Financial Aid Student Aid Programs and Process

Can You Help Me?

Today you will learn  What financial aid is  What needs analysis is  Types of financial aid  How to apply for financial aid

WHATISFINANCIALAID

Grants Free money or gift aid Loans Self-help aid that must be repaid Some loans may be fully or partially cancelled if borrower fulfills certain requirements Employment Self-help aid that provides compensation for work Must be earned TYPES OF FINANCIAL AID

Categories of Aid  Need-based aid -Student must demonstrate need -Need is determined by analyzing student’s and family’s financial situation  Non-need based aid - Financial need not considered -Often given in recognition of special skills, talents, or abilities -Some loans may replace expected family contributions

What Is Is Needs Needs Analysis? Analysis?

Goal of Needs Analysis  Distribute limited resources  Calculate the “Expected Family Contribution” (EFC)  Analyze in a fair and equitable manner

Need Calculation Cost of attendance (COA) Cost of attendance (COA) -Expected family contribution (EFC) =Financial Need =Financial Need

Cost of Attendance  Tuition and fees  Room and board  Books and supplies  Transportation  Technology equipment  Miscellaneous personal expenses

Expected Family Contribution Parent’s contribution from income Parent’s contribution from income + Parent’s contribution from assets +Student’s contribution from income +Student’s contribution from assets = Expected family contribution

Factors that Affect the EFC  Number in household  Number in college  Taxed and untaxed income  Taxes paid  Assets  Type of tax return filed  Age of older parent  Number of wage earners

Dependency Status  To be considered an independent student: - Age 24 by 12/31 of the award year, or -Orphan, ward of the court, or -Veteran, or -Currently serving on active duty in the U.S. Armed Forces or, -Graduate or professional student, or -Married, or

Dependency Status  To be considered an independent student: –Supporting a child, or –Supporting someone other than a child, or –Foster child, or –Emancipated minor, or –Child in legal guardianship, or –Unaccompanied youth who was homeless

Financial Aid Programs

Federal Pell Grant  Foundation of aid package  Awarded to lowest EFC’s  Unaffected by student’s other aid  Portable

Federal Pell Grant Eligible students include –Undergraduate students without a baccalaureate or first professional degree –Full-time to less than half-time students –Certain students enrolled at least half-time in post baccalaureate teacher certification or licensing programs Ineligible students include - Students incarcerated in federal or state penal institutions

ACG  Academic Competitiveness Grant  Eligible students include -U.S. citizen or eligible non-citizen -Attending 2 yr. or 4 year school -Enrolled at least half-time in first or second year -Be Pell eligible -Have completed a rigorous secondary school program -Have at least a 3.0 GPA at the end of the first year

SMART  National Science and Mathematics Access to Retain Talent Grant Program  Eligible students include - U.S. citizen or eligible non-citizen -Enrolled at least half-time in third or fourth year -Be Pell eligible -Major in physical life, computer science, math, technology, engineering or certain foreign languages

Campus Based Programs  Federal Supplemental Educational Opportunity Grant –FSEOG  Federal Work Study –FWS

Campus Based Program  Federal funds allocated to schools annually  Institutional match is required  School selects recipients  Awards are not portable  Not all schools participate in all programs

Federal Student Loans  Federal Stafford Loan –Subsidized –Unsubsidized –Not credit based  Federal PLUS Loan –Parents –Graduate and professional students –Credit based

Other Federal Programs  Federal income tax credits American Opportunity Credit American Opportunity Credit Up to $2500 Up to $2500 Up to 4 years- Up to 4 years- Lifetime learning credit Up to $2000 Up to $2000 Any postsecondary education and training Any postsecondary education and training

Non Federal Aid  Grants –Institutional –State –Private  Scholarships –Institutional –State –Private

Applying for Financial Aid

FAFSA Free Application For Federal Student Aid Collects family’s personal and financial information Calculates the EFC English and Spanish Filed two ways Paper FAFSA

FAFSA on the Web (FOTW)   First available l/l/2010 for  FOTW worksheets available –Use as pre-application worksheet –Questions follow the same order as the web application  Early estimates available –Via FAFSA Forecaster –FAFSA4caster.ed.gov

Things to Watch Out For  Incorrect social security number  Divorced/separated parental information  Income earned by parents/step-parents  Untaxed income  U.S. income tax paid  Household size  Number of household members in college  Real estate and investment net worth

Special Circumstances  Also know as –Professional judgment (PJ) –Extenuating Circumstances  Use if FAFSA does not accurately portray current financial picture

Special Circumstances  Adjustments can be made on a case-by- case basis –Cost of attendance –FAFSA data elements –Dependency override –Unsubsidized Stafford Loan only option  Parents refuse to complete FAFSA  Parents are no longer providing support Decision is up to each school

The Award Letter  Sent by each financial aid office  Includes –Estimated costs –EFC –Financial need –Amounts and types of financial aid offered –Instructions on what needs to be done next  Students should compare net cost

Questions?