FINANCIAL AID WORKSHOP Kimber Decker | November 2012

FINANCIAL AID WORKSHOP

Kimber Decker | November 2012

KIMBER DECKERRegional Director Nelnet Partner Solutionsphone: 570.620.2944e-mail: kimber.decker@nelnet.net

FINANCIAL AID DEFINITIONS AND

TERMS

DEFINITIONS

GRANTS

• Financial aid you do not have to pay back

WORK-STUDY

• Lets you work and earn money to help pay for school

LOANS

• Borrowed money that you must repay with interest

STUDENT ELIGIBILITY

• Must be enrolled as a regular student in an eligible program

• Must be a U.S. citizen or eligible non-citizen

• Must make Satisfactory Academic Progress (SAP)

• Must be registered with Selective Service, if required

FINANCIAL NEED

• Financial need is determined by a formula:

Cost of Attendance - Estimated Family Contribution (EFC)

Financial Need

• If your family’s financial circumstances warrant, the Financial Aid Administrator can adjust the formula’s data elements or your cost of education.

Examples:

o A parent lost his/her job

o Unusual medical/dental bills not covered by insurance

COST OF EDUCATION

• Tuition and fees

• Room and board

• Books and supplies

• Transportation

• Misc/personal expenses

US DEPARTMENT OF EDUCATION (US DOE)

FINANCIAL AID PROGRAMS

US DOE FINANCIAL AID PROGRAMS

• Federal Pell Grant

• Federal Supplemental Educational Opportunity Grant

• Federal Work-Study Program

• Federal Perkins Loan

• Federal Direct Stafford Loan

• Federal Direct PLUS Loan

FEDERAL PELL GRANT

• Award to help undergraduate students pay for education

• Provides funds to every eligible student

• Does not have to be paid back

• Based on the EFC

• Up to $5,550

CAMPUS-BASED PROGRAMS

CAMPUS-BASED PROGRAMS

• Federal Supplemental Educational Opportunity Grant (FSEOG)

• Federal Work-Study Program

• Federal Perkins Loan

CAMPUS-BASED PROGRAMS

• Participating schools receive certain amount of funds for each program.

• When funds are depleted for the year, no more awards for that program are given.

• Most schools set deadlines early each calendar year.

• You should apply early, or you may miss out on “campus-based” programs.

FSEOG

• Awarded to undergraduate students with exceptional financial need

• Determined by the school

• Priority given to Federal Pell Grant recipients

• Does not have to be paid back

• Maximum amount = $4,000 per year (dependent on school’s funding)

• $959 Million to an estimated 1.3 million recipients in 2012-2013

FEDERAL WORK-STUDY PROGRAM

• Provides jobs for undergraduate and graduate students who have financial need

• Gives students opportunity to earn money for educational expensesExample: Traveling

• Encourages community service work

• Includes on-campus and off-campus jobs

• 1.2 Billion given to an estimated 768,000 students in 2012-2013

FEDERAL PERKINS LOAN• Awarded to undergraduate and graduate students with exceptional

financial need

• Determined by the school

• For undergraduate students, priority given to Federal Pell Grant recipients

• School is the lender

• Interest rate = 5%

• Grace period = nine months after you graduate, leave school, or drop below half-time

FEDERAL PERKINS LOANLOAN LIMITS

• Undergraduate studyo $3,000 per year

o $15,000 total debt

• Graduate/professional studyo $5,000 per year

o $30,000 total debt (includes any Perkins loan borrowed as an undergraduate)

• Dependent on school’s funding

FEDERAL FAMILY EDUCATION LOAN

PROGRAMS (FFELP)

FEDERAL STAFFORD LOAN

• Low interest loan made to students attending school at least half-time

• Federal government

• Eligible to students regardless of need or family’s income

• It is possible for a student to have a Stafford loan partly based on financial need and partly not on need.

FEDERAL STAFFORD LOAN

Subsidized Stafford Loan

• Need-based

• Government pays the interest on the loan while the student is in school and during the grace period

Unsubsidized Stafford Loan

• Not need-based

• Student is responsible for interest during in-school and grace periods

DIRECT LOAN LIMITSFederal Direct Loan MaximumsUp to $5,500 for first year students of which no more than $3,500 may be a

subsidized Direct Loan. Student loan amounts are determined by the institution.Dependent Total AdditionalUndergraduates Subsidized UnsubsidizedFirst Year $3,500 $2,000Second Year $4,500 $2,000Third Year and Beyond $5,500 $2,000

Independent Total AdditionalUndergraduates Subsidized Unsubsidized*First Year $3,500 $6,000Second Year $4,500 $6,000Third Year and Beyond $5,500 $7,000*Includes dependents whose parents are unable to borrow under the PLUS Program.

FEDERAL STAFFORD LOAN

• Subsidized loan = interest rate is fixed at 3.4% after July 1, 2012

• Unsubsidized loan = interest rate is fixed at 6.8%

• Origination fee = .5%

• Default fee = 1%

FEDERAL PLUS LOAN

• Are for parents who want to borrow money to help pay for their child’s education

• May borrow up to the cost of education minus any financial aid

FEDERAL PLUS LOAN

• Interest rate is fixed at 7.9%.

• Loan repayment begins 60 days after money is disbursed.

• Check is made out to parent and school.

• Student must be enrolled at least half-time.

STATE AID PROGRAMSProgram Name Award

Tuition Aid Grant $978- $11,550

Part-Time TAG for County College Students $208-$739

Educational Opportunity Fund Up to $2,500

NJ Student Tuition Assistance Reward ScholarshipUp to 18 credits (tuition only)

NJ Student Tuition Assistance Reward Scholarship II Up to $7,000

NJ World Trade Center Scholarship Up to $5,000

Law Enforcement Officer’s Memorial Scholarship COA minus other aid

NJ College Loan to Assist State Students COA minus other aid

NJ BEST Scholarship Up to $1,500

25

NJCLASS

State supplemental loan program that provides eligible students with an additional affordable source of funds for meeting college expensesFor all New Jersey students attending in-state or out-of-state schools.For all out-of-state students attending a New Jersey schools.One of the lowest fixed supplemental loan interest rates in the country beginning with:

10 Year Repayment Loan of 5.9% 20 Year Repayment Loan (s):

Option 1- 20 Year Loan 7.59% Option 2- 20 Year Loan 7.59%

Option 3- 20 Year Loan 7.89%

* Funds are disbursed on a first-come, first-serve basis

FINANCIAL AID PACKAGEING

The relationship between state, federal, and institutional aid programs. The FAFSA is used to determine eligibility for federal, state and some

institutional need-based aid. In 2010-2011 New Jersey collected four additional data elements to

determine state grant eligibility. Estimated Family Contribution (EFC) determines eligibility for federal

programs (Pell, FSEOG, FWS, etc.) New Jersey Eligibility Index (NJEI) determines eligibility for a Tuition Aid

Grant In 2010-2011, New Jersey is collecting four additional data elements to

determine state grant eligibility. Visit www.hesaa.org for EFC and NJEI Estimator

OTHER WAYS TO FINANCE YOUR EDUCATION

• Tuition Payment Plan

• Private loan

• Home equity loan

• Line of credit

Net Price Calculator

• All institutions must have a net price calculator posted on their websites.

• Students will be able to estimate the individual net price per institution.

• Based on full-time degree/certificate seeking undergraduate students.

The Cycle of Financial Aid

• Jan-March – Students/Parents complete the FAFSA

• March-May – Schools send award letters• June-July – School sends Fall Semester

bill• August – Payment for Fall bill is due

Where Do I Go From Here?

• Obtain and review admission, financial aid materials and deadlines from each school to which you are applying

• Meet all application deadlines– FAFSA– State Aid– CSS Profile if applicable– Admission

Private Scholarship Search

• Institution/College web sites• Local library resources• Local businesses, civic organizations and

churches• Parent’s employer(s)• www.petersons.com• www.hesaa.org• www.fastweb.com• www.collegeboard.com

SUMMARY

• Apply early.

• Make copies of all documents.

• Ask questions.

• Do not panic.

WEBSITES

• www.nelnet.com

• www.petersons.com

• www.collegeboard.com

• www.fastweb.com

• www.hesaa.org

QUESTIONS