1. WHAT IS FEDERAL STUDENT AID?  Federal Student Aid, a part of the U.S. Department of Education, is the largest provider of student financial aid in the nation.  Provides more than $150 billion in federal grants, loans, and work-study funds each year to more than 15 million students paying for college or career school. 1

2. 2 To be eligible for federal student aid, you must... Be a United States citizen or eligible non-citizen, with a valid Social Security number. Have a high school diploma, General Education Development (GED) or equivalent home school credential, or pass an approved “ability to benefit” test. Enroll as a regular student in an eligible degree or certificate program approved by the U.S. Dept. of Education. Register (or have registered) for Selective Service (applies to males between the ages of 18 to 25).

3. MERIT-BASED FINANCIAL AID  Based on academics, sports, music, planned area of study, etc.  Money from the college awarded by the admissions office  Money from private scholarship programs 3

4. NEED-BASED FINANCIAL AID Based on a family’s financial need 4 main types:  Grants: federal, state and institutional  Scholarships: institutional and private  Student employment: federal work study  Student loans 4

5. APPLYING FOR NEED-BASED AID Free Application for Federal Student Aid (FAFSA)  Complete starting in January of senior year; renew annually  Required for all federal aid  May be required for institution, state or private aid  www.fafsa.gov www.fafsa.gov 5

6. 6 WHAT DOES “NEED-BASED” MEAN? All colleges use a basic equation to determine financial need: College Costs – Expected Family Contribution = Student’s Financial Need College Costs Tuition, Fees, Books & Supplies, Room & Board, Transportation, Miscellaneous expenses Expected Family Contribution The amount the Federal Government determined you & your family can contribute Student’s Financial Need If the result is positive (college costs more than you can contribute), then you have demonstrated “financial need.”

7. 7 EXAMPLES OF NEED-BASED AID  Federal and state grants  Do not have to be repaid  Some state grants require a certain GPA  Work-study  Money earned by the student through on- or off-campus jobs  Subsidized student loans  Low interest and interest deferred until 6 months after graduation  Parent loans  Low interest

8. EXAMPLES OF NEED-BASED AID  Some college and state-funded scholarships and most private scholarships  Unsubsidized student loans  Low interest and interest accrues while still in school 8

9. STUDENT EMPLOYMENT  Federal work study (need-based)  Student employment services (not need-based)  Students work part time  usually on campus  Wages help with smaller costs and incidentals (books, supplies, food, entertainment)  Students gain work and time-management experience 9

10. FEDERAL STUDENT LOANS  Federal Perkins Loan  Federal Stafford Loan  Subsidized  Unsubsidized  Favorable interest rates and repayment terms  Borrow only what you absolutely need 10

11. HOW THE FAFSA WORKS Family submits the FAFSA soon after January 1 of student’s senior year (Renew it every year student is in school) Federal government returns a Student Aid Report (SAR) to the family and target schools Federal government calculates the family’s Expected Family Contribution (EFC) 11

12. 12 WHAT HAPPENS AFTER APPLYING?  The federal FAFSA processor sends a Student Aid Report (SAR) to the student  Information is sent from the colleges and universities to the student in the form of:  follow-up requests for information  preliminary aid estimates  financial aid offer letters

13. COMPARING COLLEGE COSTS PUBLICPRIVATE Cost of attendance$19,000$39,000 EFC-$3,000 Financial aid need$16,000$36,000 Pell grant$2,400 Work study$2,000 Scholarship(s)$2,500$19,000 Stafford loan$3,500 Financial aid package$10,400$26,900 Cost of attendance$19,000$39,000 Financial aid package-$10,400-$26,900 Actual family cost$8,600$12,100 Actual family cost$8,600$12,100 EFC-$3,000 Unmet Need$5,600$9,100 13 Sample Packages with EFC = $3,000

14. 14 HOW MUCH IS EXPECTED FROM THE PARENTS?  Expected Family Contribution  The amount expected from parents  Varies from family to family according to the ability to pay  derived from information submitted in the FAFSA (Free Application for Federal Student Aid)

15. 15 WHERE CAN I GET MORE INFORMATION? Websites  U.S. Department of Education www.studentaid.ed.govwww.studentaid.ed.gov  The College Board www.collegeboard.comwww.collegeboard.com  Electronic FAFSA: www.fafsa.ed.govwww.fafsa.ed.gov  FinAid: The SmartStudent Guide to Financial Aid: www.finaid.orgwww.finaid.org  FastWeb www.fastweb.comwww.fastweb.com  Collegiate Athletics: www.ncaa.orgwww.ncaa.org