1. Financial Aid Explained
Alycia Kaiser
2017

2. Contents: What is Financial Aid? How is Financial Aid determined?
What is available?
How do I apply?

3. Financial Aid Defined
Financial assistance to help cover college expenses such as:
Tuition and fees
Books and supplies
Transportation
Room and board
Personal expenses
To receive federal student aid, you’ll need to…
Qualify to obtain a college or career school education, either by having a high school diploma or General Educational Development (GED) certificate, or by completing a high school education in a homeschool setting approved under state law
Be enrolled or accepted for enrollment as a regular student in an eligible degree or certificate program
Be registered with Selective Service, if you are a male (you must register between the ages of 18 and 25)
Have a valid Social Security number
Sign certifying statements on the Free Application for Federal Student Aid (FAFSA) stating that
- you are not in default on a federal student loan and do not owe a refund on a federal grant and
- you will use federal student aid only for educational purposes
Maintain satisfactory academic progress in college or career school
Tuition and fees covers: lab fees, parking fees, activity/sport fees
Books and supplies covers: computer, pens, notebooks, etc
Personal expenses covers: cell phone, clothing, dorm necessities
Overview of the Financial Aid Process

4. Determining Your Financial Aid
Cost of attendance (COA) - determined based on the school
Expected family contribution (EFC) – based on family’s income, # of family members in college, net value of assets, and enrollment status Does not vary
Financial Need – what schools will base your financial aid package on (the most need=the most award)
Types of Federal Student Aid Available

5. Types of Financial Aid Available
Grants
Employment/Work Study
Scholarships
Federal Loans
Private Loans
FAFSA=Grants, Work Study, Federal Loans
Need to apply separately for private loans and scholarships

6. Scholarships Does not have to be paid back Usually merit-based
Apply for all that you meet the requirements for
Plan ahead and pay attention to deadlines
Beware of scams! – you should never pay a fee or give account information for an application
Search and apply after each semester
Merit-based – GPA, Volunteer hours, etc.
Some scholarship require essays, writing samples, portfolios, so plan ahead to meet deadlines
Make sure deadline specifies postmarked by or received by and get it in on time
Scams – report to National Fraud Information Center or Federal Trade Commission
New scholarships are available all the time and you may meet requirements you didn’t before such as GPA or club involvement

7. Loans Borrowed money that must be paid back Two types:
Only borrow what you need
Two types:
Federal Loans
Private Student Loans

8. Federal Loans Applied for by filling out the FAFSA Low interest rates
Subsidized
Federal government pays interest while student attends school
Payments begin 6 months after leaving school
Unsubsidized
Begin paying interest as soon as funds are disbursed
Any interest not paid while student is in school will be added to loan principal
If a student drops below half-time or takes a leave of absence, they begin using their 6 month grace period.
Types: (all loan rates are fixed)
Federal Perkins Loan – school-based (your school will be the lender), need-based, for undergraduate students, interest rate of 5%, not all schools participate
Direct Subsidized Loan – Department of Education will be the lender, for students who are enrolled at least ½ time, interest rate is 4.66%, student is not charged interest unless they leave school/graduate or drop to less than ½ time
Direct Unsubsidized Loan – same as subsidized, but interest starts being changed once loan is disbursed, student can choose to make interest payments while in school or let it accrue, any accrued interest will be added to the students loan principal and they will pay interest on the new total amount after graduation
Direct PLUS Loan – for parents of dependent undergraduate students, student must be enrolled at least ½ time, interest rate is 7.21%, borrower must have good credit history, payments begin once loan is disbursed

9. Applying for the FAFSA You will need:
FSA ID – electronic signature (DO THIS IN ADVANCE!)
Social Security Card
ID or permanent resident card
W-2 forms and any other income reports
Tax documents - if you have not filed yet, you can estimate based on last years info and make changes later
The Free Application for Federal Student Aid
Used by state and colleges to determine your financial aid packages – state and college-based aid is 1st come, 1st serve so apply early
The FAFSA ID is new this year, previously you could get a pin and immediately complete the FAFSA application. This year, you and your student will need to get a FAFSA ID at least 3 business days prior to filling out the application. This was changed to help prevent identity theft.
IRS Retrieval Tool – prefills answers from Federal Income Tax documents, can be used to update FAFSA if taxes were filed after the application was sent, when filling out the FAFSA you will be xfred to the IRS website to use the tool and then xfred back to your FAFSA
How To Fill Out The FAFSA

10. Which parents need to be included?
Many students ask which of their parents or guardians need to be part of their FAFSA application. Anyone who is not a parent or has not legally adopted the student does not need to be included on the application, with the exception of stepparents as shown on this chart. More information about different situations can be found on the FAFSA website.
Determining Your Dependency Status

11. IMPORTANT DEADLINES Federal Deadline – June 30, 2018
Michigan Deadline – March 1, 2018
Opened October 1, 2017 – use 2016 tax info
College Deadlines – Check with college financial aid offices to find out

12. What Happens Now? SAR – Student Aid Report
Could be chosen for verification
Review for accuracy and report any changes
Report any scholarships to college financial aid office
Award Letters
Decide on college and accept award
Need to reapply for financial aid every year!
About one-third of FAFSAs are selected for verification. The process requires submitting ​additional documents to the financial aid office in order to support information entered on the form.

13. Helpful Resources https://fafsa.ed.gov/ http://www.fastweb.com/
Fill out the FAFSA here
Answers all questions about what’s available
Search Federal Student Aid to watch videos explaining each step in the process
Search tool for all scholarships that your student is qualified to apply for
Grants and scholarships for Michigan residents

14. Helpful Resources www.studentaid.gov www.studentloan.gov
GRANTS
Michigan Student Aid Customer Care
Helps you search for scholarships