Federal Student Aid Financial Aid Basics

Myths About Financial Aid “…only students with good grades get financial aid.” 2 Reality: High school diploma, GED and home schooling certificate... … more scholarship opportunities available…

Myths About Financial Aid “ We make too much money, therefore we’re not getting anything” 3 Reality: Your income is only one item that is looked at regarding your eligibility for aid.

Where Does Aid Come From? Federal Government State Government Schools Private 4

Federal Financial Aid Programs Federal Grants Federal Work-Study Federal Student Loans 5 There is more than $150 billion available in federal aid to help students pay for postsecondary education

Gift Aid - Federal Grant Programs 6 Federal Pell Grant Program – $5,815 Iraq and Afghanistan Service Grant - $5,382 Teacher Education Assistance for College and Higher Education (TEACH) Grant - $3,728 Federal Supplemental Educational Opportunity (FSEOG) Grant - $4000

Federal Loan ProgramsConsiderations: Subsidized vs. Unsubsidized Interest rate Grace period Death or Permanent DisabilityKnow: Default – 1 st Borrowers REQUIRED to Entrance Counseling Deferment & Forbearance Loan Repayment Plans Public Service Loan Forgiveness (PSLF) Program Teacher Loan Forgiveness 7

Federal Loan Programs 8 Interest RateRepaymentAdditional Info Federal Perkins Loan 5% Fixed9 months after school Ends Sept. 30, Some students may be able to receive loans if grandfathered through Sept. 30, Federal Stafford/ Direct Loan Subsidized 4.29% Fixed Unsubsidized 4.29% Fixed 6 months after school Subsidized: no interest charged while in school Unsubsidized: interest accrues while in school Direct PLUS Loans Parents & Graduate or Professional Student 5.84% Fixed 6.84% Fixed May be deferred until 6 months student drop ½ time or 60 days after loan is fully disbursed Interest accrues while student is in school

FAFSA.GOV Must file every year Can file Jan. 1 st of senior year can file starting October 1 st FSA ID (Parent/Student) Check with college to determine if additional applications need to be completed. I.E. CSS Profile application 9

FSAID.ED.GOV

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FSA ID – Things to Remember FSA ID used to: Electronically sign Federal Student Aid documents Access your personal records Make legal binding obligations If you do not have an SSN, cannot create an FSA ID Parent needs to have their own FSA ID Don’t use high school address 12

FSA ID – Things to Remember Linking your PIN gives you full access to your information online immediately. It is important to include an address with your FSA ID because: We use to communicate important information about your account to you, You can use your to get your username or password if you forget them, and You can use your verified address instead of your username when logging in to FSA systems. Access the new How to Create an FSA ID YouTube video How to Create an FSA ID 13

FAFSA.GOV Homepage 14

IRS Data Retrieval Tool 15

Detailed College Info and Comparison 16 College’s website School type Tuition and fees Net price average Graduation rates Retention rates Transfer rates

Basic Eligibility Requirements Students must be: U.S. citizen or eligible non-citizen Registered with Selective Service (Males) (18-25) Social Security Number (with limited exceptions) High school diploma, home schooling certificate, GED or New Ability to Benefit Alternative No drug related convictions while receiving Aid Matriculated – enrolled in an eligible program Maintain ‘Satisfactory Academic Progress’ Not in Default or Overpayment Status 17

Dependency Status If any of the following criteria applies, the student is considered independent: 24 years or older Married Master’s or Doctorate Program Children and you provide more than ½ support In foster care since turning 13, or ward of the court Emancipated minor or was in legal guardianship Homeless Serving Active Duty in U.S. Armed Force 18

19 Legal Parent – Who fills out the FAFSA?

Separated 20

Deferred Action for Childhood Arrivals (DACA) 21

Cost of Attendance - (COA) 22 COA includes: Tuition and fees Tuition and fees Room and board (Meals) Room and board (Meals) Books and supplies, equipment, transportation & personal expenses Books and supplies, equipment, transportation & personal expenses Dependent or elder care expenses Dependent or elder care expenses Expenses associated with a disability Expenses associated with a disability

Expected Family Contribution - EFC 23 Calculation that uses a federal form and formula Indicates the family’s financial strength Indicates the family’s financial strength EFC the same regardless of college the student attends

Expected Family Contribution - EFC 24 Factors: # of Family Members going to college Household size Current Earnings & Family Savings Information provided on FAFSA Age of your oldest parent The lower your EFC, more financial aid eligible to receive

College Costs & Financial Need 25 Cost of Attendance (COA) - Expected Family Contribution (EFC) = Financial Need

How Much Aid will I Receive? Financial Need = $13,000 Federal Grants$5,000 State Grants$2,000 Scholarships$2,000 Institutional Grant$2,000 Loans $2,000 - Unmet need TOTAL =$13,000

27 Expected Family Contribution (EFC)

28 High Level Overview Student completes the FAFSA and signs with FSA FSAID FAFSA is processed by FSA; Student receives a SAR; College receives information if listed on the FAFSA College reviews info and assembles award package for the student Student reviews award package; compares to other award letters; student determines which college to attend What To Expect After Applying

Use the Official website – FAFSA.GOV Have SSN Card when filing FAFSA Use SSN Card name, not Nickname Select Correct Award Year Complete FAFSA early using Estimates After making corrections, Resubmit Don’t Forget State Deadlines - link 7 Best FAFSA Practices:

StudentAid.gov

FinancialAidToolkit.ed.gov 31

Federal Student Aid Information Center 32 Contact Us

QUESTIONS? 33