Finding the Money Understanding Financial Aid For High School Seniors and Families Howard Community College Financial Aid Services Fall 2016

2 The College Board reports that the average annual tuition and fees by type of college is: Annual Tuition & Fees Private Colleges $ 32,410 Public 4 Year, In State $ 9,410 Public 4 Year, Out of State$ 23,890 Community College $ 3,440 *Other non-tuition expenses average about another $10k to $15k per year. That’s about $100,000 at a public, in-state 4-year college to earn a bachelor degree! ($125,000 for 5 years) Is cost a factor in choosing a college?

3 So... why? A College Education matters! Average annual earnings in 2015 for fulltime employees 25 to 34 years old by level of educational attainment: Bachelor’s degree $59,124 Associate’s degree $41,496 High school diploma $35,256 No high school diploma $25,636 *Those who earn an Associates degree earned 25% more than those with a high school diploma. *Those who earned a Bachelor’s degree earned 68% more than those with a high school diploma. Source:

Gift Aid Grants Scholarships Self-help Aid Work-Study Federal Loans What is Financial Aid? 4

5 Breakdown of Federal Financial Aid Funding – FY14-15 Type of aid Dollars Administrated in Millions Percentage of Total Federal Grants$32,24825% Federal Loans$99,35575%

Sources of Financial Aid Federal State College Private 6

7 Summary of Aid by Sources and Types Type of AidFederalStateCollegePrivate Grants Pell Grant; SEOG Grant; TEACH GrantMD EA & GA Grant;Institutional Grantsn/a Scholarshipsn/a Senatorial/Delegate ScholarshipsDonor Scholarships Yes – requires research LoansDirect Loan Programsn/aAsk!Bank Loans Work-studyFederal Work-studyn/a Institutional Work- studyPart-time Job

Federal Grants and Work Study Federal Grants Pell Grant Need-based (high need students only) Up to $5,815/year for 2016/2017 Supplemental Educational Opportunity Grant (SEOG) Need-based (high need students only) Up to $4,000/year Other Federal Grants TEACH Grant, Iran and Iraq Service Grant Need-based Federal Work-Study Allows the student to work part-time and earn some spending money Need-based College identifies the jobs Most but not all work-study jobs are on campus Some jobs are tutoring and other community service positions Students can earn up money to help with miscellaneous costs 8

Federal Loan Programs Direct Student Loans Subsidized Loans ( Need Based ) Government pays the interest while enrolled in college at least half time Annual loan limits For all students - $3500 freshman; $4500 sophomores; $5,500 juniors/seniors Unsubsidized Loans Interest accrues while in school Annual loan limits For dependent students –$2000 per year in addition to Subsidized Loan limit For independent students - $6000/$7000 per year in addition to the Subsidized Loan Limit Parent PLUS Loan Credit Based Up to Cost of Attendance (COA) less other aid received 9

Grants and Scholarships Maryland Higher Education Commission (MHEC) administers over 20 programs for the State of MD ( Parent and student must be Maryland State Residents. MHEC uses the FAFSA as the application document for most of their scholarship programs. *A Maryland college must be listed on your FAFSA, and recommend at least one four year college. Examples of State Aid Educational Assistance Grant Guaranteed Access Grant Part-Time Grant Senatorial Scholarships Delegate Scholarships Maryland State Scholarship Programs 10

Grants Grants from the institution based on need Work-Study Institutional Work-Study Scholarships, including donor scholarships Awarded by the institution based on various criteria, such as: financial need academic merit special skills or talents volunteer experience **PAY CLOSE ATTENTION TO DEADLINES** Institutional Aid 11

Scholarship Funding From Private Organizations Civic Organizations Professional Associations Private Businesses Use reliable free scholarship search services Private Sector Student Loans Credit-based Usually requires co-signers Check with your local bank Private Sources of Aid 12

What application forms must be completed to apply for financial aid? For Federal Aid and MD State Scholarships FAFSA (Free Application for Federal Student Aid) Some state scholarships may require an additional application For College Aid Most schools have an institutional scholarship application form Some schools require the “PROFILE” for institutional aid For Private Aid Apply to the source 13

When Do I Apply? FAFSA (for Federal aid and Maryland State aid) For federal aid - any time from October 2016 and continuing throughout the academic year. For MD State Scholarships - by March 1, 2017 – FINAL DEADLINE Colleges applications & college scholarships! Call each college to find out their deadlines! What is the deadline to file the FAFSA to be considered for institutional aid? Is there a separate scholarship application and what is the deadline? Is the PROFILE required? Find out from the college – it’s important for institutional aid. Review the college’s financial aid website. 14

15 A new FAFSA Must Be Completed Each Year Graduating Senior from High School in: The FAFSA will be available starting: The FAFSA will use the following tax year information June 2017October 1, June 2018October 1, June 2019October 1, June 2020October 1,

What If My Income Has Changed?  Complete the FAFSA according to the directions!  Then contact the Financial Aid Office at the college your son or daughter enrolls in. 16

Federal Financial Aid Basic Eligibility Requirements The student must: Be a U.S. Citizen or Eligible Non-Citizen Have a valid Social Security Number Have a high school diploma or GED Be registered with Selective Service if you are required to be registered Be enrolled in an eligible degree program Other eligibility criteria, such as: Not be in default on any Federal Student Loan Certify that you will use federal student aid for educational purposes Maintain Satisfactory Academic Progress 17

Applying for Federal Aid - Getting an FSA ID You’ll need an FSA ID, which is a username and password combination that allows you to sign your FAFSA electronically. Request an FSA ID at: fsaid.ed.gov Once you complete the initial process to request an FSA ID, you may begin work on your FAFSA at fafsa.ed.gov. The FSA ID is specific to you and will be serve as your login ID for any federal financial aid purposes “forever ”. The student and one parent/guardian must EACH obtain an FSA ID. Each FSA ID must be associated with a unique address. Parents and students cannot link two FSA ID’s to the same address. The FSA ID is forever— don’t forget it! 18

Use the FAFSA On The Web at fafsa.gov Click on “Start A New FAFSA” for the correct academic year Students and Parents must BOTH have an FSA ID The FSA ID serves as a valid electronic signature Be sure to sign your FAFSA with both FSA IDs and hit the submit button Requires your SSN and a unique address Have BOTH parent and student’s Social Security Number ready. Making a mistake with your Social Security Number on the FAFSA can be a costly mistake. Include your SSN on your admissions application (and the Common Application) Have parent and student financial records for required tax year Or use the IRS Data Retrieval option (the DRT tool) Complete all questions as accurately as possible Don’t leave any questions blank FAFSA Filing Tips… 19

After filing the FAFSA… 1. You will receive a Student Aid Report (SAR), which shows: The information you submitted in your FAFSA Your Expected Family Contribution (EFC) If you are federally selected for verification OR have “failed” any federal database matches, either of which will require you to submit additional information to the college, so they can verify or correct your data. 2. The schools that you list on the FAFSA will receive the information electronically. 3. Financial Aid Offices will process your application If you need to submit additional documents to verify the data you submitted on the FAFSA, the college will notify you. Respond in a timely manner to all information requests, or it will delay the process You will receive notification of your financial aid eligibility after your file has been reviewed and verified. 4. This application process can take up to 3 months at some colleges. So apply early! 20

21 Selected for Verification? Many students are selected for “verification” by the Department of Education, and the school will require additional documentation to complete your financial aid file, such as household information, documentation of untaxed income, and an IRS Tax Transcript. Students can obtain an IRS Tax Transcript in these ways: Online at the IRS website - Get Transcript by Mail Automated phone tool ( ) Paper Form 4506T or 4506T-EZ will generate a paper transcript NOTE: Students and parents who use the IRS Data Retrieval Tool when completing the FAFSA may not need to submit an IRS tax transcript!

Will I Be Eligible for Aid? Cost of Attendance (COA ) Room & Board Books & Supplies Tuition & Fees Transportation Miscellaneous 22

23 What is the EFC? Output from the FAFSA It’s a “number” or “Index” based on financial situation that the family could be “expected” to contribute to the student’s COA, for the purposes of determining aid eligibility. It’s NOT money that needs to be paid to someone by the parent or student. How is the EFC calculated? It is calculated according to a formula established by federal law and does not change based on the institution you are attending The EFC is based on the information you report on the student’s Free Application for Federal Student Aid (FAFSA) Looks at family's taxed and untaxed income, assets, benefits, family size and number in college Expected Family Contribution (EFC) X

24 Compare Your Financial Aid Award Package Between Schools Determine the cost to you for each college you are interested in! Since both your total costs and your financial aid awards will differ from college to college, you must compare to determine the “net cost” to you for your education at each school. Tools for “comparison shopping” Most schools use the Financial Aid Shopping Sheet to notify students of their costs and awards. The College Score Card at collegescorecard.ed.gov The Net Price Calculator will also help you to compare the cost to you between schools. You will find a link to this at each college’s website.

Tuition Payment Plans 529 Savings & Prepaid Tuition Programs Employer Tuition Reimbursement Plan Military Tuition Assistance Veterans Benefits Tuition Waivers Other Ways to Pay for College

Each college’s financial aid office FAFSA Workshops: Your high school counselors will let you know about these! Websites U.S. Department of Education — Maryland State Scholarship — National Center for Education Statistics – Where can I find more information? Howard Community College’s Financial Aid Services department serves as a community resource for Howard County. We are located in the Rouse Student Services Hall, RCF-222. Find us online at

27 Student Bill of Rights

Thank you! Questions? 28