Financial Aid

What is FAFSA and how does it work? Free Application for Federal Student Aid (FAFSA) FAFSA is used to apply for federal student aid, such as grants, loans and work study- IT IS FREE!!!! How FAFSA works: Go to their website: www.fafsa.ed.gov You answer questions which are entered into a formula- creates Expected Family Contribution (EFC) You will receive a Student Aid Report (SAR) which will list all the information you filled on the FAFSA and your EFC This information is sent to colleges you list on the FAFSA Colleges use this information to prepare a financial aid package Cost of Attendance – Expected Family Contribution = Financial Need You will need information for you and your family’s W-2 (annual wage and tax statement) to complete FAFSA

CSS Financial Aid Profile The College Scholarship Service (CSS) of the College Board is used to award some college scholarships College Board does charge a fee for processing the CSS Only submit a profile if your college or scholarship program instructs you to do so.

Grants Federal does Pell grant does not have to be repaid Eiligibility is based on EFC as determined by FAFSA Determined by financial need, costs to attend school, status as full/part time, and plans to attend for full year FAFSA is your application for this Given on a first come, first served basis!!! Incentive to submit your FAFSA application ASAP Receiving Pell Grant Max Award- $4,050 Average Award- $2,404 Only one awarded per year, per school attending Pell Grant is provided from govt to college Can either give $ to you apply directly to cost or both

Loan Types Subsidized Stafford Loans- student pays amount borrowed (principal) and the federal government pays accrued interest Unsubsidized Stafford Loans- student pays amount borrowed (principal) and the accrued interest Plus Parent Loans- low interest parent loans Perkins College Loans- loans given by the school to students with exceptional financial need

Stafford Loans Awarded through FAFSA Amount Receive Money Subsidized loans max amounts for dependent undergraduates (limited because govt. is paying interest)- 1st year- $2,625 2nd year- $3,500 3-4 years- $5,500 Receive Money Sign an agreement- says you are responsible for payback Disbursed in two installments- first used to pay tuition, room and board, fees, etc If extra will receive a check Paying Back Loan 10 year plan- minimum $50 payment Graduated plan- starts out low and increases gradually over time Extended plan- allows you to repay your loan over longer period Plan that bases monthly payment on how much $ you make

PLUS Parent Loans Loans your parents can apply for to pay for your expenses Complete a PLUS loan application Need to pass a credit check Amount Cost of attendance minus any other financial aid you recieve Receive Money Sign an agreement- says you are responsible for payback Disbursed in two installments Paying Back Loan Interest rate is variable (adjusted annually) but won’t exceed 9%) Parents will be notified of any changes to interest rates Begin paying back loan 60 days after full disbursement- no grace period Parents begin paying while you’re in school

Federal Perkins Loans Loans low interest 5 percent loan for students Amount School is your lender- loan made with govt funds Receive Money School will pay you directly or apply your loan to charges Two payments Can receive up to $4,000 each year Paying Back Loan Repay loan to your school

Federal Work-Study Provides part time jobs for students with financial need Encourages community service work and work related to course of study Paid by the hour- at least once a month Paid at least current federal minimum wage Amount paid can’t exceed your total FWS award

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