Financial Aid Process & Types of

Aid

GOAL: Demystify All Things Financial Aid

Terminology Process Types of Aid

A Funding Puzzle Savings Work Family Scholarships Merit Need Athletic Military Other Assets Financial Aid

Terminology FAFSA

www.fafsa.gov File by Feb 1st annually Don’t wait - estimate!

SAR EFC COA MPN Dependency

Dependency 24 years old Married Child/Dependent

(that you provide more than 50% of financial support for)

Working on Graduate degree Orphan/Ward of Court Military Veteran Emancipated Minor Homeless

…Who is my parent? …Special Circumstances

Eligibility

HB 1079 Scholarships REAL HOPE ACT

WASFA http://www.readysetgrad.org/wasfa

Apply by February 15th every year DACA Work/Savings

Filing criteria Types of Aid “Financial Aid” includes grants,

work-study, scholarships, AND loans

The Financial Aid Process

FAFSA(FREE

APPLICATION FOR FEDERAL STUDENT AID)

PRIVATE SCHOLARSHIP

AND GRANT APPLICATION

CSSFINANCIAL AID

REQUIRED BY SOME

COLLEGES

SAR(STUDENT AID REPORT)

EFC(EXPECTED

FAMILY

CONTRIBUTION)

FEDERAL AND STATE GRANTS & LOANS

COLLEGE SCHOLARSHIP

SERVICE

PRIVATE SCHOLARSHIPS

& GRANTS

YOUR FINANCIAL

AID PACKAGE

FAFSAPROFILEPRIVATE SOURCES

TARGET COLLEGES

Non FAFSA Filers

FEDERAL CENTRAL PROCESSOR

START HERE

33%

Types of Aid Gift Aid :

Federal Grants State Grants Institutional Grants Scholarships

Self-Help Aid:

Work-Study Loans

Stafford Loans

• Subsidized• Unsubsidized• Not credit based• 5 repayment

plans• Cancellation

Repayment Plan Options

1. Standard: fixed monthly amount for 10 years2. Extended: fixed monthly amount for 12-30 years3. Graduated: Starts off lower, gradually increases 12-30 years4. Income Contingent: Payments based on income & total

amount of debt up to 25 years5. Income Based: Similar to Income Contingent but at a lower

percentage

Annual Borrowing LimitsDependent Independent Class$5,500 $9,500 Freshman$6,500 $10,500 Sophomore$7,500 $12,500 Junior/Senior N/A $20,500 Graduate

Lifetime Borrowing Limit$31,000 Dependent$57,500 Independent$138,500 Graduate

Perkins Loans Not credit based Subsidized interest Grace period Repayment Deferment/Forbearance Cancellation

Other Loan Options Parent PLUS

Interest bearing Credit based Repayment Denial Provisions

Private Loans Interest bearing –

terms vary by lender

Cost of Attendance

Capturing and comparing the costs of college

What is Cost of Attendance (COA)? Varies by school The total estimated cost associated with attending that institution.

Includes both direct (tuition, fees, books) and indirect costs (transportation, childcare, personal expenses). Room/Board component – IF a student is living on campus – then R/B a direct cost – however, if

living off campus then an indirect cost.

Typically full-time, full academic year.

Helps students and families budget for the year.

Establishes the limits for financial aid available to the student.

WASHINGTON FINANCIAL AID ASSOCIATION

WFAA

How is COA used to determine aid?

Cost of Attendance (COA)established and varies by school

- Expected Family Contribution (EFC)determined by FAFSA and same for all schools

= Financial “Need”

WFAA

COA ExamplesTwo Year Community College

Four Year Washington University

Four Year Private University

Direct CostTuition & Fees $ 4,335 $ 11,386 $ 36,180 Wellness Plan $ - $ - $ 350

Indirect Costs $ 960 (books - no supplies)

Personal Expenses $ 1,602 $ 2,108 $ 1,820

Transportation $ 1,647 $ 1,434 $ 648 Room & Board $ 3,222 $ 10,868 $ 10,230

Total COA $ 11,836 $ 26,756 $ 50,258

Books & Supplies $ 1,030 $ 1,030

WFAA

Comparing & adjusting costs for individual needs

WFAA

How is COA used to determine financial aid award?

2 Year College

4 Year – Public

4 Year- Private

COA $ 11,836

$ 26,756

$ 50,258

- EFC $ 6,500

$ 6,500

$ 6,500

= “Need” $ 5,336 $ 20,256 $43,758

Financial Aid Award Letters

Getting to your bottom line

When Award Letters Start to Arrive . . .

Schools will produce award letters at varying points in the application process; Some require you to be admitted, others require verification to be completed.

Award letters may come to you in the mail or as an email to login to the school’s secure website.

Award letters are released between mid-to-late February through May and into the summer, depending on the school.

Some schools will send scholarship letters in the fall, based on your academic record.

Award Letter Essentials . . . How much does it cost to attend? How much & what kind of aid will You receive? What is your “Net Cost”

Total Cost of Attendance-Total Gift assistance=Net Cost

“Net Cost” should be reasonably close to the figure you get from the school’s Net Price Calculator

It would also be nice to know: What is my “bottom Line” – what do I owe the school? Where can I get additional information? e.g. Washington Opportunity Pathways What other resources are available to help with my

owing balance or other educational costs?

Sample Award Letters Two Year Community College Four Year WA University Four Year Private University

$0 EFC Dependent Student, College Bound eligible, filing on time at all institutions.

Sample Award Letters:WashingtonCommunity Colleges

Type & amount of aid

Contact Information

Additional Information

Sample Award Letter:4 Year Public Universities

Type & amount of aid

Additional & Contact Information

Cost of Attendance

Sample Award Letter:4 Year Private Universities

Cost of Attendance

Additional Resources & Contact Information

Types & Amount of Aid

Provided by schools who have agreed to comply with Executive Order 13607, intended to provide consistent information to students with V.A education benefits.

Additional Information & Contact Information

Graduation Rate

Default Rate

Median Loan Debt

Shopping Sheet

ScholarshipsHow, when and where to apply

WFAA

Topics

“I wish it grew on trees, but it takes

hard work to make money.”

- Jim Cramer

What is a scholarship? Who needs a scholarship -

EVERYONE Where to find scholarships Scholarship Tips Make your essay stand out Scholarship Scams Submitting the Application Who can use scholarship funds? When your offered scholarship Questions

WFAA

What is a scholarship?Scholarships are usually monetary awards given to students by an organization or donor to help pay for the students' education. Students must meet the organization's or donor’s criteria — such as pursuing a certain program of study, having financial need, or being an exemplary student. 

WFAA

Everyone can use scholarship funds

**Sub Loan - $350018%

Unsub Loan (dep) - $200010%

Unmet Need43%

*Grants (Maximum Pell) - $5730

29%

Assume Cost of Attendance is $20,000 a year

The Unmet need can be filled with a

Parent Plus loan or a private loan;why not fill it

with SCHOLARSHIP

funds!

*This slide would assume someone is getting a full Pell grant**This is the assumption that the student is a freshman and eligible for the full sub loan.

WFAA

Where to find scholarshipsLocal High School Financial Aid Office

ONLINEwww.thewashboard.org

Community/Parent organizations

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Scholarship Tips – Get Organized Organization

Create a scholarship email – one that you can check throughout the week.

Keep the scholarships that you are working on separate from the ones not started

Track the scholarships you have already applied for

Know the time frame to apply, allow plenty of time to get any additional information

Check the deadline – Post mark or received by that date.

WFAA

Scholarship Tips – Double Check your Application Have someone double check your application when

possible. Check spelling and grammar on ALL material being

submitted. Make sure EVERYTHING is answered and accounted for Make sure that your application is presented well

Type the essay, put content in order, etc..

WFAA

How to make your Essay stand out….Don’t just answer the essay question, consider...

How have your achievements impacted you? How will obtaining a degree impact your future? How will a degree impact your community? How have others inspired you? How did they help

shape your life?

WFAA

Search Engines Building a profile

Name Academic standings – GPA, Test Scores Interests – Athletics, Religious

Organizations Volunteer work - Clubs Grade level Career Goals Special Circumstances Military Affiliations

WFAA

Scholarship Scams It likely is a scam if:

It is Guaranteed you will win money

There is a fee FREE money should NOT cost money

No valid contact information

They request personal account information Checks will be sent to the school – not

your personal account

WFAA

When you are offered a scholarship…. Make sure to inform the financial aid department Read the award letter and make sure to follow up with

any additional information requested The organization may require that you show proof of

enrollment to college

Final thoughts… Resources

College Goal Washington www.collegegoalsundaywa.org

State-wide Scholarship Search www.thewashboard.org

Paying for College Info www.readysetgrad.org

Social networking Ask for help! Never give up!!