1. Howard Community College Financial Aid Services December 2016
Finding the Money Understanding Financial Aid For High School Guidance Counselors
Updated 12/18/15
Howard Community College Financial Aid Services December 2016

2. A college education matters!
Average annual earnings in 2015 for fulltime employees 25 to 34 years old by level of educational attainment:
Bachelor’s degree $59,124
Associate’s degree $41,496
High school diploma $35,256
*Those who earn an Associates degree earned 25% more than those with a high school diploma.
*Those who earned a Bachelor degree earned 68% more than those with a high school diploma.
Source:

3. Is cost a factor in choosing a college?
The College Board reports that the average annual tuition and fees by type of college is:
Private Colleges $ 32,410
Public 4 Year, In state $ 9,410
Public 4 Year, Out of State $ 23,890
Community College $ 3,440
*Other non-tuition expenses average another $10k to $15 per year.
That’s about $100,000 at a public,
in-state 4-year college live on campus and to earn a and earn a bachelor degree!
($125,000 for 5 years)

4. What is Financial Aid? Gift Aid Self-help Aid Grants Work-Study
Scholarships
Self-help Aid
Work-Study
Federal Loans

5. Sources of Financial Aid
Federal
Institutional
State
Private

6. Summary of Aid By Sources and Types Federal State College Private
Type of Aid
Federal
State
College
Private
Grants
Pell Grant;
SEOG Grant;
TEACH Grant
MD EA & GA Grants;
MD Part-Time Grant
College Grants
n/a
Scholarships
Senatorial/Delegate;
Several occupation-based scholarships
Donor Scholarships
Loans
Direct Loan
Programs
Bank Loans
Work-study
Federal Work-study
Institutional Work-study
N/A* - usually private sources are scholarship. One exception is employee benefits for tuition.

7. Federal Grants and Work Study
Pell Grant
Need-based (high need students only)
Up to $5,815/year for 2016/2017
Supplemental Educational Opportunity Grant (SEOG)
Up to $4,000/year – by school
Other Federal Grants
TEACH Grant
Iran and Iraq Service Grant
Federal Work-Study
Allows the student to work part-time and earn some spending money
Need-based
College identifies the jobs
Most but not all work-study jobs are on campus
Some jobs are tutoring and other community service positions
Students can earn up to $3000/year to help with miscellaneous costs
Option 1

8. Federal Loan Programs Direct Student Loans
Subsidized Loans (Need Based)
Government pays the interest while in school
Annual loan limits
For dependent students - $3500 freshman; $4500 sophomores; $5,500 juniors/seniors
Unsubsidized Loans
Interest accrues while in school
For dependent students – an additional $2000 per year
Parent PLUS Loan
Credit Based
Up to Cost of Attendance (COA) less other aid received

9. Maryland State Scholarship Programs
Grants and Scholarships
Maryland Higher Education Commission (MHEC) administers over 20 programs for the State of MD (
Parent and student must be Maryland State Residents.
For More Info on
MD State Scholarships…….

10. College Aid Grants Scholarships, including donor scholarships
Grants from the institution based on need
Scholarships, including donor scholarships
Awarded by the institution based on various criteria, such as:
financial need
academic merit
special skills or talents
volunteer experience
Work-Study
Institutional Work-Study

11. Private Sources of Aid Scholarship Funding From Private Organizations
Civic Organizations
Professional Associations
Private Businesses
Use reliable free scholarship search services
Private Sector Student Loans
Credit-based
Usually requires co-signers
Check with your local bank

12. What Application Forms?
For Federal Aid and MD State Scholarships
FAFSA (Free Application for Federal Student Aid)
Some state scholarships may require an additional application
For College Aid
Most colleges have a Scholarship Application
Some Schools require the College Board’s “PROFILE” for institutional aid
For Private Aid
Apply to the source
Your church, local community organizations, free scholarship search engines
*So the bottom line is TWO FORMS are most important –
the FAFSA and each college’s Scholarship Application.

13. When Should The Student Apply for Fall 2017/ Spring 2018 Aid?
FAFSA (for federal aid, MD state aid, and colleges’ need-based grant)
For Federal Aid - October 2016 through May/June 2018
For MD State Scholarships - by March 1, 2017 – FINAL DEADLINE!
Some MD State Scholarships have a separate application & deadline
For College Need-based Aid – check the website for each college for their deadline!
College-Specific Aid Applications (for scholarships and need-based grant)
Check the website for each college to find out their deadlines!!!
College’s Scholarship application deadline – for donor scholarships
PROFILE deadline (If required – private colleges) – for college need-based aid
The important deadlines are each college’s deadline for the TWO FORMS that are most important – The FAFSA and each college’s Scholarship Application.
Caveat – you can’t complete the FAFSA in June 2017 and be eligible for aid if the Spring term is over already.

14. A Little Financial Aid “To-Do” Chart
College 1
College 2
College 3
College 4
College 5
FAFSA used for college grant aid?
FAFSA deadline?
Is there a Scholarship Application?
URL for Scholarship Application?
Deadline for Scholarship Application?
PROFILE required?
Deadline for PROFILE?

15. Early FAFSA June 2016 January 1, 2016 2015 June 2017 October 1, 2016
Graduating senior from high school in:
The FAFSA will be available starting:
The FAFSA will use the following tax year information
June 2016
January 1, 2016
2015
June 2017
October 1, 2016
June 2018
October 1, 2017
2016
June 2019
October 1, 2018
2017

16. Federal Financial Aid Basic Eligibility Requirements
The student must:
Be a U.S. Citizen or Eligible Non-Citizen
Have a valid Social Security Number
Have a high school diploma or GED
Be enrolled in an eligible degree program
Other eligibility criteria, such as:
Not be in default on any Federal Student Loan
Be registered with Selective Service if you are required to be registered
Certify that you will use federal student aid for educational purposes
Maintain Satisfactory Academic Progress

17. FAFSA Application Completion Times
Academic Year
Completion Time AY
32 minutes AY
22 minutes AY AY
20 minutes AY
19 minutes AY
24 minutes
Per FSA Conference, 2015 – Federal Update

18. The FSA ID is forever— don’t forget it!
Applying for Federal Aid - Creating an FSA ID
Students need an FSA ID - a username and password combination that allows you to sign your FAFSA electronically.
Request an FSA ID at: fsaid.ed.gov
Once the initial process to request an FSA ID is complete, the student may begin work on the FAFSA at fafsa.ed.gov.
The FSA ID is will be serve as the student’s login ID for any federal financial aid purposes “forever ”.
The student and one parent/guardian must EACH obtain an FSA ID. Each FSA ID must be associated with a unique address. Parents and students cannot link two FSA ID’s to the same address.
UPDATE for next year:
Adding SMS/Text for Password & Username retrieval
Simplifying Account Management
The FSA ID is forever— don’t forget it!

19. FAFSA Filing Tips… Use the FAFSA On The Web at fafsa.gov
Click on “Start A New FAFSA” for AY
Students and Parents must BOTH apply for a FSA ID
The FSA ID serves as a valid electronic signature
Be sure to sign the FAFSA with both FSA IDs and hit the submit button
Have BOTH parent and student’s Social Security Number ready.
Social Security Number errors on the FAFSA can cost a lot of time to fix
FA applicants should put their SSN on their college admissions applications too!
Use the DRT option when completing your FAFSA if possible.
It allows tax information to be pulled directly from the IRS (IRS Data Retrieval Tool)
Complete all questions as accurately as possible
Don’t leave any questions blank
List at least 1 Maryland college on your FAFSA
UPDATE – Mobile responsive FAFSA for AY18-19!

20. AY16-17 Tax Transcript Requests
Many students are selected for “verification” by the Department of Education, and the school must require additional documentation such as tax information.
Tax documentation must be in the form of the IRS’ “Tax Transcript”. Students can obtain a Tax Transcript in these ways:
Online at the IRS website - Get Transcript by Mail
Automated phone tool ( )
Paper Form 4506T or 4506T-EZ will generate a paper transcript
Per FSA Conference, 2015 – Federal Update

21. COA EFC Will I Be Eligible for Aid? Financial Need
Cost of Attendance (COA)
Room & Board
Books & Supplies
Tuition & Fees
Transportation
Miscellaneous

22. X Expected Family Contribution (EFC) What is the EFC?
Output from the FAFSA
It’s a “number” or “Index” representing the dollar value that the family could be “expected” to contribute to the student’s COA, for the purposes of determining aid eligibility.
It’s NOT necessarily money that needs to be paid to someone by the parent or student, but it represents a dollar figure in the Need formula.
How is the EFC calculated?
It is calculated according to a formula established by federal law and does not change based on the institution you are attending
The EFC is based on the information you report on the student’s Free Application for Federal Student Aid (FAFSA)
Looks at family's taxed and untaxed income, assets, benefits, family size and number in college X

23. After filing the FAFSA…
1. The student will receive a Student Aid Report (SAR), which shows:
The information submitted in the FAFSA
The Expected Family Contribution (EFC)
If the student is federally selected for verification OR have “failed” any federal database matches, either of which will require the student to submit additional information to the college, so the college can verify or correct the FAFSA data.
2. The schools that listed on the FAFSA will receive the information electronically.
3. Financial Aid Offices will process the student’s FAFSA application
If the student needs to submit additional documents to verify the data submitted on the FAFSA, the college will notify the student. The student MUST check his/her college account!!!!
Respond in a timely manner to all information requests, or it will delay the process
The student will receive notification of your financial aid eligibility after your file has been reviewed and verified.
4. This application process can take up to 3 months at some colleges. So apply early!

24. Compare The Financial Aid Award Package Between Schools
Students should determine the cost to them for each college the student is interested in!
Since both the student’s total costs and the financial aid awards will differ from college to college, each student must compare to determine the “net cost” for the education at each school.
Tools for “Comparison Shopping”
Most schools use the Financial Aid Shopping Sheet to notify students of their costs and awards.
The College Score Card at collegescorecard.ed.gov
The Net Price Calculator will also help to compare the cost between schools. Students will find a link to this at each college’s website.

25. Example #1 – Cost Comparison
College A College B Cost $20,000 $40,000 Grant Aid $10,000 $20,000 Net Cost! $10,000 $20,000

26. Example #2 – Cost Comparison
College A College B
Tuition & Fees $ 20,000 $ 40,000
Dorms $ 10,000 $ 10,000
Dining $ 5,000 $ 5,000
Total Direct Costs $ 35,000 $ 55,000
College Grants $ 20,000 $ 30,000
Student Loans* $ 10,000 $ 25,000
Total Aid $ 30,000 $ 55,000
Net Balance Due $ 5,
To The College
Net Cost! $15,000 $25,000
*Student Loans are a cost to the student so we don’t subtract them from costs when determining the “Net Cost” to the student!

27. 529 Other Ways to Pay for College Tuition Payment Plans
529 Savings & Prepaid Tuition Programs
Parents with 529 plan must include the plan on the FAFSA as an asset of the parent.
Employer Tuition Reimbursement Plan
Military Tuition Assistance
Veterans Benefits
Tuition Waivers
529

28. Where can I find more information?
Each college’s financial aid office
Howard Community College’s Financial Aid Services Office
FAFSA Workshops at HCC or Your High School
Your high school counselors will let you know about these!
Websites
U.S. Department of Education —
Maryland State Scholarship —
National Center for Education Statistics –
Howard Community College’s Financial Aid Services department serves as a community resource for Howard County.
We are located in the Rouse Student Services Hall, RCF Find us online at

29. Thank you!
Questions?