Paying for College - Delaware Military Academy for College 2017...Applying for Financial Aid 1. Learn HOW and WHEN to apply for financial aid at each school. 2. Create your Federal

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Copyright 2016. Delaware Financial Empowerment Partnership.

All Rights Reserved.

Paying for CollegeGet in the Game!

2017-2018

$tand By Me is a partnership between the State of Delaware and United Way of Delaware

College Funding Project is a partnership between $tand By Me and the DE Higher Education Office

Copyright 2016. Delaware Financial Empowerment Partnership. All Rights Reserved.

A presentation by the College Funding Project(With information adapted, in part, from the U.S. Department of Education)


Paying for college …

… starts today!

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What can you do today?

Parents� Save money

� Estimate what you can afford to

contribute to the cost of college

� Understand how financial aid can help you pay for college

� Determine how and when to apply for financial aid

� Create your “FSA ID” at FAFSA.gov

Students� Save money

� Excel in school; be involved

� Explore school/college options

� Research and prepare to apply for

scholarships and grants

� Create your “FSA ID” at FAFSA.gov

� Create your “Student Account” at: DelawareGoestoCollege.org


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Useful Tools …

� “FAFSA4caster” available at:

FAFSA.gov

� “Net price calculator” for the college

you want to attend—search tool

available at: CollegeCost.ed.gov

� “College Scorecard” available at: CollegeScoreCard.ed.gov


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“Getting in the Game”

� Education is an important investment

� Financial aid is available – if you file the FAFSA

� Procedures and deadlines need to be followed

� Scholarships—the free money—will help you minimize what you need to borrow—the loans—to attend the school you choose

� Preparation and planning are required


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What will it “cost” you?

“Sticker Price”(Cost of Attendance)

Scholarships/grants(“Free” Money)

“Net Cost” to you=

−

Federal Work Study and Federal Direct Loanscan be used to cover the “net cost,” as needed

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Cost of Attendance (COA)

� Calculated by school

� Can vary by

school/residency/major

� Includes BOTH tuition/fees and

living expenses for academic year

� Total financial aid cannotexceed “Cost of Attendance”

� Not prescriptive

COA Elements

Tuition

Fees

Books and Supplies

Room and Board

Transportation

Clothing

Misc. Personal Expenses

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Questions to be Answered

� What is financial aid?

� What funding is available?

� How do you apply?

� When do you apply?


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What is financial aid ?

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Financial Aid is about:

ACCESS and OPPORTUNITY

It provides funding …

�So that you can achieve your educational goals NOW

�Even if you do not have enough money to pay for it

yourselfThe federal government currently provides more than $150 billion in federal funding each year to more than 13 million students attending colleges and career schools.

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Are you eligible for

federal financial aid?

YES, if you are:

� U.S. citizen or permanent resident with a valid Social Security

number

� Pursuing a degree or certificate AND enrolled at least half-time

� In possession of high school diploma, GED certificate, or

completed home schooling

� Registered with Selective Service (males only)

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Expected Family Contribution (EFC)

� Amount you/your family should be able to contribute

� Same amount regardless of the school attended

� Helps determine eligibility for “need-based” aid

� Calculated using data provided on FAFSABut non-need based financial aid (e.g., federal student loans) is available to help you replace the EFC, as needed!

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What funding is available?

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Types of Financial Aid

Scholarshipsand Grants

Work Study

Loans

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Scholarships Grants

How do they help? FREE MONEY

How are theyawarded?

� Based on merit � Based on need

Who funds them?� State governments� Schools

� Private organizations

� Federal government� State governments

� Schools� Private organizations

What do I needto know?

� How do I apply?� When do I apply AND what are the deadlines?

� Will funds be renewed each year?� Will amount awarded change from year to year?

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Scholarships and Grants

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Federal Work Study (FWS)

How does it help? � Earnings from part-time employment

How is it awarded? � Based on need

Who funds it? � Federal government in cooperation with your school

What do I need

to know?

� What if I don’t want to work part-time, can I replace

FWS funding with other sources of financial aid?� Can I still work part-time if I do not get FWS funding?� What types of work could I do?

� Where would I be working?� How many hours could I be required to work?

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Federal Work Study


Loans

How does it help?� Money you borrow to fill your funding gap, but

must be repaid

How is it awarded?

� Both need-based & non-need-based loans

are available

Who funds it?

� Federal government� Private lenders

� Schools

� Family

What do I needto know?

� Always borrow federal loans first!

� Repayment of federal loans is very flexible—monthly payments can be based

on your income rather than amount of your

debt

� Borrow the minimum you need to attend your chosen school

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Loans


Current Federal Aid Programs

Scholarships/Grants

Grants

� Federal Pell Grant

� Federal Supplemental

Educational Opportunity Grant (SEOG)

� Teacher Education Assistance

for College and Higher Education (TEACH) Grant

Federal grant funding could total more than $5,800/year depending on your

situation

Employment

� Federal Work-Study

STUDENTS:

�Direct Subsidized Loan

�Direct Unsubsidized Loan

PARENTS:

�Direct PLUS Loan

Federal loan funding could cover up to COA minus all other financial aid, if needed

Loans

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How do you apply?

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Applying for Financial Aid

1. Learn HOW and WHEN to apply for financial aid at each school.

2. Create your Federal Student Aid (FSA) ID at FAFSA.gov.

3. Complete/submit your “Free Application for Federal Student Aid”(FAFSA) at: FAFSA.gov.

4. Review “Student Aid Report” (SAR) you receive after your FAFSA is

processed; submit corrections/updates as needed.

5. Apply for additional scholarships and grants from civic and other private

organizations.

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Copyright 2015. Delaware Financial Empowerment Partnership. All Rights Reserved. Slide 21.

FSA IDYour “Electronic” Signature

� FSA ID is required to sign the FAFSA

� Create your FSA ID (username and password) at:

FAFSA.gov

� Both you and your parent(s) need your own FSA ID

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� “Free Application for Federal

Student Aid” is the federal form

used to collect demographic and financial information from families

� Must be filed online every year

you need financial aid at: FAFSA.gov

� 2017–2018 FAFSA available: October 1, 2016


FAFSA

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FAFSA …

Does

� Determine student’s eligibility for

federal student aid

� Gather household’s income and asset information needed to calculate federal “Expected Family

Contribution” (EFC)

� Need to be submitted every year financial aid is needed

� Collect information about

household’s expenses or “special circumstances”

� Determine what specific financial aid will be awarded

� Determine how much financial aid will be awarded

� Serve as loan application

Does NOT

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Parents and the FAFSA

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Will parents’ information

be needed on the FAFSA?

YES� If student is:

DEPENDENT

NO� If student is:

INDEPENDENT

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Student is INDEPENDENT

in 2017-2018 if …• Born before 1/1/1994

• Married or separated

• Graduate/professional student

• Serving on active duty in military

• Veteran

• Has dependent children

• Has dependents other than

children/spouse

• Emancipated minor as determined by

court

• Since age 13, both parents deceased,

in foster care, or dependent/ward of court

• As of 7/1/2016, determined to be unaccompanied youth who is

homeless

• As of 7/1/2016, determined to be unaccompanied youth who is self

supporting and at risk of being homeless


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Who is “legal parent” on FAFSA?“Legal parent” is the biological or adoptive parent(s):

� If married or not married but living together, information must be

provided for both parents

� If never married and not living together, information must be provided for parent with whom student lives with more of the year

� If divorced or separated, information must be provided for parent

with whom student lives with more of the year

NOTE:

� Information must also be provided for stepparent if “legal parent” has remarried

� Grandparents, foster parents, legal guardians, aunts and uncles are NOT

considered “legal parents” on FAFSA

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IRS Data Retrieval Tool (DRT)

� Allows student/parents to transfer federal tax data from the IRS

directly into the FAFSA application

� Federal tax return must have been filed:

o Electronically at least 10 business days prior to use of DRT

o By paper at least 6 weeks prior to use of DRT

� Could reduce the additional documents that may be requested

by financial aid office


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Multiple FAFSA ApplicationsOption to transfer parents’ information

� Parents must provide financial information on the FAFSA

application for each dependent child submitting a FAFSA

� Parents have ONE option to transfer their information to multiple

FAFSA applications, if needed

o Can only be done at time initial/first FAFSA is submitted and

confirmation is received

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FAFSA RESULTS:“Student Aid Report (SAR)”

� You will receive a “Student Aid Report” (SAR)

once your FAFSA has been processed

� You (and your parents) should review the SAR:

o Check all information for accuracy; correct any errors

o Update estimated information, if necessary

o Update school listing, if necessary

o Submit corrected/updated SAR, as needed


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When do you apply?

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When do you file the FAFSA?

� Do NOT wait until you have been offered

admission—you could miss important deadlines established by the school you want to attend

� You can submit the FAFSA beginning OCTOBER

1st of the calendar year before you start college

o For example, the 2017–2018 FAFSA is available on October 1, 2016

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Be careful!

Use

� FAFSA.gov � FAFSA.com

� FAFSA.net

� FAFSAonline.com

� FAFSAExpress.com

Do NOT Use

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Delaware Scholarships/GrantsApplication Requirements

2017-2018

� Must complete the “Free Application for Federal

Student Aid” (FAFSA) and submit it so that it is received by

the federal processor by April 15, 2017

AND

� Must complete the “Common Merit Application” for most merit-based awards funded by Delaware that is available at: DelawareGoestoCollege.org


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Meet all deadlines!

Admission Application

FAFSA

Scholarship Application(s)

Other Financial

Aid Documents

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What if you have

special circumstances?

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For example …

�You cannot provide parental information on the FAFSA

�Your parents’ marital status has changed

�Your parents’ employment status has changed

�Your family has medical expenses not covered by health insurance

�Your family has unusual dependent care expenses


What if you have special

circumstances?

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Notify school of any

special circumstances

� Contact the financial aid office at each school you are

considering and explain your situation to them—they may be

able to make to adjustments to accommodate your situation.

� You likely will need to provide a written explanation of your special circumstances (along with documentation) to the

financial aid office.

� You cannot report or explain your family’s special

circumstances when completing the FAFSA or on the

“Student Aid Report” (SAR).

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A few words about

student loans …

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Why borrow federal loans?

They offer:

� Choice

� Flexibility

� Safety


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Federal student loans

are unique …� Payments can be based on student’s income

(rather than on amount of debt owed)

� Payment relief options are available

� Forgiveness may be available on a portion of the debt if not repaid within 20-25 years or if doing qualifying public service for 10 years


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MORE repayment features …

� Loans will be discharged if borrower dies or becomes totally and permanently disabled

� Payments begin 6 months after graduation

� No penalty for prepayments

No other form of personal credit (including private student

loans) offers such flexibility and safety!


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If loans are needed …

� Borrow federal loans

� Avoid private student loans

o Student may be “gapped”—available funding from

scholarships, grants, work study and federal student loans

may not cover needed amount

o Parent should consider borrowing Federal Direct PLUS

Loan to cover the “gap” rather than having student

borrow private student loans, if possible


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Final comments …

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How will you know what financial

aid you are eligible to receive?

� The Financial Aid Office will notify you of the types and

amounts of financial aid your are eligible to receive as soon as

possible after:

o You have been admitted to the school

o You have submitted your FAFSA and all other required financial

aid application materials

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You will need to follow the directions provided by the school to

complete the process (including applying for any loans you need

to borrow)

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Prepare financially …

� Know when and how to apply for financial aid

o Ask if any forms are needed in addition to the FAFSA

o Ask about deadlines

� Save as much as possible

o You may need money to pay for expenses before you get on campus (e.g., campus visits, moving to campus).

� Apply for scholarships from private organizations.

� File your FAFSA as soon as possible after October 1, 2016!

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For more information …

� College admission and financial aid staff

� High school guidance counselor

� StudentAid.gov

� FAFSA.gov

� GIBill.va.gov

� StandByMeDE.org

� CollegeFundingProject.org

� DelawareGoestoCollege.org

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CollegeFundingProject.org

StandByMeDE.org 48

Remember, paying for college starts todayso get in the game!

Money is available, but you need to file the FAFSA!

Be strategic, start preparing now!