Financial AidFor Delaware High School Seniors

Delaware Higher Education Office

Introduction

This presentation will give you an overview of the financial aid process and

discuss why college is important, what kinds of financial aid

are available, who provides financial aid, how to apply, and

where to find information.

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Why go to college?

If you go to college, you'll gain information and skills that you'll use for the rest of your life, no matter what career you chose. College enables you to:

expand your knowledge and skills,

express your thoughts clearly in speech and in writing,

grasp abstract concepts and theories, and

increase your understanding of the world and your community.

In addition, you will have more job opportunities and earn more money. . .

Is it worth it?

Individuals with degrees usually earn more—sometimes a great deal more—and are less likely to be unemployed. To learn more about careers and salaries, use the resources on the next slide.

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Median Weekly Earnings in 2011Unemployment Rate in 2011 (%)

Doctoral Degree

Professional Degree

Master’s Degree

Bachelor’s Degree

Associate Degree

Some College, No Degree

High School Graduate

Less than High School

$1,551

$1,665

$1,263

$1,053

$768

$719

$638

$451

2.5

2.4

3.6

4.9

6.8

8.7

9.4

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Note: Data are for persons age 25 and over. Earnings are for full-time wage and salary workers.Source: Bureau of Labor Statistics, Current Population Survey

Career Resources

You can find information about careers and employment trends at:

Delaware Career CompassDelaware Department of Labor

Delaware Job LinkDelaware Department of Labor

CareerOneStopU.S. Department of Labor

Career CruisingDelaware Department of Education

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How much will college cost?

In 2011–12, the average costs to attend a four-year college were:

IN-STATE OUT-OF-STATE PRIVATE PUBLIC COLLEGES PUBLIC COLLEGES COLLEGES

Tuition & fees 8,244 20,770 28,500 Room & board 8,887 8,887 10,089 Books & fees 1,168 1,168 1,213 Transportation 1,082 1,082 926 Other 2,066 2,066 1,496

Total $21,447 $33,973 $42,224

You may have additional expenses, such as laboratory fees and computer costs.

To help meet these costs, seven out of ten students receive some form of financial aid each year. Our goal is to help you understand your options so that you will have more choices and make sound decisions about paying for college—one of the most expensive purchases your family will make.

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What kinds of aid are available?

Except for unsubsidized loans, financial aid falls into two categories:

1. Need-based aid is based on financial need, but you may also have to meet other criteria, such as enrollment and residency status. The amount of need-based aid you receive is based on your college costs and your family’s ability to pay these costs.

2. Merit-based aid is usually awarded in recognition of special skills or academic ability, but other considerations may apply, such as community service or your field of study.

Within the two categories, there are four types of financial aid:

1.Scholarships

2.Grants

3.Work-study

4.Loans

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Need-based:

Scholarships (can be either or both)Delaware Scholarship Incentive Program (ScIP)

Grants (for example, Pell Grant)Federal Work-StudyFederal Perkins LoanFederal Direct Subsidized Loan

Federal Direct Unsubsidized LoanFederal PLUS Unsubsized Loan for ParentsFederal Iraq & Afghanistan Service GrantTax Credits (income restrictions apply)

Financial aid is usually paid through the college you attend. If you are eligible, you will receive a financial aid package from the college, which may include a combination of scholarships, grants, work-study, and loans.

Delaware SEED Scholarship (DTCC and UD)Inspire Scholarship (DSU)Federal TEACH Grant Program

Merit-based:

Merit- and need-based:

Not merit- or need-based:

Scholarships

Scholarships may be awarded for academic achievement, artistic ability, athletic excellence, ethnicity, or group affiliation. Some scholarships also consider financial need. They are not repaid and may be awarded for one year only, renewable, or require reapplication each year.

Colleges and the state of Delaware offer scholarship programs, as do a wide range of organizations:

Local, state, and national organizations Foundations Religious organizations Fraternities and sororities Town and city clubs Civic groups Athletic groups Professional organizations Employer-provided tuition assistance Businesses and corporations

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Scholarships, continued10

Search online:FastWebBigFuture by the College BoardScholarships.comOther Websites

The Delaware Scholarship Compendium, published annually by the Delaware Higher Education Office, provides information about over 200 private scholarships and state-sponsored financial aid programs, as well as an overview of planning and paying for college.

Grants

Grants are usually awarded based on financial need, are not repaid, and are available from the federal government, colleges, and the state of Delaware.

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Work-study

Work-study is need-based and awarded through the college to help you pay costs by working part-time, often on campus. If you work off-campus, your employer is usually a private nonprofit organization or public agency.

Money earned through the Federal Work-Study program is not counted as income when you apply for financial aid.

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Loans

Federal Direct Subsidized Loans may be subsidized or unsubsidized. Subsidized loans are need-based and interest is not charged while you are in school. Unsubsidized loans are not need-based and interest begins when the loan is made.

A Federal Perkins Loan is a low-interest loan for both undergraduate and graduate students with exceptional financial need. Federal Perkins Loans are made through a school's financial aid office. Your school is your lender

Parents of dependent children can apply for unsubsidized PLUS loans.

As the following chart indicates, federal loans are the largest source of student aid.

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Loans, continued

39%

17%

20%

5%

4%

8%

7%1%

Federal Loans ($70.0)

Institutional Grants ($29.7)

Pell Grants ($34.8)

State Grants ($9.1)

Private & Employer Grants ($6.6)

Federal Education Tax Credits & Deductions ($13.4)

Federal Grant Programs Other Than Pell ($3.1))

Federal Work Study ($1.0)

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Source: Trends in Student Aid © 2011. The College Board, www.collegeboard.org.

Undergraduate Student Aid (in Billions) by Source, 2010-11Total Aid $177.6 Billion

Who provides financial aid?

In addition to private scholarships, you should explore the financial aid options available from the following sources

U.S. Department of Education

State of Delaware

Colleges that you are considering:

Colleges in Delaware

Colleges in the U.S.

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U.S. Department of Education

Pell Grant

Subsidized and Unsubsized Direct Loans

PLUS Loans for Parents

Consolidated Loans

Campus-based Aid:

Federal Supplemental Education Opportunity Grant (FSEOG)Work-studyPerkins Loan

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State of Delaware

The undergraduate state-sponsored programs that are administered by the Delaware Higher Education Office include:

Grants Diamond State Scholarship for students attending regionally accredited

colleges in all states Academic Memorial Scholarships for students attending the University of

Delaware or Delaware State University Professional Incentive Programs for nurses and teachers State University of New York Maritime College Regional Contract Program

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State of Delaware, continued

The Academic Common Market is a tuition-savings agreement between the 16 member states of the Southern Regional Education Board (SREB). If your program of study is not offered by a public college in Delaware, you may be eligible for in-state tuition at a participating public college in one of 15 southern states.

You may apply for the ACM if you meet the following eligibility criteria:

1. You are a Delaware resident and U.S. citizen or eligible noncitizen.

2. You are majoring in a program of study not offered at the University of Delaware or Delaware State University.

3. You have been accepted to or you are enrolled in an eligible program of study that has been selected for the ACM by a participating college.

Note: The ACM includes baccalaureate and graduate-level degree programs. It does not include first professional degree programs, such as dentistry, medicine, optometry, pharmacy, and law.

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The Delaware SEED (Student Excellence Equals Degree) Scholarship Program provides tuition for eligible Delaware students enrolling in an associate degree program at Delaware Technical Community College or the University of Delaware’s Associate in Arts program.

To be eligible, students must have a cumulative GPA of 2.5 and enroll full-time no later than the fall immediately following graduation.

Deadlines are set by DTCC and UD.

State of Delaware, continued

State of Delaware, continued

Delaware State University’s Inspire Scholarship provides tuition assistance similar to the SEED scholarship for eligible Delaware students enrolling at Delaware State University

To be eligible, students must have a cumulative GPA of 2.75 and enroll full-time no later than the fall immediately following graduation.

Complete eligibility requirements and deadlines are posted on the DSU website.

Colleges

Check with the colleges to which you are applying and ask which of the following types of aid they offer:

• Grants• Scholarships• Loans• Work-study

The financial aid office at the college can tell you how and when to apply.

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How do I apply?

You must complete the required application forms by the deadline to be considered for financial aid from any source:

Complete the Free Application for Federal Student Aid (FAFSA) for:• All federal programs• Delaware’s need-based grant, the Scholarship Incentive Program (ScIP)• Most colleges• Some private scholarships

Complete the CSS/Profile for many private colleges.

Complete the Common Merit Application after December 3 for state-sponsored merit scholarships and professional incentive programs.

Complete specific applications for other state-sponsored programs, private scholarships, and some colleges. Find out which forms you will need to complete and meet all deadlines.

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Free Application for Federal Student Aid (FAFSA)

• The FAFSA should be submitted to the federal processor as soon as possible after January 1 each year.

• The completed form is processed and not reviewed for comments. If you have exceptional circumstances, you should discuss them with the financial aid office at your college.

• You do not have to file your taxes before submitting your FAFSA, but it is recommended that you and your parents fill out your tax returns before completing the FAFSA. You will have the opportunity to make corrections later, if necessary.

• When your FAFSA has been processed, you will receive a Student Aid Report (SAR), which reflects your Estimated Family Contribution (EFC). You should carefully review your SAR to make sure all the information is correct. If your EFC does not appear on your SAR, you will need to make the corrections noted on the SAR.

• An electronic copy of your information is sent to the colleges you have listed on the FAFSA (up to six). You can list an additional six colleges on your SAR.

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How is my financial need determined?

To the extent possible, you will be expected to contribute to the cost of your college education. The EFC is calculated from the information you provide about your household on FAFSA (or the CSS/Profile).

Your financial need is the difference between the cost of attendance and your EFC:

A. Tuition and fees

+ Room and board

+ Other expenses (books, supplies, transportation)

= Cost of attendance

B. Cost of attendance

- Estimated Family Contribution (EFC)

= Financial need

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Calculate your costs

The FinAid website has calculators to estimate your EFC, calculate loan repayments, or compare loans.

You can find additional websites with calculators on our website on the Other Websites webpage.

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When do I apply?

The deadlines for financial aid programs vary, and all deadlines must be met. If you miss the deadline, you will not be considered.

Starting your search early will give you the opportunity to apply for more awards, some of which may have deadlines early in your senior year.

Some programs require an application every year. You will need to complete the FAFSA each year to be considered for federal student aid. After your initial FAFSA, you can file the Renewal FAFSA, a shorter version, in subsequent years.

To be considered for Delaware’s need-based grant, the Scholarship Incentive Program (ScIP), the federal processor must receive your FAFSA by April 15 each year.

Other programs, such as Delaware’s merit-based academic scholarships, are only offered to graduating seniors in high school. A missed deadline is a missed opportunity to be considered for these programs. The Common Merit Application is available online in December.

Applying for financial aid from colleges is a separate process from applying for admission. Request information about financial aid from all the colleges you are considering.

If you are applying for private scholarships, contact the award donor to verify the deadline and eligibility requirements.

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Tips for applying for financial aid:

1. Spend the time necessary to find out all you can about applying for financial aid. The more you know, the better informed your decisions will be.

2. Meet all deadlines.

3. Don’t procrastinate.

4. Don’t be overwhelmed by the paperwork.

5. Ask questions.

6. Keep good records.

7. Make copies of all forms you submit.

8. Make a chart to track the forms you sent to each school, noting all items as you submit them.

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Tips, continued:

9. Because so many FREE resources are available, we recommend that students and their parents be very careful about paying any fees for scholarship matching services or financial aid consultants. For sound advice, visit “Scholarship Scams” at www.finaid.org/scholarships/scams.phtml.

10. Attend one of the FREE regional financial aid nights conducted by the Delaware Association of Financial Aid Administrators and held at several schools in each county in December, January, and February. The schedule will be posted on our website in November.

11. Ask your school counselor if any workshops providing FREE help completing the FAFSA are scheduled in your area.

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Where can I find information?

U.S. Department of EducationFederal Student Aid Information Center

PO Box 84Washington, DC 20044-0084

1-800-FED-AID (1-800-433-3243)1-880-730-8913 (TTY users)

www.studentaid.ed.govwww.fafsa.ed.gov

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School counselors

College financial aid offices

School and public libraries

Internet (see Other Sites to begin your search)

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Delaware Department of EducationDelaware Higher Education Office

The Townsend Building401 Federal Street, Suite 2

Dover, DE 19901Phone: 302-735-4120 or 1-800-292-7935

Fax: 302-739-5894

dheo@doe.k12.de.uswww.doe.k12.de.us/dheo

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