Presentation is loading. Please wait.

Presentation is loading. Please wait.

Understanding The Financial Aid Process Make the Right College Choice for You.

Similar presentations


Presentation on theme: "Understanding The Financial Aid Process Make the Right College Choice for You."— Presentation transcript:

1 Understanding The Financial Aid Process Make the Right College Choice for You

2 We will try to answer: What is financial aid? What is financial aid? 3 sources of Financial Aid 3 sources of Financial Aid Federal Financial Aid Federal Financial Aid Florida Financial Aid / Bright Futures Basics Florida Financial Aid / Bright Futures Basics How do I apply? (FAFSA) How do I apply? (FAFSA) Financial aid award letter basics Financial aid award letter basics Comparing award letters Comparing award letters Filling your gap Filling your gap Next steps Next steps

3 What is a Scholarship? Performance based What is Financial Aid? Need Based Sources of Financial Federal Financial Aid State (Florida) Financial Aid Institutional Financial Aid

4 Federal Financial Aid Grants Award Amounts (Grants) Federal Pell Grant: $400 - $5,550 Federal Pell Grant: $400 - $5,550 Teacher Education Assistance for College and Higher Education Grant: $4,000 Teacher Education Assistance for College and Higher Education Grant: $4,000 Federal Supplemental Educational Opportunity Grant (SEOG): $100 - $4,000 Federal Supplemental Educational Opportunity Grant (SEOG): $100 - $4,000

5 Federal Work-study A job: Admissions office, Library, for a Professor, the Gym, Stringing Tennis Rackets A job: Admissions office, Library, for a Professor, the Gym, Stringing Tennis Rackets May include a process for getting assignments May include a process for getting assignments You will be paid by check for your work You will be paid by check for your work Flexibility for vacations, summer, and tests. Flexibility for vacations, summer, and tests. This money wont be available at the start of the semester to help pay your tuition bill. TIP

6 Federal Student Loans Federal Perkins Loan up to $5,500 Federal Perkins Loan up to $5,500 Federal Stafford Loan Federal Stafford Loan Subsidized$3,500 - $8,500 Subsidized$3,500 - $8,500 Unsubsidized $5,500 - $20,000 Unsubsidized $5,500 - $20,000 Federal Parent PLUS Loan Federal Parent PLUS Loan Repayment usually begins 6-9 months after graduation Repayment usually begins 6-9 months after graduation Before July 1, 2010, Stafford, PLUS, and Consolidation Loans were also made by private lenders under the Federal Family Education Loan (FFEL SM ) Program. As a result of the SAFRA Act, which was part of the Health Care and Education Reconciliation Act, no further loans will be made under the FFEL Program beginning July 1, All new Stafford, PLUS, and Consolidation Loans will come directly from the U.S. Department of Education under the Direct Loan Program SM. Before July 1, 2010, Stafford, PLUS, and Consolidation Loans were also made by private lenders under the Federal Family Education Loan (FFEL SM ) Program. As a result of the SAFRA Act, which was part of the Health Care and Education Reconciliation Act, no further loans will be made under the FFEL Program beginning July 1, All new Stafford, PLUS, and Consolidation Loans will come directly from the U.S. Department of Education under the Direct Loan Program SM.

7 Federal Student Loans Ask yourself: Ask yourself: How much do I really need to borrow? How much do I really need to borrow? What are the terms of the loans? What are the terms of the loans? Will I pay the interest while I am in school or is it covered by the government? Will I pay the interest while I am in school or is it covered by the government? What are my potential monthly payments once I graduate? What are my potential monthly payments once I graduate?

8 Florida Financial Aid Need to apply online at Need to apply online at Failure to apply may result in the loss of financial aid consideration as well as Florida Bright Futures Failure to apply may result in the loss of financial aid consideration as well as Florida Bright Futures The Student Florida Financial Aid Application (FFAA) is for all state-funded student financial aid programs, including the Florida Bright Futures Scholarship Program. The Student Florida Financial Aid Application (FFAA) is for all state-funded student financial aid programs, including the Florida Bright Futures Scholarship Program. It is your responsibility to provide your correct name, address, and social security number and update information. If you do not have or you do not wish to use your social security number, please leave the "social security number" field blank. The system will generate a Pseudo number for you. It is your responsibility to provide your correct name, address, and social security number and update information. If you do not have or you do not wish to use your social security number, please leave the "social security number" field blank. The system will generate a Pseudo number for you. It is your responsibility to retrieve your User ID and PIN number and to update your demographic information and Update your Name, Address and Institution if it changes. It is your responsibility to retrieve your User ID and PIN number and to update your demographic information and Update your Name, Address and Institution if it changes. Failure to keep your contact information up-to-date and monitor your application certifications can result in a delay in the processing of your application or prevent you from receiving a scholarship. Failure to keep your contact information up-to-date and monitor your application certifications can result in a delay in the processing of your application or prevent you from receiving a scholarship. All correspondence will be sent via ; no correspondence will be sent harcopy. All communication will also be available using your assigned User ID and PIN to login to your Financial Aid Recipient History. All correspondence will be sent via ; no correspondence will be sent harcopy. All communication will also be available using your assigned User ID and PIN to login to your Financial Aid Recipient History.Financial Aid Recipient HistoryFinancial Aid Recipient History

9 Programs Offered by the State of Florida Below is a list of State of Florida Grant and Scholarship Programs administered by the Office of Student Financial Assistance. Access to Better Learning and Education Grant Program Cost of Attendance and Adult Norm-Referenced Disability Testing Federal Academic Competitiveness Grant and The National Science & Mathematics Access to Retain Talent Grant First Generation Matching Grant Program Florida Bright Futures Scholarship Program Florida Fund for Minority Teachers Program Florida Public Postsecondary Career Education Student Assistance Grant Program Florida Resident Access Grant Program Florida Student Assistance Grant Program Florida Work Experience Program José Martí Scholarship Challenge Grant Fund Mary McLeod Bethune Scholarship Program Robert C. Byrd Honors Scholarship Program Rosewood Family Scholarship Program Scholarships for Children and Spouses of Deceased or Disabled Veterans and Service members

10 Bright Futures Lottery funded Scholarships Lottery funded Scholarships 3 separate scholarships only 1 can be earned 3 separate scholarships only 1 can be earned Florida Medallion Scholarship Florida Medallion Scholarship Requires a 3.0 wt GPA / 970 SAT or 20 ACT Requires a 3.0 wt GPA / 970 SAT or 20 ACT No community service requirement. No community service requirement. State university admissions requirements State university admissions requirements Pays $95.00 per credit hour / $2,850 per year Pays $95.00 per credit hour / $2,850 per year $59.00 per credit hour at community colleges / $1770 per year $59.00 per credit hour at community colleges / $1770 per year Florida Academic Scholarship Florida Academic Scholarship Requires a 3.5 wt GPA / 1270 SAT or 28 ACT Requires a 3.5 wt GPA / 1270 SAT or 28 ACT 75 Community service hours required 75 Community service hours required Higher GPA and Test Scores Higher GPA and Test Scores Pays $ per credit hour / Pays $ per credit hour / $3,780 per year Gold seal Vocational Gold seal Vocational Requires a 3.0 wt GPA / 880 SAT or 18 ACT or CPT passing score Requires a 3.0 wt GPA / 880 SAT or 18 ACT or CPT passing score Requires a 3.5 unwt GPA in a series of vocational program courses Requires a 3.5 unwt GPA in a series of vocational program courses Pays the same rates as the FAS Pays the same rates as the FAS

11 Florida Bright Futures Application is active after December 1. Application is active after December 1. If you do not apply, you will not be evaluated. If you do not apply, you will not be evaluated. In order to be eligible for the 7 th semester evaluation you must apply by the end of the 1 st semester. In order to be eligible for the 7 th semester evaluation you must apply by the end of the 1 st semester. In order to be eligible by 8 th semester evaluation you must apply before the last day of school. In order to be eligible by 8 th semester evaluation you must apply before the last day of school. Once you receive the award, it can not be taken away - even if your grades drop. Once you receive the award, it can not be taken away - even if your grades drop. If awarded and your grades or test scores improve to the next higher award level, you will be moved up to the higher award level. If awarded and your grades or test scores improve to the next higher award level, you will be moved up to the higher award level.

12 Bright Futures Payout vs. Actual University Tuition Cost Tuition and Fees for 30 credit hours FAMUFAUFGCUFIUFSUNCFUCFUFUNFUSFUWF Univ. Tuition Cost $3,720$4,187$4,509$4,261$4,566$3,987$4,526$4,340$4,021$4,503$4,210 BFAcademic$3,780$3,780$3,780$3,780$3,780$3,780$3,780$3,780$3,780$3,780$3,780 Diff=/- + $60 -$407-$729-$481-$786-$207$746$560$241$723$430 BFMerit$2,850$2,850$2,850$2,850$2,850$2,850$2,850$2,850$2,850$2,850$2,850 Diff=/- $870$1337$1,659$1,411$1,716$1137$1,676$1,490$1,171$1,653$1,360

13 Applying for Financial Aid Free Application for Federal Student Aid (FAFSA) Apply at: Apply at: NOT this is a pay site NOT this is a pay site

14 Documents Needed to complete your FAFSA You and your parents Social Security Number. Be sure it is correct! You and your parents Social Security Number. Be sure it is correct! Your driver's license (if any) Your driver's license (if any) Your 2010 W-2 Forms and other records of money earned Your 2010 W-2 Forms and other records of money earned Your (and your spouse´s, if you are married) 2010 Federal Income Tax Return. IRS 1040, 1040A, 1040 EZ Your (and your spouse´s, if you are married) 2010 Federal Income Tax Return. IRS 1040, 1040A, 1040 EZ Your Parents´ 2010 Federal Income Tax Return (if you are a dependent student) Your Parents´ 2010 Federal Income Tax Return (if you are a dependent student) Your current bank statements Your current bank statements Your current business and investment mortgage information, business and farm records, stock, bond and other investment records Your current business and investment mortgage information, business and farm records, stock, bond and other investment records Your alien registration or permanent resident card (if you are not a U.S. citizen) Your alien registration or permanent resident card (if you are not a U.S. citizen)

15 Which FAFSA form do I file? Each college sets its own deadline regarding financial aid, but it is in your best interest to file the FAFSA (and any other required forms) as early as possible. Colleges have a finite amount of money budgeted for financial aid. Students who file later risk receiving less aid as colleges approach their budget limits. Each college sets its own deadline regarding financial aid, but it is in your best interest to file the FAFSA (and any other required forms) as early as possible. Colleges have a finite amount of money budgeted for financial aid. Students who file later risk receiving less aid as colleges approach their budget limits. Attending College Use FAFSA Form Use IRS Income Tax From Beginning Summer 2011 Then Fall – 2011 FAFSA 2011 – 2012 FAFSA Beginning Fall – 2012 FAFSA 2010

16 Need help? Use Live Help icon or call FED-AID. Dont forget to print confirmation page.

17 Expected Family Contribution EFC Calculated from your FAFSA Calculated from your FAFSA Determines your financial aid eligibility Determines your financial aid eligibility The same at every school The same at every school Used in awarding institutional funds. Used in awarding institutional funds. Institutional EFC may vary from federal EFC. Institutional EFC may vary from federal EFC. Professional Judgment subject to college/program policy. Professional Judgment subject to college/program policy.

18 Frequent FAFSA Errors Social Security Numbers Social Security Numbers Divorced/remarried parental information Divorced/remarried parental information Income earned by parents/stepparents Income earned by parents/stepparents Untaxed income Untaxed income U.S. income taxes paid U.S. income taxes paid Household size Household size Number of household members in college Number of household members in college Real estate and investment net worth Real estate and investment net worth

19 Forms and Documents that may be requested by the college for the verification process If you are selected for verification your college may ask for: Parent tax returns Parent tax returns Student tax returns Student tax returns Divorced or separated parent information Divorced or separated parent information Other information to verify: Other information to verify: Income Income Assets Assets Family size Family size Special circumstances Special circumstances

20 Professional Judgment Special Circumstances Loss of employment Loss of employment Loss of untaxed income or benefits Loss of untaxed income or benefits Extraordinary medical expenses Extraordinary medical expenses Separation, divorce, or death Separation, divorce, or death Dependent care expenses Dependent care expenses Expenses related to a disability Expenses related to a disability For Professional Judgment, you must provide your financial aid office with documentation to prove your situation. For Professional Judgment, you must provide your financial aid office with documentation to prove your situation.

21 Questioning Your Award Sadly Financial Aid Offices do not always work to your best interest. Sadly Financial Aid Offices do not always work to your best interest. Your award should be the most optimal aid package based on your eligibility. Your award should be the most optimal aid package based on your eligibility. Know what kinds of financial aid you may be eligible for. Know what kinds of financial aid you may be eligible for. Compare financial aid award letters of other institutions and politely negotiate changes if you feel warranted. Compare financial aid award letters of other institutions and politely negotiate changes if you feel warranted. If your financial situation has changed, your award may be adjusted through professional judgment. To question your award, provide your financial aid office with documentation If your financial situation has changed, your award may be adjusted through professional judgment. To question your award, provide your financial aid office with documentation

22 How is Financial Aid Awarded Sample Award Letters

23 How it works College Cost of Attendance - Expected Family Contribution (EFC) Expected Family Contribution (EFC)= Financial Need - Financial Aid Award = Unmet Need (Gap)

24 Cost of Attendance (COA) COA includes: COA includes: Tuition and fees (varies depending on credit hours taken) Tuition and fees (varies depending on credit hours taken) Books and supplies (varies by cost of books) Books and supplies (varies by cost of books) Room and board (varies by type of room and meal plan desired) Room and board (varies by type of room and meal plan desired) Transportation (fly, or drive) Transportation (fly, or drive) Personal expenses (clothing, entertainment, food) Personal expenses (clothing, entertainment, food) COA may be referred to as direct costs, student budget, or student expenses. TIP

25 Gift aid total = $3,600 Work-study money = $4,200. John will need to work to earn this money. Student loans total = $4,850

26 Cost of attendance = $19,595 EFC = $2,978 Gap to fill = $6,945 John does need to consider that he wont receive the work-study money until he earns it. Cost of attendance $19,595 Total aid - $12,650 Gap = $6,945

27 Loans total = $20,175 Work-study total = $1,700. John will have to work enough hours to earn $1,700. Gift aid total = $12,800 Cost of attendance $34,675 Total aid - $34,675 Gap = 0

28 Gift aid total = $12,800 Borrowed money total = $19,500 If Johns parents arent able to take out a PLUS loan, his gap will increase to $24,740. Cost of attendance $41,040 Total aid - $32,300 Gap = $8,740

29 Comparing Award Letters

30 32,640 8, ,940 32,300 2,000 3,000 National Conference of Puerto Rican Women 1,900 32,300 14,640

31 12, ,800 2,000 1,500 16,000 19,500 32,300

32 What Should John Do Now? Hall University: Hall University: Gap = $6,945 Gap = $6,945 Borrowed money = $4,850 Borrowed money = $4,850 Midwest University Midwest University Gap = $0 Gap = $0 Borrowed money total of $20,175 Borrowed money total of $20,175 Sycamore College Sycamore College Gap = $14,640 Gap = $14,640 Borrowed money = $19,500 Borrowed money = $19,500

33 Filling Your Gap

34 Your Gap Cost of attendance - EFC -Total financial aid award (includes gift aid and loans) = Your gap

35 Working Summer job Summer job Part-time employment during school Part-time employment during school Check with your schools career center Check with your schools career center

36 Scholarships Explore additional scholarship options Explore additional scholarship options Scholarship searches Scholarship searches collegeboard.com collegeboard.com fastweb.com fastweb.com petersons.com petersons.com

37 Tuition Payment Plans Check with your schools financial aid office on the availability of a payment plan Check with your schools financial aid office on the availability of a payment plan Semester payment plans Semester payment plans Yearly payment plans Yearly payment plans

38 Home Equity Loans A loan borrowed against the equity your parents have built in their house A loan borrowed against the equity your parents have built in their house Closing costs and fees may exceed the fees on PLUS loans Closing costs and fees may exceed the fees on PLUS loans

39 Retirement Accounts A loan borrowed against your parents retirement account A loan borrowed against your parents retirement account Interest paid on the loan goes back into the retirement account Interest paid on the loan goes back into the retirement account Your parents may want to consult a financial planner or tax professional before using this option Your parents may want to consult a financial planner or tax professional before using this option

40 Be Creative! Family and friends Family and friends Birthday and holiday gifts Birthday and holiday gifts Church and community organizations Church and community organizations

41 Private Loans Not part of the federal student loan program Not part of the federal student loan program Higher interest rates Higher interest rates Less flexible repayment options Less flexible repayment options Borrow only what you needthe more you borrow, the more youll pay in interest. TIP

42 Next Steps

43 Make the Right College Choice Use what you learned today Use what you learned today Look at the entire package Look at the entire package Choose your school Choose your school Determine which parts of the award letter to accept Determine which parts of the award letter to accept Accept your award letter Accept your award letter Complete your Master Promissory Note Complete your Master Promissory Note Respond to your other award letter(s) Respond to your other award letter(s) If needed, secure funding to fill your gap If needed, secure funding to fill your gap

44 Think About Next Year Complete the FAFSA every year Complete the FAFSA every year Youll receive another award letter Youll receive another award letter Review the numbers again Review the numbers again Dont borrow more than you need Dont borrow more than you need

45 Questions? Thanks and Good Luck!!!


Download ppt "Understanding The Financial Aid Process Make the Right College Choice for You."

Similar presentations


Ads by Google