KILGORE COLLEGEKILGORE COLLEGEFINANCIAL AID WORKSHOPFINANCIAL AID WORKSHOP
The “A, B, C’s” of
Financial Aid
Presented By:
Annette Morgan Financial Aid Officer
Main Financial Aid SourcesMain Financial Aid Sources
Federal Government
State of Texas
Institution or College
Civic or Private Groups
STUDENT AID CATEGORIESSTUDENT AID CATEGORIES
GRANTS o Department of Educationo State of Texas
LOANSo Department of Education (Federal)
EMPLOYMENTo College Work Study (Federal)o Institutional Position
SCHOLARSHIPS
GRANTSGRANTS
Funds for Education
Do not have to be repaid
Awarded on financial
“need” basis
MAIN SOURCES
• Dept. of Education
• State of Texas
LoansLoans
Funds students & parents borrow to help with educational expenses
Repayment begins after graduation Minimum Enrollment: 6 hours May be “need or non-need” based An investment in a student’s future Caution: Only borrow funds that are
actually needed – (not just desired)!!!
EmploymentEmployment
Allows student to earn money to help pay educational costs
Usually need-based
May be funded by the U.S. Dept. of Education or the State of Texas
May open the door to future employment, as references will be given on student’s performance
ScholarshipsScholarships
Money that does not have to be paid back to the institution or donor
Sources may include the institution, or “outside agencies” (service clubs, church)
Awarded on the basis of merit, skill or other unique characteristics
Usually require full-time enrollment and a higher academic standard (2.5 to 3.0 gpa)
May be need or non-need based
General Eligibility RequirementsGeneral Eligibility Requirements
Be enrolled as a regular student in a degree or certificate program
Be registered with Selective Service, if required
Not be simultaneously enrolled in high school
Provide valid Social Security Number
Have high school diploma or equivalent, or demonstrate ability to benefit
Be a citizen, national, or permanent resident of U.S., or other eligible non-citizen.
FAFSAFAFSAFree Application for Federal Student AidFree Application for Federal Student Aid
First Step in the Financial Aid Process Students may qualify for Federal aid such
as - Work Study, Grants, and Loans
States and Schools use information from the FAFSA to award non-Federal aid such as
- Scholarships, State Grants, and credit -
based Private Loans
FAFSA Priority DeadlinesFAFSA Priority Deadlines
Deadlines are usually determined by each State
In Texas, each school sets its own priority deadline
- Apply in January to make
most deadlines for Texas
colleges and universities.
Institutional VerificationInstitutional Verification
Confirms accuracy of FAFSA information
Application selected at random by CPS
Often occurs if information is incomplete or
questionable
School may request any document necessary to
complete the verification process
Prepare copies for the school, as your originals will
not be returned
School is required to verify if selected
Common Documents Common Documents
BE PREPARED TO FURNISH:• Tax Return(s) and W-2(s) – Prior year• Child Support Received or Paid• Social Security Benefits• Welfare Benefits-excluding food stamps• Housing, Food or other Living allowances
paid to military, clergy,etc• Worker’s Compensation• Current Checking/Savings Balance• Investment, Business and/or Investment
Farm Value
WHAT DOES THE COLLEGE DO WHAT DOES THE COLLEGE DO WITH THE FAFSA DATA ?WITH THE FAFSA DATA ?
Uses the data to create financial “need” and set up the cost of attendance
From this, the student’s aidpackage is created for the academic year
Need AnalysisNeed Analysis
Income
Asset equity
Family size
Number in college
• Not to include parents
Definition of NeedDefinition of Need
Cost of Attendance (COA)– Expected Family Contribution (EFC)= Financial Need
Cost of AttendanceCost of Attendance
Tuition and fees Room and board (at home with parents,
in dorm or off campus)
Books and supplies Transportation Personal expenses Miscellaneous expenses
5
Expected Family ContributionExpected Family Contribution
(EFC) calculated using Fafsa data and a federal formula
The amount a family can reasonably be expected to contribute
Stays the same regardless of collegeof choice
Considers household income & size, assets, & number of family in college
Two components: Parent Contribution Student Contribution
1
Need Varies Based on Cost
23 EFC EFC
12
Cost of Attendance
(Variable)
Expected Family
Contribution
(Constant)
Need
(Variable)- =
3
Need Based Aid Need Based Aid
SCHOOL ACost of Attendance $12,000- Exp. Family Contribution $ 1,000
Financial Need $11,000
SCHOOL BCost of Attendance $20,000- Exp. Family Contribution $ 1,000
Financial Need $19,000
Community College PackageCommunity College Package
Budget (COA) $12,000- Expected Family Contribution (EFC) 1,000Need $ 11,000
Federal Pell Grant $ 4,400Texas Grant $ 1,780Scholarship $ 1,000Stafford Loan $ 3,500
Subtotal $ 10,680
Unmet Need $ 320
Public University PackagePublic University Package
Budget (COA) $22,000- Expected Family Contributions (EFC) 1,000
Need $21,000
Federal Pell Grant $4,400Texas Grant $2,960Federal Sub Stafford Loan $3,500Federal Unsub Stafford Loan $2,000Institutional Scholarship $4,000Subtotal $16,860
Unmet Need $ 4,140
Private College PackagePrivate College Package
Budget (COA) $40,000 - Expected Family Contribution (EFC) 1,000
Need
$39,000
Federal Pell Grant $4,400TEG
$2,500Federal Stafford Loan
$3,500Federal Unsub Loan $2,000Federal PLUS Loan $10,000Institutional Scholarship $10,000Subtotal
$32,400
Unmet Need $ 6,600
Evaluating Aid PackagesEvaluating Aid Packages
Biggest is not always the best
Are cost estimates realistic?
Renewable vs. non-renewable scholarships
What are terms and conditions of offered loan(s)
Grant/loan balance
Balance of aid offered
• What percentage is offered of grant aid?• Loan aid?• Institutional scholarships?
Common ErrorsCommon Errors
INCOMPLETE APPLICATIONS - Most errors are caused by the student providing inaccurate or incomplete data on FAFSA (make a copy)
Not meeting required deadlines
Not submitting all required documents
No Admission Application and Official Transcripts on file in Registrar’s Office
Not returning Signed Award Letter by stated deadline
Federal Financial Aid ProgramsFederal Financial Aid Programs
• Federal Pell Grant - Largest Grant Program
Not repaid unless student withdraws (09-10 - $5350)
• Fed. Academic Competitiveness Grant
Awarded to Honors Graduates ( 09-10 - $750)
Must be Pell Eligible, and Maintain 3.0 gpa
• Federal SEOG Grant - Supplements Pell for Students with exceptional Need (Max 1000)
• Federal Work Study – Work Program for eligible students to work on campus and earn
federal funds (Amounts Vary)
Subsidized (DOE pays interest)Max: $3,500/yr - 1st yr (Freshman Student)Max: $4,500 /yr - 2nd yr (Sophomore Student)
Unsubsidized (interest accrues) Same amounts as shown above, if not qualified for the
Subsidized Loan Dependent: $2000/yr - 1st/2nd yr (if needed)
PLUS (Parent Loan for U. Student) Interest accrues & Credit BasedRepayment begins: 60 days after last disbur.
Federal Stafford Loan ProgramFederal Stafford Loan Program(Requirement: Min. of 6 hrs. enrolled per Loan)(Requirement: Min. of 6 hrs. enrolled per Loan)
Facts about Stafford LoansFacts about Stafford Loans
On Sub & UnSubsidized, there is a 6-month “Grace Period” after Graduation
On PLUS, no “Grace Period” After “Grace” repayment begins Interest Rates:
o Subsidized = 5.6% over 10 yrs repaymento Un-Subsidized = 6.8% over 10 yrs. repaymento PLUS = 8.5% over the life of the loan
Reenrollment will stop repayment, however, interest will still accrue
State of Texas FundsState of Texas Funds
Texas Grant – (Toward Excellence, Access and Success)
Texas Public Education Grant – (TPEG) Texas Educ. Opportunity Grant –
(TEOG) Tuition Exemptions Professional Nursing Scholships Vocational Nursing Scholarships
Satisfactory Academic ProgressSatisfactory Academic Progress
All Financial Aid categories will have a minimum SAP standard
Academic Progress evaluated by school on a semester or annual basis
Students must make a minimum GPA & complete a % of enrollment to continue to receive all forms of financial aid
Scholarships will carry higher minimum requirements, depending on the award
Check with your school’s financial aid office and pay attention to grades and attendance!
Numbers to RememberNumbers to Remember
Department of Education• (800) 433-3243
TX Higher Education Coordinating Board• (800) 242-3062
TX Financial Aid Information Center• (888) 311-8881
Kilgore College Financial Aid Office• (903) 983-8211
World Wide WebWorld Wide Web
ed.gov/studentaid
fastaid.org
AIE.org
fafsa.ed.gov
collegeforalltexans.com
finaid.org
applytexas.org
Pay Attention!Pay Attention!
Review each school’s catalogs/website for information and application procedures
Accurately complete and submit correct forms and respond promptly to requests
Know each school’s deadlines and most importantly……MEET THEM
Keep copies of all forms yousubmit for your records - and
Good Luck in 2010-11!!