Presentation on theme: "Understanding the Financial Aid Process Northside College Preparatory High School December 6, 2010 Mary Stonis & Brian Drabik Office of Undergraduate Financial."— Presentation transcript:
Understanding the Financial Aid Process Northside College Preparatory High School December 6, 2010 Mary Stonis & Brian Drabik Office of Undergraduate Financial Aid
What is the purpose of need-based financial aid? Makes education accessible to students who can’t afford it on their own Enables student to apply to first- choice college Students can attend college based on best fit and match, not finances
What assumptions underlie need- based financial aid? Families contribute to the extent they are able Unusual family circumstances are considered Similar treatment for similar circumstances More is expected from those with greater resources
How do I apply for financial aid? Federal Formula Free Application for Federal Student Aid (FAFSA) Institutional Formula CSS/Financial Aid Profile At School’s Discretion Institutional application Tax Returns/W-2 Forms Non-custodial Information Families must reapply annually
Tuition & Fees Room & Board Transportation Books & Supplies Miscellaneous Personal Expenses Cost of Attendance (COA) + How is the Cost of Attendance determined?
How is EFC determined? A need analysis formula determines the student’s Expected Family Contribution (EFC). The U.S. Department of Education calculates financial need using a formula established by Congress called Federal Methodology. A comparative measure of how much a family can be expected to contribute toward the cost of a student’s education for a year. Used to determine a student’s eligibility for most federal and state assistance. After completing the FAFSA, the EFC is shown on the Student Aid Report (SAR) and Institutional Student Information Record (ISIR).
How is eligibility for financial aid determined? Cost of Attendance -Estimated Financial Assistance (outside resources) -EFC (Estimated Family Contribution) __________________________________ = Student’s Financial Need
How can I calculate an estimate of my EFC? REMEMBER – These are just estimates until you complete the FAFSA in January 2011 using 2010 tax information.
What is the FAFSA? The FAFSA is the Free Application for Federal Student Aid which that determines your eligibility for federal financial aid. FAFSA uses parents’ and student’s income, assets, etc. to calculate an EFC. You will complete the FAFSA for your freshman year of college. It will be available starting Jan. 1, You must complete a new FAFSA each year that you plan on applying for financial aid. The sooner you complete the FAFSA, the better. State and institutional funds may be limited.
What you will need to complete the FAFSA Parents’ information Social security numbers Federal tax information Asset information PIN number for one parent as an electronic signature Student information Social security number Federal tax information Asset information PIN number to electronically sign
How will your eligibility be determined by the school? The FAFSA EFC will determine your eligibility for federal and state aid. The CSS Profile may be required by the school to determine your eligibility for institutional funds.
The CSS Profile https://profileonline.collegeboard.com College Board’s College Scholarship Service (CSS) Profile is required by some college/universities and scholarship agencies. The CSS Profile determines whether or not you are eligible for private grants and scholarships from the member organizations. CSS Profile costs $25 for the initial application and one school and $16 for each additional school. Limited fee waivers available. Deadlines vary depending on type of application (ED, EA) and college; can range from November – April. This is NOT a substitute for the FAFSA.
These funds may be merit-based, need-based, or non need-based. There are two types of financial aid. What types of financial aid will I receive? gift aid self-help aid Grants Scholarships Federal Work-Study Loans
Federal and State Grant Programs A complete FAFSA is required. Federal Pell Grant – $5,550 * Federal Supplemental Educational Opportunity Grant (FSEOG) – $4,000 * State of Illinois Monetary Award Program (MAP) Grant – $4,968 * * Maximum award for
Source of Loan Repayment ~ Grace Period Interest Rate Loan Programs When evaluating loan options, consider… Subsidized vs. Unsubsidized
Federal Loan Programs Program TypeGraceRate Perkins ($5,500*) Subsidized (need-based) 5% Fixed 9 Months Stafford ($3,500*) ($2,000*) Subsidized (need-based) 4.5% Fixed 6 Months Unsubsidized 6.8% fixed 6 Months PLUS (cost of attendance minus other aid*) Credit-based7.9% fixed 60 days * Maximums for
Federal Work-Study Need-based employment program for students partially funded by the government* Provides jobs on- and off-campus Students earn at least minimum wage Students are permitted to work a flexible schedule * FAFSA Required
Sample Aid Packages Private #1Private #2Private #3Public COA$48,000$50,000$35,000$19,000 EFC$10,000 Financial Need $38,000$40,000$25,000$9,000 Merit Aid$0 $10,000$0 Need-Based Grant $35,900$33,300$2,800$1,500 Student Loan$0$4,000$5,500 Work-Study$2,100$2,700$1,800$1,000 Total Aid$38,000$40,000$20,100$8,00 Unmet Need$0 $4,900$1,000
What are merit-based scholarships? Award based on academic performance or leadership, extra- curricular activities Awarded after student is admitted Procedures for being considered vary Nomination Scholarship application Admission application
What questions should students ask about merit and athletic awards? Is the scholarship renewable? If so, what are the requirements for renewal? Will the scholarship affect need- based aid eligibility?
Outside scholarships Can meet unmet need and/or reduce loans or work study/jobs Cannot replace EFC in a need- based award
Things to know Deadlines are important! Missing a deadline could impact your financial aid package. Early Decision/Early Action Need-blind vs. need-aware admissions May 1 st : National College Response Day
Be Aware Financial aid consultants Scholarship programs that charge fees Scholarship search services that charge fees “FAFSA” sites that charge fees
Online Resources FAFSA The College Board U.S. Department of Education SmartStudent Guide to Financial Aid Scholarship websites School’s financial aid web pages