Financial AidFinancial Aid

Student Aid Programs and Student Aid Programs and ProcessProcess

Can You Help Me?Can You Help Me?

Today you will learnToday you will learn

What financial aid isWhat financial aid is What needs analysis isWhat needs analysis is Types of financial aidTypes of financial aid How to apply for How to apply for

financial aidfinancial aid

WHATWHAT

IS IS

FINANCIALFINANCIAL

AIDAID

GrantsFree money or gift aid

LoansSelf-help aid that must be repaidSome loans may be fully orpartially cancelled if borrower fulfills certain requirements

EmploymentSelf-help aid that provides compensation for workMust be earned

TYPES OF FINANCIAL AID

Categories of AidCategories of Aid

Need-based aidNeed-based aid-Student must demonstrate need-Student must demonstrate need

-Need is determined by analyzing student’s and family’s -Need is determined by analyzing student’s and family’s financial situationfinancial situation

Non-need based aidNon-need based aid

--Financial need not consideredFinancial need not considered

-Often given in recognition of special skills, talents, or -Often given in recognition of special skills, talents, or abilitiesabilities

-Some loans may replace expected family contributions-Some loans may replace expected family contributions

WhatWhat

IsIs

NeedsNeeds

Analysis?Analysis?

Goal of Needs AnalysisGoal of Needs Analysis

Distribute limited resourcesDistribute limited resources Calculate the “Expected Family Calculate the “Expected Family

Contribution” (EFC)Contribution” (EFC) Analyze in a fair and equitable mannerAnalyze in a fair and equitable manner

Need CalculationNeed Calculation

Cost of attendance (COA)Cost of attendance (COA)

- Expected family contribution (EFC)Expected family contribution (EFC)

=Financial Need=Financial Need

Cost of AttendanceCost of Attendance

Tuition and feesTuition and fees Room and boardRoom and board Books and suppliesBooks and supplies TransportationTransportation Technology equipmentTechnology equipment Miscellaneous personal expensesMiscellaneous personal expenses

Expected Family ContributionExpected Family Contribution

Parent’s contribution from incomeParent’s contribution from income

+ Parent’s contribution from assets+ Parent’s contribution from assets

+Student’s contribution from income+Student’s contribution from income

++Student’s contribution from assetsStudent’s contribution from assets

= Expected family contribution= Expected family contribution

Factors that Affect the EFCFactors that Affect the EFC

Number in householdNumber in household Number in collegeNumber in college Taxed and untaxed incomeTaxed and untaxed income Taxes paidTaxes paid AssetsAssets Type of tax return filedType of tax return filed Age of older parentAge of older parent Number of wage earnersNumber of wage earners

Dependency StatusDependency Status

To be considered an independent student:To be considered an independent student:

--Age 24 by 12/31 of the award year, orAge 24 by 12/31 of the award year, or

-Orphan, ward of the court, or-Orphan, ward of the court, or

-Veteran, or-Veteran, or

-Currently serving on active duty in the U.S. Armed Forces -Currently serving on active duty in the U.S. Armed Forces or,or,

-Graduate or professional student, or-Graduate or professional student, or

-Married, or-Married, or

Dependency StatusDependency Status

To be considered an independent student:To be considered an independent student:– Supporting a child, orSupporting a child, or– Supporting someone other than a child, orSupporting someone other than a child, or– Foster child, orFoster child, or– Emancipated minor, orEmancipated minor, or– Child in legal guardianship, orChild in legal guardianship, or– Unaccompanied youth who was homelessUnaccompanied youth who was homeless

Financial Aid Financial Aid

ProgramsPrograms

Federal Pell GrantFederal Pell Grant

Foundation of aid packageFoundation of aid package Awarded to lowest EFC’sAwarded to lowest EFC’s Unaffected by student’s other aidUnaffected by student’s other aid PortablePortable

Federal Pell GrantFederal Pell Grant

Eligible students includeEligible students include– Undergraduate students without a baccalaureate or first Undergraduate students without a baccalaureate or first

professional degreeprofessional degree– Full-time to less than half-time studentsFull-time to less than half-time students– Certain students enrolled at least half-time in post Certain students enrolled at least half-time in post

baccalaureate teacher certification or licensing baccalaureate teacher certification or licensing programsprograms

Ineligible students includeIneligible students include- Students incarcerated in federal or state penal - Students incarcerated in federal or state penal

institutionsinstitutions

ACGACG

Academic Competitiveness GrantAcademic Competitiveness Grant Eligible students includeEligible students include

-U.S. citizen or eligible non-citizen-U.S. citizen or eligible non-citizen

-Attending 2 yr. or 4 year school-Attending 2 yr. or 4 year school

-Enrolled at least half-time in first or second year-Enrolled at least half-time in first or second year

-Be Pell eligible-Be Pell eligible

-Have completed a rigorous secondary school program-Have completed a rigorous secondary school program

-Have at least a 3.0 GPA at the end of the first year-Have at least a 3.0 GPA at the end of the first year

SMARTSMART

National Science and Mathematics Access National Science and Mathematics Access to Retain Talent Grant Programto Retain Talent Grant Program

Eligible students includeEligible students include

--U.S. citizen or eligible non-citizenU.S. citizen or eligible non-citizen

-Enrolled at least half-time in third or fourth year-Enrolled at least half-time in third or fourth year

-Be Pell eligible-Be Pell eligible

-Major in physical life, computer science, math, technology, -Major in physical life, computer science, math, technology, engineering or certain foreign languagesengineering or certain foreign languages

Campus Based ProgramsCampus Based Programs Federal Supplemental Educational Federal Supplemental Educational

Opportunity GrantOpportunity Grant– FSEOGFSEOG

Federal Work StudyFederal Work Study– FWSFWS

Campus Based ProgramCampus Based Program

Federal funds allocated to schools annuallyFederal funds allocated to schools annually Institutional match is requiredInstitutional match is required School selects recipientsSchool selects recipients Awards are not portableAwards are not portable Not all schools participate in all programsNot all schools participate in all programs

Federal Student LoansFederal Student Loans

Federal Stafford LoanFederal Stafford Loan– SubsidizedSubsidized– UnsubsidizedUnsubsidized– Not credit basedNot credit based

Federal PLUS LoanFederal PLUS Loan– ParentsParents– Graduate and professional studentsGraduate and professional students– Credit basedCredit based

Other Federal ProgramsOther Federal Programs

Federal income tax creditsFederal income tax credits American Opportunity CreditAmerican Opportunity Credit

Up to $2500Up to $2500

Up to 4 years-Up to 4 years-

Lifetime learning creditLifetime learning credit

Up to $2000Up to $2000

Any postsecondary education and training Any postsecondary education and training

Non Federal AidNon Federal Aid

GrantsGrants– InstitutionalInstitutional– StateState– PrivatePrivate

ScholarshipsScholarships– InstitutionalInstitutional– StateState– PrivatePrivate

FAFSAFAFSA

Free Application For Federal Student AidFree Application For Federal Student AidCollects family’s personal and financial Collects family’s personal and financial

informationinformationCalculates the EFCCalculates the EFCEnglish and SpanishEnglish and SpanishFiled two waysFiled two ways

www.fafsa.ed.govwww.fafsa.ed.govPaper FAFSAPaper FAFSA

FAFSA on the Web (FOTW)FAFSA on the Web (FOTW)

www.fafsa.ed.govwww.fafsa.ed.gov First available l/l/2010 for 2010-2011First available l/l/2010 for 2010-2011 FOTW worksheets availableFOTW worksheets available

– Use as pre-application worksheetUse as pre-application worksheet– Questions follow the same order as the web Questions follow the same order as the web

applicationapplication Early estimates availableEarly estimates available

– Via FAFSA ForecasterVia FAFSA Forecaster– FAFSA4caster.ed.govFAFSA4caster.ed.gov

Things to Watch Out ForThings to Watch Out For

Incorrect social security numberIncorrect social security number Divorced/separated parental informationDivorced/separated parental information Income earned by parents/step-parentsIncome earned by parents/step-parents Untaxed incomeUntaxed income U.S. income tax paidU.S. income tax paid Household sizeHousehold size Number of household members in collegeNumber of household members in college Real estate and investment net worthReal estate and investment net worth

Special CircumstancesSpecial Circumstances

Also know asAlso know as– Professional judgment (PJ)Professional judgment (PJ)– Extenuating CircumstancesExtenuating Circumstances

Use if FAFSA does not accurately portray Use if FAFSA does not accurately portray current financial picturecurrent financial picture

Special CircumstancesSpecial Circumstances

Adjustments can be made on a case-by-Adjustments can be made on a case-by-case basiscase basis– Cost of attendanceCost of attendance– FAFSA data elementsFAFSA data elements– Dependency overrideDependency override– Unsubsidized Stafford Loan only optionUnsubsidized Stafford Loan only option

Parents refuse to complete FAFSAParents refuse to complete FAFSA Parents are no longer providing supportParents are no longer providing support

Decision is up to each schoolDecision is up to each school

The Award LetterThe Award Letter

Sent by each financial aid officeSent by each financial aid office IncludesIncludes

– Estimated costsEstimated costs– EFCEFC– Financial needFinancial need– Amounts and types of financial aid offeredAmounts and types of financial aid offered– Instructions on what needs to be done nextInstructions on what needs to be done next

Students should compare net costStudents should compare net cost

Questions?Questions?