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Financial Aid 101for College Costs
2015 - 16
Kilgore College
Will Massey
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We will talk about:
• Federal student aid
• State student aid
• Institutional Scholarships
• Scholarships from other sources
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We will answer:
• What is financial aid?• Who can get it?• How much can I get?• How do I apply?• What happens next?• Where can I get more info?
AID: Four Types from Four Sources GRANTS
Department of Education (Federal) State of Texas
LOANSDepartment of Education (Federal)
EMPLOYMENTCollege Work Study (Federal)Institutional Positions/Fellowships
SCHOLARSHIPSState of Texas or InstitutionOutside Agencies or Donors
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Who can get federal student aid?
• U.S. citizen or permanent resident• High school graduate/GED holder• Eligible degree/certificate program• Valid Social Security number• Males registered for Selective Service• Satisfactory academic progress
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How much federal student aid can I get?
In general, depends on your financial need.• Financial need determined by Expected
Family Contribution (EFC) and cost of attendance (COA)
• EFC comes from what you report on FAFSA• COA is tuition, fees, room and board,
transportation, etc.
COA – EFC = financial need
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How much federal student aid can I get?
Example: first-year student in 2015-16Maximum amounts allowed: • Federal Pell Grant: [$5,775]• Direct Subsidized and Unsubsidized Loans: $5,500 total• Federal Perkins Loan: Not available at KC• Federal Supplemental Educational Opportunity Grant:
[School will determine amount per student - $500/Sem]• Federal Work-Study: depends on funds available at
school• Direct PLUS Loan (for parents): COA minus other aid
received
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How much state aid can I get?
• TEOG - $1368 per year (2015-16)
• TPEG – up to $1000 per Year (15-16)
• College for all Texans
• www.studentaid.ed.gov/scholarship
• Contact school’s financial aid office
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How do I apply for aid?
• Federal student aid: fill out Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov
• State and School aid: contact financial aid office at schools you are considering
• Outside Scholarships: contact donors / websites for specific informationExamples: Civic Clubs, Churches, Businesses, Charitable Organizations
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What happens next?
• Each school will tell you how much aid you can get at that school.
• Before you are awarded, the school may ask for additional documents in a process called Verification.
• Provide the information asap, so it will not delay processing your aid.
Institutional Verification Confirms accuracy of FAFSA information
Application selected at random by CPS, but school is
required to verify if selected
Often occurs if information is incomplete or questionable
School may request documents necessary to complete the
verification process
Prepare copies for the school,
as originals will not be returned
Common Documents BE PREPARED TO FURNISH:
Tax Return Transcripts and W-2(s) – Prior yearUntaxed income on tax return, such as
Tax Exempt Interest IncomeUntaxed IRA distributions, annuity paymentsDeductible IRA or Keogh paymentsHomebuyer or Making Work Pay tax credits
Child Support Received or PaidUnemployment BenefitsWelfare Benefits (Food Stamps)Workers’ Compensation Identity InformationOfficial High School Transcript
After verification is complete, the counselor checks the Expected Family Contribution shown on the Fafsa
The EFC is a factor which uses the Fafsa data and a federal formula to rank students
It can change, based on results of Verification Factors considered in EFC formula:
Parent and student prior year incomeUS Income Tax paidNumber of family members in householdNumber of students attending collegeFamily assets
What happens after verification?
So what is the next step in processing student aid? After the EFC is determined, the aid counselor sets up a
budget for the student, also known as a “cost of attendance”: Definition of Cost of Attendance:
Tuition and Fees of particular institutionBooks and SuppliesRoom and Board, (dorm, apartment, or at home)TransportationPersonal/Miscellaneous ExpensesChild CareDisability expenses
Definition of Unmet Need
Cost of Attendance (COA)
– Expected Family Contribution (EFC)
= Financial Need
School A: Community College $12,000 - Expected Family Contribution (EFC) 1,000 Unmet Need $ 11,000
School B: State University $25,000 - Expected Family Contribution (EFC) 1,000 Unmet Need $24,000
School C: Private University $45,000 -Expected Family Contribution (EFC) 1,000 Unmet Need $44,000
Comparing COA to Equal EFC
Evaluating Aid Packages Most expensive is not always best choice
Compare college cost to career earnings
Compare earnings to accrued 5-yr debt
How much is offered in renewal scholarships?
Is the COA of the school offset by aid?
Balance of aid offered
What percentage is offered of grant aid?Loan aid? Institutional scholarships?
Common Errors INCOMPLETE APPLICATIONS - Most errors are caused by
the student providing inaccurate or incomplete data on FAFSA (make a copy)
Not meeting required deadlines
Not submitting all required documents
No Admission Application and Official Transcripts on file in Registrar’s Office
Not returning or accepting Award Letter terms by stated deadline (paper or electronic)
Satisfactory Academic Progress Academic Progress evaluated by school on a
semester or annual basis Students must show progress by meeting
academic standards, usually a min 2.0 GPA and a set percentage of classes to continue to receive federal financial aid
State and Donor Scholarships require higher minimum standards for renewal
Pay attention to changes in requirements! Loss of one fund can result in dollars owed from
You! Be informed & don’t lose your aid!!
World Wide Web
ed.gov/studentaidfafsa.ed.govcollegeforalltexans.commappingyourfuture.orgstudentloans.govfinaid.org
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Where can I get more info?
• www.studentaid.ed.gov – Information about aid programs– Free scholarship search– Free college search
• 1-800-4-FED-AID– Information about aid programs – Help with the FAFSA
Pay Attention! Review each school’s catalogs/website for information and
application procedures.
Accurately complete and submit correct forms and respond promptly to requests.
Know each school’s deadlines be an early bird for best choice of funds!
Check SAP policies for renewal andmake sure you meet them!
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Thanks for coming
Contact information:
Name• Mr. Will Massey, Financial Aid Counselor, Kilgore College•Phone: (903) 983 - 8641 •Email: [email protected]