What is Financial Aid?
How Do I Know if I Qualify?
Categories and Types of Financial Aid
PIN
FAFSA
FAFSA Processing Results
SAR
Special Circumstances
Budgeting/Spending
College Goal Sunday
Financial aid are any type of funds provided to students and families to help pay for postsecondary educational expenses.
Direct Costs – tuition, fees, room, board etc.
Indirect Costs – personal expenses, transportation
Direct and indirect costs combine to form the cost of attendance (COA)
Vary widely from college to college
Amount family can reasonably be expected to contribute
Stays the same regardless of college
Two components
- Parent contribution
- Student Contribution
Calculated using Free Application for Federal Student Aid (FAFSA) data and a federal formula
-
Cost of Attendance (COA)
Expected Family Contribution
= Financial Need
High Financial Need Low Financial Need
Cost of Attendance = $18,000 Cost of Attendance = $18,000
Expected Family Contribution = 0
Expected Family Contribution = $18,000
Financial Need = $18,000 Financial Need = $0
May be eligible for grants and other need based aid
Eligible for unsubsidized loan and/or PLUS Loan
Need-Based
Scholarships
Grants
Subsidized Loans
Work Study
Tribal Scholarships
Non need-based
Unsubsidized loan
Merit based scholarships
Parent Loan for Undergraduate Students (PLUS)
Private Alternative Loans
Money that does not have to be paid back
Awarded on the basis of merit, skill, or a unique characteristic
Scholarships can be need based or non-need based
Scholarship Essay help: http://www.scholarshiphelp.org/scholarship_essay.htm
Free Scholarship Searches: o Fast Web – www.fastweb.com o College Answer – www.collegeanswer.com o College Board –
https://bigfuture.collegeboard.org/pay-for-college/scholarships-grants
Be wary about paying anyone to “find” scholarships for you!
Many scholarship deadlines occur in March
Scholarships are then awarded to student in May for the following academic year
Scholarships usually are not awarded for the summer semester/quarter
High School Counselors Office University/College Admissions Office Financial Aid Office Public Library Internet Bookstore Local Church Parent’s Place of Employment
Money that does not have to be paid back
Usually awarded on the basis of financial need
Are limited (with the exception of the Pell Grant) and are awarded on a first come, first served basis
Complete your FAFSA early!
Money students and parents borrow to help pay educational expenses
Repayment usually beings after education is finished
Only borrow what is really needed
Look at loans as an investment to the future
Two types – need based & non-need based
Dependent Students (Except Students Whose Parents Cannot Borrow PLUS)
Base Amount Additional Unsubsidized Loan Amount
Freshman $3,500 $2,000
Sophomore $4,500 $2,000
Junior or Senior $5,500 $2,000
Independent Undergraduate Student AND Dependent Student Whose Parents Cannot Borrow a PLUS Loan
Base Amount Additional UnsubsidizedLoan Amount
Freshman $3,500 $6,000
Sophomore $4,500 $6,000
Junior or Senior $5,500 $7,000
Need – Based
Subsidized Direct Loan
o No interest while in school
o Fixed interest rate of 3.4% (through 12/13)
o 10 years to repay on standard repayment plan
o No penalty for early repayment
o 6 month grace period
Non Need – Based
Unsubsidized Federal Direct Loan
o Fixed interest of 6.8% (12/13) accrues while in school
o 10 years to repay on standard repayment plan
o No penalty for early repayment
o 6 month grace period
Non Need – Based cont’d
Private/Alternative Loan
o Variable interest rates according to lender
o Based on credit worthiness
o Most students will need a co-signer
Non Need – Based cont’d
Parent Loan for Undergraduate Students (PLUS)
o Parent is the borrower
o Only for parents of dependent students
o Fixed interest rate of 7.9% (12/13)
o Based on credit worthiness
Federal Work Study o Gov’t pays 70% of salary, dept pays other 30% o Money earned does not count as income on next year’s
FAFSA
Student Wage o Non – Work Study o Work on Campus
Off Campus Employment o May not be as flexible as on-campus employment
Students receive a paycheck
• Applicants should contact their tribal scholarship office as soon as possible to learn deadlines etc…
• Website: www.pin.ed.gov
• Sign FAFSA electronically
• Can request PIN before you file
• BOTH parent and student will need a PIN
• Never expires
• A standard form that collects demographic and financial information about the student and family
• Available every year after January 1
• Colleges may set FAFSA filing deadlines
• Must be completed every year
• Colleges use the EFC to award financial aid
• Must be a U.S. Citizen or eligible non-citizen
• Must have a valid Social Security Number
• Be enrolled/accepted in an eligible program of study
• Must be pursuing a degree, certificate or other recognized credential
• Males must be registered with Selective Service
• Web site: www.fafsa.gov
• 2013-2014 FAFSA available now
• FAFSA on the Web Worksheet: o Use as a “pre-application” worksheet o Questions follow order of FAFSA on the
Web
• Enhanced Security
o SSN will no longer appear on the Student Aid Report
o SSN will no longer be used on the confirmation page
o Virtual keyboard added ⁻ Used when entering SSN and date of
birth for students and parents ⁻ Helps prevent a malicious source from
tracking keystrokes
• Required ⁻ Student ⁻ One parent (dependent students)
• Format
₋ Electronic using PIN ₋ Signature page – snail mail
• After submitting a FAFSA, the Central Processing System (CPS) notifies student of FAFSA processing results by:
₋ E-mail: If one was provided then a notification will be sent containing a direct link to the student’s on-line Student Aid Report
• Student with PIN may view SAR on-line at www.fafsa.gov.
• The student will receive this 3-5 days after FAFSA has been processed:
₋ If email has been provided ₋ If no email then 7-10 days for snail mail
• Why it’s important ₋ Verify information ₋ Review for corrections ₋ Provides EFC
• FAFSA information is sent to colleges listed on the FAFSA approximately 10-14 days after the FAFSA has been submitted
• The college then reviews the information and calculates eligibility
₋ May request additional documentation, such as copies of federal tax transcripts.
• College mails an award letter to student
• Student responds
• Under certain conditions, some applicants who are selected for verification will need to submit an IRS Tax Return Transcript for the 2012 tax year (copies of tax returns are NOT acceptable)
• These conditions are (but not limited to): o When the student or parent did not use
the IRS Data Retrieval Process, either at initial FAFSA filing or through the correction process
• When info included on the FAFSA using the IRS Data Retrieval Process was changed
• When a married independent student and spouse filed separate tax returns
• When the parents of a dependent student filed separate tax returns
• When a student or student’s parent had a change in marital status after the end of the tax year on Dec. 31, 2012.
• When the student, parent or spouse filed an amended tax return.
• How to order a tax transcript
o Visit: http://www.irs.gov/Individuals/Order-a-Transcript
• If necessary, corrections to the FAFSA may be made by:
₋ Using www.fafsa.gov ₋ Your school may be able to make them for
you electronically (check with your school) ₋ If you received a paper SAR, make changes
and mail to the address on the form.
• Change in employment status
• Medical and/or dental expenses not covered by insurance
• Tuition expenses at an elementary or secondary school
• Dependent student issues; living with grandparents, ward of the court, extenuating circumstance at home etc…
• Talk directly with a financial aid professional at the institution of your choice as there are often appeal processes available
• Medical and/or dental expenses not covered by insurance
• Tuition expenses at an elementary or secondary school
• Dependent student issues; living with grandparents, ward of the court, extenuating circumstance at home etc…
• REMEMBER – BORROW ONLY WHAT YOU NEED FOR SCHOOL
• Getting an education is expensive
• Know what you are financing
• What you borrow, you MUST pay back
• Your credit history stays with your for a lifetime
Develop a financial game plan • Needs vs. Wants
• Complete a Budget Planning Worksheet EVERY SEMESTER
Other Tips • Compare award letter to the essential costs
of the college you are considering attending
• Higher awards don’t always equal less money out of pocket
Closest site: • Glendale Community College Student Union
Time: 2:00 – 4:00 p.m. Date: Sunday - February 10, 2013
www.collegegoalsunday.com
What to Bring: • Your parents • Their 2012 income data (W-2’s or pay stub
and/or 2012 tax return)
• University/College Financial Aid Office • Student Aid on the Web www.studentaid.ed.gov
• U.S. Department of Education o 1.800.433.3243