2IntroductionThis presentation will give you an overview of the financial aid process and discuss why college is important, what kinds of financial aid are available, who provides financial aid, how to apply, and where to find information.
3Why go to college?If you go to college, you'll gain information and skills that you'll use for the rest of your life, no matter what career you chose. College enables you to:expand your knowledge and skills,express your thoughts clearly in speech and in writing,grasp abstract concepts and theories, andincrease your understanding of the world and your community.In addition, you will have more job opportunities and earn more money. . .
4Is it worth it?Individuals with degrees usually earn more—sometimes a great deal more—and are less likely to be unemployed. To learn more about careers and salaries, use the resources on the next slide.Median Weekly Earnings in 2010Unemployment Rate in 2010 (%)Doctoral DegreeProfessional DegreeMaster’s DegreeBachelor’s DegreeAssociate DegreeSome College, No DegreeHigh School GraduateLess than High School$1,550$1,610$1,272$1,038$767$712$626$4441.92.44.05.47.09.210.314.9Note: Data are 2010 annual averages for persons age 25 and over. Earnings are for full-time wage and salary workers.Source: Bureau of Labor Statistics, Current Population Survey
5Career ResourcesYou can find information about careers and employment trends at: Delaware Career Compass Delaware Department of Labor Delaware Job Link CareerOneStop U.S. Department of Labor Yes YOU Can! Delaware Department of Education Career Cruising
6How much will college cost? In 2010–11, the average costs to attend a four-year college were:IN-STATE OUT-OF-STATE PRIVATEPUBLIC COLLEGES PUBLIC COLLEGES COLLEGESTuition & fees 7,605 19,595 27,293Room & board 8,535 8,535 9,700Books & fees 1,137 1,137 1,181Transportation 1,073 1,Other 1,989 1,989 1,440Total $20,339 $32,329 $40,476You may have additional expenses, such as laboratory fees and computer costs.To help meet these costs, seven out of ten students receive some form of financial aid each year. Our goal is to help you understand your options so that you will have more choices and make sound decisions about paying for college—one of the most expensive purchases your family will make.
7What kinds of aid are available? Except for unsubsidized loans, financial aid falls into two categories:1. Need-based aid is based on financial need, but you may also have to meet other criteria, such as enrollment and residency status. The amount of need-based aid you receive is based on your college costs and your family’s ability to pay these costs.2. Merit-based aid is usually awarded in recognition of special skills or academic ability, but other considerations may apply, such as community service or your field of study.Within the two categories, there are four types of financial aid:ScholarshipsGrantsWork-studyLoans
8Merit- and need-based: Financial aid is usually paid through the college you attend. If you are eligible, you will receive a financial aid package from the college, which may include a combination of scholarships, grants, work-study, and loans.Need-based:GrantsFederal work-studyPerkins LoanSubsidized Direct Stafford LoanMerit-based:Delaware SEED Scholarship (DTCC and UD)Inspire Scholarship (DSU)Federal TEACH Grant ProgramMerit- and need-based:Scholarships (can be either or both)Delaware Scholarship Incentive Program (ScIP)Not merit- or need-based:Unsubsidized Direct Stafford LoanUnsubsidized Federal PLUS Loan for ParentsFederal Iraq & Afghanistan Service GrantTax Credits (income restrictions apply)
9ScholarshipsScholarships may be awarded for academic achievement, artistic ability, athletic excellence, ethnicity, or group affiliation. Some scholarships also consider financial need. They are not repaid and may be awarded for one year only, renewable, or require reapplication each year.Colleges and the state of Delaware offer scholarship programs, as do a wide range of organizations:Local, state, and national organizationsFoundationsReligious organizationsFraternities and sororitiesTown and city clubsCivic groupsAthletic groupsProfessional organizationsEmployer-provided tuition assistanceBusinesses and corporations
10Scholarships, continued Search online:FastWebCollege BoardScholarships.comOther WebsitesThe Delaware Scholarship Compendium, published annually by the Higher Education Office, provides information about over 200 private scholarships and state-sponsored financial aid programs, as well as an overview of planning and paying for college.
11GrantsGrants are usually awarded based on financial need, are not repaid, and are available from the federal government, colleges, and the state of Delaware.
12Work-studyWork-study is need-based and awarded through the college to help you pay costs by working part-time, often on campus. If you work off-campus, your employer is usually a private nonprofit organization or public agency.Money earned through the Federal work-study program is not counted as income when you apply for financial aid.
13LoansFederal Direct Stafford Loans may be subsidized or unsubsidized. Subsidized loans are need-based and interest is not charged while you are in school. Unsubsidized loans are not need-based and interest begins when the loan is made. A Federal Perkins Loan is a low-interest loan for both undergraduate and graduate students with exceptional financial need. Federal Perkins Loans are made through a school's financial aid office. Your school is your lender Parents of dependent children can apply for unsubsidized PLUS loans. As the following chart indicates, federal loans are the largest source of student aid.
14Loans, continuedSource: College Board, Trends in Student Aid, 2010
15Who provides financial aid? In addition to private scholarships, you should explore the financial aid options available from the following sourcesU.S. Department of EducationState of DelawareColleges that you are considering:Colleges in DelawareColleges in the U.S.
16U.S. Department of Education Pell GrantStafford LoansPLUS Loans for ParentsConsolidated LoansCampus-based AidSupplemental Education Opportunity GrantWork-studyPerkins Loan
17State of DelawareThe undergraduate state-sponsored programs that are administered by the Higher Education Office include:GrantsDiamond State Scholarship for students attending regionally accredited colleges in all statesAcademic Memorial Scholarships for students attending the University of Delaware or Delaware State UniversityProfessional Incentive Programs for nurses and teachersState University of New York Maritime College Regional Contract Program
18State of Delaware, continued The Academic Common Market is a tuition-savings agreement between the 16 member states of the Southern Regional Education Board (SREB). If your program of study is not offered by a public college in Delaware, you may be eligible for in-state tuition at a participating public college in one of 15 southern states.You may apply for the ACM if you meet the following eligibility criteria:You are a Delaware resident and U.S. citizen or eligible noncitizen.You are majoring in a program of study not offered at the University of Delaware or Delaware State University.You have been accepted to or you are enrolled in an eligible program of study that has been selected for the ACM by a participating college.Note: The ACM includes baccalaureate and graduate-level programs of study. It does not include first professional degree programs, such as dentistry, medicine, optometry, pharmacy, and law.
19State of Delaware, continued The Delaware SEED (Student Excellence Equals Degree) Scholarship Program provides tuition for eligible Delaware students enrolling in an associate degree program at Delaware Technical & Community College or the University of Delaware’s Associate in Arts program.To be eligible, students must have a cumulative GPA of 2.5 and enroll full-time no later than the fall immediately following graduation.Deadlines are set by DTCC and UD. The first deadline (for admission to UD) is January 15.
20State of Delaware, continued The new Delaware State University Inspire Scholarship provides tuition assistance similar to the SEED scholarship for eligible Delaware students enrolling at Delaware State UniversityTo be eligible, students must have a cumulative GPA of 2.75 and enroll full-time no later than the fall immediately following graduation.Complete eligibility requirements and deadlines are posted on the DSU website.
21CollegesCheck with the colleges to which you are applying and ask which of the following types of aid they offer:GrantsScholarshipsLoansWork-studyThe financial aid office at the college can tell you how and when to apply.
22How do I apply?You must complete the required application forms by the deadline to be considered for financial aid from any source:Complete the Free Application for Federal Student Aid (FAFSA) for:All federal programsDelaware’s need-based grant, the Scholarship Incentive Program (ScIP)Most collegesSome private scholarshipsComplete the CSS/Profile for many private colleges.Complete the Common Merit Application after December 1 for state-sponsored merit scholarships and professional incentive programs.Complete specific applications for other state-sponsored programs, private scholarships, and some colleges. Find out which forms you will need to complete and meet all deadlines.
23Free Application for Federal Student Aid (FAFSA) The FAFSA should be submitted to the federal processor as soon as possible after January 1 each year.The completed form is processed and not reviewed for comments. If you have exceptional circumstances, you should discuss them with the financial aid office at your college.You do not have to file your taxes before submitting your FAFSA, but it is recommended that you and your parents fill out your tax returns before completing the FAFSA. You will have the opportunity to make corrections later, if necessary.When your FAFSA has been processed, you will receive a Student Aid Report (SAR), which reflects your Estimated Family Contribution (EFC). You should carefully review your SAR to make sure all the information is correct. If your EFC does not appear on your SAR, you will need to make the corrections noted on the SAR.An electronic copy of your information is sent to the colleges you have listed on the FAFSA (up to six). You can list an additional six colleges on your SAR.
24How is my financial need determined? To the extent possible, you will be expected to contribute to the cost of your college education. The EFC is calculated from the information you provide about your household on FAFSA (or the CSS/Profile). Your financial need is the difference between the cost of attendance and your EFC: A. Tuition and fees + Room and board + Other expenses (books, supplies, transportation) = Cost of attendance B. Cost of attendance - Estimated Family Contribution (EFC) = Financial need
25Calculate your costsThe FinAid website has calculators to estimate your EFC, calculate loan repayments, or compare loans. You can find additional websites with calculators on our website on the Other Websites webpage.
26When do I apply?The deadlines for financial aid programs vary, and all deadlines must be met. If you miss the deadline, you will not be considered.Starting your search early will give you the opportunity to apply for more awards, some of which may have deadlines early in your senior year.Some programs require an application every year. You will need to complete the FAFSA each year to be considered for federal student aid. After your initial FAFSA, you can file the Renewal FAFSA, a shorter version, in subsequent years.To be considered for Delaware’s need-based grant, the Scholarship Incentive Program (ScIP), the federal processor must receive your FAFSA by April 15 each year.Other programs, such as Delaware’s merit-based academic scholarships, are only offered to graduating seniors in high school. A missed deadline is a missed opportunity to be considered for these programs. The Common Merit Application is available online in December.Applying for financial aid from colleges is a separate process from applying for admission. Request information about financial aid from all the colleges you are considering.If you are applying for private scholarships, contact the award donor to verify the deadline and eligibility requirements.
27Tips for applying for financial aid: Spend the time necessary to find out all you can about applying for financial aid. The more you know, the better informed your decisions will be.Meet all deadlines.Don’t procrastinate.Don’t be overwhelmed by the paperwork.Ask questions.Keep good records.Make copies of all forms you submit.Make a chart to track the forms you sent to each school, noting all items as you submit them.
28Tips, continued:Because so many FREE resources are available, you should be very careful about paying any fees for scholarship matching services or financial aid consultants. For sound advice, visit these websites:“Scholarship Scams” at“Educational Consultants and Counseling Centers” atAttend one of the FREE regional financial aid nights conducted by the Delaware Association of Financial Aid Administrators and held at several schools in each county in December and January. The schedule will be posted on our website in November.To get FREE help completing the FAFSA, attend College Goal Sunday (Delaware date and locations to be determined).
29Where can I find information? U.S. Department of Education Federal Student Aid Information Center PO Box 84 Washington, DC FED-AID ( ) (TTY users) ______________________________________________________ School counselors College financial aid offices School and public libraries Internet (see Other Sites to begin your search)
30Delaware Department of Education Higher Education Office John G Delaware Department of Education Higher Education Office John G. Townsend Building 401 Federal St. Dover, DE Phone: or Fax: