1. What You Need to Know About Financial Aid Office of Student Financial Aid Montgomery College

2. Topics We Will Discuss… What is Financial Aid Cost of Attendance Expected Family Contribution Determining Financial Need Sources and Types of Financial Aid Free Application for Federal Student Aid Follow-up Steps/Resources Questions & Answers

3. What is Financial Aid? Financial aid is funds provided to students and families to help pay for postsecondary educational expenses.

4. What is Cost of Attendance (COA)? Tuition and fees Room and board Books and supplies Transportation Miscellaneous personal expenses Costs will widely vary from college to college

5. What is Expected Family Contribution (EFC)? Amount family can reasonably be expected to contribute Two components ▫Parent contribution ▫Student contribution Calculated using data from a federal application form and a federal methodology Stays the same regardless of college

6. What is Financial Need? Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need (Eligibility)

7. Need and Eligibility Depend on Cost Private 4-year COA $42,979 - EFC $12,000 = Need $30,979 Private 4-year COA $42,979 - EFC $12,000 = Need $30,979 Public 4-year COA $22,953 - EFC $ 12,000 = Need $ 10,953 Public 4-year COA $22,953 - EFC $ 12,000 = Need $ 10,953 Public 2-year COA $16,068 - EFC $12,000 = Need $ 4,068 Public 2-year COA $16,068 - EFC $12,000 = Need $ 4,068

8. Types of Financial Aid Gift Aid Grants Scholarships Self-Help Aid Employment Loans

9. Grants Money that does not have to be paid back Usually awarded on the basis of financial need

10. Scholarships Money that does not have to be paid back Awarded on the basis of merit, skill or unique characteristic

11. Employment Program provides student with employment Earned while attending school Money does not have to be repaid

12. Loans Money students and parents borrow to help pay college expenses Repayment usually begins after education is finished or when enrollment falls below required enrollment status Only borrow what is really needed Look at loans as an investment in your future

13. Sources of Financial Aid Financial Aid Federal Government State Government Educational Institutions Private Sources

14. Federal Government Largest source of financial aid Aid awarded primarily on the basis of financial need Must apply every year, beginning in the student’s senior year of high school, using the Free Application for Federal Student Aid (FAFSA)

15. Federal Government Check basic eligibility requirements: Be a U.S. citizen or eligible non-citizen Have a valid Social Security number Comply with Selective Service registration, if required (www.sss.gov for more information)www.sss.gov Have a high school diploma, a General Educational Development (GED) Certificate or pass an approved ability-to-benefit (ATB) test Be working toward a degree or certificate in an eligible program at a school that participates in the federal student aid programs Maintain satisfactory academic progress once in school

16. Federal Government Programs Federal Pell Grant Federal Supplemental Educational Opportunity Grant Teacher Education Assistance for College & Higher Education Grant Federal Work Study Federal Perkins Loan Federal Direct Loans (Stafford subsidized & unsubsidized) Federal Direct PLUS Loan

17. Federal Grant Programs Federal Pell Grant ▫Available for undergraduate students ▫Need-based grant ▫Awards up to $5,550 (2010-2011) Federal Supplemental Educational Opportunity Grant ▫For undergraduate students with exceptional financial need ▫Priority given to Pell Grant recipients ▫$100-$4,000

18. Federal Grant Programs Teacher Education Assistance for College & Higher Education Grant (TEACH) ▫Available to students who intend to teach in a high need field (Bilingual Ed., Foreign Language, Math, Science, Special Ed.) ▫Must agree to serve as a full-time teacher in a public or private elementary or secondary school that serves low- income students ▫Must commit to teach for four academic years ▫Failure to complete service obligation converts grant into unsubsidized student loan ▫Grants of up to $4,000 per academic year

19. Federal Work-Study Money earned while attending school Does not have to be repaid For undergraduate and graduate students Jobs can be on campus or off campus Students are paid at least federal minimum wage

20. Federal Perkins Loan Undergraduate students can borrow up to $5,500 9-month grace period; repayment period up to 10 years Deferment and cancellation provisions for teaching, nursing, law enforcement, etc. Priority given to those with exceptional need –Eligibility for Federal Pell Grant is determined first

21. Federal Direct Loans Subsidized Stafford (Need-based) Unsubsidized Stafford (Not need-based) Annual and aggregate loan limits 6-month grace period, repayment period varies from 10-25 years Not credit-based

22. Federal Direct Loans- Annual & Aggregate Borrowing Limits – YearType of LoanDependentIndependent 1 st Year StudentSubsidized$3,500 Unsubsidized$2,000$6,000 2 nd Year StudentSubsidized$4,500 Unsubsidized$2,000$6,000 3 rd & 4 th Year Student Subsidized$5,500 Unsubsidized$2,000$7,000 Aggregate Loan Limits $31,000 (Max. $23,000 Subsidized) $57,500 (Max. $23,000 Subsidized)

23. Federal Direct PLUS Loan Parents of dependent undergraduate students Approval subject to credit status check Loan Limits –Annual: COA less all other aid Not need-based

24. Federal Loans - Interest Rates Perkins - 5% Subsidized Stafford -  2010-2011 4.5%  2011-2012 3.4% Unsubsidized Stafford - 6.8% Direct PLUS Loan - 7.9%

25. Financial Aid Process Pre-FAFSA Tasks Completing the FAFSA Post- FAFSA Tasks FAFSA4caster PIN FAFSA Worksheet SAR Verification Follow-up

26. Pre-FAFSA Tasks Get information about financial aid programs Apply for a Federal Student Aid PIN (student & parent) www.pin.ed.govwww.pin.ed.gov Collect financial documents to complete FAFSA (income tax return, W-2 form, other records of income). Full list of what you need is at www.fafsa.ed.gov www.fafsa.ed.gov FAFSA on the Web Worksheet FAFSA4caster - www.fafsa4caster.ed.govwww.fafsa4caster.ed.gov ▫Early estimate of EFC

27. PIN Website

28. FAFSA on the Web Worksheet Used as “pre-application” worksheet Questions follow order of FAFSA on the Web 4-page booklet containing: ▫Instructions ▫4 sections

29. FOTW Worksheet – Section 1 General Student Information: Name Social Security Number Citizenship Marital Status Selective Service Registration Drug Conviction Status Parent’s Educational Background

30. FOTW Worksheet – Section 2 Student Dependency Status If all “No” responses, student is dependent If “Yes” to any question, student is independent

31. FOTW Worksheet – Section 3 Parent Information Social Security Number Name Date of Birth Dislocated Worker Status

32. FOTW Worksheet – Section 3 Financial data for parents of dependent students: Tax filing status Adjusted Gross Income (AGI) for 2010 Income earned from work Receipt of benefits from certain federal means- tested programs Additional financial information Untaxed income

33. FOTW Worksheet – Section 4 Financial data for student (and spouse): Tax filing status Adjusted Gross Income (AGI) for 2010 Income earned from work Dislocated worker status Receipt of benefits from certain federal means- tested programs Additional financial information Untaxed income

34. FOTW Worksheet – Additional Information A student may be asked to provide more information about: Parent’s assets and net worth Student’s assets and net worth

35. Filing out a FAFSA – www.fafsa.govwww.fafsa.gov

36. Post-FAFSA Tasks Receive a Student Aid Report (SAR) ▫SAR contains EFC Review SAR and make corrections if needed ▫Use PIN to make corrections ▫Corrections to estimated income ▫Add/Delete school codes Follow-up with schools ▫Verification process ▫Additional documents may be required ▫Communicate special circumstances to the school

37. State Government Residency requirements Awards based on merit and need Deadlines vary by state; check paper FAFSA or FAFSA on the web Use the information on the FAFSA

38. Maryland Maryland Higher Education Commission State deadline: March 1 st Maryland has financial aid programs based on financial need, merit or career track State aid may be used at public and private colleges/universities (primarily in MD)

39. Maryland Need based programs: Howard P. Rawlings ▫Educational Assistance Grant  Annual award $400-$3,000 ▫Guaranteed Access Grant  Annual award $400-$13,700 Part-time Grant ▫Annual award $200-$2,000

40. Maryland Legislative Scholarships: Senatorial Scholarships ▫Award amount varies ▫Contact Senator for application Delegate Scholarships ▫Award amount varies ▫Contact Delegate for application

41. Maryland Unique Major Funds awarded for the Senatorial and Delegate scholarships may be used at an out-of-state institution if the student’s academic program is not offered at a Maryland institution Review website for more information on how to apply www.mhec.state.md.uswww.mhec.state.md.us

42. Maryland Additional resources and information College 411: Student Guide An Academic Year: Preparing for College

43. Institutional Aid Programs Colleges offer their own grants and scholarships Need-based and merit-based programs Academic, athletic, and other talent-based scholarships and grants Institutional aid may be for only the fist year or renewable for subsequent years Contact the school’s admissions and financial aid office for applications and deadlines UNIVERSITY

44. Private Sources of Student Aid Private businesses Political and advocacy organizations Religious and social organizations Parent and student’s place of employment Foundations Unions Deadlines and application procedures vary widely Begin researching private aid sources early

45. Private Sources of Student Aid Internet Scholarship Searches ▫Provide a student profile ▫Receive scholarship information ▫Contact scholarship providers directly Scholarship Websites ▫www.collegeboard.com/payingwww.collegeboard.com/paying ▫www.fastweb.comwww.fastweb.com ▫www.collegequest.comwww.collegequest.com ▫www.finaid.orgwww.finaid.org ▫www.freescholarships.comwww.freescholarships.com ▫www.salliemae.com/scholarshipswww.salliemae.com/scholarships ▫www.college-scholarships.comwww.college-scholarships.com

46. CSS/Financial Aid Profile Financial aid application service of The College Board Used to award private grant & scholarship funds Check for a listing of participating institutions/ scholarship programs ▫www.collegeboard.comwww.collegeboard.com

47. Deadlines are Important!!! Financial aid forms and applications are just like homework; you have to turn them in correctly and on time Schools have different deadlines for admissions and financial aid; research each school to find out the deadlines

48. Be Careful!!!!! Filling out FAFSA is free!!! Avoid scholarship scams ▫Exclusive scholarship information ▫Scholarship guaranteed! ▫You’ve been selected! ▫Application fees ▫Free seminar or candidate interview

49. Where do I go from here? High school guidance office or college/career center Books ▫The Scholarship Book ▫The College Blue Book: Scholarships, Fellowships, Grants and Loans ▫Peterson’s Scholarships, Grants and Prizes ▫College Board Scholarship Handbook

50. College Goal Sunday What: Receive free help to complete FAFSA When: Sunday, February 13, 2011 2-4pm Snow Date: February 20, 2011 Same time & location Where: Montgomery College Takoma Park/Silver Spring Campus Charlene R. Nunley Student Service Center For more information: www.CollegeGoalSundayMD.org

51. Follow-up Financial aid is a process Follow-up is key No news is good news ---not the case in financial aid Be your own advocate!

52. Questions & Answers