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 CostsFixed Costs

Variable CostsVariable 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 attendTotal cost to attend $16,500$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 attendTotal cost to attend $44,450$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 1Step 1 You’ve completed and submitted the FAFSAYou’ve completed and submitted the FAFSA

Step 2Step 2 The government processes the form and The government processes the form and determines your EFCdetermines your EFC

Step 3Step 3 The Student Aid Report (SAR) is sent to you and The Student Aid Report (SAR) is sent to you and all the colleges you indicated on the FAFSAall the colleges you indicated on the FAFSA

Step 4Step 4 You check the SAR for accuracyYou check the SAR for accuracy

Step 5Step 5 The colleges create an “Award Letter”The colleges create an “Award Letter”

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

Step 7Step 7 You finalize your financial planYou finalize your financial plan

Step 8Step 8 Meet the deadline!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 EducationLinguistically 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?