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WARNING.

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Discussion Topics What is financial aid? Cost of Attendance Expected Family Contribution Financial Need Types of Aid Filling out the FAFSA (FREE Application for Federal Student Aid) Special Circumstances Mikes Tips

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What is Financial Aid? Assistance to help make college more affordable for you and your family Money designed for educational expenses

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What Financial Aid is not

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How Refund Checks Work $25,000Cost of Attendance 20,000 Tuition/Room and Board =*$5,000Refund Check *Based off of a full financial aid package

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Cost of Attendance(COA) Direct costs are the costs billed directly to your student account Tuition & Fees Room & Board Billed twice a year

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Cost of Attendance(COA) Indirect Costs: Books/Supplies Personal/Miscellaneous Transportation

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Sample Cost of Attendance(COA) In State Outof-State Tuition & Fees$10,280 $29,540 Room & Board$7,986 $7,986 Books & Supplies$1,362 $1,362 Pers/Misc$2,340 $2,340 Total $21,968* $41,228* *This is the maximum amount of financial aid you can receive

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Costs of Attendance 2012-2013 Wayne County Community College $9,314 Saginaw Valley State University $18,072 Wayne State University $22,390 Michigan State University $24,670 University of Michigan-Ann Arbor $25,848 University of Wisconsin $41,054 University of Chicago $61,390 Harvard University $62,950

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Cost of Attendance Trivia TRUE or FALSE Cost of Attendance at a university will be the same for each incoming freshman. FALSE

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Questions????

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Expected Family Contribution (EFC) The amount a family is expected to contribute to their childs education. Federal formula determined by information provided on FAFSA Parent contribution + Student contribution EFC will be the same for each school Can range anywhere from 0-99,999

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Financial Need $22,150 Cost of Attendance 4,150EFC =$18,000Financial Need This is what your financial aid award is based on.

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Types of Aid Scholarships Grants Work Study Loans

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Types of Aid: Grants Free money Awarded on the basis of financial need Must complete FAFSA to be considered for federal funds. Pell Grant, etc. May have to complete additional documentation for institutional funds

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Types of Aid: Scholarships Free money Awarded on basis of skill, merit, unique talent, or financial need Have to complete FAFSA to be considered for most scholarships The sooner you apply, the more money is available to offer Apply! Apply! Apply!

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Types of Aid: Scholarships Use resources available online Google www.fastweb.com www.scholarships.com www.zinch.com www.collegetoolkit.com www.collegeboard.org

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Scholarship Scams Be wary of scholarship scams! Key signs of a scam are: Scholarships that request an application fee Guarantees that youll win a scholarship Everyone is eligible, there should be some criteria Excessive hype or pressure to apply No telephone number Asking for checking/savings account or Soc Sec No. Website: www.finaid.org/finaid/scams.html

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Scholarship Tips Set personal goals for each week, month, etc. Small scholarships add up! Use some of the same admissions essays for scholarship essays Research available opportunities in your community Companies may have scholarships available to children of employees Apply at each school youre interested in

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Understanding your Scholarships Is there a minimum GPA I must maintain? Are there a certain amount of credits I need to take each semester? Is this scholarship renewable each year? What exactly does this scholarship cover? After this scholarship is applied, what are the remaining costs that Im responsible for?

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Scholarship Trivia TRUE or FALSE I should start applying for scholarships before I am even accepted into a college TRUE

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Types of Aid: Loans Borrowed money Federal loans have fixed interest rates Loans are in students name and do not affect the parent Invest for the future, borrow wisely, only what is needed Have to complete FAFSA to be offered most loans

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Types of Financial Aid: Loans Loan Comparison Interest Rate Length Grace Period Forgiveness Federal Student Loan 3.4-6.8%10-25 years6-9 monthsIn certain occupations Auto Loan2.49-25%5-7 yearsNone

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Repayment Options Income Based Repayment Income Contingent Graduated Repayment Plan Deferment Forbearance

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Student Loan Trivia TRUE or FALSE If I drop below half time enrollment at my institution, student loans will go into repayment. TRUE

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Types of Aid: Work Study Money that has to be earned Students have to search and apply for job Will earn paycheck to use for educational expenses Government pays a portion of wages Hours capped at 20 per week

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Sources of Financial Aid FEDERAL GOVERNMENT Largest Source Primarily awarded on need STATE GOVERNMENT Residency Requirements State Deadlines Need and Merit Based INSTITUTIONAL PRIVATE Businesses and Foundations

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Common Federal Aid Programs Federal Pell Grant Federal Supplemental Educational Opportunity Grant(FSEOG) Federal Perkins Loan Federal Work Study Subsidized and Unsubsidized Loans Parent PLUS Loan

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Questions??

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Filling out the FAFSA: Why? The only way to determine EFC which in turn determines your financial aid eligibility This single application can be sent to 10 different schools Can be used for multiple sources of aid

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Filling out the FAFSA: Who? Each student needs to fill out a separate FAFSA Parental data can be transferred for multiple children Parent(s) Both parents (biological, step or adoptive parent) if married Only one parent if single, divorced, or separated(the one the student lives with) Expect to use same parent each year

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Filling out the FAFSA: Dependent vs. Independent Majority of incoming students are dependent If dependent, parental info must be provided Student may be independent if: Married 24 years of age or older Have a dependent they provide more than 50% support for Foster care Legal guardianship

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Filling out the FAFSA: Who is Eligible? U.S. Citizens Eligible noncitizen Permanent U.S resident with Permanent Resident Card Conditional permanent resident with Conditional Green Card Parents do not need a social security number but student must have one

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Filling out the FAFSA: When? 2013-2014 Application will be available Jan. 1 st, 2013 State deadline for scholarships is March 1 st Check with your school for their deadline, if deadline not met you will be 2 nd priority or later Must be completed every year

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Completing the FAFSA: How? www.fafsa.gov www.fafsa.com

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Filling out the FAFSA: How? 2012 Tax Return/2011 for estimation Bank Statements/Asset Statements Investments, Rental Property Disability, Child Support Department of Education PIN Student AND one parent www.pin.ed.gov

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Potential Errors Wrong Social Security Number Number of household members in college Divorced/remarried parental information Rental property and investment net worth Untaxed income Income earned by parents/stepparents Income taxes paid Household size

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IRS Data Retrieval The IRS Data Retrieval Tool will allow FAFSA on the Web applicants to request and retrieve their income and tax data from the IRS Available February 2013 for the 2013-2014 cycle Electronic tax returns are typically available in 1-2 weeks, paper tax returns typically take 6-8 weeks

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Verification Earliest youll hear from a school is March Additional documentation will most likely be requested so expect to hear back from the school youre admitted to within a month 1040 forms, pay stubs, household/asset questionnaire Must respond to each school individually If you never provide tax returns, its as if you never filled out the FAFSA!

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Special Circumstances Change in Employment, death, marital status, one- time significant benefit, large out-of-pocket medical expenses, etc. Cannot report on FAFSA Send explanation to financial aid office at each college All special circumstances will be reviewed and a FINAL decision will be made Cannot appeal this decision to Dept of ED

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Mikes Tips Payment Plan- bill is due soon as student starts class Private scholarships are important. Any entity that you frequent, see if they offer scholarships Set concrete schedule for filling out scholarships Satisfactory Academic Progress Only borrow whats needed Spend refund check wisely

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College Goal Sunday!!!! Free help to fill out FAFSA February 10 th 2-4pm Locations available all around MI www.micollegegoal.org

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Maize and Blue Days Starting in Mid January Tues and Thurs from 1-7pm University of Michigan Detroit Office 3663 Woodward Ave Suite 190 (313)872-7068

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Thank you!!

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For More Information Michael Davis michdav@umich.edu 734-763-4124 University of Michigan Office of Financial Aid www.finaid.umich.edu Federal Student Aid www.studentaid.ed.gov or www.students.gov www.studentaid.ed.govwww.students.gov Michigan Office of Scholarships and Grants 1-888-4-Grants or www.michigan.gov/studentaid