1. Financial Aid Information
James Cowles Director, Student Support Services Cumberland County College

2. What if Financial Aid?
Financial aid is a broad term used to describe a variety of resources students can use to pay the costs of their college education

3. Types of Aid
Grants
Loans
Scholarships
Work Study Programs
Other

4. Types of Aid
Merit Based Aid: Aid that is awarded based on a students accomplishments such as grades
Need Based Aid: Aid that is determined by the students ability to pay for their education
Examples Merit Aid: N.J. S.T.A.R.S.
Examples of Need Based Aid: Pell Grant

5. Grants
“Gift Aid”: Money that is given to students and does not require repayment.
Examples of Grants:
Federal Pell Grants
N.J. TAG Grants
EOF grants

6. Loans
Money that is borrowed for education expenses, to be paid back, with interest.
All colleges are now required to use the Federal Direct Loan Program
Repayment begins six months after the student looses their half time enrollment
Federal Direct Loans are not credit based

7. Loans Current interest on Direct Loans is 6.8%
Students can consolidate their loans (merged into one loan with one payment to one company)
Failure to repay your loans will lower your credit rating, prevent you from receiving additional financial aid, wage garnishments, tax refund garnishments, and can prevent you from obtaining certain jobs

8. Direct Loans Direct Loans come in two parts:
Subsidized: Federal government pays interest for you while you attend school
Unsubsidized: Interest accumulates while you are in school, although you are not require to make payments
Schools will process you for Subsidized funds first
Students MUST file a FAFSA application and complete any additional steps even if they are only applying for a loan

9. Direct Loans Direct Loans are limited to the following amounts:
Freshman: $5500/academic year, of which no more than $3500 can be subsidized
Sophomores: $6500/academic year, of which no more than $4500 can be subsidized
Juniors/Seniors: $7500/academic year, of which no more than $5500 can be subsidized
Lifetime loan limit: $31,000
Loans can also be capped up to the cost of attendance

10. Parent Plus Loans
Loans which parents borrow to pay for their child’s college expenses
Parent Plus Loans ARE credit based
FAFSA application is not required

11. Private Student Loans
Students are encouraged to borrow under the Federal Direct Loan Program first
If necessary, students should then apply for parent plus loans or private student loans
May require a co signer
Are credit based
Repayment terms vary from lender to lender

12. Scholarships An additional form of gift aid
Can come from a variety of sources (schools, churches, private businesses, employers, civic organizations, ect.)
Can be gift aid or merit based aid

13. Work Study Programs Students work on or off campus
Students are paid directly in a paycheck
Can be a good way to get job experience in your major
Can help students meet their indirect expenses as the semester progresses
Sign up as early as possible- jobs are limited

14. Other
Tax Benefits: lowers the amount of taxes a student, or parent if they claim the student pays
Life Time Learning Credit / Hope Credit
Tuition and Fees Deduction
Student Loan Interest Deduction
Americorps Awards: grants given to students that complete volunteer work

15. Other
Veterans Benefits: Tuition Waivers and other programs for Veterans and their dependants
Most schools have a VA representative on campus that will explain possible benefits

16. How to Apply File a FAFSA Application at:
List any schools you are thinking of attending
Student will receive a preliminary Pell Grant figure when they complete their application
Student receives a confirmation when their application is processed
Check for mistakes or problems

17. Financial Aid Process
Any schools listed on the FAFSA application will receive a copy of the results
Most schools will not process a students application unless they have already been accepted as a student
School may require additional information to finalize an award package
Students are chosen at random for a process called verification where they must provide proof of the income they put on their applic.

18. FAFSA
Students basic info: name, social security number, citizenship, status, date of birth, ect
Household Income: Taxed income (on tax return); untaxed income (social security, child support, pensions, etc.)
Savings/Investments
Household size

19. FAFSA
Students must provide their biological parents information unless:
They are 24 or older
Married
Have children or legal dependants that they provide more than 50% of the support for
Emancipated from both parents, orphan/ward of the State, in Legal Guardianship by a nonparent
Veteran of the U.S. Armed Forces

20. Recent FAFSA Changes
Untaxed portions of social security benefits, TANF, earned income tax credits, and additional child tax credits are no longer considered forms of income on the FAFSA application
NJ HESAA will still require students provide untaxed portions of social security benefits and earned income tax credit for state TAG grants

21. Recent FAFSA Changes
The formula used to calculate a students EFC has been adjusted to allow for more moderate income families to receive Pell Grants

22. Recent FAFSA Changes
Schools can not long accept an actual 1040 Tax Return for verification purposes
Students and/or parents must obtain an IRS 1040 transcript which can be done online

23. Financial Aid Process
FAFSA results are also sent to New Jersey Higher Education Student Assistance Authority (HESAA) for processing on the N.J. TAG grant and any other state aid
Beginning June 2010 all students are required to provide additional information that is not on the FAFSA to HESAA
HESAA has reached out to students by mailings, s, and phone calls
Non compliance = no TAG grant

24. Financial Aid Process
After students return any information or resolve any issues that their Financial Aid Office requires they will be sent an official Award Letter
May require acceptance of awards
Students requiring a student loan should check with their schools loan processes
Must fill out the MPN and Entrance Counseling

25. Financial Aid Process
FAFSA application will determine the students EXPECTED FAMILY CONTRIBUTION (EFC)
Financial Aid Offices use the EFC as an index number to determine the students eligibility for a Federal Pell Grant and any additional federal aid programs (TEACH GRANTS, FWS)
Every school has an estimate cost of attendance (a budgeting figure that takes into account living expenses, food, supplies, ect)

26. Financial Aid Process
Students may borrow loan funds, from the various programs, up to the Direct Loan cap or the schools cost of attendance (which ever is lower).

27. Direct College Expenses
Tuition and Fees
Books and Supplies
Room and Board
Meal Plans
Parking Permits

28. How does Financial Aid Pay?
Students carry a credit with the college that gets applied to their account
Tuition and fees are charged to their account
Most schools allow students to use any remaining funds for the purchase of books and supplies from their school store

29. What is a Stipend Check?
A stipend check is a check issued to the student if they have any grant funds left after their tuition, fees, books, and supplies have been paid
Stipend Checks are issued before the end of the semester
Stipend Checks help students pay for their indirect expenses
They can also be used to pay for summer/winter courses

30. Loan Disbursements
Loan funds, in excess of tuition, fees, books, and supplies charges are issued to students no earlier than 30 days after the semester starts
Excess funds can help pay for winter/summer courses and indirect college expenses
Excess loan funds can be denied and returned to the lender

31. Indirect College Expenses
Transportation
Food
Study Aids
Trips
Supplies
Computers
Other necessities

32. What do I do with a Stipend?
Use to pay for Winter/Summer courses
Save away for your indirect college expenses
Invest
Savings for emergencies

33. Satisfactory Academic Progress
All schools are required to maintain a satisfactory academic progress guideline for returning students
Guidelines vary from school to school
Federal government is enforcing schools to adopt strict policies
Students that fail to meet these guidelines are ineligible for aid
Many schools have appeal procedures

34. Need Help with a Course? Always speak with your professor first
The Success Center offers FREE tutoring services
Learning Disabilities/Physical Disabilities and accommodations- Contact Meredith Vicente
Contact your Academic Advisor for counseling
Speak with Financial Aid Staff BEFORE making a decision to withdraw

35. Withdrawing from Classes
Withdrawing from classes, not showing up for class, and being removed from a course by the instructor will have an adverse affect on your financial aid
Your financial aid may be reduced and/or canceled
Taking a class twice means paying for a course twice
Your time is valuable

36. Deadlines All students must file a new FAFSA application annually
Every school establishes their own deadlines
Many schools have deadlines as early as February
Students that apply after this date are not guaranteed their aid will be in place in time for payment
Some schools will not even look at a late application until after the appropriate semester begins

37. Where To Go For Help www.fafsa.ed.gov 1800-4FEDAID (FAFSA Processing)
(NJ HESAA for state aid)
You schools Financial Aid Office

38. SCHOLARSHIPS FederalStudentAid.ed.gov/scholarship collegeboard.com
Fastweb.com
Check with each college you are applying to

39. Remember… Plan Ahead Apply Early Keep copies of important documents
Budget and spend wisely
Do not be afraid to ask questions- Today, Tomorrow, Next Month- Next Year