Paying for College at

Financial Aid What is financial aid? Resources for college expenses Grants, Scholarships, Loans or Employment Aid Sources Federal, State, Institutional, Private Financial Aid is any grant or scholarship, loan, or paid employment offered to help a student meet his/her college expenses. Such aid is usually provided by various sources such as federal and state agencies, colleges, high schools, foundations, and corporations.

How Does Financial Aid Work? Grants Scholarships Loans Work $$$ Your college will determine your estimated Cost of Attendance and the information on your FAFSA will determine your Expected Family Contribution (EFC). Financial Aid Package

Minimize Educational Expenses Follow your Academic Plan of Study 15 to Finish Avoid getting W’s or F’s Search and Apply for Scholarships Minimize your Educational Expenses… compare housing options, choose the right meal plan, buy used or rent text books, earn money while in school(student employment), Graduate on time by following your Academic Plan of Study

Financial Aid Goals Understand Education is an Investment Student Loans must be repaid Earnings for college graduates Make good Financial Decisions Accept only the amount of loans you need Payment Plans Federal Work Study Apply for Federal Financial Aid When and how do I apply

Applying for Financial Aid Free Application for Federal Student Aid (FAFSA) www.fafsa.ed.gov Applying for a FSA ID https://fsaid.ed.gov/npas/index.htm

Completing the FAFSA Everyone should file the FAFSA regardless of income Obtain a FSA ID  User Name and Password File the FAFSA every year; available on October 1st www.fafsa.gov The FAFSA generates an EFC (Expected Family Contribution). The EFC represents an expectation of family resources to pay for the student’s education

MyStudentAid App

MyStudentAid App

Paying for College File the Free Application for Federal Student Aid (FAFSA) FAFSA is also the application to apply for state aid Deadline is April 15th to be considered for IN state grants Submit required documents early! Search for Scholarships Set a budget, live with family or roommates, costs add up – rent textbooks instead of buying books for example

When to Apply for Financial Aid? High School Seniors – Beginning in October 1, 2018 (2019-20 Award Year) *2017 Taxes are needed* High School Juniors – Beginning in October 1, 2019 (2020-2021 Award Year) *2018 Taxes are needed*

Types of Financial Aid Gift Aid (free money, not to be repaid) Grants Federal – Pell, Supplemental Educational Opportunity Grant State – Frank O’Bannon, 21st Century Scholarships Self-help Aid (aid to be earned or repaid) Federal Work Study Federal Direct Stafford Loans Federal Parent PLUS loan

Funding Sources – Loans Subsidized Stafford Loan – must demonstrate need Unsubsidized Stafford Loan – need not considered Dependent Student Loan Amounts $5,500 total loans for 1st year undergraduates $6,500 total loans for 2nd year undergraduates $7,500 total loans for each remaining undergraduate year Independent Student Loan Amounts $9,500 total loans for 1st year undergraduates $10,500 total loans for 2nd year undergraduates $12,500 total loans for each remaining undergraduate year Most students under the age of 24 are considered Dependent students for the purpose of Federal and State financial aid

Interest Rate Information Current Direct Loan Interest Rates for undergraduate borrowers 5.05% for subsidized & unsubsidized loans Subsidized loans – interest paid by ED: While you’re in school at least half-time During your six month grace period During a period of deferment Unsubsidized loans begin to accrue interest immediately upon disbursement

Aggregate Loan Limits Undergraduate Aggregate Loan Limits Dependent students may borrow a total of $31,000 (up to $23,000 in subsidized) Independent students may borrow a total of $57,500 (up to $23,000 in subsidized) NO EXCEPTIONS!

Know Your Borrowing History National Student Loan Data System WWW.NSLDS.ED.GOV Keep track of your federal student loans Know your loan servicer Your loan servicer handles the billing and other services on your federal student loan

Federal Parent PLUS Loan Parent PLUS loans are federal loans that parents of dependent undergraduate students can use to help pay for college Current PLUS Interest Rates: 7.6% Parent PLUS loans are unsubsidized

Loans are a Serious Responsibility! Understand Student Loan Borrowing https://studentaid.ed.gov/sa/types/loans https://admissions.pnw.edu/financial-aid/loans/ Loans must be repaid Loan repayment can help build your credit history Avoid ‘Default’ (missing payments or not making payments) Work with your loan servicer You may qualify for Deferments or Forbearance

Federal Work Study What is Federal Work Study (FWS)? A need-based Federal employment program Designed to offer students the opportunity to earn money through part-time on or off-campus employment Students work to earn the funds which are paid directly to them Benefits of FWS Students gain valuable work experience May help with future employment Potentially reduce student loan borrowing Flexible work schedules Convenient location (on-campus) How are Students Awarded and Paid FWS? Eligible students are awarded FWS for the award year Students are typically paid bi-weekly

Scholarships Apply for scholarships based on merit, need or other criteria such as community or military service. Visit the Purdue Northwest website for scholarship information Do not pay fees to apply for aid or scholarships!

Satisfactory Academic Progress Students must maintain Satisfactory Academic Progress to continue receiving federal student aid At least a 2.0 GPA and 67% course completion ratio Students who withdraw from all classes will have a required calculation performed May owe a percentage of their financial aid back to the U.S. Department of Education May owe a balance

Helpful Websites Detailed information on federal aid programs https//.studentaid.ed.gov FAFSA4caster is a free financial aid calculator which provides an early estimate of a student’s potential eligibility for federal student aid https://studentaid.ed.gov/sa/fafsa/estimate

Questions?