OCTOBER 12, 2014 High School Counselor Workshop 1

Financing A Education What is financial aid? Where does it come from? What aid is available? Who is eligible? How do students apply?

Goals of Financial Aid Primary goal is to assist students in paying for college and is achieved by:  Evaluating a families’ ability to pay educational costs  Distributing limited resources in an equitable manner  Providing balance of gift aid and self-help aid

Role of the Financial Aid Office Determine aid eligibility using federal formula Package aid depending on availability of funds Send award notifications including:  Award amount for each program for which student is eligible  Disbursement methods and time frames  Terms and conditions of each award

Financial Aid Basics Gift Aid GrantsScholarships Self-Help Aid Work StudyLoans 5

Sources of Financial Aid Federal State Institutional Private Grants Work Study Loans Scholarships Grants Scholarships Work-Study Scholarships Tuition reimbursement 6

Federal Financial Aid Grants  Pell Grant- $5,550 max  Supplemental Education Opportunity Grant (SEOG)- $4000 max  Teach Grant- agree to teach in low-income areas, $4000 max Work-Study  Need based award provides funds earned through part-time employment on and off-campus  Student receives paycheck to help with expenses  Limited funding available 7

Federal Financial Aid, cont. Loan Programs Types  Federal Direct Student Loan– student’s name  Perkins Student Loan- student’s name  Parent PLUS – parent’s name, fixed interest rate, credit check required Consider  Low Interest Rates  No Payment In School  Grace Period 8

General Student Eligibility Criteria Must be enrolled or accepted for enrollment in eligible program of study Must be pursuing degree, certificate, or other recognized credential Must be U.S. citizen or eligible noncitizen Must be registered with Selective Service (if male) May not have been convicted of possession or sale of drugs while receiving federal aid

General Student Eligibility Criteria Must have valid Social Security Number (SSN) May not be in default on a federal student loan Must not owe an overpayment of a federal grant or loan Must be making satisfactory academic progress (as defined by school)

State Aid Next Presentation! 11

Institutional Aid Need Based or Merit Based Aid awarded by HCC  Endowment and Foundation Funds (i.e. HCC Educational Foundation, Inc. Scholarships)  Institutional Operating Funds (i.e. HCC Grants) Criteria may differ for each scholarship and may or may not include the following:  Financial Need  Academic Merit  Learning Program  Special Skills or Talents 12

Private Sources Financial aid funding that comes from private organizations  Civic Organizations  Professional Associations  Private Businesses Deadlines and application procedures can vary widely Use reliable scholarship search services   

Awards 14 Awards are based on enrollment status For most institutions: 12+ credits = F/T 9-11 credits= Quarter-Time 6-8 credits= Half-Time 1-5 credits= Less than Half-Time

Determining Financial Need 15

The Cost of Attendance (COA) 16 Note: COA is determined by individual schools

What happens with my financial aid? 17 Students may receive FA up to their COA FA will pay for your direct costs (tuition and fees and room and board if living on-campus) If your FA is in excess of your T&F you will receive a refund check (to help pay for indirect expenses) Example= $5000 in FA, $3000 bill, $2000 rebate

College Cost Comparison Chart Full Time Students Community College (HCC) 4-year Public Resident of Maryland (UMCP) 4-year Private Resident of Maryland (JHU) Tuition/Fees$2,708$8,053$39,150 Books & Supplies$1,600$1,025$1,200 Room & Board$7,906$9,575$12,040 Transportation$750$ 1,000 Personal$1,600$ 1,400 Total COA$14,564$21,053$54,790 EFC$7,000 Need$7,564$ 14,053$47,790

To extent they are able, parents have primary responsibility to pay for dependent child’s education Students have a responsibility to contribute to educational costs Families should be evaluated in their present financial condition Family’s estimated ability to pay educational costs must be evaluated in equitable and consistent manner, recognizing that special circumstances may affect family’s ability to pay Principles of Need Analysis

Federal Methodology Federal Methodology is the formula created by Congress to determine the EFC.

EFC Expected Family Contribution The Free Application for Federal Student Aid (FAFSA) takes into account:  Income (parent(s) and student)  Assets (parent(s) and student)  Number in Household  Number in College  State of Residence  Marital Status  Dependency Status Note: EFC remains the same regardless of college/university 21

FAFSA FACTS When to complete Schools to list Definition of a Parent Dependency Status Dependency Overrides Professional Judgments Tax Information 22

Independent Student Definition At least 24 years old by December 31 of award year covered by the FAFSA Graduate or professional student Married Has children or dependents (other than a spouse) for whom the student provides more than half support Orphan or ward/dependent of the court or in foster care since age 13 Veteran of U.S. Armed Forces or currently serving on active duty (for other then training purposes) in the Armed Forces In legal guardianship as determined by state or emancipated minor Determined to be homeless or unaccompanied youth

Frequent FAFSA Errors Parent and student Social Security Numbers Divorced/remarried parental information Income earned by parents/stepparents Untaxed income U.S. income taxes paid Household size Number of household members in college Real estate and investment net worth

FAFSA on the Web applications will be available starting January 1 IRS data retrival after 1/30/11 FAFSA Forecaster available

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PIN Registration Web site: Can request PIN before January 1, 2011 Not required, but speeds up processing May be used by students and parents throughout aid process, including subsequent school years

Application Process Submit FAFSA prior to school/state deadline Most aid awarded on “first-come, first- served” basis To ensure maximum consideration for federal, state, and institutional aid, check information from each school to determine:  Required application materials  Application deadlines

Reliable Sources of Financial Aid Financial Aid Offices at college/university Federal websites State websites 29

Other Ways to Pay for College 30 Cash, Check or Money Order Tuition Payment Plans (at college/university) 529 Savings & Prepaid Tuition Programs Employer Tuition Reimbursement Plan Military Tuition Assistance Veterans Benefits and Veterans Deferred Payment Plan Tuition Waivers Alternative Loans

Fraud and Scams Do NOT pay someone to complete your FAFSA – contact the guidance counselor or college financial aid office. No one can guarantee you a scholarship for a minimal fee Attempt to contact the Better Business Bureau if you are suspicious.

Mark Your Calendars! YOU CAN AFFORD COLLEGE  HCC Saturday, February 12, 2011 COLLEGE GOAL SUNDAY  Various dates and sites HELP COMPLETING THE FAFSA!

Howard Community College - Financial Aid Services Phone: Webpage:  Go to  Select “Admissions” tab  Click on “Pay for College”  Select “Financial Aid Services” on the left column 33

Questions??