FINANCIAL AID CLIFFNOTES Making $ense of the Financial Aid Process

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WHAT IS FINANCIAL AID? Financial Assistance to help families pay

for the cost of attending college that exceeds their ability to pay. Includes:

Gift Aid (free monies)-- Scholarships-- Grants

Self Help-- Student Loans (to be repaid)-- Student Employment (to be earned)

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WHO IS ELIGIBLE?

All U.S. citizens or non-citizens with permanent resident status applying for federal student aid for the first time qualify for some forms of financial assistance.

(Males required to register for selective service must do so in order to receive federal student aid.)

WHO PROVIDES FINANCIAL AID?

U.S. DEPARTMENT OF EDUCATION (www.studentaid.ed.gov)

-- Pell Grant (Up to $5,550 per year)-- Supplemental Education Opportunity Grant-

SEOG (Up to $4,000 per year-generally less because of availability of funds at the school)

-- TEACH Grant (Up to $4,000 per year)-- Perkins Loan (Up to $4,000 per year, but usually

less because of availability of funds at the school)4

FEDERAL GOVERNMENT

U.S. DEPARTMENT OF EDUCATION (CONTINUED)

-- Direct Student Loans (Up to $5,500 for freshman, $6,500 for sophomores, and $7,500 for juniors & seniors, $20,500 for grad students)

-- Parent PLUS Loan (Up to full cost of attendance minus student’s financial aid. Requires credit worthy applicant.)

-- Work Study (Award amounts vary by hourly wage and number of hours worked, campus policy)

(Notice of eligibility and award amounts for U.S. Dept of Education programs are made by the financial aid offices at the schools to which you apply.)

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U.S. DEPARTMENT OF HEALTH & HUMAN SERVICES ( HHS) (http://www.hrsa.gov/loanscholarships/)

-- Federal Nursing Loan (awarded by school)-- Nursing Scholarship Program-- Scholarship for Disadvantaged Students-- Health Professions Student Loans-- Loans for Disadvantaged Students-- Primary Care Loans-- National Health Service Corps-- National Health Service Corps Loan Repayment

(Application is generally made directly with Dept of HHS)

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-- The Post 9/11 GI Bill-- The Yellow Ribbon Program-- Montgomery GI Bill-- Reserve Education Assistance Program-- Veterans Education Assistance Program-- Educational Assistance Test Program-- Survivor’s and Dependent’s Educational Assistance Program-- National Call to Service Program

(Application is made with Dept of Veterans Affairs)

U.S. DEPARTMENT OF VETERAN AFFAIRS (http://www.gibill.va.gov/post-911/)

WASHINGTON STATE (WWW.WSAC.WA.GOV)

-- Washington State Need Grant (awarded by school)

-- State Work Study Program (awarded by school)

-- Tuition & Fee Waivers (awarded by WA public colleges)

-- Washington Scholars-- Washington Award for Vocational Excellence-- Washington Health Professions Programs-- College Bound Scholarship-- Opportunity Grants-- WICHE 8

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WASHINGTON STATE (continued)

-- American Indian Endowed Scholarships-- Future Teachers Conditional Scholarship and Loan Repayment-- GET Ready for Math and Science Conditional Scholarship-- John R. Justice Loan Repayment Program-- Passport for Foster Youth Promise Program

*Many state programs have been suspended due to the budget deficit.

COLLEGES/UNIVERSITIES-- Academic Merit Scholarships-- Talent Scholarships-- Need Based Grants/Scholarships-- Endowed or Restricted Scholarships-- Institutional loan or work programs

(Availability of programs and funds, as well as definition of “merit” or “talent” varies by school)

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COMMUNITY AWARDS-- High School scholarships-- Community scholarships (e.g. Sumner-

Bonney Lake Educational Foundation/Dollars For Scholars, Rotary, Elks, etc.)

-- Foundation Scholarships-- Business Scholarships-- Employer Scholarships (employee tuition

assistance, dependent scholarships)-- Church Scholarships

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HOW DO I APPLY?1. Apply for admission to the schools you are

interested in attending.2. Apply for a Personal Identification Number

(PIN), which will serve as your electronic signature on the on-line FAFSA (www.pin.ed.gov).

3. Complete the Free Application for Federal Student Aid (FAFSA) www.fafsa.gov). Application can be made beginning Jan. 1, 2013. Apply as early as you can, using estimated 2012 income information, if necessary.

4. Complete any supplemental application required by individual schools.

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HOW DO SCHOOLS AWARD AID?

1. On Merit-- Academic (GPA, SAT/ACT)-- Talent (music, athletic, drama, art, dance, forensics, etc.)-- Leadership, community service-- Typically not based on need, may require separate application and participation or minimum standards while enrolled.

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HOW DO SCHOOLS AWARD AID? (CONTINUED)

2. ConditionalTypically awarded on the basis of a specific

condition or characteristic. e.g.-- First generation college student-- single parent-- Plan to teach, be an accountant, etc.-- Specific academic interest

(may require separate application)

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HOW DO SCHOOLS AWARD AID? (CONTINUED)

3. On Financial NeedRequires filing the FAFSA to determine financial

need. Includes:-- scholarships-- grants-- work-- student loans

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HOW IS FINANCIAL NEED DETERMINED?“Financial Need” is the difference between the

cost of the school and the amount the family is expected to contribute toward that cost.

Cost of Attendance (COA)- Expected Family Contribution (EFC)=Financial Need

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COST OF ATTENDANCE (BUDGET)

Includes:Tuition and feesRoom and mealsBooks and suppliesTransportationDay care costsPersonal and miscellaneous

(may also include uniforms and computer at school’s discretion/policy)

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COST OF ATTENDANCE WILL VARY

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BUT EXPECTED FAMILY CONTRIBUTION (EFC), REMAINS

THE SAME

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HOW IS THE EFC CALCULATED?

Federal Methodology of Need Analysis1. Determines student’s dependency status2. Total Income (taxed and some untaxed

incomes) for 20123. Household size4. Number of family members attending

college (excludes parents)5. Value of assets (Excludes home, retirement

accounts, insurance policies)6. Age of older parent

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IRS TO FAFSA DATA TRANSFER You have the option to authorize the IRS to

transfer your income tax information directly to your FAFSA, beginning Feb. 3, 2013.

Must electronically file your tax return at least two weeks before filing your FAFSA or

Must mail in your hard-copy tax return at least six weeks before filing your FAFSA.

If you file your FAFSA before completing your tax return, you must return to the FAFSA and re-authorize the data transfer.

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WHO IS AN INDEPENDENT STUDENT? Student is 24 years old by Dec 31, 2013 Married at time of FAFSA filing Has dependent child(ren) they are supporting Is serving on active duty or a veteran of the

U.S. Armed forces Is enrolled in graduate school Both parents deceased Documented homeless or emancipated minor

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SO WHO’S THE PARENT? Excludes grandparent (unless legally

adopted) If parents divorced, the parent the student

lives with the most over the last 12 months If equal, then the parent providing the most

support over the past 12 months Always includes step-parent if parent has

remarried

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SO WHAT HAPPENS NEXT?

After your school(s) receive your FAFSA and you are admitted, you will receive an offer of financial aid from each school, outlining what aid programs and dollar amounts they are making available to you. You need to:•Decide on the school you will attend, accept their award and complete the “paperwork” to process your aid. (May include a tuition deposit)•Notify the other schools of your decision.

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WHEN CAN WE EXPECT THIS TO HAPPEN?

Assuming you’ve been admitted and filed the FAFSA, generally aid offers are sent beginning:•Mid to late February from private colleges & universities.•March & April from public four year colleges & universities.•April, May and June from two year community colleges.

THINGS TO REMEMBER Must re-apply (FAFSA) each year Only looks at previous year’s income Doesn’t take into consideration unusual

circumstances or changes. Contact the school if you have unusual circumstances

Better to file early with estimated information than be accurate but late

Don’t assume you can’t afford a school – get their financial aid award offer before deciding

Renewal requires making Satisfactory Academic Progress 26

FAFSA4CASTER Get an estimate of what the FAFSA might

generate as your Expected Family Contribution (EFC) by completing the FAFSA4caster at:

www.fafsa.ed.gov and click on the link under“Thinking About College?” A shortened version of the FAFSA that can be

used anytime prior to actually applying for aid.

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NET PRICE CALCULATOR All schools offering federal student aid MUST

have a “net price calculator” (NPC) on their website.

The school’s NPC provides:1. Their cost of attendance 2. Dollar amount of scholarship and grants

student could expect to receive3. Net price – the difference between the two.4. Some schools will also prove an estimate of

the student’s total financial aid award28

FINALLY . . . Keep all your school options open until your

financial aid award confirms its affordability. Don’t pay anyone or any website to do your

scholarship search or help with the FAFSA. Find Financial Aid deadlines for WA schools at

www.wfaa.org under “COUNSELORS”. Find answers to frequently asked financial aid

questions at www.wfaa.org under “STUDENTS” or “COUNSELORS”.

Check out the video clips on financial aid at the www.wfaa.org website.

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Find scholarship matches on the Washington only website: www.thewashboard.org

QUESTIONS?

If the FAQ’s on the WFAA.org website don’t answer all your questions, talk to the financial aid administrator at your local college or university, or at the school the student is interested in attending.

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