View
212
Download
0
Category
Preview:
Citation preview
Understanding the Financial Aid Process
Northside College Preparatory High SchoolDecember 6, 2010
Mary Stonis & Brian DrabikOffice of Undergraduate Financial Aid
What is the purpose of need-based financial aid?
Makes education accessible to students who can’t afford it on their own
Enables student to apply to first-choice college
Students can attend college based on best fit and match, not finances
What assumptions underlie need-based financial aid?
Families contribute to the extent they are able
Unusual family circumstances are considered
Similar treatment for similar circumstances
More is expected from those with greater resources
How do I apply for financial aid?
Federal FormulaFree Application for Federal Student Aid (FAFSA)
Institutional FormulaCSS/Financial Aid Profile
At School’s DiscretionInstitutional applicationTax Returns/W-2 Forms
Non-custodial Information
Families must reapply annually
Tuition & Fees
Room & Board
Transportation
Books & Supplies
Miscellaneous Personal Expenses
Cost of Attendance (COA)
+
How is the Cost of Attendance determined?
How is EFC determined?
A need analysis formula determines the student’s Expected Family Contribution (EFC). The U.S. Department of Education calculates
financial need using a formula established by Congress called Federal Methodology.
A comparative measure of how much a family can be expected to contribute toward the cost of a student’s education for a year.
Used to determine a student’s eligibility for most federal and state assistance.
After completing the FAFSA, the EFC is shown on the Student Aid Report (SAR) and Institutional Student Information Record (ISIR).
How is eligibility for financial aid determined?
Cost of Attendance- Estimated Financial Assistance (outside resources)
-EFC (Estimated Family Contribution)__________________________________= Student’s Financial Need
How can I calculate an estimate of my EFC?
www.collegeboard.com
www.fafsa4caster.ed.gov
http://www.finaid.org/calculators/quickefc.phtml
http://www.finaid.org/calculators/finaidestimate.phtml
REMEMBER – These are just estimates until you completethe 2011-12 FAFSA in January 2011 using 2010 taxinformation.
What is the FAFSA?
The FAFSA is the Free Application for Federal Student Aid which that determines your eligibility for federal financial aid.
FAFSA uses parents’ and student’s income, assets, etc. to calculate an EFC.
You will complete the 2011-12 FAFSA for your freshman year of college. It will be available starting Jan. 1, 2011.
You must complete a new FAFSA each year that you plan on applying for financial aid.
The sooner you complete the FAFSA, the better. State and institutional funds may be limited.
What you will need to complete the FAFSA
Parents’ information Social security numbers Federal tax information Asset information PIN number for one parent as an electronic
signature Student information
Social security number Federal tax information Asset information PIN number to electronically sign
How will your eligibility be determined by the school?
The FAFSA EFC will determine your eligibility for federal and state aid.
The CSS Profile may be required by the school to determine your eligibility for institutional funds.
The CSS Profilehttps://profileonline.collegeboard.com
College Board’s College Scholarship Service (CSS) Profile is required by some college/universities and scholarship agencies. The CSS Profile determines whether or not you are eligible for private grants and scholarships from the member organizations.
CSS Profile costs $25 for the initial application and one school and $16 for each additional school. Limited fee waivers available.
Deadlines vary depending on type of application (ED, EA) and college; can range from November – April.
This is NOT a substitute for the FAFSA.
These funds may be merit-based, need-based, or non need-based.
There are two types of financial aid.
What types of financial aid will I receive?
gift aid
self-helpaid
Grants
Scholarships
Federal Work-Study
Loans
Federal and State Grant Programs
A complete FAFSA is required. Federal Pell Grant – $5,550 * Federal Supplemental Educational Opportunity
Grant (FSEOG) – $4,000 * State of Illinois Monetary Award Program
(MAP) Grant – $4,968 *
* Maximum award for 2010-11
Sourceof
Loan
Repayment~
Grace Period
Interest Rate
Loan ProgramsWhen evaluating loan options, consider…
Subsidized vs.
Unsubsidized
Federal Loan Programs
Program Type GraceRate
Perkins($5,500*)
Subsidized(need-based)
5%Fixed
9 Months
Stafford ($3,500*)
($2,000*)
Subsidized(need-based)
4.5%Fixed
6 Months
Unsubsidized 6.8% fixed
6 Months
PLUS(cost of attendance minus other aid*)
Credit-based 7.9%fixed
60 days
* Maximums for 2010-11
Federal Work-Study
Need-based employment program for students partially funded by the government*
Provides jobs on- and off-campus Students earn at least minimum wage Students are permitted to work a
flexible schedule
* FAFSA Required
Sample Aid Packages
Private #1 Private #2 Private #3 Public
COA $48,000 $50,000 $35,000 $19,000
EFC $10,000 $10,000 $10,000 $10,000
Financial Need
$38,000 $40,000 $25,000 $9,000
Merit Aid $0 $0 $10,000 $0
Need-Based Grant
$35,900 $33,300 $2,800 $1,500
Student Loan $0 $4,000 $5,500 $5,500
Work-Study $2,100 $2,700 $1,800 $1,000
Total Aid $38,000 $40,000 $20,100 $8,00
Unmet Need $0 $0 $4,900 $1,000
What are merit-based scholarships?
Award based on academic performance or leadership, extra-curricular activities
Awarded after student is admitted Procedures for being considered vary
NominationScholarship applicationAdmission application
What questions should students ask about merit and athletic awards?
Is the scholarship renewable? If so, what are the requirements for
renewal? Will the scholarship affect need-
based aid eligibility?
Outside scholarships
Can meet unmet need and/or reduce loans or work study/jobs
Cannot replace EFC in a need-based award
Things to know
Deadlines are important! Missing a deadline could impact your financial aid package.
Early Decision/Early Action Need-blind vs. need-aware
admissions May 1st: National College Response
Day
Be Aware
Financial aid consultants Scholarship programs that charge
fees Scholarship search services that
charge fees “FAFSA” sites that charge fees
Online Resources
FAFSA www.fafsa.ed.gov The College Board www.collegeboard.com U.S. Department of Education www.ed.gov SmartStudent Guide to Financial Aid www.finaid.org Scholarship websites School’s financial aid web pages
Recommended