Presentation on theme: "Financial Aid Night! Priscilla Salas Financial Aid Counselor Wharton County Junior College www.fafsa.gov."— Presentation transcript:
1 Financial Aid Night! Priscilla Salas Financial Aid Counselor Wharton County Junior College
2 Financial Aid. What is it? Financial Aid is funds provided tostudents and families to help pay for postsecondary educational expenses and consists of:Grants (Federal/State - Pell, SEOG,TPEG/TEG, Top 10%, Texas Grant)Loans (Federal and Private)Scholarships (Merit and Need Based)Employment (Work Study Program)State ExemptionsVeterans Benefits
3 General Eligibility Not be enrolled simultaneously in high school Have a high school diploma or equivalentEnroll as a regular student in a degree or certificate programBe a citizen, national or permanent resident of the U.S. or other eligible non-citizenProvide a valid social security numberUndocumented students are not eligible for federal aid (may apply for state aid through TASFA)Register with Selective Service if requiredMaintain satisfactory academic progress
4 The Application (FAFSA) (Free Application for Federal Student Aid) Available January 1 at Apply annually. Turn in TASFA directly to institution of choice.Requires prior year income (i.e based on 2014 income for student and parent). Use Data Retrieval Tool which saves time and reduces the chances of being selected for verification!Available in English and SpanishUsed to determine eligibility for state and federal aid
5 FAFSA continuedStudents are allowed to list up to 10 colleges/universities that will receive his/her student and parent informationPersonal Identification Number is needed to electronically sign application (student and one parent)
6 FAFSA continued Determining Dependency Born before January 1, 1992? Is the student married (at the time of the FAFSA submission)?Working on a degree beyond a bachelor’s degree?Active duty in the U.S. Armed Forces?Is the student a Veteran?Children for whom you provide more than half the support?Parents deceased? Foster Care? Ward of Court? Emancipated Minor? Legal Guardianship? Homeless?Does the student have legal dependents (other than spouse and children) for whom they provide more than half the support?
7 FAFSA continued Dependency Ultimately determined by institution Use only Biological or Adoptive Parent InformationNot based on who ‘claimed’ the student on the income tax return
10 Completing the process School contacts student regarding missing/needed information (tax return, asset information)School reviews student’s file to determine eligibility (based on federal guidelines)School notifies student of eligibility/offer
11 Factors in determining eligibility Parent and student incomeFamily SizeAge of older parentNumber of family members attending collegeParent and student assets
12 What is Cost of Attendance (COA)? Direct and indirect costscombined into cost of attendance(tuition, fees, room & board, books,supplies, transportation)Vary widely from college to college
13 What is Expected Family Contribution (EFC)? Student and school receives Student Aid Report (SAR-response from FAFSA) with Expected Family Contribution (EFC)Amount family can reasonably be expected to contributeStays the same regardless of collegeTwo componentsParent contributionStudent contributionCalculated using FAFSA data and a federal formula
14 What is Financial Need?Cost of Attendance - Expected Family Contribution ______________________ = Financial Need
15 Grants Money that does not have to be repaid Awarded on the basis of financial needFederal/State – Pell, SEOG, TPEG/TEG, Top 10%, Texas Grant
16 LoansMoney students and parents borrow to help pay educational expensesFederal and PrivateRepayment usually begins after education is finishedOnly borrow what is really neededLook at loans as an investment for the future
17 Types of Loans Federal Direct Loan Program (FDLP) Stafford Loans SubsidizedUnsubsidizedPLUS LoansConsolidated Loans
18 Loans continuedSubsidized – based on need. Department of Education pays the interest while you’re in school half- time (6 hours), during grace period, during deferment periodUnsubsidized – not need based. You are responsible for the interest during periods of enrollment, grace, deferment, forbearance, and default. Can capitalize interest – added to original balance.
19 Loans continued Stafford Loan Interest Rates 4.66% Subsidized, undergraduate4.66% Unsubsidized7.21% PLUS
20 Undergrad ___ sub/unsub _ addt’l unsub_ Loans continuedStafford Loan Limits 1415Undergrad ___ sub/unsub _ addt’l unsub_1st year $3, $2,000 $4,0002nd year $4, $2,000 $4,0003rd year $5, $2,000 $5,0004th year $5, $2,000 $5,000*undergraduate, independent – additional $4,000
21 Loans continued Repayment Grace Period – set period of time (6 months) before you must begin repayment on aStafford Loan. Period begins after studentgraduates, withdraws, or drops belowhalf-time (6 hours).Repayment period of 10 to 25 yearsStandardGraduatedExtendedIncome-sensitive
22 Loans continued Deferment – period of time during which no payments are required and interest doesnot accrue (subsidized only). Half-timeenrollment, unable to find full-timeemployment, economic hardship.Forbearance – not eligible for a deferment butare unable to meet repayment schedule.Servicer agrees to reduce/postponepayments for a period of time. Interestcontinues to accrue (subsidized andunsubsidized).Contact servicer for more information about these options.
23 Texas B-On-Time Loan Program Have completed a FAFSA and be eligible to receive federal aidBe enrolled full time in an undergraduate degree or certificate program at an eligible institution ANDBe a Texas resident or be entitled to pay resident tuition rates as a dependent child of a member of the U.S. Armed Forces ANDGraduated in or later from a high school operated by U.S. Department of Defense or under the recommended high school program from a public or accredited private high school in TexasHave earned an associate’s degree from an eligible institution no earlier than May 1, 2005Can not have earned a bachelor’s degree
24 Scholarships Money that does not have to be paid back Awarded on the basis of merit, skill, or a unique characteristicCan be need basedSmall scholarships add up!Some colleges use the FAFSA to find recipientsOpportunities:Community Organizations, Churches, EmployersFinancial Aid OfficeHigh School Counselors