Financial aid for college Presented by Elizabeth LeMaster Student Financial Aid and Scholarships Bowling Green State University

Agenda Free Application for Federal Student Aid (FAFSA) Federal loan/grant programs Campus Based Aid Additional loan sources Scholarship search

Where do I start? Some standard applications are: Different schools require different applications, check with the Financial Aid Office and Admissions Office at each school. Some standard applications are: 1. Admission Application 2. Free Application for Federal Student Aid (FAFSA) 3. Other Institutional Application forms (if required) 4. Applications for scholarships

Free Application for Federal Student Aid (FAFSA) FAFSA is a FREE federal form www.fafsa.gov File a new application every year Apply early to meet priority deadlines Available October 1st Based on 2016 Federal taxes Each student will file their own application.

4/6/2019 To complete the FAFSA… Student and one parent will need to create their own FSA ID to electronically sign the FAFSA Apply online at www.fsaid.ed.gov Used to sign the FAFSA and Federal Loan Master Promissory note electronically and as the log in for any Department of Education website Student and Parent will need separate FSA IDs One FSA ID per e-mail address per SSN You cannot make an FSA ID for someone else 2016 Federal Income taxes Current household information and asset values as of filing date

FAFSA Deadlines FAFSA can be filed at any time after October 1st , however, there are funding limitations on some aid programs. Be aware of priority deadlines. These may vary from institution to institution.

Sections to the FAFSA

Sections to the FAFSA

Sections to the FAFSA

Independent vs. Dependent Students If you can answer yes to any of the following, you can file as an Independent student: 24 years of age (born before 1/1/1995) Graduate student or seeking a professional degree Married Serving active duty in U.S. Armed Forces Veteran of U.S. Armed Forces Have a child you provide more than half of the support for Both parents were deceased since turning age of 13 Foster care since turning age 13 Dependent/Ward of Court since turning age of 13 Emancipated minor Legal Guardianship appointed Homeless/at risk of being homeless

Sections to the FAFSA

“Parent” definitions Student’s legal parents Same sex and live in same house = both income info Different sex and live in same house = both income info Separated/Divorced Parent student lived with most in last 12 months (if student lived equally with both, report info for parent who provided more financial support) Include step-parent info if parent is remarried as of day FAFSA is completed

“Parent” definitions

Sections to the FAFSA

Using IRS Data Retrieval 4/6/2019 Using IRS Data Retrieval

Sections to the FAFSA

After the FAFSA is submitted The student receives notification from FAFSA and is issued a summary of the FAFSA called a Student Aid Report (SAR) The Student Aid Report includes the calculated Expected Family Contribution (EFC) Student will receive an Award Letter Compare offers: Amount of aid vs. cost of attendance Gift money vs. borrowed money Types of loans CollegeBoard Net Price Calculator Worksheet

Expected Family Contribution EFC is an index number used to determine “financial need” of the student The EFC estimates a families ability to pay for college as determined by a formula created by Congress called the Federal Methodology Assumes that the primary responsibility for paying for college falls to the student and parents Factors include: Family Income (including taxed and untaxed income) Family Size Number of students in college in family Etc. The lower your EFC, the more likely you are to qualify for need-based aid programs at any school The EFC is not a specific amount the family is expected to pay at any one specific college

How a financial aid package is created based on your EFC

Understanding “Need”

Definition of “Financial Need” Cost of attendance (COA) – Expected family contribution (EFC) = Financial need

Need Comparison Higher Cost Mid Cost Lower Cost Institution Institution Institution Cost of Attendance $30,000 $20,000 $13,000 - EFC $10,000 $ 10,000 $10,000 =Need-based Eligibility $20,000 $ 10,000 $ 3,000

Need vs. Non-Need Based Aid Some forms of aid are only available to students that have demonstrated financial need: Pell Grant, FSEOG (very high need only) Direct Subsidized Loans Federal Work Study Some scholarships Non-Need Based Aid: Other forms of aid are not dependent on a student’s financial need: Most Scholarships Unsubsidized Student Loans Parent PLUS loans, alternative/private loans

Awards through the FAFSA Student aid programs: Awards through the FAFSA

Federal Direct Loans Federal Direct Stafford student loans Direct Subsidized Loan – No interest accrues on this need-based loan during undergraduate study. Direct Unsubsidized Loan – Interest accrues on this non need-based loan while in school. Interest rates are currently fixed at 4.45% for the 2017-18 academic year Will change July 1st, based on Treasury Bill Repayment occurs 6 months after the student: Graduates Leaves school Falls below ½ time enrollment

Federal Direct Loans Limits Dependent, Undergraduate Students Class Year Base Amount Additional Unsubsidized Amount Total Available to Borrow Freshman $3,500 $2,000 $5,500 Sophomore $4,500 $6,500 Junior $7,500 Senior

Grant Programs Federal Pell Grant - 2017-18 academic year Need based Award amount: up to $5,920 EFC: 0 – 5198 Ohio College Opportunity Grant 2017-18 academic year $1,536 for students at most public university main campuses Funding not available for students at community colleges & regional campuses EFC: 0 - 2190

TEACH Grant Up to $4,000 per year For students who agree to teach in a high-need field at a school that serves low-income families Must teach at least 4 years within 8 years of graduation, otherwise it converts into a Direct Unsubsidized Loan

Campus-Based Aid To be considered for these awards students must file FAFSA by priority deadline and amounts may vary between institutions. Supplemental Educational Opportunity Grant (SEOG) Awarded to Pell eligible students with a very low EFC Award ranges between $100-$4000

Campus-Based Aid, continued Federal Work-Study Earnings are not automatically applied to your college bill FWS funds will be provided to the student in the form of a paycheck for actual hours worked When the student applies for financial aid for the next academic year, questions on the FAFSA will exclude Work-Study income so those earnings will not have a negative effect on the EFC

What if I’m not awarded enough money from FAFSA?

4/6/2019 You have choices! Federal Parent Loan for Undergraduate Students (PLUS) Parent loan program for parents of dependent undergraduate students Loan in parent’s name Repayment begins while student is in school, but parent can defer payment as long as student continues to be enrolled half-time Interest rate: 7% fixed for the 2017-18 academic year Will change July 1st, based on Treasury Bill If denied, student would be eligible for a $4,000 additional Unsubsidized Loan

Alternative/Private Loans Credit based loan offered through private lenders Student is borrower – will need a credit worthy co-signer Terms and conditions will vary based on creditworthiness

Searching for Scholarships Search locally: High School Guidance Counselors Places of Worship Fraternal Organizations Chamber of Commerce Free, national searches: www.fastweb.com www.finaid.com www.careerinfonet.org/scholarshipsearch At every college you want to attend, check with: Financial Aid Office Admissions Office

Applying for scholarships – general tips Timing - start early and search often year round! Complete each application carefully—check for specific criteria Be aware of deadlines (postmarked, received by) Submit all application requirements by deadline Maintain a scholarship search folder If an essay is required or even optional, do it! Apply even if you think it’s a long-shot; who knows, you might be the only applicant! Spend the time, not money. If it sounds too good to be true, it probably is!

Financial Aid TO DO: Complete the Admissions process Complete 2018-19 FAFSA at www.fafsa.gov Search and apply for scholarships Respond promptly to requests from college offices Review all financial aid award letters from each school Compare institutional costs to financial aid offered at each school Determine your true out-of-pocket costs College Board Net Price Calculator Worksheet

Thank you! Contact information Bowling Green State University Student Financial Aid 419-372-2651 Elizabeth LeMaster Email: elemast@bgsu.edu Email AskSFA: https://sfa.bgsu.edu/asksfa