Financial Assistance 101Making a college education affordable

Financial aid rocks!

http://www.youtube.com/watch?v=e2d7IfFgxTs

Purpose of this Presentation• To address financial concerns of students of CLHS

with regard to financial assistance for college• To inform students and their parents of CLHS of

the variety of options in financial assistance• To inform students and parents/guardians of

application procedures, deadlines, and suggested timelines

• To familiarize students and parents/guardians with useful resources for college financing

• To introduce the Free Application for Federal Student Aid (FAFSA)

Common Questions About Financial Aid

• Is a college education worth the money?

• How much will college cost?

• What is financial aid?• How is financial need

determined? • What are my options for

financial assistance?• Do I have to pay back my

loans while I am in school?

• What is FAFSA?• Do I have to accept the

offers I receive?• Is our income too high to

qualify for financial assistance?

• How do I apply for assistance?

• When are the deadlines?

Is a college education worth the money?

 Note: Earnings are for full-time wage and salary workers ages 25 and over.Source: Bureau of Labor and Statistics, Current Population Survey (May 27, 2010)

In 2010, individuals with higher education had a lower unemployment rate and higher earnings.

U.S. Bureau of Labor and Statistics.(2010) Current Population Survey. Retrieved July 28, 2011 from http://www.bls.gov/emp/ep_chart_001.htm

How much will college cost?The cost of attendance in college generally include:• Tuition and fees• Room and board• Books and supplies• Transportation• Personal expenses

                     ~The College Board, 2009 There are some variations in costs of room and board and tuition fees, with some colleges offering flexibility in dormitory options and meal plans. Additionally, tuition in private colleges is fixed, while at public institutions it is based on the student's course load or state of residence.  There are various college cost calculators that can be found online, including ones at www.collegeboard.com, http://www.finaid.org, and https://www.michigancap.org/    The College Board. (2009). Financial aid. In College counseling sourcebook: Advice and strategies from experienced school counselors (6th ed.) (pp. 8-1 - 8O). New York, New York.

How is financial need determined?

• Financial need is determined by a formula determined by the U.S. Congress.

• The information that is provided on your FAFSA application (income, assets, number of family members, etc.) is used to determine the amount of financial aid that you will be awarded.

• These numbers are also used to determine the Expected Family Contribution (EFC).

• Different rates are applied to students with varying circumstances; i.e. students dependent on their parents, students independent of their parents, students with dependents, etc.

 http://www2.ed.gov/programs/fws/index.html 

Financial Need Formula

Cost of Attendance- Expected Family Contribution

Financial Need

http://gpschools.schoolwires.net/1768201029131455687/lib/1768201029131455687/FinanAidPres.pdf

What are my options for financial assistance?

There are three main types of financial aid that your student may be eligible for: •  Grants and scholarships

 •  Loans

 •  Work-study

The College Board. (2009). Financial aid. In College counseling sourcebook: Advice and strategies from experienced school counselors (6th ed.) (pp. 8-1 - 8O). New York, New York. http://trends.collegeboard.org/student_aid/report_findings/indicator/304#f84 

Grants  

Grants - This type of "Gift Aid" is money that does not have to be paid back.  Eligibility - Only undergraduate students who demonstrate the most financial need are eligible. FAFSA is required.  Types of Grants - There are both Federal and State Grants.  http://www.emich.edu/finaid/grants.php

   

Types of GrantsFEDERAL GRANTS

 • Pell (In danger)

 • Federal Supplemental

Education • Opportunity Grant (SEOG)

 • Academic Competitiveness

Grant • SMART

 • TEACH        

STATE GRANTS • Michigan Competitive

Scholarship (No longer available)

 • Tuition Incentive Program

 • Robert C. Byrd Scholarship

 • King-Chavez-Parks Future

Faculty Fellowship   

http://www.emich.edu/finaid/grants.phphttp://gpschools.schoolwires.net/1768201029131455687/lib/1768201029131455687/FinanAidPres.pdf

How are grant amounts determined?

The student's Expected Family Contribution (EFC).  Determined by FAFSA.   The cost of attendance. (Depends on Institution)   The student's enrollment status. (Full or Part)  If the student attends for the full academic year.   http://pellgrantqualifications.com/

Help with FAFSA

College Goal Sunday: provides face-to-face help to fill out the FAFSA form online.

College Goal Sunday 2012:    -  Sunday, February 12th     -  2:00 pm - 4:00 pm    - Halle Library at Eastern Michigan University

For more information visit: http://www.micollegegoal.org/    http://www.micollegegoal.org/Students/Home/tabid/1350/Default.aspx

FAFSATrue Website: www.fafsa.ed.gov/Business Website: www.fafsa.com Needed Information/Materials:     - Student Information/Dependency Status    - Parent and Student Financial Information             - income            - assets            - family size            - number of students in college FAFSA determines eligibility for federal and state grants, scholarships, and work study programs, in addition to federal loansFAFSA Hard Copyhttp://www.fafsa.ed.gov/http://gpschools.schoolwires.net/1768201029131455687/lib/1768201029131455687/FinanAidPres.pdfhttp://www.collegeboard.com/parents/pay/scholarships-aid/21395.html

Scholarships

Scholarships - Another form of "Gift Aid" that the student does not have to pay back. Criteria - Based on academic achievements or special talents. Types of Scholarships - Visit www.fastweb.com  Two more recommended websites :www.michigan.gov/studentaidhttp://www.emich.edu/finaid/scholarships/Scholarships11-12.xls 

 Scholarships come in all varietiesUnited Youth Fitness Scholarship                         Coca-Cola Scholarship                               Hispanic Scholarships                                                                    Hope Scholarship Athletic Scholarships Essay Scholarship Contests GEAR UP! Michigan Scholarship Best Buy Scholarship            http://www.finaidfacts.org/scholarship_types.htm

College Scholarship Service (CSS)/PROFILE

Determines student's eligibility for nonfederal student aid. Colleges use the information completed on the PROFILE to award funds.  Requires more financial information than FAFSA. Can only be completed online, after October 1st 

Visit: www.collegeboard.org

https://profileonline.collegeboard.com/prf/index.jsphttp://www.collegeboard.com/student/pay/scholarships-and-aid/8374.htmlhttps://profileonline.collegeboard.com/prf/PXRemotePartInstitutionServlet/PXRemotePartInstitutionServlet.srv

Michigan Education Trust (MET)Pre-purchased undergraduate tuition for a student living in Michigan that will attend a Michigan public university/college or in-district tuition at community colleges.

If a student chooses to go to school out of state or to a private college MET will be refunded or it can be applied directly towards the private or public out-of-state college.

If you have a MET contract, contact the MET offices or go to their website for information on the details of your contract and how it can be applied to the college you will be attending.

Similar Program:    - Michigan Education Savings Plan (MESP)  http://www.michigan.gov/setwithmet/0,1607,7-237-43437---,00.htmlhttp://www.michigan.gov/documents/setwithmet/3183web_206979_7.pdfhttp://www.michigan.gov/documents/fullbenefits_10188_7.pdfhttp://www.misaves.com/faq/index.shtmlhttp://www.michigan.gov/setwithmet/0,1607,7-237-44460-154276--,00.html

Loans: Categories and Terms3 Categories of Loans:• Student loans

o Federal Direct (formerly Stafford)

o Perkins• Parent loans, e.g.:

o  PLUS (Parent Loan for Undergraduate Students)

• Private student loansAlso, there are consolidation loans and peer-to-peer education loans

Important Terms:•  Subsidized: 

o Need basedo Interest free while in

schoolo 3.4% interest rate

• Unsubsidized:o Non-need basedo You pay interest but can

defero 6.8% interest rate

http://www.finaid.org/loans/

 Federal Student Loans

Federal Direct Loans:• low interest• student must be at

least half time• can be used at a four-

year college, community college, or trade, career, or technical school 

• can be subsidized or unsubsidized

http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsphttp://www2.ed.gov/programs/fpl/index.htmlFlanagan, L. (personal communication, July 29, 2011)

Federal Perkins Loan:• low interest • need based• repayment begins 9 months

after graduation• 5% interest rate• Up to $5,500 for undergraduate

students• Desirable based on interest

rate and repayment terms

Parent Loans

Direct PLUS Loan is available for parents with dependent children. Certain qualifications must be met:• Parent must be either biological or adoptive.• Student must attend at least half-time in a school that

participates in the Direct Loan program• "To qualify as dependent, the student must be under

24 years, unmarried, has no dependents, a veteran,a graduate or professional degree student, or a ward of the court."

• Parent must not have a bad credit history• Student and parent must be U.S. citizens or eligible

non-citizens

http://studentaid.ed.gov/PORTALSWebApp/students/english/parentloans.jsp

Also known as Alternative Education Loans, are used to make up the difference between what the government allows you to borrow and the actual cost of your education.   Private loans  come from private lenders that might include banks, colleges, or other organizations.

Student should fill out the FAFSA  to see how much federal money they qualify for first, since most private loans have high interest rates.   http://www.finaid.org/loans/privatestudentloans.phtml includes a listing of the best private student loans.

Private Loans

http://www.finaid.org/loans/privatestudentloans.phtml

• Students can work for 10-15 hours a week through the Federal Work Study Program

• About 3400 post secondary institutions participate in the Federal Program.

• Student's compensation must be minimum wage or above.

• Eligibility is determined by the U.S.Department of Education, using the information reported on the FAFSA as well as the expected family contribution (EFC).

Work Study

http://www2.ed.gov/programs/fws/index.htmlThe College Board. (2009). Financial aid. In College counseling sourcebook: Advice and strategies from experienced school counselors (6th ed.) (pp. 8-1 - 8O). New York, New York.

When are the deadlines?2011-2012 FASFA DEADLINES

 Federal Deadlines - Online applications must be submitted by midnight Central Daylight Time, June 30, 2012. State Deadlines - Each state has different deadlines. Michigan's deadline is March 1st, by midnight, Central Standard Time. College Deadlines : Not all colleges have the same deadlines. Contact the college(s) you plan on attending for deadline information.   http://www.fafsa.ed.gov/fotw1112/pdf/Deadlines.pdf

Ideal TimelineSeptember – October    - Apply to college(s)    - Start applying for scholarships    - Find out college's scholarship requirements

November - December    - Continue applying for scholarships    - Organize materials for FAFSA  January - February    - File the FAFSA and CSS/Profile(the earlier the better!) March - April    - Receive financial aid packages from each school May 1    - Make final college decision    - Contact your future college's financial aid office to make sure everything is set for next year. 

Summer before college    - Work to make money to help pay for college!   https://profileonline.collegeboard.com/prf/index.jsp, http://www.fafsa.ed.gov/fotw1112/pdf/PdfFafsa11-12.pdf The College Board. (2009). Financial aid. In College counseling sourcebook: Advice and strategies from experienced school counselors (6th ed.) (pp. 8-1 - 8O). New York, New York., Flanagan, L. (personal communication, July 29, 2011)  

Is our income too high to apply for financial assistance?

• College Aid is meant to make a college education affordable, whatever your financial situation.

• Home equity is no longer reported on the FAFSA.• There are several factors considered how much aid a

student will receive, including number of college age children in the family, income, medical expenses and children's assets.

•  The best way to find out is to fill out the FAFSA!!

http://www.petersons.com/college-search/financial-aid-higher-income.aspxhttp://www.collegeboard.com/parents/pay/scholarships-aid/21395.html 

 The College Board. (2009). Financial aid. In College counseling sourcebook: Advice and strategies from experienced school counselors (6th ed.) (pp. 8-14 - 815). New York, New York.

Sample Offers

Blue SchoolGreen School

Do I have to accept the offers I receive?

No!   

You get to decide if the offer is best for your family and your financial situation.

Useful Resources

FAFSA on the web                www.fafsa.ed.gov

To request FAFSA pin           www.pin.ed.gov Student Aid on the Web        www.studentaid.ed.gov/ Free Scholarship Search     www.fastweb.com

College Board                      www.collegeboard.com            

Check the websites of the colleges you are interested in!

QUESTIONS?

References• Charta Squad.(2010) FAFSA Hooray [video file] Retrieved from

http://www.youtube.com/watch?v=e2d7IfFgxTs• Eastern Michigan University Office of Financial Aid/Grants (2011). Education

First. Retrieved on July 28, 2011 from http://www.emich.edu/finaid/grants.php• Federal Student Aid. (2010). Home: FAFSA on the web. Retrieved July

31,2011 from http://www.fafsa.ed.gov/• FinAidFacts.org. (2011) Types of Scholarships, Retrieved August 2, 2011

from http://www.finaidfacts.org/scholarship_types.htm• FinAid Page LLC. (2011)The Smart Student Guide to Financial Aid, Retrieved

August 1, 2011 from http://www.finaid.org/loans/• Flanagan, L. (personal communication, July 29, 2011) • Florian, Judy. (n.d.) Financial Aid 101. Retrieved July 31, 2011 from Grosse

Pointe North High School site: http://gpschools.schoolwires.net/1768201029131455687/lib/1768201029131455687/FinanAidPres

• Michigan College Goal Sunday. (2011) College Goal Sunday 2012. Retrieved July 29, 2011 from http://www.micollegegoal.org/Students/Home/tabid/1350/Default.aspx

References

• Pell Grant Qualifications.(2008) Retrieved July 28 from http://pellgrantqualifications.com/

• Peterson's (2011). Peterson's college search.  Retrieved August 1, 2011 from http://www.petersons.com/college-search/financial-aid-higher-income.aspx

• State of Michigan. (2011) Michigan Education Trust: Student handbook for full, limited and community college benefits contracts.  Retrieved July 29, 2011 from http://www.michigan.gov/documents/fullbenefits_10188_7.pdf

• State of Michigan. (2011). Set with MET: Frequently asked questions. Retrieved on August 2, 2011 from http://www.michigan.gov/setwithmet/0,1607,7-237-44460-154276--,00.html

• State of Michigan. (2011) MET: Priority information for parents. Retrieved July 29, 2011 from http://www.michigan.gov/documents/setwithmet/3183web_206979_7.pdf

•  State of Michigan. (2011) SET with MET - What is MET?. Retrieved July 29, 2011 from http://www.michigan.gov/setwithmet/0,1607,7-237-43437---,00.html 

References

• The College Board.(2011) College financing calculators: Do the math. Retrieved July 28, 2011 from http://www.collegeboard.com/student/pay/add-it-up/401.html

• The College Board. (2009). Financial aid. In College counseling sourcebook: Advice and strategies from experienced school counselors (6th ed.) (pp. 8-1 - 8O). New York, New York.

• The College Board. (2011). CSS/Financial Aid PROFILE. Retrieved July 31, 2011 from https://profileonline.collegeboard.com/prf/index.jsp

• The College Board. (2011).Profile online 2011-12 participating institutions.  Retrieved on August 2, 2011 from https://profileonline.collegeboard.com/prf/PXRemotePartInstitutionServlet/PXRemotePartInstitutionServlet.srv

• The College Board. (2011). Student loans for college. Retrieved July 31, 2011 from http://www.collegeboard.com/student/pay/loan-center/433.html

• The College Board. (2010). Trends in student aid 2010. Retrieved July 30, 2011 from http://trends.collegeboard.org/student_aid/report_findings/indicator/304#f84

• TIAA-CREF Tuition Financing Inc.(n.d.) Michigan Education Savings Programs FAQ. Retrieved on August 2, 2011 from http://www.misaves.com/faq/index.shtml

• U.S.Bureau of Labor and Statistics.(2010) Current Population Survey. Retrieved July 28, 2011 from http://www.bls.gov/emp/ep_chart_001.htm

References• U.S. Department of Education. (2010, November). Do you need money for

college? Federal student aid at a glance 2011-12. [handout] Federal Student Aid.

• U.S. Department of Education. (2009). Federal Perkins Loan Program, Retrieved August 1, 2011 from http://www2.ed.gov/programs/fpl/index.html

• U.S. Department of Education.(2009).Federal Work Study (FWS) program, Retrieved July 28, 2011 from http://www2.ed.gov/programs/fws/index.html

• U.S. Department of Education (2011). Student Aid on the Web, Retrieved August 1, 2011 from http://studentaid.ed.gov/PORTALSWebApp/students/english/parentloans.jsp