1. Financial Aid Packages– What now?

2. To Start… Let’s review the different types of financial aid…
Unsubsidized loans
Subsidized loans
Grants
Work Study
Scholarship

3. Remember…
Direct Subsidized Loans (Stafford Loans) are available to students with financial need
Government pays your interest until 6 months after school
Unsubsidized Loans– available to anyone, and do not require demonstrated financial need
YOU pay the interest– even during grace period it adds up

4. Financial Aid Packages
Best efforts of college or university to meet a student’s demonstrated need (FAFSA)
Although colleges do attempt to meet your full need, sometimes they do not have enough money to do so and a gap occurs
This is where different types of loans/financial aid comes into play

5. College A Tuition: 5,300 Room and Board: 8,000 Books: 900
Transportation: 600
Personal/Miscellaneous:** 1,200
Total Cost: $16,000
Less Estimated Family Contribution: 3,200
Need: $12,800

6. Financial Aid Package for A
State Grants: 4,700
Federal Grants: 2,200
Other Grant/Scholarship: 1,800
Federal Stafford (Subsidized) Loan: 2,100
Federal Work Study 2,000
Total Financial Aid Package: $12,800
32% Loan and Work, 68% Grant
100% of need met

7. College B: Out of State Tuition and Fees: 21,300 Room and Board: 8,000
Transportation: 900
Personal/Miscellaneous 1,200
Total Cost: $32,000
Less Estimated Family Contribution: 3,200
Equals Need—Eligibility for Aid: $28,800

8. College B Package State Grants: 4,700 Federal Grants: 2,200
Other Grant/Scholarship: 14,000**
Federal Stafford Loan: 3,500
Federal Work Study: 2,000
Total Financial Aid Package: $26,400
Percentage Loan and Work: 21%
Percentage Grant: 79%
Need Met: 92%** So what now?

9. Still Money Left…
If or when financial aid packages do not cover the entire cost of attendance, there are options:
Tuition payment plans: Bursar’s Offices offer payment plans (most schools) that split the year’s tuition into
For example:
Leftover tuition: $6,000
Semesterly, Quarterly Payment Plan
$3,000 due by first day of classes
$3,000 due by October 26th

10. What Else? Private Scholarships
Federal Direct PLUS loan– PLUS loans are not included in initial awards for some schools, but parents of the dependent may apply for this loan.
You may borrow up to the student’s total cost of attendance

11. What Else? Private Education Loan**
After exhausting ALL other opportunities including federal loans, you can consider a private loan
You may be able to obtain a better interest rate by applying with a credit worthy co-signer**

12. Private Loans...
Many private lenders may offer competitive interest rates and large sums of money
However, by law, federal student loans are required to provide a range of flexible repayment options– including income based payment plans or loan forgiveness benefits
What are these?

13. Private Loans Cont’d
Private loans are NOT required to provide these flexible options… meaning
Lots of interest
High payments—regardless of income
Heavy penalties
No consolidation**

14. Now– Accepting Aid
In order to accept or receive aid, there are a few steps:
On your portal, steps school requires
Promissory Note**
Full-time enrollment
No holds/outstanding fees

15. Your School
Go to your school’s financial aid website– and look at some of the sample financial aid packages/terms
Where do you fall?
What may you need to do in addition?
Are there any specific requirements needed to receive aid?