1. Slide 1 © NASFAA 2010 What is this Financial Aid Thing Anyway Capital High School October 24, 2012 Tracy Dahl and Sabrina Knoll Centralia College Financial Aid Office

2. Slide 2 © NASFAA 2010 Topics We Will Discuss What is financial aid Understanding college costs The expected family contribution, or EFC What is financial need Types of financial aid Sources of financial aid

3. Slide 3 © NASFAA 2010 Topics We Will Discuss How to apply for financial aid The federal financial aid programs Estimating eligibility for federal financial aid using FAFSA4caster Researching financial aid options What you should be doing now

4. Slide 4 © NASFAA 2010 Know How to Go http://www.youtube.com/user/KnowHow2Go

5. Slide 5 © NASFAA 2010 What is Financial Aid? Any money from outside of the family that pays postsecondary (college) expenses.

6. Slide 6 © NASFAA 2010 Understanding College Costs College is expensive, but worth the cost –A sound investment in your child’s future More than just tuition –Also includes room and board, books, transportation, personal expenses, etc.

7. Slide 7 © NASFAA 2010 Understanding College Costs Vary by type of college –Community colleges are less expensive than four-year schools –Private colleges are more expensive than public colleges –http://www.wsac.wa.gov/PayingForCollege/Cost Factorshttp://www.wsac.wa.gov/PayingForCollege/Cost Factors

8. Slide 8 © NASFAA 2010 Expected Family Contribution (EFC) Calculated using a federal form (FAFSA) and formula Two components –Parent contribution –Student contribution

9. Slide 9 © NASFAA 2010 Expected Family Contribution (EFC) Amount family can reasonably be expected to contribute, but not what family will pay to the college EFC the same regardless of college the student attends

10. Slide 10 © NASFAA 2010 What is Financial Need Financial need is the difference between the cost of attendance (COA) and expected family contribution (EFC). COA is tuition, fees, room and board, transportation, etc. EFC is determined from what you report on the FAFSA (Free Application for Federal Student Aid) COA – EFC = Financial Need

11. Slide 11 © NASFAA 2010 What is Financial Need For example, if COA is 10,000, and EFC is 2,000, then a student’s need is 8,000 Amount of financial need determines the amount of aid a student will receive

12. Slide 12 © NASFAA 2010 Sources of Financial Aid Federal government States Colleges Private sources

13. Slide 13 © NASFAA 2010 Federal Government Largest source of financial aid Awarded mainly on the basis of financial need Apply every year using standard form called Free Application for Federal Student Aid – (FAFSA)

14. Slide 14 © NASFAA 2010 States Offer both merit-based and need-based aid Usually have residency requirements May have service requirements

15. Slide 15 © NASFAA 2010 Colleges Varies widely from college to college Offer both merit-based and need-based aid May be offered as part of the admissions process

16. Slide 16 © NASFAA 2010 Private Sources Churches, civic organizations, employers Varying award amounts and application procedures Small awards add up

17. Slide 17 © NASFAA 2010 Types of Financial Aid Grants Loans Employment Scholarship

18. Slide 18 © NASFAA 2010 Grants Awarded on the basis of financial need Do not have to be paid back

19. Slide 19 © NASFAA 2010 Federal Grant Programs Federal Pell Grant Teacher Education Assistance for College and Higher Education (TEACH) Grant Federal Supplemental Educational Opportunity Grant (FSEOG) http://www.studentaid.ed.gov/www.studentaid.ed.gov

20. Slide 20 © NASFAA 2010 Maximum amounts for federal grants Federal Pell Grant:$5,550 Federal TEACH Grant:$4,000 FSEOG:$4,000

21. Slide 21 © NASFAA 2010 Washington State Need Programs Washington State Need Grant College Bound Scholarship Passport Program Our state aid: www.wsac.wa.govwww.wsac.wa.gov

22. Slide 22 © NASFAA 2010 Maximum amounts for state grants Washington State Need Grant –UW/WSU$10,868 –Other 4 year public$ 7,580 –Private 4 year$ 8,517 –Community College$ 3,696

23. Slide 23 © NASFAA 2010 Loans Must be paid back, usually after the student finishes school Many different types Student loans are a reasonable form of aid –A good investment in the student’s future

24. Slide 24 © NASFAA 2010 Federal Loan Programs Federal Perkins Loan Federal Direct Loans –Borrowed by students PLUS Loans –Borrowed by parents and graduate students

25. Slide 25 © NASFAA 2010 Maximum loan amounts and interest rates for first year student Federal Direct Loan:$5500 (no more than $3500 subsidized) Interest rate fixed 3.4% subsidized, 6.8% unsubsidized Federal Perkins Loan:$4000 Interest rate fixed 5% Interest rates set by Congress

26. Slide 26 © NASFAA 2010 Federal Parent Loan COA minus other aid received Interest rate fixed 7.9%

27. Slide 27 © NASFAA 2010 Employment Earnings used to cover college expenses Advantages – Gain work experience and earn money Income is reported on tax return but is excluded when calculating financial aid eligibility,

28. Slide 28 © NASFAA 2010 Employment Programs Federal Work-Study (FWS) State Work-Study (SWS)

29. Slide 29 © NASFAA 2010 Scholarships Awarded on the basis of merit or unique characteristics Do not have to be paid back

30. Slide 30 © NASFAA 2010 How to Apply for Financial Aid Complete a standard federal form every year Free Application for Federal Student Aid, or FAFSA at www.fafsa.govwww.fafsa.gov –Collects demographic and financial information –Data used to calculate the EFC

31. Slide 31 © NASFAA 2010 Be Aware of Deadlines Check with the colleges/universities to determine their priority deadline so that you are sure to have your FAFSA and any other additional forms/requirements submitted by that deadline. Financial aid is usually awarded on a first-come, first-served basis. Don’t lose out on funding by missing the deadline. The FAFSA form is available January 1, 2013 – submit it as soon after that date as possible.

32. Slide 32 © NASFAA 2010 Estimating Eligibility Using FAFSA4caster On-line tool developed by U.S. Department of Education to help families prepare financially for college Asks for data you will need to provide on the FAFSA Estimates eligibility for the Federal Pell Grant Available at www.FAFSA4caster.ed.govwww.FAFSA4caster.ed.gov

33. Slide 33 © NASFAA 2010 Researching Financial Aid Begin early Find scholarships that match your student’s academic interests, hobbies, and unique characteristics (www.washboard.org)www.washboard.org Don’t pay for scholarship searches or to fill out the FAFSA Report fraud

34. Slide 34 © NASFAA 2010 What You Should Be Doing Now Begin researching financial aid options Start or continue saving Take college prep classes Participate in extracurricular activities Develop strong study skills

35. Slide 35 © NASFAA 2010 Conclusion It is never too early to start the college planning process The more information you have, the easier the process will be for you and your student

36. Slide 36 © NASFAA 2010 Questions? Centralia College Financial Aid Office 360-736-9391, ext. 234 or financialaid@centralia.edu

37. Slide 37 © NASFAA 2010