1. Important information regarding
Financial Aid
Introduction
Christina Maggart
Financial Aid Counselor at Anderson University
15 years at AU, 4th year in financial aid
Anderson University
Student Financial Services
Presented by: Chris Maggart November 1, 2018

2. Topics for discussion What is financial aid?
Applying for financial aid
What is financial need?
How is financial need determined?
How is financial need calculated?
Types of financial aid
Types of financial aid – review the different types and how they are figured w/need

3. What is financial aid?
Financial aid is “any grant or scholarship, loan or paid employment offered to help a student meet his/her post-secondary (college) expenses.”
Grants Scholarships
Loans Tuition reimbursement
Employer benefits Veteran benefits

4. Applying for financial aid
To apply for most financial aid, students will need to complete the FAFSA (Free Application for Federal Student Aid).
The FAFSA is a form used by the federal and state government along with most colleges and universities to determine need based financial aid.
Filed online
Students and parents need a FSA ID to sign FAFSA using unique address
Indiana residents required to have filed by April 15 to be considered for state aid
Fill out your FAFSA
If taxes aren’t completed by March 10 – file an estimate
Correct after taxes are complete
FAFSA allows for data retrieval directly from the IRS website

5. myStudentAid Mobile App
Available for download from the Apple App Store (iOS) and Google Plan (Android)
Complete the FAFSA safely and securely from mobile device
Edit and manage an FSA ID
View federal student loan and aid history
If taxes aren’t completed by March 10 – file an estimate
Correct after taxes are complete
FAFSA allows for data retrieval directly from the IRS website

6. College Goal Sunday
College Goal Sunday is a program that helps college-bound students complete the FAFSA. On-site assistance from financial aid experts, primarily from Indiana colleges and universities.
Date: Sunday, February 24, 2019
Time: 2:00 p.m. (local)
Location: Various
Visit
Ivy Tech Community College
815 E. 60th Street
Anderson, IN 46013
Several Indianapolis locations including:
Westfield High School
Ivy Tech Community College (Fall Creek & Avon)

7. Expected Family Contribution
The Expected Family Contribution (EFC) is used to determine an applicant’s eligibility for need-based federal student aid, and in many cases, state and institutional aid. The EFC is a measure of your family’s financial strength and is calculated according to a formula established by law.

8. Financial Need Determination
The financial aid staff will determine the cost of attendance (COA) at the applied school.
Tuition and applicable fees
Housing
Meal services
Books, personal, travel
The EFC is subtracted from the COA to determine the financial need.
The financial aid cost of attendance is NOT the actual cost to attend. It is a budget number that is set up to help colleges know that MAXIMUM amount of financial aid a student may receive.

9. Need calculation Cost of Attendance — (Expected Family Contribution)
= Financial Need
Cost of attendance will vary from school to school.
EFC will stay the same from school to school.
Financial need is used to determine if a student qualifies for need based aid.
COA is maximum financial aid to be packaged
Financial Need amount is the maximum amount of need based aid

10. Types of financial aid Grants (federal, state, institutional)
Scholarships (Academic, athletic, external, internal, church, etc.)
Loans (Federal, private)
Work Study (campus employment)

11. Federal Grant Information
Federal Pell Grant
maximum grant is $6,195 to students with an EFC of $0.
Pell grant will follow student
Supplemental Educational Opportunity Grant
Federal campus-based aid awarded to students with exceptional need
Maximum grant $4,000
School participation varies

12. Teacher Education Assistance for College and Higher
TEACH Grant
Teacher Education Assistance for College and Higher
Must agree to teach full-time in high-need subject area for four years (within 8 years of graduating) at a school that serves students from low-income families.
Failure to complete service obligation will convert grant to an unsubsidized loan.
Loan must be repaid with interest charged from date first disbursed.
$4,000 annual award
Reduced by 6.2% for because of Sequestration ($3,752)

13. Frank O’Bannon Grant (State Financial Aid – Indiana)
Frank O’Bannon Grant is awarded to full-time, diploma-seeking residents that demonstrate financial need.
Maximum initial annual award for :
Private - $9,000 (Freedom of Choice Grant)
Public - $4,500 (Higher Education Grant)
Proprietary/Ivy Tech - $3,400
Students maintain SAP (Satisfactory Academic Progress) and complete:
24 credit hours each year - full-time renewal
30 credit hours each year - on-time renewal

14. 21st Century Scholarship http://www.in.gov/21stcenturyscholars
The 21st Century Scholarship is a need and performance based program that provides students the opportunity to earn up to a four-year scholarship at an Indiana college or university.
Students enroll during middle school and must maintain compliance throughout high-school,
Must be full-time, maintain minimum GPA, and complete 30 credit hours for renewal,
Full tuition at public schools, comparable amounts at private schools, proprietary (for-profit) reduced to amount awarded to Ivy Tech

15. Federal Work Study
Federal Work Study provides part-time employment to students who demonstrate financial need.
Maximum 15 hours per work earned wages
Federal minimum wage ($7.25 per hour)
Campus employment
Authorized agencies (federal, state, local, private non-profit, or private for profit)

16. Federal Direct Loans
Direct loans are student loans provided by the federal government through a service provider.
Student is the borrower; no approval/co-signer required,
Complete entrance loan counseling and master promissory note to accept loans,
Payments deferred until 6 months after date of last attendance,
Current interest rate – fixed 5.05%, updated July 1 annually
Origination fees – 1.062%

17. Federal Direct Loans (cont.)
Subsidized based on financial need
Interest does not accrue during enrollment
Unsubsidized based on no/lower financial need
Interest accrues during enrollment
Undergraduate limit: $31,000 (dependent), $57,500 (independent)
Subsidized
Unsubsidized
Maximum Annual
Freshman
$3,500
$2,00
$5,500
Sophomore
$4,500
$2,000
$6,500
Junior
$7,500
Senior

18. Federal Direct Loans (cont.)
Federal Direct PLUS Loan
Parent loan (parent/step-parent)
Credit based – approved based on the absence of adverse credit
Maximum amount available is cost of attendance minus awarded student aid
Payment deferment available upon approval
Current interest rate – 7.6%
Fixed rate for current loans
Interest rate updated July 1 annually
Origination fees – 4.248%

19. Private Loans Educational loan through private lenders
Student is borrower
Credit approval required
Co-signer may be necessary
Often a variable interest rate
Payments often deferred while enrolled
Check private lender for specific details

20. Institutional financial aid
Award aid on the basis of both merit and need Merit based
Athletic available at Division I & II
Aid may be gift aid or self-help aid
Use information from the FAFSA and/or institutional applications
Review school’s publications and web site
Deadlines and application requirements may vary by institution

21. Additional grants/outside scholarships
High school guidance counselor
Internet searches (fastweb.com, scholarship.com, myscholly.com, etc.)
Employers, both student and parent
Local Community Foundation office
College/University web sites
Bank trust offices

22. Frequently asked questions
I don’t/won’t qualify for financial aid. Do I still need to fill out the FAFSA?
Yes – it would be beneficial. Many colleges use the FAFSA for institutional aid. It may not be available without FAFSA. Also, most loans cannot be used without FAFSA.
Do I need to be admitted before I can apply for aid?
No. File the FAFSA – this will jump start the process. Most colleges will not award aid until admitted and enrolled.
Do I need to fill out the FAFSA every year?
Yes. The FAFSA must be filed each year. It becomes available after October 1.
Do I need to fill out a FAFSA for each child or can one FAFSA be used for all?
A FAFSA will need to be filled out for each child that is attending college.
The FAFSA shows a higher EFC that I cannot afford to pay.
The FAFSA’s estimated family contribution is a tool that helps schools determine a student’s financial need. It does NOT reflect the costs of each school. The EFC will be the same at every school a student applies to. Check with the school financial aid office for a better understanding of how it will impact the balance at that specific school.
I lost my job after I filled out the FAFSA. Will this make a difference?
Talk to the school about their process. A special circumstances form may be available.
I am divorced and my spouse claims our child on his/her taxes but she lives with me. How is the FAFSA filled out since she is not on my tax return?
The FAFSA should be filed on household information. It does not matter which parent claims the child as a dependent on their tax return. You use the household information of the parent that the child primarily lives with.