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Helping students and families reach higher

1Ladder Ups ServicesTax AssistanceFamily < $45,000Individual < $20,000Over 20 locations

Financial Aid AssistanceOutreach and FAFSA help at schoolsIndividual help (hotline, appointments by request)

www.goladderup.org2Financial Aid 101Paying for College2012-20133Financing CollegeThe Financial Aid Process: Prepare.Apply.ReceiveRepay

The FAFSA: Who can apply? What type of aid is available? When do I apply? Where can I apply? Why should I apply?44OBJECTIVES SLIDEWhat is Financial Aid? Financial Aid helps make up the difference between what you can afford to pay and the actual cost of college. * Dont underestimate your options. * Never assume youre personal finances will limit all types of financial aid. * Dont get sticker shock - college costs may not be what they seem.{ 1 }Here, stress IT IS AID- it is meant to make up the difference but it will not cover everything. p1. gives a nice definition of federal aid5Sources of Financial Aid

6 Types of Financial Aid gift aidself-helpaidGRANTS

SCHOLARSHIPSWORK-STUDY

LOANS7GRANTSA complete FAFSA is required:

Federal Pell Grant up to $5,550 * Federal Supplemental Educational Opportunity Grant (FSEOG) up to $4,000 * State of Illinois Monetary Award Program (MAP) Grant $4,968** Maximum awards for 2012-13 { 4 }88The Free Application for Federal Student Aid (FAFSA) determines eligibility for federal and state grants as well as student loans, and other types of aid that may be administered by the college or university. By simply completing a FAFSA, students will be considered and may qualify for some or all of the following need-based grants: Pell, FSEOG, and MAP.

LOANS - Federal Programs (for Undergraduates)TypeFreshman Year MaxRate Perkins

Subsidized5%Fixed$5,500 Stafford

Subsidized4.5%Fixed$3,500Unsubsidized6.8% fixed$5,500Unsub PLUS* *Repayment starts in 60 daysCredit-based7.9%fixedCOA -AidLoan Program{ 5; 16-18 }99p5. outlines these loan programs, highlight/follow along; details on p16-18

Borrow responsibly! Both you and your parents can borrow from a variety of loan programs to help with your educational expenses. These funds require repayment, usually with interest. The Perkins Loan is a subsidized loan. This means that the federal government pays the interest while you are in school at least half-time, and for 9 months after you leave school. The interest rate is only 5% and a 10-year repayment period applies. The college acts as the lender using a limited pool of funds provided by the federal government.The Federal Stafford Loan Program allows students to borrow money with low interest for educational expenses. There are two types of Federal Stafford Loans available: subsidized and unsubsidized. Eligibility for Subsidized Federal Stafford Loans is based on financial need, andthe Federal government pays the interest on your behalf while you are enrolled at least half time, during your grace period,and authorized defermentperiods. Eligibility for Unsubsidized Federal Stafford Loans is not based on financial need, but you are responsible for paying interest at all times. You may pay this interest while in school, oryou can allow it to accrue and capitalize and it will be addedto your principal balance to be paid off with the rest of your loan when you stop attending on at least a half-time basis.Federal PLUS loans allow parents to borrow on behalf of their dependent undergraduate students, or graduate and professional students to borrow on their own behalf. Take note that federal student loansgenerally have the lowest interest rates and the greatest flexibility. Alternative loans are used to supplement federal loans and are closely based on your credit history.

Why Federal Student Loans?(Vs. Private Loans)Remember: you must repay all loans even if you drop out! DONT borrow more than you need!!!NEW! Income-based repayment and Public Service Benefits (35)In Progress: Pay-as-You-EarnLearn more at: federalstudentaid.ed.gov

{ 34-35 }10(write this down) Remember

Skip ahead to p34. here we outline Borrowers Rights and Responsibilities as well as the details of repayment

Undocumented StudentsStatus of Parent not important for FAFSAIf student does not have SSN:Do NOT complete the FAFSAMust rely on private scholarships and institutional aidApply for as many as you can!Eligible for in-state resident Illinois tuitionResources and private scholarships:IACAC.orgLATINOCOLLEGEDOLLARS.orgLook in your community!

-enter 0s for parents without SSNs-only provide tax documents that use ITINs and not false SSNs11Am I Eligible for Federal Financial Aid?U.S. citizen or eligible noncitizenValid Social Security Number High school diploma, GED or equivalentRegister with Selective ServiceSeeking a degree or certificateMaintain satisfactory academic progressNot be in default on a student loan or owe money on a federal student grant

{ 1 }12P1 outlines eligibilityFree Application for Federal Student AidFAFSA.GOV - ITS FREE!Apply early Starts January 1st!Federal, State, Institutional AidFill out the FAFSA every year you wish to receive aidFAFSANOTE: Communicate with each college to inquire about steps to a complete application and any additional forms or applications. 13If applicable the school may require or at the very least accept the CSS profile for a more in depth look at a familys financial situation. This is more likely for Selective to Very Selective schools. WWW.FAFSA.GOV

The only place to complete the FAFSA for free14Ladder Up Open EventsGet it done early, get it done right!Downtown: Malcolm X College1900 West Van Buren Street, room 0602 and room 060311am 8pm on Thursday, Jan. 3, Friday Jan. 4, and Monday Jan. 74pm 8pm on Thursday, Jan. 10

North Side: Wilbur Wright College 4300 N Narragansett Ave, in computer labs L113 and L11511am 6pm on Saturday, Jan. 54pm 8pm on Wednesday, Jan. 911am 8pm on Friday, Jan. 11Ladder Up Open EventsSouth Side: Gary Comer College7131 S South Chicago Ave1pm 4pm on Saturday, Jan. 55:30pm 8pm on Tuesday, Jan. 8South Side: Kennedy King College747 W. 63rd Street, in computer lab V21710am 8pm on Friday, Jan. 4, and Friday Jan. 1110am 6pm on Saturday, Jan. 12Completing the FAFSA Who Needs Parent Information? DEPENDENT INDEPENDENTStudent must report personal and parental income.Student does not need to report parental income, only personal income.A student or parent cannot determine dependency status. There are very specific qualifications for Independent Students.

A student that lives on their own, is not necessarily independent. Most traditional aged college students are dependent students.

Special circumstances may apply17Born before January 1, 1990 (for the 2013-14 academic year)MarriedGraduate or professional studentVeteran or currently serving on active duty Have legal dependents other than a spouse, for whom more than 50% of the support is providedOrphan, ward of the court, or in foster care after the age of 13Emancipated minor or in legal guardianship as determined by a courtUnaccompanied youth who is homeless or at risk of being homeless

INDEPENDENTStudent fits into at least one of the following categories:{ 27 }18p27 lists these criteria Who is Considered a Parent?BIOLOGICAL parent(s) with whom you liveSTEP-PARENTS married to your biological parentADOPTIVE Parents (if adopted before age 13)

Grandparents and Legal Guardians are NEVER considered parents - TALK TO YOUR COLLEGE IF YOU BELIEVE YOU HAVE SPECIAL CIRCUMSTANCES.

FAFSA dependency may not be the same as for taxes (does not matter who parents claim)

{ 28-29 }19P28-29 cover dependent student issues and special circumstances Required Information and Documents Social Security NumbersBirthdatesStudent Alien Registration Card2012 Federal Income Tax2012 W2 FormsAsset Information{ 25 }Be prepared! Fill out the FAFSA Ready Worksheet now with 2011 information, ask questions, make sure everything is right!P25 can be used to reference this information, its important that you have all this information organized ahead of time

Students and parents must provide the following, as it appears on their current Social Security Card:

Full Name Date of Birth Social Security Number

An honest mistake in this field can cause the FAFSA to be rejected and delay the financial aid process by days if not weeks.

FOR TAXES:

Two week delay for efile Federal 1040, 1040A, 1040EZ to use the Data retrieval tool. The schools may verify this information by use of the Data retrieval tool OR by Official IRS 1040 Transcript only.

If the student and parent are not tax payers then additional documentation will be required as proof of income.These forms may include: W-2 and 1099 income statements, Year-end documentation for social security, disability, unemployment, and other federal programs.

Investments include real estate, trust funds, UGMA and UTMA accounts (owner only), money market funds, mutual funds, CODs, stocks, stock options, bonds, other securities, installment and land sale contracts (including mortgages held), commodities.

Investments also include coverdell savings accounts, 529 savings plans, 529 savings refunds. Dependent students should include all investment accounts in their parents name.

Investments DO NOT include: the home you live in, value of life insurance, retirement plans (401K, pension funds, annuities, non-education IRAs, Keogh plans etc,) or cash, savings, and checking already reported

20What does the FAFSA calculate?

Expected Family ContributionA need analysis formula that determines how much a family can be expected to contribute to a students education each year.Used to determine a students eligibility for most federal and state assistance and some private scholarships.

EFC will automatically appear on your FAFSA confirmation page.{ 12 }P12

An EFC is an indicator of a familys ability to pay for college. An EFC is CONSTANT for a family and is applied objectively for need-based at schools. The financial resources reported on the FAFSA does not change from one school to another. First, it is used to determine eligibility for Federal Grants, State Grants, and Federal Student Loans. Second, it is used to determine eligibility for need based institutional aid. The student may receive additional merit or leadership based aid based on his complete application and student profile.21Tuition & Fees Room & BoardTransportationBooks & SuppliesMiscellaneous Living Expenses+

Cost of Attendance:2222The college determines a Cost of Attendance (COA), which is an estimate of expenses that are usually incurred by students. Typically, a COA will include tuition, fees, living expense (room and board), books and supplies, and transportation. Your COA will differ from college to college due to the different types of colleges, programs they offer, and living arrangements.

State of Affairs Public options have relatively little in financial aid to offer aside from the federal and state options, and while the sticker price is often lower they may not always offer the lowest COA (best financial fit) for students.

Private schools (often more selective,but not always) generally have more financial aid available to students for Need, Merit, and Leadership based institutional aid. Calculating Financial NeedCost of AttendanceExpected Family Contribution

College Financial Aid Office:{ 12 }2323At each college, the financial aid office will calculate your financial need by subtracting the EFC from the COA. In many cases, the college may not be able to meet 100% of your financial need. The difference between the cost of attendance and the amount of financial aid offered by the college is referred to as the gap, which you and your family will be responsible for paying out-of-pocket.

Every School Has a Different Cost:OptionAOptionBCOAEFCFinancialNeed$3,000$10,000$7,000$3,000$20,000$17,000--==OptionC$3,000$35,000$32,000-=2424Remember your EFC will be the same at each college but your COA will be different. As a result your financial need will not be the same at every college and therefore every financial aid package will be different. Most aid offered from the Federal and State government will be offered at every school. Financial Aid AwardsThe financial aid administrator at the college will package all available aid and send an award letter consideration.

What is the total cost of attendance?What is your financial aid eligibility?What types of financial aid are included?Was your financial need met?What is the out-of-pocket cost? NOTE: May not be the same as your EFC!FINANCIAL AID AWARD LETTER{ 31 }2525Once you have completed the financial aid application process, the financial aid administrators at each colleges that you are considering will "package" all available aid options and send an award letter for consideration. Because each college has its own packaging policy, the types of financial aid offered to you will probably vary from college to college. The financial aid offer may include a combination of financial aid programs from various sources, such as grants, scholarships, work-study and student loans. As you review your award letters, consider the cost of attendance, the EFC, your financial aid eligibility, the types of financial aid programs being offered, and your out-of-pocket cost.

Students can accept all, some or none of ANY financial aid package. Every item must be signed for. Students do not need to accept the maximum amount of the loan offered. Only borrow what they need.

Parents will only be asked to sign for either: -Federal Direct Parent PLUS Loan a direct loan with lower interest rates. -As co-signer or principal borrower for a private, higher interest loan.

What Should I Be Doing NOW? (pre-January 1st)

2626To review: Start planning for the futureComplete the application processReceive, revise and edit the Student Aid ReportConsider award letters Respond to college offersAdvise school(s) of outside scholarships Renew the FAFSA every year

Illinois Student Assistance Commission(800) 899-ISAC (4722) collegezone.com

U.S. Department of Education(800) 4 FED AIDwww.FederalStudentAid.ed.gov

Ladder Ups LIFT ProgramJen Lambert, Financial Aid CoordinatorAdelle White, Financial Literacy Coordinator LIFT@goladderup.org (312) 458-9105 @ladderup_LIFT

Find answers to your questions

Add your e-mail to the sign in sheet or send us an e-mail to get important financial aid updates and reminders!2727If you have further questions, you can reach the Illinois Student Assistance Commission at (800) 899-ISAC (4722) or the U.S. Department of Education at (800) 4 FED AID. Remember, we are here to help.