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Financial Aid: Finding Money for College
Elizabeth LeMasterStudent Services Counselor419-372-2651Bowling Green State Universitywww.bgsu.edu
PART IFinancial Aid Overview
PART II Introduction to Filling out the Free Application for Federal Student Aid (FAFSA)
Agenda
Financial Aid: FAFSA (loans/grants), Scholarships,
529 savings plan, etc.
Out of pocket: payment plan
Additional Loans: Alternative student and/or parent PLUS
How do I pay for How do I pay for college?college?
Where Do I Start?
Different schools require different applications, check with the financial aid
office at each school.
Some standard applications are:
1. Admission Application2. Free Application for Federal Student Aid
(FAFSA)3. Institutional Application
Free Application for Federal Student Aid
(FAFSA)
www.fafsa.ed.gov
To ensure maximum consideration for federal, state, & institutional aid,
students should complete their FAFSA as soon after January 1st as possible.
You may estimate your 2008 tax information, but are required to verify the information is accurate
after April 15th, when your taxes are due.
Request a Federal PIN
Both the Student and at least one Parent must apply for a 4-digit PIN
www.pin.ed.gov
PIN USED TO:• Sign the Free Application for Federal Student Aid
(FAFSA)• Submit Electronic Signatures on Promissory Notes…and
more!
START A FILE!
FAFSA Expected Family Contribution
(EFC)
Collects family’s personal & financial information used to calculate a student’s Expected Family Contribution (EFC).
This number is used by the school to
determine need-based aid eligibility.
EFC = A measure of the family’s capacity over time to
absorb educational costs
The EFC is determined by a formula created by Congress called the
Federal Methodology.
EFC = minimum amount a family should be able to pay out-of-pocket without
financial assistance.
You can finance your EFC if this number is not realistic for your family.
Expected Family Contribution (EFC)
EXPECTED FAMILYCONTRIBUTION
PARENT'S CONTRIBUTION$10,000
STUDENT'S CONTRIBUTION$500
If the parent has multiple children in college at once, their contribution is split
between all eligible dependents, thus reducing
the EFC for each!
What happens after a FAFSA is submitted?
The Student Receives notification from FAFSA and is issued a summary of the FAFSA in a Student Aid Report (SAR), including the calculated EFC.
The Financial Aid Office receives the information and will process the application and award students a financial aid package based on their EFC.
Need Comparison
Higher Cost Mid Cost Lower Cost
Institution Institution Institution
Cost of Attendance $30,000 $20,000 $13,000- *EFC $2,500 $2,500 $2,500
=Need-based Eligibility $27,500 $17,500 $10,500
Federal Stafford LOANSPrimary source of aid offered to students upon filling out a FAFSA
1. Unsubsidized –Interest accrues on this NON need-based loan while in school.
2. Subsidized – No interest accrues on this need-based loan while in school.
Interest rates are currently fixed at 6.8%
Dependent Undergraduate (08/09 Annual Loan Limits)Freshman - $5,500 (Subsidized Maximum:$3,500) Sophomore - $6,500 (Subsidized Maximum:$4,500) Junior - $7,500 (Subsidized Maximum:$5,500) Senior - $7,500 (Subsidized Maximum:$5,500)
Repayment begins 6 months after the student:1. Graduates 2. Leaves School 3. Falls below ½ time
Federal Perkins LOANNeed-based loan issued by the institution.
Limited Funding*
Interest rate: 5% Fixed
9-month grace period
Deferment & cancellation provisions available
**File FAFSA as soon after January 1, 2009 for File FAFSA as soon after January 1, 2009 for maximum aid consideration!maximum aid consideration!
Federal GRANTS
PELL: $445-$4731, ( EFC: $0-$4041)
FSEOG: Must be Pell eligible, limited funds, award may vary between schools
ACG: $750/freshman $1300/sophomore with min. 3.0 GPA, attend a 2 or 4 year degree granting institution, attended rigorous High School program & Pell eligible
SMART: $4000/junior & senior year with min. 3.0 GPA, attend a 4 year degree granting institution, Pell eligible & Major in: physical, life, or computer science, engineering, mathematics, technology, or a critical foreign language
-Based on 08/09 Guidelines-
State GRANTS
OCOG: Need based, Ohio Board of Regents, Must file FAFSA by October 1st, $78-$2496 ( EFC: $0-$2190)
CHOICE: Private Schools ONLY, Ohio Board of Regents, $660
-Based on 08/09 Guidelines-
GRANTS-loan
*TEACH Grant-loan: • Up to $4,000 per year to students who intend to teach in a
public or private elementary or secondary school that serves low-income families.
• Must serve for a min. of 4 years within an 8 year time frame.
IMPORTANT
• If you fail to complete this service obligation, all amounts of TEACH Grants that you received will be converted to a Federal Direct Unsubsidized Stafford Loan.
• You will be charged interest from the date the grant was disbursed.
For more information: studentaid.ed.gov
WORK STUDY
Federal Work Study (FWS) is a federally-funded program that provides work opportunities to graduate and undergraduate
students with financial need. Eligibility is determined based on the submitted FAFSA
information.
FACTS
FWS funds will be provided to the student in the form of a paycheck for the hours they actually work. *Earnings are not automatically applied to your Bursar billing account.
When the student applies for financial aid for the next academic year, through FAFSA, the government will not include work study income in their calculations to determine the Expected Family Contribution (EFC).
Bowling Green State University: January 15th
Ohio State University: December 1st
University of Toledo: January 5th
SCHOLARSHIPSStart your search now!
Institutional: To obtain specific institutional scholarship applications, contact the office awarding them. TIP: Check to see if your institution has an online, Searchable Scholarship Guide
Non-Institutional/Outside: Check locally for applications and begin a national search online! (REMEMBER: check with any organization/business the student or parent is affiliated with for scholarships. i.e. Churches, places of employment, clubs/lodges like The Elks, 4-H, etc.)
AVOID BEING SCAMMED!AVOID BEING SCAMMED!
Better Business Bureau: http://www.bbb.com Better Business Bureau: http://www.bbb.com U.S. Department of Education: U.S. Department of Education: http://studentaid.ed.gov/students/publications/lhttp://studentaid.ed.gov/students/publications/lsa/index.html sa/index.html Federal Trade Commission: Federal Trade Commission: www.ftc.gov/bcp/conline/publs/alerts/ouchart.htwww.ftc.gov/bcp/conline/publs/alerts/ouchart.htmm
Parent PLUS and Alternative Student
1. Federal Parent Loan for Undergraduate Students (PLUS) Loan in parent’s name 2 Repayment choices
begins while student is in college (60 days after the full disbursement) begins 6 mos. after the student graduates, leaves school or drops
below ½ time Interest Rate: currently 7.9-8.5% Fixed
2. Alternative loan programs Loan in student’s name Repayment typically begins 6 months after graduation/leave
school Various terms, credit-worthy signer or co-signer Check for maximum/capped Interest Rate, Pre-Payment
Penalties, etc. www.certifiedprivateloans.com
Satisfactory Academic Progress
Meet minimum cumulative grade point average per grade level. (FRESHMAN: 1.50)
Successfully complete at least 67% of cumulative credit hours attempted.
Complete the degree/certificate program within the maximum attempted hours.
How Can I Be Considered Independent?
By answering “yes” to one of these questions.
1. Were you born before Jan. 1, 1986?
2. As of today, are you married?
3. Will you be working on a master’s/doctorate program?
4. Are you currently serving on active duty in the U.S. Armed Forces for purposes other than training?
5. Are you a veteran of the U.S. Armed Forces?
6. Do you have children who will receive more than half of their support from you between July 1, 2009, and June 30, 2010?
7. Do you have dependants (other than your children/spouse) who live with you and receive more than half of their support from you, now and through June 30. 2010?
8. When you were age 13 or older, were both your parents deceased were you in foster care or were you a dependent/ward of the court?
9. Are you an emancipated minor?
10. Are you in a legal guardianship?
11. At any time on or after July 1, 2008, did your high school or school district homeless liaison determine that you were an unaccompanied youth who was homeless?
12. At any time on or after July1, 2008, did the director of an emergency shelter program funded by the U.S. Depart. Of Housing and Urban Development determine that you were an unaccompanied youth who was homeless?
13. At any time on or after July 1, 2008, did the director of a runaway or homeless youth basic center or transitional living program determine that you were an unaccompanied youth who was homeless or were self-supporting and at risk for being homeless?
What if my parents are divorced?
File your FAFSA with the parent that you live with most.
If the parent you are required to file with is remarried, you must also include your step-parent’s financial information.
The parent you file with does not have to be the parent that claims you for tax purposes.
Discuss with your college financial aid officeExamples include:
Change in family income - loss of jobDeath, illness of family memberUnusual expenses—medical,
catastrophic event
Colleges view eligibility differently. The Financial Aid administrator’s decision is final and cannot be appealed to the U.S. Department of
Education.
Unusual Circumstances?
Part II
Introduction to Filling out the Free Application for Federal
Student Aid (FAFSA)
•Commonly Asked Questions •Frequently Made Mistakes
Records You Will Need to File the FAFSA
Federal PIN www.pin.ed.gov 2008 US Income Tax Returns W-2 Forms Untaxed Income Information Bank Statements Driver’s License # Investment Information Business Records Farm Records
FAFSA ON THE WEB FAFSA ON THE WEB WORKSHEETWORKSHEET
(Should be available by December)(Should be available by December)
CAUTION!
Avoid being charged a fee to file the FREE Application for Federal Student Aid
Completing & Processing the FAFSA is FREEwww.fafsa.ed.gov
Questions? FAFSA 1-800-433-3243
Financial Aid Office
www.ohiocollegegoalsunday.org
COLLEGE GOAL SUNDAYCOLLEGE GOAL SUNDAYFebruary 08, 2009February 08, 2009
Find locations and register online soon!
•Line by line instruction for completing the FAFSA
•Have an expert review a completed or nearly completed FAFSA
40 sites in 33 Ohio Counties
General Financial Aid CHECKLIST
Apply for Admission: Check for Freshman scholarship Deadlines!
Search and Apply for SCHOLARSHIPS! Complete 09/10 FAFSA www.fafsa.ed.gov
Beginning January 1, 2009 Review award letters sent from schools you
applied to, to see if you need to apply for additional loans (Parent PLUS/Alternative)