Paying for College Financial Aid 101

Ms. Ann Marano CollegeBound Advisor (972)

What is the purpose of Financial Aid? The primary purpose of financial aid is to provide resources to students who would otherwise have difficulty attending a particular college or university. The first and primary responsibility for meeting college costs lies with the family, and financial aid is awarded only when the family is unable to meet the full cost of attendance.

Financial Aid Terms Financial Aid Terms COA: Cost of Attendance COA: Cost of Attendance Tuition & Fees (Direct cost, paid to college) Tuition & Fees (Direct cost, paid to college) Room & Board (Direct cost, paid to college) Room & Board (Direct cost, paid to college) Books & Supplies (Indirect cost, may or may not be paid to college) Books & Supplies (Indirect cost, may or may not be paid to college) Transportation (Indirect cost, usually not paid to college) Transportation (Indirect cost, usually not paid to college) Personal Expenses (Indirect cost, usually not paid to college and including health insurance) Personal Expenses (Indirect cost, usually not paid to college and including health insurance) EFC: Expected Family Contribution (What the FAFSA or TASFA says your family can contribute) EFC: Expected Family Contribution (What the FAFSA or TASFA says your family can contribute) FN: Financial Need (The difference between the EFC and the COA.) FN: Financial Need (The difference between the EFC and the COA.) FA: Financial Aid (What student is awarded to cover the FN. Some colleges may not cover 100% of need or only what needed for Tuition/fees and Room/Board) FA: Financial Aid (What student is awarded to cover the FN. Some colleges may not cover 100% of need or only what needed for Tuition/fees and Room/Board)

Financial Aid Terms Financial Aid Terms FAFSA: Free Application for Federal Student Aid FAFSA: Free Application for Federal Student Aid Main financial aid form used by all colleges; free to file Processed by the U.S. Department of Education Should be submitted by U.S. citizens, permanent residents and other eligible non-citizens TASFA: Texas Application for State Financial Aid TASFA: Texas Application for State Financial Aid Should be submitted by undocumented students for aid in the state of Texas; free to file Sent to and processed by each individual college in Texas Undocumented students will not file the FAFSA with the U.S. Department of Education

Financial Aid Terms Financial Aid Terms CSS Profile CSS Profile Financial Aid form required by some private colleges/universities Fee to submit; waivers are available for those who qualify for free/reduced lunch FN: Financial Need (The difference between the EFC and the COA.) FN: Financial Need (The difference between the EFC and the COA.) FA: Financial Aid (What student is awarded to cover the FN. Some colleges may not cover 100% of need or only what needed for Tuition/Fees and Room/Board) FA: Financial Aid (What student is awarded to cover the FN. Some colleges may not cover 100% of need or only what needed for Tuition/Fees and Room/Board)

Types of Financial Aid Gift Aid Gift Aid Does not need to be repaid Does not need to be repaid Scholarships- based on merit, talent, ability, and/or need Scholarships- based on merit, talent, ability, and/or need Grants- based on need Grants- based on need Awarded by college/university, organizations, state and federal governments Awarded by college/university, organizations, state and federal governments Self-Help Self-Help Loans- must be repaid Loans- must be repaid * offered by federal/state government, college, private lender Work Study- monetary award for work Work Study- monetary award for work * Job on campus, paid regular paycheck

Types of Financial Aid Gift Aid Pell Grant, SEOG Grant – Federal Government Pell Grant, SEOG Grant – Federal Government TEG, Texas Grant – State of Texas TEG, Texas Grant – State of Texas Scholarships based on Merit (academic achievement or other talent) from individual college Scholarships based on Merit (academic achievement or other talent) from individual college Scholarships based on Merit and/or need from organizations, corporations, sororities/fraternities, local businesses and faith based communities Scholarships based on Merit and/or need from organizations, corporations, sororities/fraternities, local businesses and faith based communities State Fair of Texas Scholarship – only available to students from Irma Rangel and four other Fair Park area high schools State Fair of Texas Scholarship – only available to students from Irma Rangel and four other Fair Park area high schools

Scholarships 183 Alumnae of the Irma L. Rangel YWLS have been offered over $8.5M in academic and merit scholarships Every Senior is expected to apply for at least 25 outside (non-university) scholarships

Types of Financial Aid Self Help Aid  Loans (Stafford, Perkins – Federal)  Be On Time Loan (Texas)  College/University Loans  Work Study (job on campus - federal or college funds, in all areas – Library, academic departments, athletics, admissions and financial aid office, etc.)

How is financial aid determined? The amount of financial aid which can be awarded is determined by looking at the difference between the total Cost of Attendance and the computed amount the family should be able to contribute. This contribution is called the “Expected Family Contribution” or EFC. The formula used to calculate a family’s EFC is the Federal Methodology. This federal formula considers income, family assets (investments, real estate or property other than the home you live in, cash, savings/checking accounts), parents’ ages and need for retirement income, number of children and other dependents in the family household, and the number of family members in college.

How is financial aid determined? Private colleges and universities may consider additional information, and use Institutional Methodology to determine a student’s eligibility for funds from their school. They may ask for information related to the value of your home, cars and/or other assets.

Applying for Financial Aid and Scholarships Indicate your interest in applying for financial aid on your admissions application if asked Indicate your interest in applying for financial aid on your admissions application if asked Research and obtain all required financial aid materials for each college Research and obtain all required financial aid materials for each college Apply Early! Definitely meet deadlines Apply Early! Definitely meet deadlines File Income Taxes early if possible File Income Taxes early if possible Complete FAFSA or TASFA and/or CSS Profile Complete FAFSA or TASFA and/or CSS Profile Complete additional Financial Aid Forms required by each college by their priority deadline Complete additional Financial Aid Forms required by each college by their priority deadline

Financial Aid Applications  File during Senior year  FAFSA  TASFA  CSS PROFILE

FAFSA Free Application for Federal Student Aid (processed by the the federal Department of Education) Free Application for Federal Student Aid (processed by the the federal Department of Education) Student must be a citizen or eligible non-citizen (permanent resident) of the United States Student must be a citizen or eligible non-citizen (permanent resident) of the United States Primary financial aid form used by all colleges Primary financial aid form used by all colleges File between January 1 st and February 1 st to meet most priority financial aid deadlines File between January 1 st and February 1 st to meet most priority financial aid deadlines Student files using parents’ financial information (Student is considered “dependent” until age 23 for federal financial aid purposes) Student files using parents’ financial information (Student is considered “dependent” until age 23 for federal financial aid purposes) Undocumented students should NEVER file the FAFSA through the federal processor. An individual college/university may request a paper FAFSA. Undocumented students should NEVER file the FAFSA through the federal processor. An individual college/university may request a paper FAFSA. NO fee to submit; submitted online beginning January 1 st NO fee to submit; submitted online beginning January 1 st

TASFA Texas Application for State Financial Aid Texas Application for State Financial Aid Used by undocumented students seeking financial aid from the state of Texas and colleges/universities in Texas Used by undocumented students seeking financial aid from the state of Texas and colleges/universities in Texas Form used only by Texas colleges/universities Form used only by Texas colleges/universities Submit a copy to each college/university between January 1 st and February 1 st to meet most priority financial aid deadlines Submit a copy to each college/university between January 1 st and February 1 st to meet most priority financial aid deadlines Student files using parents’ financial information Student files using parents’ financial information NO fee to submit; Paper form available from Ms. Marano in January NO fee to submit; Paper form available from Ms. Marano in January

CSS Profile CSS Profile Used by some private colleges/universities (in addition to FAFSA or TASFA) Used by some private colleges/universities (in addition to FAFSA or TASFA) Registration forms for the PROFILE should be filed by mid-October of the SENIOR year Application should be filed by early February of the SENIOR year PROFILE registration forms are available online at Fee for each college/university; fee waiver is available

EFC Calculator Get an early estimate of your financial aid eligibility Get an early estimate of your financial aid eligibility FAFSA (also good for TASFA filers) FAFSA (also good for TASFA filers) College Board College Board college/paying-your-share/expected-family- contribution-calculator college/paying-your-share/expected-family- contribution-calculator Available in English and in Spanish Available in English and in Spanish

Useful Websites Useful Websites Federal Student Aid – U.S. Department of Education Federal Student Aid – U.S. Department of Education CollegeBoard – Big Future CollegeBoard – Big Future Fastweb Fastweb FinAid FinAid National Association of Student Financial Aid Administrators National Association of Student Financial Aid Administrators College For All Texans College For All Texans Every Chance, Every Texan Every Chance, Every Texan

Beware of scams! You should never pay a fee to file the FAFSA or TASFA! You should never pay a fee to file the FAFSA or TASFA! You do not need to pay someone to fill out your financial aid forms. Free assistance is available. You do not need to pay someone to fill out your financial aid forms. Free assistance is available. You do not need to pay someone to research scholarships for you. Free assistance is available. You do not need to pay someone to research scholarships for you. Free assistance is available. You do not need to hire someone to speak with a college financial aid office on your behalf. You and/or your daughter may speak directly to college financial aid officers. You do not need to hire someone to speak with a college financial aid office on your behalf. You and/or your daughter may speak directly to college financial aid officers.

FAFSA Workshop FAFSA Workshop Early January 2013 Early January 2013 Two sessions – usually at 3 p.m. and 6 p.m. Two sessions – usually at 3 p.m. and 6 p.m. Computer Lab at Rangel Computer Lab at Rangel More detailed information about applying for financial aid More detailed information about applying for financial aid Hands-on workshop Hands-on workshop Online FAFSA – Online FAFSA – * Ms. Marano will work individually with TASFA filers

What can you do now? What can you do now? Review types of financial aid Review types of financial aid Complete an EFC Calculator Complete an EFC Calculator Have daughter research scholarship opportunities Have daughter research scholarship opportunities Get in the habit of filing income taxes on time (early if possible) Get in the habit of filing income taxes on time (early if possible) Look into the Texas Tuition Promise Fund Look into the Texas Tuition Promise Fund Look into the Texas College Savings Plan Look into the Texas College Savings Plan

Texas Tuition Promise Fund Begin paying for college now, based on prices determined by today’s tuition and required fees at Texas public colleges or universities. Begin paying for college now, based on prices determined by today’s tuition and required fees at Texas public colleges or universities. The plan lets you purchase “tuition units” that your child can trade for semester hours. The plan lets you purchase “tuition units” that your child can trade for semester hours. These can be used at all Texas public colleges and universities as well as private colleges in Texas and schools throughout the U.S. These can be used at all Texas public colleges and universities as well as private colleges in Texas and schools throughout the U.S.

Texas College Savings Plan The Texas College Savings Plan is sponsored by the state of TexasThe Texas College Savings Plan is sponsored by the state of Texas The plan is managed by OFI Private Investments, a subsidiary of OppenheimerFunds, Inc.The plan is managed by OFI Private Investments, a subsidiary of OppenheimerFunds, Inc. Offers Tax-free Growth and Tax Free Withdrawal (for higher ed expenses) Offers Tax-free Growth and Tax Free Withdrawal (for higher ed expenses) Use Your Savings at Schools in the U.S. and Abroad Use Your Savings at Schools in the U.S. and Abroad Choose Your Beneficiary Choose Your Beneficiary Control and Flexibility Control and Flexibility Broad Range of Investment Options Broad Range of Investment Options

THANK YOU! Ms. Marano CollegeBound Advisor (972) Irma L. Rangel YWLS – College Bound website