1. KILGORE COLLEGE FINANCIAL AID WORKSHOP The “A, B, C’s” of Financial Aid Presented By: Annette Morgan Financial Aid Officer

2. Main Financial Aid Sources  Federal Government  State of Texas  Institution or College  Civic or Private Groups

3. STUDENT AID CATEGORIES u GRANTS o Department of Education o State of Texas u LOANS o Department of Education (Federal) u EMPLOYMENT o College Work Study (Federal) o Institutional Position u SCHOLARSHIPS

4. GRANTS  Funds for Education u Do not have to be repaid u Awarded on financial “need” basis  MAIN SOURCES Dept. of Education State of Texas

5. Loans  Funds students & parents borrow to help with educational expenses  Repayment begins after graduation  Minimum Enrollment: 6 hours  May be “need or non-need” based  An investment in a student’s future  Caution: Only borrow funds that are actually needed – (not just desired)!!!

6. Employment  Allows student to earn money to help pay educational costs Usually need-based  May be funded by the U.S. Dept. of Education or the State of Texas May open the door to future employment, as references will be given on student’s performance

7. Scholarships  Money that does not have to be paid back to the institution or donor  Sources may include the institution, or “outside agencies” (service clubs, church)  Awarded on the basis of merit, skill or other unique characteristics  Usually require full-time enrollment and a higher academic standard (2.5 to 3.0 gpa)  May be need or non-need based

8. General Eligibility Requirements  Be enrolled as a regular student in a degree or certificate program u Be registered with Selective Service, if required u Not be simultaneously enrolled in high school u Provide valid Social Security Number u Have high school diploma or equivalent, or demonstrate ability to benefit u Be a citizen, national, or permanent resident of U.S., or other eligible non-citizen.

9. FAFSA Free Application for Federal Student Aid  First Step in the Financial Aid Process  Students may qualify for Federal aid such as - Work Study, Grants, and Loans  States and Schools use information from the FAFSA to award non-Federal aid such as - Scholarships, State Grants, and credit - based Private Loans

10. FAFSA Priority Deadlines  Deadlines are usually determined by each State  In Texas, each school sets its own priority deadline - Apply in January to make most deadlines for Texas colleges and universities.

11. Institutional Verification u Confirms accuracy of FAFSA information u Application selected at random by CPS u Often occurs if information is incomplete or questionable u School may request any document necessary to complete the verification process u Prepare copies for the school, as your originals will not be returned u School is required to verify if selected

12. Common Documents u BE PREPARED TO FURNISH: Tax Return(s) and W-2(s) – Prior year Child Support Received or Paid Social Security Benefits Welfare Benefits-excluding food stamps Housing, Food or other Living allowances paid to military, clergy,etc Worker’s Compensation Current Checking/Savings Balance Investment, Business and/or Investment Farm Value

13. WHAT DOES THE COLLEGE DO WITH THE FAFSA DATA ? u Uses the data to create financial “need” and set up the cost of attendance u From this, the student’s aid package is created for the academic year

14. Need Analysis u Income u Asset equity u Family size u Number in college Not to include parents

15. Definition of Need Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need

16. Cost of Attendance u Tuition and fees u Room and board (at home with parents, in dorm or off campus) u Books and supplies u Transportation u Personal expenses u Miscellaneous expenses 5

17. Expected Family Contribution u (EFC) calculated using Fafsa data and a federal formula u The amount a family can reasonably be expected to contribute u Stays the same regardless of college of choice u Considers household income & size, assets, & number of family in college u Two components: uParent Contribution uStudent Contribution

18. 1 Need Varies Based on Cost 2 3 EFC 1 2 Cost of Attendance (Variable) Expected Family Contribution (Constant) Need ( Variable ) -= 3

19. Need Based Aid SCHOOL A Cost of Attendance$12,000 - Exp. Family Contribution$ 1,000 Financial Need$11,000 SCHOOL B Cost of Attendance$20,000 - Exp. Family Contribution$ 1,000 Financial Need$19,000

20. Community College Package Budget (COA) $12,000 - Expected Family Contribution (EFC) 1,000 Need $ 11,000 Federal Pell Grant $ 4,400 Texas Grant $ 1,780 Scholarship $ 1,000 Stafford Loan $ 3,500 Subtotal $ 10,680 Unmet Need $ 320

21. Public University Package Budget (COA) $22,000 - Expected Family Contributions (EFC) 1,000 Need $21,000 Federal Pell Grant$4,400 Texas Grant$2,960 Federal Sub Stafford Loan$3,500 Federal Unsub Stafford Loan$2,000 Institutional Scholarship$4,000 Subtotal $16,860 Unmet Need $ 4,140

22. Private College Package Budget (COA)$40,000 - Expected Family Contribution (EFC) 1,000 Need$39,000 Federal Pell Grant $4,400 TEG $2,500 Federal Stafford Loan $3,500 Federal Unsub Loan $2,000 Federal PLUS Loan$10,000 Institutional Scholarship$10,000 Subtotal $32,400 Unmet Need $ 6,600

23. Evaluating Aid Packages u Biggest is not always the best u Are cost estimates realistic? u Renewable vs. non-renewable scholarships u What are terms and conditions of offered loan(s) u Grant/loan balance u Balance of aid offered What percentage is offered of grant aid? Loan aid? Institutional scholarships?

24. Common Errors u INCOMPLETE APPLICATIONS - Most errors are caused by the student providing inaccurate or incomplete data on FAFSA (make a copy) u Not meeting required deadlines u Not submitting all required documents u No Admission Application and Official Transcripts on file in Registrar’s Office u Not returning Signed Award Letter by stated deadline

25. Federal Financial Aid Programs Federal Pell Grant - Largest Grant Program Not repaid unless student withdraws (09-10 - $5350) Fed. Academic Competitiveness Grant Awarded to Honors Graduates( 09-10 - $750) Must be Pell Eligible, and Maintain 3.0 gpa Federal SEOG Grant - Supplements Pell for Students with exceptional Need(Max 1000) Federal Work Study – Work Program for eligible students to work on campus and earn federal funds(Amounts Vary)

26.  Subsidized (DOE pays interest)  Max: $3,500/yr - 1 st yr (Freshman Student)  Max: $4,500 /yr - 2 nd yr (Sophomore Student)  Unsubsidized (interest accrues)  Same amounts as shown above, if not qualified for the Subsidized Loan  Dependent: $2000/yr - 1 st /2 nd yr (if needed)  PLUS (Parent Loan for U. Student)  Interest accrues & Credit Based  Repayment begins: 60 days after last disbur. Federal Stafford Loan Program (Requirement: Min. of 6 hrs. enrolled per Loan)

27. Facts about Stafford Loans  On Sub & UnSubsidized, there is a 6- month “Grace Period” after Graduation  On PLUS, no “Grace Period”  After “Grace” repayment begins  Interest Rates: o Subsidized = 5.6% over 10 yrs repayment o Un-Subsidized = 6.8% over 10 yrs. repayment o PLUS = 8.5% over the life of the loan  Reenrollment will stop repayment, however, interest will still accrue

28. State of Texas Funds u Texas Grant – (Toward Excellence, Access and Success) u Texas Public Education Grant – (TPEG) u Texas Educ. Opportunity Grant – (TEOG) u Tuition Exemptions u Professional Nursing Scholships u Vocational Nursing Scholarships

29. Satisfactory Academic Progress u All Financial Aid categories will have a minimum SAP standard u Academic Progress evaluated by school on a semester or annual basis u Students must make a minimum GPA & complete a % of enrollment to continue to receive all forms of financial aid u Scholarships will carry higher minimum requirements, depending on the award u Check with your school’s financial aid office and pay attention to grades and attendance!

30. Numbers to Remember u Department of Education (800) 433-3243 u TX Higher Education Coordinating Board (800) 242-3062 u TX Financial Aid Information Center (888) 311-8881 u Kilgore College Financial Aid Office (903) 983-8211

31. World Wide Web  ed.gov/studentaid  fastaid.org  AIE.org  fafsa.ed.gov  collegeforalltexans.com  finaid.org  applytexas.org

32. Pay Attention! u Review each school’s catalogs/website for information and application procedures u Accurately complete and submit correct forms and respond promptly to requests u Know each school’s deadlines and most importantly……MEET THEM u Keep copies of all forms you submit for your records - and Good Luck in 2010-11!!