What is Financial Aid?

How Do I Know if I Qualify?

Categories and Types of Financial Aid

PIN

FAFSA

FAFSA Processing Results

SAR

Special Circumstances

Budgeting/Spending

College Goal Sunday

Financial aid are any type of funds provided to students and families to help pay for postsecondary educational expenses.

Direct Costs – tuition, fees, room, board etc.

Indirect Costs – personal expenses, transportation

Direct and indirect costs combine to form the cost of attendance (COA)

Vary widely from college to college

Amount family can reasonably be expected to contribute

Stays the same regardless of college

Two components

- Parent contribution

- Student Contribution

Calculated using Free Application for Federal Student Aid (FAFSA) data and a federal formula

-

Cost of Attendance (COA)

Expected Family Contribution

= Financial Need

High Financial Need Low Financial Need

Cost of Attendance = $18,000 Cost of Attendance = $18,000

Expected Family Contribution = 0

Expected Family Contribution = $18,000

Financial Need = $18,000 Financial Need = $0

May be eligible for grants and other need based aid

Eligible for unsubsidized loan and/or PLUS Loan

Need-Based

Scholarships

Grants

Subsidized Loans

Work Study

Tribal Scholarships

Non need-based

Unsubsidized loan

Merit based scholarships

Parent Loan for Undergraduate Students (PLUS)

Private Alternative Loans

Money that does not have to be paid back

Awarded on the basis of merit, skill, or a unique characteristic

Scholarships can be need based or non-need based

Scholarship Essay help: http://www.scholarshiphelp.org/scholarship_essay.htm

Free Scholarship Searches: o Fast Web – www.fastweb.com o College Answer – www.collegeanswer.com o College Board –

https://bigfuture.collegeboard.org/pay-for-college/scholarships-grants

Be wary about paying anyone to “find” scholarships for you!

Many scholarship deadlines occur in March

Scholarships are then awarded to student in May for the following academic year

Scholarships usually are not awarded for the summer semester/quarter

High School Counselors Office University/College Admissions Office Financial Aid Office Public Library Internet Bookstore Local Church Parent’s Place of Employment

Money that does not have to be paid back

Usually awarded on the basis of financial need

Are limited (with the exception of the Pell Grant) and are awarded on a first come, first served basis

Complete your FAFSA early!

Money students and parents borrow to help pay educational expenses

Repayment usually beings after education is finished

Only borrow what is really needed

Look at loans as an investment to the future

Two types – need based & non-need based

Dependent Students (Except Students Whose Parents Cannot Borrow PLUS)

Base Amount Additional Unsubsidized Loan Amount

Freshman $3,500 $2,000

Sophomore $4,500 $2,000

Junior or Senior $5,500 $2,000

Independent Undergraduate Student AND Dependent Student Whose Parents Cannot Borrow a PLUS Loan

Base Amount Additional UnsubsidizedLoan Amount

Freshman $3,500 $6,000

Sophomore $4,500 $6,000

Junior or Senior $5,500 $7,000

Need – Based

Subsidized Direct Loan

o No interest while in school

o Fixed interest rate of 3.4% (through 12/13)

o 10 years to repay on standard repayment plan

o No penalty for early repayment

o 6 month grace period

Non Need – Based

Unsubsidized Federal Direct Loan

o Fixed interest of 6.8% (12/13) accrues while in school

o 10 years to repay on standard repayment plan

o No penalty for early repayment

o 6 month grace period

Non Need – Based cont’d

Private/Alternative Loan

o Variable interest rates according to lender

o Based on credit worthiness

o Most students will need a co-signer

Non Need – Based cont’d

Parent Loan for Undergraduate Students (PLUS)

o Parent is the borrower

o Only for parents of dependent students

o Fixed interest rate of 7.9% (12/13)

o Based on credit worthiness

Federal Work Study o Gov’t pays 70% of salary, dept pays other 30% o Money earned does not count as income on next year’s

FAFSA

Student Wage o Non – Work Study o Work on Campus

Off Campus Employment o May not be as flexible as on-campus employment

Students receive a paycheck

• Applicants should contact their tribal scholarship office as soon as possible to learn deadlines etc…

• Website: www.pin.ed.gov

• Sign FAFSA electronically

• Can request PIN before you file

• BOTH parent and student will need a PIN

• Never expires

• A standard form that collects demographic and financial information about the student and family

• Available every year after January 1

• Colleges may set FAFSA filing deadlines

• Must be completed every year

• Colleges use the EFC to award financial aid

• Must be a U.S. Citizen or eligible non-citizen

• Must have a valid Social Security Number

• Be enrolled/accepted in an eligible program of study

• Must be pursuing a degree, certificate or other recognized credential

• Males must be registered with Selective Service

• Web site: www.fafsa.gov

• 2013-2014 FAFSA available now

• FAFSA on the Web Worksheet: o Use as a “pre-application” worksheet o Questions follow order of FAFSA on the

Web

• Enhanced Security

o SSN will no longer appear on the Student Aid Report

o SSN will no longer be used on the confirmation page

o Virtual keyboard added ⁻ Used when entering SSN and date of

birth for students and parents ⁻ Helps prevent a malicious source from

tracking keystrokes

• Required ⁻ Student ⁻ One parent (dependent students)

• Format

₋ Electronic using PIN ₋ Signature page – snail mail

• After submitting a FAFSA, the Central Processing System (CPS) notifies student of FAFSA processing results by:

₋ E-mail: If one was provided then a notification will be sent containing a direct link to the student’s on-line Student Aid Report

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

• The student will receive this 3-5 days after FAFSA has been processed:

₋ If email has been provided ₋ If no email then 7-10 days for snail mail

• Why it’s important ₋ Verify information ₋ Review for corrections ₋ Provides EFC

• FAFSA information is sent to colleges listed on the FAFSA approximately 10-14 days after the FAFSA has been submitted

• The college then reviews the information and calculates eligibility

₋ May request additional documentation, such as copies of federal tax transcripts.

• College mails an award letter to student

• Student responds

• Under certain conditions, some applicants who are selected for verification will need to submit an IRS Tax Return Transcript for the 2012 tax year (copies of tax returns are NOT acceptable)

• These conditions are (but not limited to): o When the student or parent did not use

the IRS Data Retrieval Process, either at initial FAFSA filing or through the correction process

• When info included on the FAFSA using the IRS Data Retrieval Process was changed

• When a married independent student and spouse filed separate tax returns

• When the parents of a dependent student filed separate tax returns

• When a student or student’s parent had a change in marital status after the end of the tax year on Dec. 31, 2012.

• When the student, parent or spouse filed an amended tax return.

• How to order a tax transcript

o Visit: http://www.irs.gov/Individuals/Order-a-Transcript

• If necessary, corrections to the FAFSA may be made by:

₋ Using www.fafsa.gov ₋ Your school may be able to make them for

you electronically (check with your school) ₋ If you received a paper SAR, make changes

and mail to the address on the form.

• Change in employment status

• Medical and/or dental expenses not covered by insurance

• Tuition expenses at an elementary or secondary school

• Dependent student issues; living with grandparents, ward of the court, extenuating circumstance at home etc…

• Talk directly with a financial aid professional at the institution of your choice as there are often appeal processes available

• Medical and/or dental expenses not covered by insurance

• Tuition expenses at an elementary or secondary school

• Dependent student issues; living with grandparents, ward of the court, extenuating circumstance at home etc…

• REMEMBER – BORROW ONLY WHAT YOU NEED FOR SCHOOL

• Getting an education is expensive

• Know what you are financing

• What you borrow, you MUST pay back

• Your credit history stays with your for a lifetime

Develop a financial game plan • Needs vs. Wants

• Complete a Budget Planning Worksheet EVERY SEMESTER

Other Tips • Compare award letter to the essential costs

of the college you are considering attending

• Higher awards don’t always equal less money out of pocket

Closest site: • Glendale Community College Student Union

Time: 2:00 – 4:00 p.m. Date: Sunday - February 10, 2013

www.collegegoalsunday.com

What to Bring: • Your parents • Their 2012 income data (W-2’s or pay stub

and/or 2012 tax return)

• University/College Financial Aid Office • Student Aid on the Web www.studentaid.ed.gov

• U.S. Department of Education o 1.800.433.3243