Zion Benton Financial Aid

National Association of Student Financial Aid Administrators

© NASFAA 2009

What You Need to Know

About Financial AidRuth Pusich

Elmhurst College

Slide 2 © NASFAA 2009

Topics We Will Discuss Tonight

• What is Financial Aid• How to Apply for Financial Aid• What is FAFSA, EFC, COA, Need• Categories, Types and Sources of Financial Aid• Special Circumstances• Student/Family Responsibilities


What is Financial Aid?

Financial aid is funds provided to students and families to help pay for postsecondary

educational expenses


How to Apply

• Apply for admission to a college• Complete the FAFSA (Free Application for Federal Student Aid)

• Complete any other forms required by the institution– Internal Financial Aid/Scholarship Application– CSS Profile


FAFSA - www.fafsa.gov

• A web-based standard form that collects demographic and financial information about the student and family

• Available in English and Spanish

• May be filed at any time during the school year, beginning January 1st

• Apply for a PIN number at www.pin.ed.gov – real time!– Student and one parent must sign

• Colleges may set FAFSA filing deadlines

• Colleges use the calculation results to award financial aid

http://www.fafsa.ed.gov/

http://www.pin.ed.gov/


CSS/Financial Aid PROFILE

• www.collegeboard.com – Colleges/universities and scholarship programs use to determine

eligibility for non-federal student aid funds– $25.00 initial application fee for one college or program plus

additional • $16 per additional college or program

– Review priority filing dates for all schools– More questions regarding home equity and person assets– Data is analyzed and sent to the colleges or scholarship programs– Institutional Methodology (IM) is used to determine eligibility

http://www.collegeboard.com/


FAFSA- Step 1

• Complete the FAFSA– Print off FOTW worksheet

• Complete taxes for easier filing• Actual form may ask for additional information

– FOTW uses skip-logic

– Items needed:• SSN# and birthdate of student and one parent• Completed tax returns (parent & student)• W-2s (parent & student)• Assets (parent & student)

Susan Luhman

Should we be consistent and use Acronyms or does it matter??


FAFSA

• Frequently Asked Questions– Who is a dependent student?– Who is a parent?– Who lives in the house?– Who counts as a college student?– What if my taxes are not completed?– What is additional financial data?– What is untaxed income?– What assets must be included?


FAFSA – Step 2

• Watch for your Student Aid Report (SAR)– Review for errors

• Social Security Numbers• Divorced/remarried parental information• Income earned by parents/stepparents• Untaxed income• U.S. income taxes paid • Household size• Number of household members in college• Real estate and investment net worth• Business and farm net worth

– Make corrections and/or update estimated informationDo nothing if correct


FAFSA – Step 3

•Institutions receive FAFSA results

–Can be sent to up to 10 different colleges

–College reviews data

–Verification (35% random selection)•May request additional documentation


FAFSA – Step 4

• Wait to hear from your colleges– Once accepted to the college and the FAFSA has

been received, the financial aid department gets busy– Schools determine a student’s eligibility for all types of

financial aid – including loans• FAFASA and/or PROFILE are data analysis tools only• Schools have different processing methods

– Watch for your financial aid package• Sent either through mail to the home or via the student’s

email


Expected Family Contribution (EFC)

• Amount family can reasonably be expected to contribute towards education for one year– Calculated using FAFSA data and a federal

formula– Stays the same regardless of college– Two components

• Parent contribution• Student contribution


What is Cost of Attendance (COA)

• Direct and indirect costs combined into cost of attendance

– Direct costs – tuition, fees, room & board

– Indirect costs – books, travel expenses, etc

• Varies widely from college to college

COA – EFC = Need


Financial Need

X

Y

Z

Cost of Expected Family NeedAttendance Contribution (Va ria b le ) (Va ria b le ) (Co ns ta n t)

1

2

3

EFC EFC


Categories of Financial Aid

• Need-based– Grants – usually awarded on the basis of financial need– Federal Work Study– Loans – (Perkins, Subsidized)

• Non Need-based– Scholarships – awarded on the basis of merit, skill, or

unique characteristics– Student employment– Loans - (Unsubsidized, PLUS, Private Alternative)


Types of Financial Aid

• Gift– Money that generally is not paid back

• Scholarships• Grants

• Student Employment – Self-Help– Allows student to earn money to help pay educational

costs• A paycheck, direct deposit or student account deduction• Non-monetary compensation, such as room and board


Types of Financial Aid

• Loans – Self-Help

– Money students and parents borrow to help pay college expenses

• Look at loans as an investment in the future

• Repayment usually begins after education is finished

• Only borrow what is really needed


Loans - Types

• Student– Perkins (5% fixed)

– Stafford• Subsidized (4.5% fixed)

• Unsubsidized (6.8%)

• Parent – PLUS (7.9%)

• Student/Parent – private alternative


Sources of Financial Aid

• Federal government

• States

• Institutions

• Private sources


Federal Government

• Largest source of financial aid

• Aid awarded primarily on the basis of financial need

• Must apply every year using the FAFSA


Common Federal Aid Programs

• Federal Pell Grant

– FSEOG - Federal Supplemental Educational Opportunity Grant

– ACG - Academic Competitiveness Grant

– SMART - National Science and Mathematics Access to Retain Talent Grant

• TEACH- Teacher Education Assistance for College and Higher Education Grant

• Federal Work-Study

• Federal Perkins Loan

• Stafford Loans

• PLUS Loans


States

• Residency requirements

• Award aid on the basis of both merit and need

• Use information from the FAFSA

• Deadlines vary by state - check FAFSA

– Illinois recommends early filing


Institutions

• Colleges and Universities

– Athletic scholarships

– Academic scholarships

– Private Institutions

• Need-based grants

• Endowed scholarships


Private Sources

• Foundations, businesses, charitable organizations, employers

• Deadlines and application procedures vary widely

• Begin researching private aid sources early - usually spring of senior year


Suggested Websites

• www.collegezone.com– State of Illinois Student Financial Assistance

• www.finaid.org– FinAid on the web

• www.collegeboard.com– Collegeboard

• www.gocollege.com– The Collegiate Websource

Small scholarships do add up!

http://www.collegezone.com/

http://www.finaid.org/

http://www.collegeboard.com/

http://www.gocollege.com/


Special Circumstances

• Cannot report on FAFSA• Send explanation to financial aid office at each college

– Change in employment status

– Medical expenses not covered by insurance

– Change in parent marital status

– Unusual dependent care expenses

– Private school expenses

– Student cannot obtain parent information


Financial Aid Scams

• Be skeptical if:– A fee is charged– You are told to attend an information session– You are promised or guaranteed an amount of

money…

www.fastweb.com

http://www.fastweb.com/


Annual Renewal

• Each school will have guidelines for renewing institutional aid

• FAFSA must be filed each year of enrollment for need-based aid and loan consideration

• Student loan eligibility is determined by FAFSA results and student’s year in school


Take Charge

• Follow deadline recommendations

• Apply early to maximize eligibility

• Compare award packages

• Ask questions when in doubt


Conclusion

• Keep up good grades

• Research and visit schools of interest

• Check out local scholarship opportunities

• READ EVERYTHING – ASK QUESTIONS