1. Understanding Financial Aid Award Letters

2. Grant
Programs

3. Federal Pell Grant... Need-based grant
Uses: tuition, fees, room, board, living expenses
Amount of award is calculated by the college based on information from the Student Aid Report (SAR)
For , maximum award is $5,920
Key Points:
This grant is based on financial need.
During , the maximum amount a full-time student can receive is $4,050.
Maximum award for is $4,310
* FAFSA Required

4. Federal Supplemental Educational Opportunity Grant (FSEOG)
Need-based grant
Maximum award of up to $4,000 based on availability of funds at the college
Must be enrolled at least half-time
Key Points:
Another federal grant based on financial need.
Eligible students can receive up to $4,000.
Students MUST have exceptional financial need.
Schools receive very limited funding for this program, so it is important to apply for financial aid early.
* FAFSA Required

5. Illinois Monetary Award Program (MAP)
Need-based grant
Pays tuition and mandatory fees up to $4,968 for
Must be a legal resident of Illinois
Be an undergraduate student enrolled for at least 3 credit hours and a maximum of 15 credit hours
Students may not use more than 75 MAP paid credit hours during their freshman or sophomore year, nor exceed the limit of 135 MAP paid credit hours
Must attend an Illinois MAP-approved school
Making satisfactory academic progress
Key Points:
The largest Illinois grant program is the Monetary Award Program, or MAP.
This need-based grant can only be used by Illinois residents attending a MAP approved Illinois school.
The maximum amount for is $4,968 for students taking 15 credit hours. This amount is set for each academic year based on funding from the Illinois General Assembly.
* FAFSA Required

6. Employment

7. Federal Work-Study (FWS)
Need-based employment program for undergraduate and graduate students
Provides jobs on- and off-campus
Students earn at least current minimum wage
Students normally work a maximum of 20 hours per week
Key Points:
Federal Work-Study is a job through the college that can be on or off campus.
It is awarded based on financial need. The student must complete the FAFSA.
Freshman students usually work an average of hours per week.
Federal Work-Study earnings are not counted as income when determining aid eligibility for future academic years.
* FAFSA Required

8. Federal Loan
Programs

9. Federal Perkins Loan Need-based student loan Campus based
5% fixed interest rate
Eligible undergraduates may borrow up to $5,000 annually
Repayment begins 9 months after graduation or if student drops below half-time enrollment
Eligibility is determined by the college
Key Points:
This is a need-based student loan.
The student must file a FAFSA for consideration.
The loan is administered by the college.
Not all colleges participate in the Federal Perkins Loan Program.
* FAFSA Required

10. Federal Stafford Loan
Low-interest loan the student takes out on his/her own behalf
Fixed interest rate, 3.76%
Repayment begins 6 months after the student graduates or falls below half-time enrollment
Key Points:
The Federal Stafford loan is a low interest loan that the student borrows.
The student must file a FAFSA for consideration.
The interest rate is fixed. Beginning July 1, 2006, the rate is 6.8%.
Students have a six month grace period before repayment begins after they graduate, withdraw or drop below half-time.
* FAFSA Required

11. Federal Stafford Loans (Subsidized vs. Unsubsidized)
Financial Need
Subsidized = need based
Unsubsidized = not based on need
Payment of Interest
Subsidized - federal government pays while student is in college and during grace/deferment periods
Unsubsidized - payment is always student’s responsibility
Key Points:
There are two types of Federal Stafford loans - subsidized and unsubsidized.
Eligibility for the subsidized Federal Stafford loan is based on financial need and the federal government pays the interest on the loan while the student is in school.
Eligibility for the unsubsidized Federal Stafford loan is not based on financial need and the student is responsible for the interest while in school.
Independent students may be eligible for additional unsubsidized Federal Stafford loan money. Contact the financial aid office.

12. Federal PLUS Loan Parent is the borrower Fixed interest rate, 6.31%
Maximum loan amount is the cost of attendance minus all financial aid received for the student
Approval subject to a credit check
Repayment begins within 60 days after the loan is disbursed
Parent is responsible for repayment
Key Points:
The parent is the borrower, subject to a credit check, and will begin repaying the PLUS loan within 60 days after the loan is fully disbursed.
The PLUS loan has a fixed rate of 8.5%.
Maximum loan amount is the cost of attendance minus all financial aid received for the student.
Dependent students whose parents are not eligible to receive a PLUS loan may be able to borrow more money through the Unsubsidized Stafford Loan program. Contact the financial aid office for details.
* FAFSA May Be Required

13. Alternative Loan Student is the borrower May require co-signers
Variable interest rate, changes monthly or quarterly
Interest rate may become as high as 21%
Payments may be deferred while the student is enrolled at least half-time
Student may borrow up to the total cost of attendance less other aid
Borrowers must pass a comprehensive credit review process including credit scoring and proof of income requirements
Student and/or cosigner is responsible for repayment
Key Points:
Alternative loans – many schools have a preferred lender list – mention borrower benefits and service provided.
Useful for students that need to borrow in excess of Stafford Loan limits.
Can be used by students who don’t complete the FAFSA.
Student is responsible for repayment. Please note: A co-signer is equally liable and the loan appears on their credit report. Parent can help build the credit rating of the student.

14. + Tuition & Fees Room & Board Transportation Books & Supplies
What are the costs?
Tuition & Fees
Direct
expenses
Room & Board
Direct/Indirect expenses
Transportation
Indirect
expenses
Books & Supplies +
Miscellaneous Living Expenses
The staff in the financial aid office of the college(s) will establish a Cost of Attendance (COA), which is an estimate of expenses that are usually incurred by students attending college.
COA include things like tuition, fees, living expense (room and board), books and supplies, and transportation.
Your COA will differ from college to college - different types of colleges, programs they offer, and your preferred living arrangements.
Cost of Attendance (COA)

15. Expected Family Contribution
EFC
Expected Family Contribution
A need analysis formula established by Congress determines a student’s Expected Family Contribution; using information reported on the FAFSA.
What?
Why?
Where?
A comparative measure of how much a family can be expected to contribute over the course of an academic year
Used to determine a student’s eligibility for most federal and state assistance
Shown on the Student Aid Report (SAR), the output document sent to a student after the FAFSA is processed
To determine your financial need, the U.S. Department of Education uses a formula established by Congress called Federal Methodology. This need analysis formula uses information from the FAFSA to determine the amount that you and your family are expected to contribute towards your college education, which is called the Expected Family Contribution (EFC). Because it is based on family information, your EFC will remain the same regardless of the college you attend.

16. - = Financial Need How much aid can a student receive? (COA) (EFC)
Cost of
Attendance
(COA)
Expected
Family
Contribution
(EFC)
Financial
Need - =
COA – EFC = Financial Need
At each college, the financial aid office will calculate your financial need by subtracting the EFC from the COA. The EFC will be the same at each college, but the COA will differ from college to college. Keep this in mind:
COA (varies)
EFC (remains constant)
Financial Need (varies by college/university)
In many cases, the college may not be able to meet 100% of your financial need. The difference between the Financial Need and the amount of financial aid offered by the college is often known as the “gap” which the family also will be responsible for paying out-of-pocket.

17. (Expected Family Contribution)
Three Examples
EFC
(Expected Family Contribution)
COA
(Cost of Attendance)
Financial Need
College A
$10,000
$3,000
$7,000 - =
College B
$20,000
$3,000
$17,000 - =
The examples on the screen show how financial need is calculated and how it will vary from college to college based on COA. Remember your EFC will be the same at each college, but your COA will be different. As a result your financial need will not be the same at every college.
College C
$35,000
$3,000
$32,000 - =

18. The Financial Aid Process
Complete FAFSA
Receive and review the Student Aid Report
Complete verification process (if selected)
Receive and review
Award Offer
Respond
to college
Complete all pending processes
Renew FAFSA
every year
Do not become overwhelmed by the sticker price of a college, it may not be what is seems. Here are a few steps to remember... 
It is never too early to start planning for the future
The first step in the financial aid process is the FAFSA
Receive, review, and edit the Student Aid Report as appropriate - check with the financial aid office first.
Consider award offers
Respond to college offers by designated deadlines
Advise school(s) of outside scholarships
Renew the FAFSA every year

19. The process continues….
Department of Education’s Central Processing System
FAFSA Submitted
EFC Calculated – Need Analysis created
SAR – reports your eligibility for programs to you & schools
Grant eligibility calculated
Schools receive your results
Schools produce Award Letters (Aid Packages)
You Compare Award Letters
Determine true cost of school & make choices

20. Financial Aid Award Letter
Outlines Financial Aid Package” offered
Official notification from school about financial aid, terms, and conditions
Term-by-term breakdown for your aid
Lists the type, amount and source of each award to be received
Shows your total Cost of Attendance (COA) and Expected Family Contribution (EFC)

21. Financial Aid Award Letter
Describes what must be done to accept or reject any award
Ask you to accept or decline awards that have been offers
Sign and return
Asks you to complete additional requirements for loans
Complete MPN’s for loans, Entrance Counseling
Discloses students rights, responsibilities, and academic requirements

22. Financial Aid Award Letter
How to access?
Via
Postal mail
Online through secure web portal (myccc.edu, UIC net)
When will you receive
Soon upon being admitted (Mid March – April)
What do I do next?
Review & compare each financial aid award letter
Accept or decline awards that have been offered
Complete additional requirements for loans

23. Is “Financial Need” the same at all institutions?
NO!
“Financial Need” is determined using the cost of attendance at individual institutions.
College “A”
COA $26,000
EFC ,000
College “B”
COA $12,500
EFC ,000
Key Points:
Financial need will be different at each college based on the cost of attendance.
The financial need will be higher if the cost of attendance is more expensive.
In this example, you will notice the EFC of $5,000 does not change as the student considers different colleges, however, the financial need changes greatly.
College A = St. Francis (4 Yr Private) College B = UIC (4 Yr Public)
FINANCIAL NEED
$21,000
FINANCIAL NEED
$7,500