Financial Aid 101

2 Cost of attendance  Cost of attendance refers to the cost for attending college for one year (2 semesters)  Colleges often define total cost of attendance to include: Tuition and fees Room and board Books and supplies Medical expenses Transportation Personal expenses Fixed Costs Variable Costs

3 Example: Public College  Below is an example of a cost of attendance at a State College if you live off campus and are a full time student Total cost to attend $16,500 Tuition and fees$4,300 Room and board$8,100 Books and supplies$1,700 Medical expenses (incl. in personal exp.) Transportation$1,200 Personal expenses$1,200

4 Example: Private College  Below is an example of a cost of attendance at a Private College if you live on campus and are a full time student Total cost to attend $44,450 Tuition and fees$34,000 Room and board$8,500 Books and supplies$950 Medical expenses (incl. in personal exp.) Transportation (Incl. in personal exp.) Personal expenses$1000

5 Where do I find this information?  The estimated total cost of attendance comes directly from the colleges Costs will vary by college  All this information can be found on the colleges’ websites or in their brochures  If you have specific questions, contact a financial aid counselor

6 Paying for College  Financial Aid subsidizes a family’s own resources  College money can come from a variety of different sources College savings plans (529s, etc.) Investments Financial aid

7 Four Types of Financial Aid  Two-thirds of all full-time students receive some type of financial aid  The college you choose may offer financial aid to assist you in paying for a college  The most common types of financial aid are: Grants Student Loans Work-Study Scholarships

8 Financial Aid – The Four Types  Grants come from federal and state governments, colleges and private organizations Awarded to the student based on need Does not need to be paid back  Student Loans are loans designed to help students pay for college Federal Loans −Paid back at federally backed low interest rates with helpful terms −There are federal loans for students (Stafford loans) and parents (PLUS loans) Private Loans −Use federal first and be sure to research the rates and terms carefully if you need a private loan to fill the gap.  Work-study provides financial assistance in the form of part time employment on-campus, or designated off- campus sites Typically based on need  Scholarships are awarded for a variety of reasons to students Does not need to be paid back Check out our CollegeInvest Scholarship Program

9 Start with the FAFSA  Free Application for Federal Student Aid (FAFSA) Hard copy in counselor’s office or at college  Available every January 1– apply early! Some Financial Aid is awarded on a first come first serve basis The earlier a student applies, the more financial aid they may receive

10 How to Submit the FAFSA  Online application Processed 72 hours. Student and one parent need to get Personal Identification Numbers to sign application electronically −Go to to get your PINhttp://pin.ed.gov Information needed to fill out FAFSA (both student and parent): −Social security numbers, drivers license numbers −Records of money earned last year, tax returns and bank statements, etc Complete the online FAFSA at  BEWARE of any service that requires you to pay a fee to submit your FREE application

11 Assets Not Included  Life insurance plans  Retirement plans  Equity from primary residence  Investment value of small business 100 full-time employees or less  Educational savings/investments plans when the dependent student is the owner  Farm when it is primary source of income

12 What Does the FAFSA Do?  The U.S. Department of Education processes the information on your FAFSA and provides you and the colleges you selected your Expected Family Contribution (EFC) The information will be used to determine a student’s eligibility for most federal and state assistance The Dept. of Ed. does not expect you to have this amount in cash

13 What Does the FAFSA Do?  Based on the EFC from your FAFSA, the colleges you applied to determine your financial need Cost of Attendance - Expected Family Contribution (EFC) _______________________________ = Financial Need

14 Independent vs. Dependent Student  Determines if parent information is required on the FAFSA  A student is considered dependent unless Born before January 1, 1984 Masters or doctoral student in Married Have children who receive more than half of their support from the student Orphan or ward of the court Veteran of the U.S. Armed Forces Serving on active duty in the U.S Armed Forces

15 Frequently Asked Questions  My parents are divorced. Whose information do I put on the FAFSA?  I have a stepparent. Do I need to include his/her information?  I am making less money in the current year than the last year. How can I reflect this?  My grandmother lives with us. Can she be included in my household size?  How can I be considered independent even if I have answered ‘no’ to all the required questions?

16 At A Glance… Step 1 You’ve completed and submitted the FAFSA Step 2 The government processes the form and determines your EFC Step 3 The Student Aid Report (SAR) is sent to you and all the colleges you indicated on the FAFSA Step 4 You check the SAR for accuracy Step 5 The colleges create an “Award Letter” Step 6 You receive the “Award Letter” from the college Step 7 You finalize your financial plan Step 8 Meet the deadline!

17 PELL Grant  Eligibility determined from FAFSA  $4, maximum award for academic year  Pro-rated if student is less than full time  Need based grant

18 Academic Competitiveness Grant  U.S. citizen  Eligible for PELL Grant  Four or two year degree program  Full time student  $ first year of undergraduate study Successfully completed a rigorous high school program  $1, second year of study Second year of undergraduate study have a cumulative grade point average of 3.0  No specific major required

19 The SMART Grant (National Science & Mathematics Access to Retain Talent)  Available during the third and fourth years of undergraduate study  U.S. Citizen  Eligible for PELL Grant  Enrolled in a four-year degree granting institution  Full time student  Up to $4, per year  Major in physical, life or computer science, engineering, mathematics, technology, or a critical foreign language  A cumulative 3.0 grade point average

20 The Not-So-Ugly Truth About Student Loans  State financial aid has decreased while tuition has increased  The government created federal loans as a safe way to invest in your future  Federal student loans do not require a credit check or collateral  In some instances, the interest is paid by the government and can be deferred until six months after leaving college  Interest may be tax deductible

21 Federal Stafford Loans  Stafford student loans have a fixed interest rate of 6.8% as of July 1 st, 2006  Students may qualify for subsidized loans government pays the interest while you’re in school Based on FAFSA  No credit check required  Payment begins 6 months after graduating or decreasing enrollments to less than half time

22 Federal PLUS Loans  Parent PLUS loans have fixed interest rate of 8.5% as of July 1 st, 2006  Credit check required If denied, student is eligible for additional unsubsidized Stafford allowance  Payment begins 6 weeks after loan is fully disbursed

23 CollegeInvest’s Stafford student loan borrower benefits  Many companies, banks and organizations will compete for your loan  Remember not all loans are the same  Investigate what is commonly called “borrower benefits” from each lender, they can help you save money  CollegeInvest’s borrower benefits: Zero origination fees 1% principal balance reduction at disbursement Reducing the interest rate 1% for loan repayment automatically transferred from your bank Reducing the interest rate by 1% if you make the first 24 payments on time Reducing the interest rate by another 1% if you make the second 24 payments on time

24 CollegeInvest’s Parent Plus Loan Benefits  3% rebate on the borrowed amount when the loan is disbursed  5% principal balance reduction when you make on- time payments for 30 consecutive months  0.25% interest rate reduction when loan payment is automatically transferred from the bank  This could mean savings of up to $ on a $10, loan

25 CollegeInvest Mile-High GRADS Program  Student loan forgiveness program  Partnership between the City and County of Denver and CollegeInvest  Partial loan forgiveness upon completion of a post- secondary degree

26 Who Qualifies?  Denver high school graduates  Residents of Denver graduating from a non-DPS school  Other requirements Meet college admission requirements Attend class at least half time Graduate within 4 years with vocational certificate or Associate’s degree; or 6 years with a Bachelor’s degree Attend a college in or out-of-state that participates in the FFEL program and choose CollegeInvest as your Stafford loan lender

27 How Does it Work?  Student must borrow Stafford loan through CollegeInvest Either subsidized or unsubsidized  Upon completion of post-secondary degree CollegeInvest will forgive up to $300 principal reduction on outstanding loan balance for a vocational certificate Up to $750 for an Associate’s degree Up to $1,500 for a Bachelor’s degree  Loan forgiveness immediately upon graduation  Bottom line to student Student loan could pay-off 14 months ahead of schedule Nearly 20% savings over standard Stafford loan

28 CollegeInvest Graduation Reward Program  Student loan forgiveness program  Partnership between City of Colorado Springs, El Paso County and CollegeInvest  Partial loan forgiveness upon completion of a post-secondary degree

29 Who Qualifies?  El Paso County high school graduates  Other requirements Meet college admission requirements and attend college in El Paso County Enroll in class at least half time Graduate within 4 years with vocational certificate or Associate’s degree; or 6 years with a Bachelor’s degree Attend a college that participates in the FFEL program and choose CollegeInvest as your Stafford loan lender Attend a post-secondary institution in El Paso County

30 How Does it Work?  Must borrow Stafford loan through CollegeInvest Either subsidized or unsubsidized  Upon completion of post-secondary degree at an El Paso County College CollegeInvest will forgive up to $300 principal reduction on outstanding loan balance for a vocational certificate Up to $750 for an Associate’s degree Up to $1,500 for a Bachelor’s degree  Loan forgiveness immediately upon graduation  Bottom line to student Student loan could pay-off 14 months ahead of schedule Nearly 20% savings over standard Stafford loan

31 Loan Incentive For Teachers (LIFT) Program  Loan Repayment Opportunity for Teachers Work at least half-time in one of the following disciplines: Math Science Special Education Linguistically Diverse Education Low income rural schools Be a graduate of a CCHE-approved program of teacher preparation at a Colorado college or university Have contracted to teach for the first year in a qualified position after June 1, 2001 Have an outstanding balance on a −CollegeInvest Stafford or consolidation loan −Stafford or consolidation loan through a LIFT participating lender −William D. Ford Federal Direct Loan through the University of Colorado at Boulder

32 Other Ways to Save Money  HOPE Scholarship Up to $1,000 tax deduction in first year for tuition paid Up to $500 tax deduction in second year for tuition paid  Lifetime Learning Credit for college juniors, seniors, and graduate students Up to $2,000 tax deduction thereafter  Student loan interest tax deduction Deduction of interest paid First 60 months

33 College Opportunity Fund  Pays a portion of total in-state tuition per credit hour Colorado public institution Participating private institutions  Must apply for stipend  Must be admitted to participating institution  Available for undergraduates only  Paid directly to the school  Apply online at:

34 The Elusive Scholarship  Inquire about scholarships through: High School College(s) student is interested in attending Local businesses Internet − − CollegeInvest − −Get a free copy of our scholarship workbook

35 The CollegeInvest Opportunity Scholarship  Seventy (70) randomly drawn $1,000 scholarships will be awarded to Colorado students who : Attend a Colorado two or four-year college, or vocational college, or university Will be full time, undergraduate students in the school year Complete the Free Application For Federal Student Aid and have an EFC of $15,000 or less (FAFSA does not have to be completed prior to registering) NO GPA or Essay requirements

36 The CollegeInvest Service Scholarship  Fifty-five (55) randomly drawn $6,000 scholarships (award amount will be divided over a two-year period, $3,000 each year) will be awarded to Colorado students who Attend a Colorado two or four-year college, or vocational college, or university Will be full time, undergraduate students in the school year Complete the Free Application For Federal Student Aid and have an EFC of $7,600 or less (FAFSA does not have to be completed prior to registering) Commit to 40 hours each year, for two years, in a service- to-children volunteer program NO GPA or Essay requirements

Questions?