The Financial Aid Office

Presents…

Financing Education Beyond

High School

What You Need to Know• What is financial aid• General Eligibility Requirements• Understanding EFC & COA• Categories, types, and sources of financial

aid• Free Application for Federal Student Aid

(FAFSA)• Special circumstances

What is Financial Aid?• Financial aid typically refers to funds provided by

the federal government, state or private sources to students and families to supplement a family's ability to pay for college costs and may include:

- tuition/fees, - room and board, - books and supplies, - transportation- other educational costs

General Eligibility Requirements• Must be enrolled and pursuing an eligible

degree or certificate at your college (check with FA Advisor)

• Must be a U.S. citizen or eligible noncitizen• Must be registered with Selective Service

(if male and required to be)• May not have a recent drug-related

conviction

General Eligibility Requirements, cont.

• Must have a valid Social Security Number*• May not be in default on a federal student

loan or owe repayment of a federal grant• Must have a HS Diploma or GED• Must be making satisfactory academic

progress as defined by the school

*Some funds available for SB 1528 students

Dependent Student

• A student who is under 24 years of age• Unmarried• Not an orphan or ward of the state• Has no legal dependent (s)• Not a veteran of the U.S. Armed forces• Is not working on a graduate degree

Independent Student

• 24 years of age or older• Married• A veteran• An orphan or a ward of the court• Has a legal dependent other than a spouse• Is working on a graduate degree or higher

What is the Expected Family Contribution (EFC)

• Amount family can reasonably be expected to contribute• Stays the same regardless of college• Two components

– Parent contribution– Student contribution

• Calculated using data from the federal application form and a federal formula

EFC for Dependent Student

Parent contribution calculated from income and assets

+ Student contribution calculated from available income and assets

= EFC (Expected Family Contribution)

What is Cost of Attendance (COA)Often referred to as the “budget”. Is an estimate of the total expenses a student would incur for attending a particularcollege:• Typically includes the following:

- Direct costs (such as tuition and fees), and- Indirect costs (such as transportation, room and

board, books and supplies, etc.)

• Standard COE includes costs for 9 months• Your total financial aid package, including grants, loans

and outside scholarships cannot exceed your budget• Budgets vary widely from college to college

What is Financial Need

Cost of Attendance

– Expected Family Contribution

= Financial Need

Generally speaking, the higher the financial need, the more likely you’ll be eligible for grants.

Categories of Financial Aid

• Need-based

• Non need-based

Types of Financial Aid

• Grants – Usually “gift” aid that does not need to be paid back

• Loans – DO need to be paid back

• Employment – Only paid for hours worked.

• Scholarships – Private and Institutional. Some are “gift” aid; others require obligations be fulfilled in order to be eligible for the money (e.g. athletic scholarships).

Financial Aid: Grants• Pell Grant

– Need based. – Given to those student’s determined to have

the highest need (i.e., lowest EFCs)• Supplemental Grants

– Federal grants (FSEOG)– State grants (i.e., TPEG/TXG/TEOG)– Typically need based– Often linked to priority deadlines

Financial Aid: Loans• Subsidized Stafford loans

– Must demonstrate “financial need”– Government pays interest while in school

• Unsubsidized Stafford loans– Need is not a consideration– Interest capitalizes and accrues while the

student is in school

• Parent PLUS loan– For dependent student’s only

Employment: Federal Work Study

• Allows student to earn money to help pay educational costs

– On campus, need-based employment

– Some schools may provide non-monetary compensation, such as room and board

– Students limited to 20 hrs/week

Scholarships• A scholarship is money given by individuals,

companies or organizations based either on need, merit, or both. It is the student’s responsibility to research and apply for scholarships.

• At Collin, Financial Aid Advisors do not award private scholarships. Scholarships are awarded through the Foundation Office.

• Some limited information available at the Financial Aid office and more in-depth info on the Collin website.

www.collin.edu/foundation

Sources of Financial Aid

• Federal government

• States

• Private sources

Federal Government• Largest source of student aid in America

- Their programs provide more than $100 billion a year in grants, loans and work study assistance

• Aid awarded primarily on the basis of financial need

• Must apply every year using the Free Application for Federal Student Aid (FAFSA)

State Aid• Residency requirements

• Most aid awarded on the basis of both merit and need

• Uses information from the FAFSA

• Deadlines vary by state; check paper FAFSA or FAFSA on the Web site

Private Sources• Foundations, businesses (inc. employers),

charitable organizations

• Civic Organizations and churches

• Deadlines and application procedures vary widely

• Begin researching private aid sources early (NLT spring senior year)

• Do not overlook low $ scholarships. They add up!!!

How do I apply?

• Electronic FAFSA application on the web- website is www.fafsa.ed.gov

• Both student and one parent apply for PIN- PIN used to “sign” the FAFSA

• Include (up to 6) school code(s) (Collin=016792)• Submit• Follow up with school!!!

When can I fill out a FAFSA?• May be filed at any time during an academic

year, but no earlier than the January 1st prior to the academic year for which the student requests aid

• For the 2013-14 academic year, the FAFSA may be filed beginning January 1, 2013

• Colleges may (and usually do!) set FAFSA filing deadlines

Personal Identification Number (PIN)

• Web site: www.pin.ed.gov• Sign FAFSA electronically

• Can request PIN before January 1, 2013

• Not required, but speeds

processing• May be used by students and parents throughout aid process, including subsequent school years

FAFSA on the Web Worksheet

• Web site: www.fafsa.ed.gov - click on “Student Aid on the Web” on the top menu bar - click on “Tools and Resources” on left menu - scroll down and click on “FAFSA on the Web Worksheet”

• FAFSA on the Web Worksheet:- Used as “pre-application” worksheet- Questions follow order of FAFSA on the Web.- Can help reduce stress and confusion for first-timers

2012-20132013 2014

FAFSA4caster• Provides you with an early estimate of your eligibility for federal student aid• Gives you an experience similar to FAFSA on the Web

• Allows you to transfer the data to FAFSA

• Increases your knowledge of the financial aid process and provides information about other sources of aid.

Another feature of FAFSA4caster is the "FAFSA4caster Tip".

These tips appear throughout the site and provide you with information that will help make preparing for college and the financial aid process easier.

Frequent FAFSA 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

FAFSA Processing ResultsCentral Processing System (CPS) notifies student of FAFSA results via a Student Aid Report (SAR) by:• E-mail notification in 3 – 5 days containing a direct link to student’s on-line SAR if e-mail was provided

• Paper Student Aid Report (SAR) mailed in 7 – 10 days if FAFSA was filed and no e-mail address was provided

• Student with PIN may view SAR on-line at www.fafsa.ed.gov

The SAR summarizes all the information you provided onyour FAFSA. Will usually show your EFC if enough infowas provided.

FAFSA Processing Results – cont.

• Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approx. 7 to 14 days after FAFSA submitted

• College reviews ISIR– May request additional documentation, such

as copies of federal tax returns– Most additional docs flagged by FAFSA.

May also be for institutional aid

Making Corrections

If necessary, corrections to FAFSA data may be made by: • Using FAFSA on the Web (www.fafsa.ed.gov) if student has a PIN;• Updating paper SAR, or• Submitting documentation to college’s financial aid officeIf school has already received the ISIR, submit correctioninformation to the school; do not update on SAR or on theweb.

Special Circumstances• Cannot report on FAFSA• Send explanation to financial aid office at

each college• College will review special circumstances

– May request additional documentation– Decisions are final and cannot be

appealed to U.S. Department of Education

Special Circumstances (cont)

Special Circumstances may include:

• Change in employment status

• Medical expenses not covered by insurance (and above the income protection allowance)

• Change in parent marital status

• Unusual dependent care expenses

• Other catastrophic events

CAUTION!!!• Avoid being charged a fee to complete the

FAFSA!– Completing and processing the FAFSA

application is FREE. (FAFSA means Free Application for Federal Student Aid)

– FAFSA is located at www.fafsa.ed.gov– Contact the financial aid office if you have

questions

If It Sounds Too Good To Be True….

• If you are considering hiring a scholarship or financial aid consultant, do your research first!– The Department of Education’s finaid.org

website has a lot of great information on scholarship scams and questionable consultant tactics. Before you hire anyone, go to:

www.finaid.org/scholarships/scams.phtml

Free Resources• Nerdwallet.com collegeboard.com• Fastweb.com finaid.org• Scholarships.com collegetoolkit.com• Wiredscholar.com collegenet.com• Studentaid.org freschinfo.com

• Be cautious about entering scholarship contests that require a fee.

* DON’T MISS DEADLINES!!www.collin.edu/gettingstarted/financialaid/scholarships.html

www.finaid.org/otheraid/

Maximizing Your Aid Eligibility• Finaid.org web site has an entire section on

maximizing your need-based financial aid• The information is based on loopholes in the need

analysis methodology and are COMPLETELY LEGAL (at this time)

• This is often the information that consultants provide for a fee

• Many of these strategies are just good, sound financial planning

• Be very careful about following any unethical advice

www.finaid.org/fafsa/maximize.phtml

After the FAFSA: Follow up with School

• FAFSA information takes 7 to 14 days to electronically arrive at the school.

• Each school may have their own in-house paperwork you have to complete.

• Processing takes 4 to 6 weeks under normal circumstances (longer during peak times).

• You do not have financial aid until you receive an award letter from the school and accept it online.

Review• Complete your tax return early and gather other

necessary information

• Complete the FAFSA online – sign electronically with PIN

• Follow up with your school and complete any required paperwork. Be sure to check priority deadlines!

• Once awarded, review and accept awards online

• Research and contact other sources of financial aid (i.e., scholarships, private sources, etc.)

Good Luck!