georgia student finance commission financial aid 101 darryl watson k-12 school representative

Georgia Student Finance Commission

Financial Aid 101

Darryl WatsonK-12 School Representative

Georgia’s HOPE Scholarship Program

• Largest Non-Need Based Program in the Nation

• Students must meet:

– Academic Requirement of a 3.0 GPA in academic core classes*

– Citizenship

– Residency

– Enroll in a HOPE eligible school in Georgia

*Note: For Seniors who are on Technical Diploma, the GPA is a 3.2 for in academic core classes

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Zell Miller Scholarship Program

• New Scholarship Program for 2011

• Must meet HOPE Scholarship requirements, plus:

– Minimum 3.7 GPA in academic core classes, and

– 1,200 combined critical reading and math on SAT, or

– 26 composite ACT

– Graduate from an eligible high school as the valedictorian or salutatorian

*Test requirements must be met in single test administration.

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View HOPE GPA on GAcollege411

• Select “Your HOPE GPA” under “Shortcuts”

• Log in to your GAcollege411 Account

• Enter Last Name, Date of Birth, and Social Security Number

• Finally, select high school from list

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How Much Does College Cost?

• Costs of Attendance

– Tuition and mandatory fees

– Room and board

– Books and supplies

– Transportation

– Personal expenses (clothing, laundry, entertainment, medicine and healthcare, cell phone etc.)

What is Financial Aid?

• Financial Aid is funding intended to help students pay educational expenses

• Sources of Financial Aid

– Federal government

– State government

– Colleges and universities

– Community groups (religious organizations, civic organizations, corporations, professional organizations, etc.)

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Financial Aid Comes in Packages

• Gift Aid

– Money not paid back

• Grants

• Scholarships

• Self-Help

– Money using student initiative• Student Loans

• Work Study

What is an EFC?

• The FAFSA will determine the Expected Family Contribution (EFC).

• The EFC estimates the family’s ability to contribute toward educational costs.

• The EFC formula includes financial information collected on the FAFSA, family size and number of dependents.

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What Does the FAFSA Do?

College Cost of Attendance (Determined by the School)

Minus the Expected Family Contribution

Equals the Amount of Need Based Aid

for which the student may qualify

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Pell Grant

• Maximum Pell Grant Amount $5,550

• $2,775 per semester

• Full time student (12 or more hrs.)

• Based on $0 EFC

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Direct Loan Program

• Subsidized Direct Loans

– Interest is paid by the government while enrolled (at least half-time)

• Unsubsidized Stafford Loans

– Student is responsible for paying the interest on the loan

• Repayment begins six (6) months after graduation or ceasing to be enrolled half-time

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Student Loan Limits 2010 – 2011 Academic Year

Dependent Students whose Parents are

Eligible for aPLUS Loan Base

Additional Unsubsidized

Annual Maximum Amount

Freshmen $3,500 $2,000 $5,500

Sophomore $4,500 $2,000 $6,500

Junior/Senior $5,500 $2,000 $7,500

Independent Students and Dependent Students whose

Parents were Denied a PLUS Loan Base

Additional Unsubsidized

Annual Maximum Amount

Freshmen $3,500 $6,000 $9,500

Sophomore $4,500 $6,000 $10,500

Junior/Senior $5,500 $7,000 $12,500

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Student Access Loan Program

• New Loan Program

– Low interest loan program targeted to students who experience unmet need or a gap in their college financing

– Students may borrow up to $10,000 per year and $40,000 in their lifetime

– Students must be able to demonstrate that they have exhausted all other financial aid sources and must have completed the Free Application for Federal Student Aid (FAFSA)

– The annual interest rate is 1% and borrowers will be required to pay interest while in school

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Federal Application for Student Aid

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It is the GATEWAY to accessing money

to pay for college

ALL students should file a FAFSA

FAFSA on the Web Worksheet

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FAFSA Homepage

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Contact Us

• Students and Parents support

– By browsing online help

– Contact the Federal Student Aid Information Center

– Live help, phone, or E-mail.

What Does the FAFSA Require?

• To complete the FAFSA, you will need:

– Completed Tax Returns

– Information on untaxed income, such as child support

– Household Information

• To Receive a Paper FAFSA:

– Call 1-800-4-FED-AID– Download the paper

application at FederalStudentAid.ed.gov

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FAFSA on the Web Worksheet

These questions will determine whether the student is a dependent or independent student. These are

the only questions that the Government uses in making this

determination.

Who is the “parent” for federal aid?

• “Parent” refers to the biological or adoptive parent.

• In case of divorce or separation give information about the parent you lived with most during the last 12 months.

• If your divorced or widowed parent has remarried, also provide information about your stepparent.

Parent section

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Parent Section cont…..

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Student Information

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IRS Data Retrieval

• The applicant will be validated

• The applicant will have the option to “Transfer” the tax information to the FAFSA

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Special Circumstances

• Cannot report on FAFSA

• Send explanation to financial aid office at each college

• College will review special circumstances:

– Request additional documentation

– Decisions are final and cannot beappealed to U.S. Department of Education

Examples of Special Circumstances:

• Change in employment status• Medical expenses not covered by insurance

• Change in parent marital status• Unusual dependent care expenses

• Student cannot obtain parent information

Sign and Submit

• 3 Signature Options– Sign Electronically

w/PIN

– Print Signature Page

– Submit without signatures

Confirmation Page

• Confirmation Number• Data Release Number

(DRN)• EFC estimate• Pell Grant and Direct

Loan estimates• Option for parents to

transfer info to an application for a sibling

FAFSA Processing Results

• Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA submitted

• College reviews Institutional Student Information Record (ISIR)

– May request additional documentation, such as copies of federal tax returns

Sample Award Letter

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Need More Information

• GAcollege411.org Financial Aid Planning Page

Darryl Watson

Email: darrylw@gsfc.org

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Questions?

Thank you!

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