0 Financial Aid 101: A Guide to Financial Aid and Scholarships Presented by Bonnie McCarty, Assistant Director of Scholarships, MTSU

1 You can find info aboutOn slide # Applying for aid2 Types of federal aid20 Types of state aid30 Institutional and private scholarships40 Websites for more information47 Contents

2 Applying for Financial Aid

3 What is financial aid? Money to pay for college or career school  Grants  Loans  Work-study  Scholarships

4 Federal Student Aid Requirements To be eligible, a student must be… A US citizen or permanent resident A High school graduate or GED holder Pursuing an eligible degree or certificate program A person with a valid Social Security number Registered for Selective Service (males only) Making satisfactory academic progress (i.e., Passing enough classes to show progress toward degree) These rules apply to most types of state and institutional aid also, and may apply to private aid.

5 FAFSA: Free Application for Federal Student Aid Application for federal and state aid Collects information about household income and assets, family size, and number in college Used to determine eligibility for need-based aid Required for students to receive grants, loans, the lottery scholarship, and other types of state and federal aid May also be required for some types of institutional scholarships

6 FAFSA: Free Application for Federal Student Aid Apply online at  Prepare FAFSA worksheet  Student and parent need PIN  Review answers carefully! Reapply every year using renewal form

7 When to File Your FAFSA Available on January 1 Submit as soon as possible after January 1 to receive need-based grants Submit by May 1 if not expecting to receive need-based grants or scholarships

8 When to File Your FAFSA Tips Use to get an estimate of expected financial aidwww.fafsa4caster.ed.gov  Available at all times; you don’t have to wait until Jan 1!  Be sure to file actual FAFSA; 4Caster is just an estimate. Watch out for FAFSA deadlines listed in scholarship applications. Use estimated income and file early!

9 Estimating Your Income Use 2010 tax return and final 2011 pay stubs to estimate total income & taxes When 2011 tax return is completed, compare with estimated info on FAFSA If estimate was correct, make no changes If estimate was incorrect, correct the FAFSA and resubmit it  Be sure to submit, not just save!  Student and parent will sign again with their PIN numbers.

10 Changes in Income Has your family lost income this year due to job loss or retirement? Has your family had extensive out-of-pocket medical expenses? (several thousand dollars in 2011) We may be able to adjust the FAFSA to reflect the actual financial picture. Special Condition Request  Form available at in Forms section  Talk with counselor about your options

11 College Goal Sunday MTSU will host a FAFSA-prep workshop  Get help with estimating taxes, signing up for PIN numbers, etc.  You’ll be able to use this information to file your FAFSA starting January 1! Sunday, December 2:00-4:30pm All high school seniors should come!  Regardless of what school you plan to attend Free Help with Your FAFSA! More info at

12 College Goal Sunday Free help with filing FAFSA! Late January through mid-February  Dates and days of week vary by site 35 sites around Tennessee   Website has list of locations and dates  Pre-register online If possibly eligible for grants:  File FAFSA in early January.  Don’t wait for College Goal Sunday—may be too late!  Come to MTSU’s event, then use that info to file FAFSA at home on January 1 or 2. Free Help with Your FAFSA!

13 Student Aid Report Summary of the info on your FAFSA Sent appx one week after FAFSA is filed  By , if address is provided  By mail, if address is not provided Comments section should be checked carefully, and any issues should be addressed as soon as possible

14 Student Aid Report Expected Family Contribution (EFC)  Ranges from 0 to 99,999  Lower number = higher financial need  Used to determine your eligibility for need- based aid  EFC does not correspond to particular income amount The formula considers many factors, including income, taxes paid, household size, number in college, etc.

15 Verification Required for 30% of FAFSAs by federal law  1-in-3 chance of being selected each time you submit your FAFSA, or correct and resubmit your FAFSA FAFSA is checked for accuracy Must submit tax documents and other paperwork Submit all required paperwork by June 1 for best results  Process can delay receipt of aid by as much as 1 month! Must complete verification at each school you’re considering  Easiest: Make final choice by May 1, then just complete verification at that school There’s a 1 in 3 chance your FAFSA will be selected for verification. Be sure to watch for information from your school, just in case!

16 How much federal student aid can I get? This depends on a few factors, including Financial Need  Your EFC from your FAFSA  Other aid you’re receiving Cost of Attendance budget  Tuition  Books  Room and Board  Travel  Miscellaneous  This is the max amount of aid you can receive.

17 What happens next? Award Letter  How much aid you can get at that school  Often sent by to student’s school account  Should include instructions on how to accept aid

18 What happens next? Receiving your financial aid  At most schools, institutional charges (tuition, dorm, etc) are paid first  Refund issued for remaining credit balance Refund methods and timing vary widely by school May be paper check May be direct deposited into an account you specify May be available as credit for on-campus purchases  Use refund to purchase books and supplies, pay for living expenses, and cover other indirect educational costs Above info is applicable at most schools; check with your schools of interest about their aid policies.

19 Questions about applying for aid?

20 Types of Federal Aid

21 Federal Need-Based Grants Do not have to be repaid Must have financial need according to FAFSA Pell Grants are guaranteed for eligible students Other types of grants have limited funding  File FAFSA early to qualify! Some grants have academic requirements

22 Federal Grants Examples:  Pell Federal grant $ EFC of in (may vary in future years) Guaranteed for eligible students  SEOG Federal grant Amount varies, discretion of school Not guaranteed—Schools may only be able to award 10-20% of all eligible students

23 Federal Work-Study Receive wages for hours worked Must have financial need according to FAFSA Very limited funding, few positions available at most schools  Priority generally given to returning students with FWS positions in current year  School may require interested students to submit FAFSA and/or FWS application by certain date Check with schools of interest to ask about application requirements Other jobs outside FWS program are probably available on-campus  Check with school’s career center or individual departments

24 Types of Loans: Stafford Loan Federal student loan which must be repaid Award Amount:  $ per year, depending on grade level  Amount isn’t based on financial need Repayment:  Begins 6 months after graduation  Generally completed within 10 years

25 Types of Loans: Stafford Loan Subsidized Stafford Loan  $ per year, depending on grade level  No interest while in school  Must have financial need  Amount is based on remaining financial need after grants, scholarships, and other resources (e.g., tuition discounts) Unsubsidized Stafford Loan  $2000 per year for dependent students  Interest accrues while in school  Available to all students, not based on financial need

26 Types of Loans: Stafford Loan Why should I consider a Stafford Loan instead of a private loan? Payments deferred while in school Interest-free while in school (if subsidized) May have lower interest rate Does not require credit check or cosigner Part of loan may be forgiven for public service (e.g., nurses, teachers)

27 Types of Loans: Loan Forgiveness Programs “Grant”-Type Programs:  Examples: Teach Grant (federal), TN Teaching Scholars Program, TN Rural Health Program  Available to education, healthcare, and certain service industry majors  Must meet stringent service requirements or repay entire “grant” (plus backdated interest in most cases) Stafford/Perkins Programs:  Borrow Stafford or Perkins Loan  Begin repaying loan as normal  Have portion of loan forgiven after meeting service requirement for given number of years

28 Types of Loans: PLUS Loan Federal parent loan which must be repaid Award Amount:  Depends on student eligibility and lender approval  Credit check is required Repayment:  Repaid by parents  Deferment available while student is enrolled at least half-time  Completed within 10 years If parents apply for a PLUS Loan but are denied, the student may be eligible to borrow additional Stafford Loan funds of $4000 or $5000 for the year.

29 Questions about federal and state aid?

30 Types of State Aid

31 State Scholarships and Grants Examples: Lottery, TSAA Grant, Several loan forgiveness “grant” programs Most require online application Deadlines vary

32 State Need-Based Grant TSAA  $ (depending on school type)  Not guaranteed—Funds may run out in mid- January! File FAFSA as early as possible to be considered  Does not have to be repaid  Must have financial need according to FAFSA EFC of 2100 or less

33 Tennessee Education Lottery Scholarship Program HOPE Scholarship  The primary scholarship in the lottery program  21 ACT OR 3.0 GPA ACT must be taken before student begins college Cumulative weighted GPA through end of high school GPA is only considered if student attended eligible high school Home school and ineligible high school graduates must qualify with 21 ACT  $2000 per year at 2-yr school  4000 per year at 4-yr school

34 Tennessee Education Lottery Scholarship Program Supplements  General Assembly Merit $ ACT AND 3.75 GPA Homeschool: 29 ACT AND 12 hours of dual-enrollment credit with 3.0 GPA  Aspire Supplement $1500 $36,000 or less Parent AGI  Can receive one supplement at a time, not both

35 Tennessee Education Lottery Scholarship Program HOPE Access Grant  18 ACT AND 2.75 GPA AND $36,000 or less Parent AGI  Not available to homeschool students  $1750 for 1 year at 2-yr school  $2750 for 1 year at 4-yr school  Can qualify for full TELS award if 2.75 GPA after 24 hours

36 Tennessee Education Lottery Scholarship Program Meet academic requirements Tennessee resident for 1 year US citizen/eligible non-citizen Graduate from Tennessee high school, homeschool, or GED  Homeschool: Must have been homeschooled for two years prior to graduation Submit FAFSA by September 1 (by February 1 for spring enrollees)

37 Tennessee Education Lottery Scholarship Program Keeping the Scholarship Meet GPA requirements  2.75 after 24 & 48 attempted hours  3.0 after 72 & 96 attempted hours Meet enrollment requirements  Enroll in at least 1 class every fall & spring  Don’t change your enrollment status after the start of a semester (e.g., drop from full-time to part-time) Stay within time limits  5 years  120 attempted hours Most students will run out of hours before graduating! Be careful to take only the classes you need and to pass them the first time!!

38 Wilder-Naifeh Technical Skills Grant Available at TN Technology Centers  Public technical/vocational school  26 locations across the state $2000 per year Tennessee resident for one year Submit a FAFSA by September 1 Not limited by age or academics!

39 Ned McWherter Scholars Program $6,000 scholarship ($3000 from state, $3000 from school) Attend an eligible TN school 3.5 GPA and 29 ACT (1280 SAT) US citizen and TN resident Application deadline: February 15 Apply at

40 Questions about state aid?

41 Institutional and Private Scholarships

42 Institutional Scholarships Academic Scholarships  Usually based on GPA and ACT/SAT  May consider other factors  May require scholarship application  May have deadline in December or earlier  Amounts, requirements, application procedures, and deadlines vary widely.  Most scholarships available only to students beginning in the summer and/or fall semester.  Information should be available on the school’s website.

43 Institutional Scholarships Foundation/Endowed Scholarships  Funding provided by private donors such as alumni  Major, residency, occupation of parents, or other factors  Most scholarships available only to students beginning in the summer and/or fall semester.  Application deadline generally between December and February

44 Institutional Scholarships Departmental Scholarships  Funded from a department’s budget  For students in particular major or minor, or in certain organization Examples: Band, ROTC, Athletics  Usually includes service requirement  Contact departments of interest for more information

45 Take the ACT early and often.  Most students raise their score on subsequent tries.  Schools may accept scores only through October or December of the senior year. Take the SAT at least once.  Most students do better on one test than the other. You won’t know which is your best until you take both!  Most schools do not use the writing test scores. Know whether the school uses super-scores.  Some schools (particularly private schools) take your highest sub- scores from various test dates and combine them into a super- score.  Most schools do not super-score. They consider your highest score on a single test day. Institutional Scholarships: Tips & Hints

46 Institutional Scholarships: Tips & Hints Know which GPA the school will consider.  Which semester: Most use the 6 th semester, through the end of your junior year, for scholarship considerations. Some might accept the 7 th semester.  Weighted or unweighted: Most use whichever GPA the high school provides on the transcript. If both weighted and unweighted are listed, most schools use the weighted GPA. Some schools accept only unweighted GPAs. Some schools calculate the GPA using their own institutional formula; the GPA used for scholarships may be different than the GPA on the transcript. Know which scholarships are automatic and which require special applications.  Application processes and deadlines vary widely!

47 Private Scholarships Look for free search websites Apply, Apply, Apply! Watch for applications with essays —may have less competition Emphasize your leadership, special skills and qualities, and contributions to your community. Visit private_scholarships.shtml for more information. (Even if you don’t plan to attend MTSU!)

48 Scholarship Notes Beware of scams!! Don’t pay money to make money! Ask employer or parent’s employer about scholarships or tuition assistance Tuition discounts at public schools  State employees  Children of state employees  Children of K-12 public school teachers  Employees of UT or TBR schools  Children of UT/TBR employees

49 Questions about institutional or private scholarships?

50 For More Information College For TN: Click on “Financial Aid Planning” for many resources! FinAid: Great info on financial aid and how it works! MTSU Financial Aid Office: