Slide 1A - 1 Welcome to Wellesley College MASFAA “Just the FACTS” Core Training Materials adopted from the NASFAA Core Training Lynne Myers, Director of Financial Aid, College of the Holy Cross Kendra Lider-Johnson,, MEFA Day One ~ December 4, 2012

Slide 1A - 2 Housekeeping Details Introductions Restrooms Lunch Schedule / Location Technology Reminders (beepers, phones, etc.) Extra Supplies Questions (today and after today)

Massachusetts Association of Student Financial Aid Administrators Just the FACTS! Presents… Overview of the Student Aid Programs Module 1A

Slide 1A - 4 What is Financial Aid? Financial aid is money supplied by a source other than the family to assist with the costs of a student’s postsecondary education.

Slide 1A - 5 The Basics What is financial aid –Need-based –Non need-based

Slide 1A - 6 Types and Sources of Aid Types of Aid –Grant & Scholarship –Loan –Employment –Other Sources of Aid –Federal –State –Institution –Private

Slide 1A - 7 Need Analysis Formula Cost of attendance (COA) –Expected family contribution (EFC) =Need

Slide 1A - 8 Cost of Attendance Determined annually by school Varies from school to school Includes basic components and may also include allowances based on the needs of individual students

Slide 1A - 9 Cost of Attendance Includes the following basic components: –Tuition and fees –Room and board –Books and supplies –Transportation –Miscellaneous personal expenses –Other expenses

Slide 1A - 10 Cost of Attendance More details next week………

Slide 1A - 11 Student Eligibility Student must meet general eligibility criteria, including but not limited to: Be U.S. citizen or eligible noncitizen Be regular student in eligible program at an eligible school Not owe overpayment or be in default on Title IV grant or loan Maintain satisfactory academic progress

Slide 1A - 12 Student Eligibility More details next week………

Slide 1A - 13 Title IV Programs Federal Pell Grant Program Teacher Education Assistance for College and Higher Education (TEACH) Grant Program Iran and Afghanistan Service Grant

Slide 1A - 14 Title IV Programs Campus-Based Programs –Federal Supplemental Educational Opportunity Grant (FSEOG) Program –Federal Work-Study (FWS) Program –Federal Perkins Loan Program Federal Direct Student Loan (Direct Loan) Program

Slide 1A - 15 Federal Pell Grant Program “Foundation” of aid package Awarded to students with lowest EFCs Unaffected by student’s other aid Portable

Slide 1A - 16 Federal Pell Grant Program Eligibility criteria: Undergraduates without baccalaureate or first professional degree Less-than-half-time students are eligible

Slide 1A - 17 Federal Pell Grant Program Eligibility criteria: –Certain students enrolled at least half time in post- baccalaureate teacher certification or licensing programs –Students incarcerated in federal or state penal institutions are ineligible award amounts –Minimum = $555 –Maximum = $5,550

Slide 1A - 18 Teacher Education Assistance for College and Higher Education (TEACH) Grant Program Incoming undergraduate students must have a 3.25 GPA or score above the 75 th percentile on an admissions test –GPA requirement does not apply current teachers earning graduate degrees and retirees from other professions –Continuing undergraduate students must maintain 3.25 GPA Sign agreement to serve as a highly qualified full- time teacher in a Title I school for at least 4 academic years within 8 years of graduation

Slide 1A - 19 TEACH Grant Program If recipient does not fulfill service agreement, funds become a Direct Unsubsidized Stafford Loan Repay with interest accruing from date funds received

Slide 1A - 20 TEACH Grant Program Maximum full-time annual award: $4,000 Undergraduate and postbacculaureate students may receive up to a total of $16,000 Graduate students may receive up to a total of $8,000 (excluding amount received at undergraduate level

Slide 1A - 21 Iraq and Afghanistan Service Grant Starts with the award year Non-need based grants Made to qualifying student with parent/guardian who died as a result of U.S. military service in Iraq or Afghanistan after September 11,2001

Slide 1A - 22 Campus-Based Programs Funds allocated annually to schools (Institutional match required) School selects recipients Awards are not portable

Slide 1A - 23 Federal Supplemental Educational Opportunity Grant Program (FSEOG) Student Eligibility: –Undergraduate (including part time) without baccalaureate or first professional degree –“Exceptional financial need” (lowest EFCs) –Priority to Federal Pell Grant recipients Annual amounts:$100 minimum $4,000 maximum

Slide 1A - 24 Federal Work-Study Program Student Eligibility: –Undergraduate and graduate or professional degree students –Students must be paid at least minimum wage (higher of Federal or State) –No minimum enrollment

Slide 1A - 25 Federal Perkins Loan Program Student Eligibility: –Undergraduate and graduate or professional degree students –Priority for “exceptional financial need” –Willingness to repay –Determination of Federal Pell Grant eligibility, if undergraduate student

Slide 1A - 26 Federal Perkins Loan Program Interest rate: 5% No loan fees Annual loan limits –$5,500: undergraduate –$8,000: graduate or professional degree student

Slide 1A - 27 Federal Direct Loan Programs Federal Direct Stafford Loan Federal Direct Unsubsidized Stafford Loan Federal Direct PLUS Loan –PLUS Loan is available for graduate students

Slide 1A - 28 Federal Direct Loans: Program Components Subsidized loans: need-based –Interest paid by federal government during in-school, grace, and deferment periods Unsubsidized loans: non-need-based –Interest paid by student –Interest may be paid as it accrues during in-school, grace, or deferment periods or be capitalized (added to principal)

Slide 1A - 29 Federal Direct Loan Program Subsidized Stafford Loans first disbursed on or after July 1, 2012, and before July 1, 2013, to undergraduate students –Fixed rate of 3.4% All other Stafford Loans first disbursed on or after July 1, 2006: –Fixed rate of 6.8%

Slide 1A - 30 Direct Loan Programs Interest Rates Direct PLUS interest rates: –Fixed rate of 7.9%

Slide 1A - 31 Federal Direct Loan Programs Annual loan limits apply to academic year Base annual Stafford Loan limits: – $3,500 for first-year undergraduates – $4,500 for second-year undergraduates – $5,500 for third- and subsequent-year undergraduates –$8,500 for graduate and professional students –$2,000 of unsubsidized eligibility

Slide 1A - 32 Other Federal Resources Corporation for National and Community Service Department of Veterans Affairs Reserve Officer Training Corps (ROTC) Department of the Interior/Bureau of Indian Affairs (BIA) Grants Vocational rehabilitation services

Slide 1A - 33 Department of Health and Human Services Programs Nursing Student Loan (NSL) Health Professions Student Loan (HPSL) Primary Care Loan (PCL) Scholarships for Disadvantaged Students (SDS) Loans for Disadvantaged Students (LDS) National Health Service Corps (NHSC) Scholarships