Important information regarding Financial Aid Introduction Christina Maggart Financial Aid Counselor at Anderson University 15 years at AU, 4th year in financial aid Anderson University Student Financial Services Presented by: Chris Maggart November 1, 2018

Topics for discussion What is financial aid? Applying for financial aid What is financial need? How is financial need determined? How is financial need calculated? Types of financial aid Types of financial aid – review the different types and how they are figured w/need

What is financial aid? Financial aid is “any grant or scholarship, loan or paid employment offered to help a student meet his/her post-secondary (college) expenses.” Grants Scholarships Loans Tuition reimbursement Employer benefits Veteran benefits

Applying for financial aid To apply for most financial aid, students will need to complete the FAFSA (Free Application for Federal Student Aid). The FAFSA is a form used by the federal and state government along with most colleges and universities to determine need based financial aid. Filed online https://fafsa.ed.gov Students and parents need a FSA ID to sign FAFSA using unique email address https://fsaid.ed.gov Indiana residents required to have filed by April 15 to be considered for state aid Fill out your FAFSA If taxes aren’t completed by March 10 – file an estimate Correct after taxes are complete FAFSA allows for data retrieval directly from the IRS website

myStudentAid Mobile App Available for download from the Apple App Store (iOS) and Google Plan (Android) Complete the FAFSA safely and securely from mobile device Edit and manage an FSA ID View federal student loan and aid history If taxes aren’t completed by March 10 – file an estimate Correct after taxes are complete FAFSA allows for data retrieval directly from the IRS website

College Goal Sunday College Goal Sunday is a program that helps college-bound students complete the FAFSA. On-site assistance from financial aid experts, primarily from Indiana colleges and universities. Date: Sunday, February 24, 2019 Time: 2:00 p.m. (local) Location: Various Visit www.collegegoalsunday.org/index.php/information Ivy Tech Community College 815 E. 60th Street Anderson, IN 46013 Several Indianapolis locations including: Westfield High School Ivy Tech Community College (Fall Creek & Avon)

Expected Family Contribution The Expected Family Contribution (EFC) is used to determine an applicant’s eligibility for need-based federal student aid, and in many cases, state and institutional aid. The EFC is a measure of your family’s financial strength and is calculated according to a formula established by law.

Financial Need Determination The financial aid staff will determine the cost of attendance (COA) at the applied school. Tuition and applicable fees Housing Meal services Books, personal, travel The EFC is subtracted from the COA to determine the financial need. The financial aid cost of attendance is NOT the actual cost to attend. It is a budget number that is set up to help colleges know that MAXIMUM amount of financial aid a student may receive.

Need calculation Cost of Attendance — (Expected Family Contribution) = Financial Need Cost of attendance will vary from school to school. EFC will stay the same from school to school. Financial need is used to determine if a student qualifies for need based aid. COA is maximum financial aid to be packaged Financial Need amount is the maximum amount of need based aid

Types of financial aid Grants (federal, state, institutional) Scholarships (Academic, athletic, external, internal, church, etc.) Loans (Federal, private) Work Study (campus employment)

Federal Grant Information Federal Pell Grant 2019-20 maximum grant is $6,195 to students with an EFC of $0. Pell grant will follow student Supplemental Educational Opportunity Grant Federal campus-based aid awarded to students with exceptional need Maximum grant $4,000 School participation varies

Teacher Education Assistance for College and Higher TEACH Grant Teacher Education Assistance for College and Higher Must agree to teach full-time in high-need subject area for four years (within 8 years of graduating) at a school that serves students from low-income families. Failure to complete service obligation will convert grant to an unsubsidized loan. Loan must be repaid with interest charged from date first disbursed. $4,000 annual award Reduced by 6.2% for 2018-19 because of Sequestration ($3,752)

Frank O’Bannon Grant (State Financial Aid – Indiana) Frank O’Bannon Grant is awarded to full-time, diploma-seeking residents that demonstrate financial need. Maximum initial annual award for 2018-19: Private - $9,000 (Freedom of Choice Grant) Public - $4,500 (Higher Education Grant) Proprietary/Ivy Tech - $3,400 Students maintain SAP (Satisfactory Academic Progress) and complete: 24 credit hours each year - full-time renewal 30 credit hours each year - on-time renewal

21st Century Scholarship http://www.in.gov/21stcenturyscholars The 21st Century Scholarship is a need and performance based program that provides students the opportunity to earn up to a four-year scholarship at an Indiana college or university. Students enroll during middle school and must maintain compliance throughout high-school, Must be full-time, maintain minimum GPA, and complete 30 credit hours for renewal, Full tuition at public schools, comparable amounts at private schools, proprietary (for-profit) reduced to amount awarded to Ivy Tech

Federal Work Study Federal Work Study provides part-time employment to students who demonstrate financial need. Maximum 15 hours per work earned wages Federal minimum wage ($7.25 per hour) Campus employment Authorized agencies (federal, state, local, private non-profit, or private for profit)

Federal Direct Loans Direct loans are student loans provided by the federal government through a service provider. Student is the borrower; no approval/co-signer required, Complete entrance loan counseling and master promissory note to accept loans, Payments deferred until 6 months after date of last attendance, Current interest rate – fixed 5.05%, updated July 1 annually Origination fees – 1.062%

Federal Direct Loans (cont.) Subsidized based on financial need Interest does not accrue during enrollment Unsubsidized based on no/lower financial need Interest accrues during enrollment Undergraduate limit: $31,000 (dependent), $57,500 (independent) Subsidized Unsubsidized Maximum Annual Freshman $3,500 $2,00 $5,500 Sophomore $4,500 $2,000 $6,500 Junior $7,500 Senior

Federal Direct Loans (cont.) Federal Direct PLUS Loan Parent loan (parent/step-parent) Credit based – approved based on the absence of adverse credit Maximum amount available is cost of attendance minus awarded student aid Payment deferment available upon approval Current interest rate – 7.6% Fixed rate for current loans Interest rate updated July 1 annually Origination fees – 4.248%

Private Loans Educational loan through private lenders Student is borrower Credit approval required Co-signer may be necessary Often a variable interest rate Payments often deferred while enrolled Check private lender for specific details

Institutional financial aid Award aid on the basis of both merit and need Merit based Athletic available at Division I & II Aid may be gift aid or self-help aid Use information from the FAFSA and/or institutional applications Review school’s publications and web site Deadlines and application requirements may vary by institution

Additional grants/outside scholarships High school guidance counselor Internet searches (fastweb.com, scholarship.com, myscholly.com, etc.) Employers, both student and parent Local Community Foundation office College/University web sites Bank trust offices

Frequently asked questions I don’t/won’t qualify for financial aid. Do I still need to fill out the FAFSA? Yes – it would be beneficial. Many colleges use the FAFSA for institutional aid. It may not be available without FAFSA. Also, most loans cannot be used without FAFSA. Do I need to be admitted before I can apply for aid? No. File the FAFSA – this will jump start the process. Most colleges will not award aid until admitted and enrolled. Do I need to fill out the FAFSA every year? Yes. The FAFSA must be filed each year. It becomes available after October 1. Do I need to fill out a FAFSA for each child or can one FAFSA be used for all? A FAFSA will need to be filled out for each child that is attending college. The FAFSA shows a higher EFC that I cannot afford to pay. The FAFSA’s estimated family contribution is a tool that helps schools determine a student’s financial need. It does NOT reflect the costs of each school. The EFC will be the same at every school a student applies to. Check with the school financial aid office for a better understanding of how it will impact the balance at that specific school. I lost my job after I filled out the FAFSA. Will this make a difference? Talk to the school about their process. A special circumstances form may be available. I am divorced and my spouse claims our child on his/her taxes but she lives with me. How is the FAFSA filled out since she is not on my tax return? The FAFSA should be filed on household information. It does not matter which parent claims the child as a dependent on their tax return. You use the household information of the parent that the child primarily lives with.