Financial Literacy Education Workshop IV: Intro to Financial Aid Glow Foundation 2011 Online Version for Program Course Credit

Page 2 Agenda  FAFSA  Overview of Financial Aid (Scholarships, Grants, Work Study, Loans)  Junior Program Review  Closing/Questions

Page 3 Group Agreements  Commitment to Glow Foundation’s program  Be prompt and prepared for all Glow sessions (including HW items)  Reach out for help when needed  Respond promptly to s or phone calls  Share the information learned with family and peers  Be respectful (one mic)/confidentiality  Accountable for myself and the group success

Page 4 FAFSA: Free Application for Federal Student Aid  Apply EARLY in order to receive more federal and state aid (starting Jan 1 st before March 2 nd )  The FAFSA is used to apply for: Grants Work Study Federal Loans

Page 5 Materials Needed Your parents’ income tax forms Your income tax forms Driver’s License (if any) Social Security Number Current Bank Statements Permanent Resident Card

Page 6

Page 7 Preparing for Your Senior Year  Visit the FAFSA Website  Complete the FAFSA on the Web Worksheet  Talk to Parents About FAFSA  Apply for Scholarships

Page 8 Intro to Financial Aid  What is FINANCIAL AID? Money you RECEIVE (Free Money!) Money you EARN Money you BORROW Grants (Federal, State, or College) Scholarships Work Study Program Federal Loans Private Bank Loans But, before you can qualify for any type of federal aid, you need to…….

Page 9 What is a Scholarship?  Definition: Free money that is awarded based on merit  Some Facts: Privately Funded More Rigorous Application Process – Often Requires Essays/Rec. Letters/ Transcripts Varying Eligibility Requirements No Limits to the Number You Receive!

Page 10 Searching for Scholarships achers_SCHOL.html w.scholarships.com

Page 11 Scholarship Tips 1.Be organized 2.Be honest 3.Follow instructions carefully 4.Proofread your application 5.Keep copies of everything you send 6.Send in your application packet ASAP

Page 12 What is a Grant?  Definition: Free money that is awarded based on financial need  Some Facts: Generally Federally or State Funded Complete the FAFSA to Apply Requires a Social Security Number and Financial Need Multiple Grants can be Accepted

Page 13 What is Work Study?  Definition: A federally paid job where the money earned is used to pay for college expenses  Some Facts: Complete the FAFSA to Apply Based on Financial Need You Can Only Hold One Work Study Position at a Time

Page 14 Benefits of Work Study  Flexible schedule-employers know you are a student first  Many FWS jobs are in the fields of your major or areas of interest  Hourly wage can be higher than minimum wage  In some cases, you can study while you work (libraries, dining commons, gyms, etc.)  More job opportunities available to you

Page 15 What is a Federal Loan?  Definition: Borrowed money from the federal government that is to be paid back with interest  Some Facts: Complete the FAFSA to Apply Based on Financial Need, Not Credit Multiple Loans Can Be Taken Out

Page 16 Loans When would I need a loan? Things to pay attention to  How much to borrow  Interest rate  Fees & other costs  Repayment terms Subsidized vs. Unsubsidized Loans Federal Loans vs. Private Loans

Page 17 Loan Tips 1.Loan amount may depend on enrollment status 2.Choose federal before private 3.While in your repayment period, always pay at least the minimum balance 4.Make payments early or on time 5.DON’T BE INTIMIDATED!

Page 18 Junior Program Review  Orientation  FLE I - Money Management  FLE II - Bank Services  FLE III - Credit and Credit Cards  FLE IV - Intro to Financial Aid

Page 19 Recap  FAFSA  Overview of Financial Aid (Grants, Work Study, Loans, Scholarships)  Junior Program Review  Closing/Questions