school

Apply online at: www.collegeincolorado.org

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The Elusive Scholarship

Inquire about scholarships through:

• High School

• College(s) student is interested in attending

• Local businesses

• Internet

− www.collegeincolorado.org

− www.fastweb.org

• CollegeInvest

− www.collegeinvest.org

− Get a free copy of our scholarship workbook

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The CollegeInvest

Opportunity Scholarship

Seventy (70) randomly drawn $1,000 scholarships

will be awarded to Colorado students who: • Attend a Colorado two or four-year college, or vocational

college, or university

• Will be full time, undergraduate students in the 2008-09

school year

• Complete the Free Application For Federal Student Aid and

have an EFC of $15,000 or less (FAFSA does not have to

be completed prior to registering)

• NO GPA or Essay requirements

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The CollegeInvest

Service Scholarship

Fifty-five (55) randomly drawn $6,000 scholarships

(award amount will be divided over a two-year

period, $3,000 each year) will be awarded to

Colorado students who

• Attend a Colorado two or four-year college, or vocational

college, or university

• Will be full time, undergraduate students in the 2008-09

school year

• Complete the Free Application For Federal Student Aid and

have an EFC of $7,600 or less (FAFSA does not have to be

completed prior to registering)

• Commit to 40 hours each year, for two years, in a service-

to-children volunteer program

• NO GPA or Essay requirements

Questions?