1. What You Need To Know About Financial Aid Financial Aid 101

2.  What is Financial Aid?  Grants  Loans  Student Employment  Scholarships  Where do I start?  How is Financial Aid awarded?  Estimated Family Contribution (EFC)  Cost of Attendance (COA)  Financial Need  Tips and Tools FINANCIAL AID 101 Pop Quiz Throughout this presentation there will be opportunities to test your knowledge about financial aid and win some prizes. Good luck!

3. All information in this presentation is general and although we would strongly encourage you to consider UMUC-Europe, the information should be applicable at any school you are considering.

4. Grants, Loans, Student Employment, & Scholarships

5.  Federal Pell Grant  Maximum award $5550 (for 2011-2012)  Award amounts may be reduced for 2012-2013  Federal Supplemental Opportunity Grant Educational Grant (FSEOG)  Institutional funds  Other State and Institutional Grants Grants are need-based financial awards that do not have to be repaid. Award amounts vary depending on the student’s enrollment status and need level.

6.  Federal Stafford Loans  Subsidized Loans  Need-Based  Not available for Graduate Students starting school year 2012-2013  Unsubsidized Loans  Fixed 6.8% Interest Rate  Both are due to be paid back 6 months after Graduation, stop attending, drop to less than half time attendance Federal Stafford Loans

8. 1. Standard Plan - fixed payment, fixed time not to exceed 10 years. 2. Graduated Plan – payments gradually increase, fixed time not to exceed 10 years. 3. Extended Plan – must owe over $30, 000, not to exceed 25 years 4. Income Based Plan – terms vary. Federal Stafford Loans

9.  Federal Parent PLUS and Graduate PLUS Loans  Fixed 7.9% Interest Rate  Credit-Based  Parents and Graduate Students can borrow up to cost of attendance minus any other financial aid award amounts.  Pay back 60 days after disbursement (while still in school)  Apply through www.studentloans.govwww.studentloans.gov Other Types of Student Loans  Federal Perkins Loans  Fixed 5% Interest Rate  Pay back 9 months after Graduation

10.  Types of jobs available:  Work -Study (on and off campus)  Non-Work-Study (on campus)  Off-campus regular employment Studies have shown that students who work part time while attending courses actually perform better academically.

11. Places to look:  High School Counselor  Booster Club, PTA, etc.  Surrounding Community  Local Businesses, Spouses Clubs, Community Clubs, etc.  The College/University you plan on attending  On the internet Private money awarded on either merit or need.

12. Your High School Your Local Community Your College/University This graph depicts the expanding competition as you apply for scholarships on different levels. National/Worldwide scholarship competitions would be outside of these circles. Pop Quiz Name one type of federal student loan. Stafford Subsidized and Unsubsidized, Perkins, and Graduate and Parent PLUS Loans.

13. Filling out the FAFSA

14. www.fafsa.gov FAFSA has built-in-help to guide you through the application process.

17.  W-2’s and other records of money earned  Federal Tax Return(s)  Current bank statements  Current business and investment mortgage information, business and farm records, stock, bond and other investment records  Untaxed Income Records  BAS Amounts You will need the above for yourself and your spouse or parents (if applicable).

18.  You may be selected for the process of Verification.  This means your school will be required to verify the information you put on your FAFSA by collecting additional documentation from you.  NEW FOR 2012-2013: Institutions will only be able to accept Tax Return Transcripts directly from the IRS, in the event a student is selected for verification. If selected for verification your school will be unable to disburse funds to you until you have completed this process.

19. Complete this worksheet before filing your FAFSA to assist you when filling out your FAFSA! Do not submit this worksheet!!!

20.  To be completed with applicant information only  General information such as name, SSN, state of legal residence  Marital status (of student)  Selective Service Registration for under 25’s (male)  Drug Convictions  High School Information

21. A student is considered independent ONLY if they can answer YES to ONE of 13 questions (samples below):  Born before 1 January 1989 (2012-2013)  Married  Have children or dependents other than children that you provide more than 50% support.  Active duty  Veteran of the U.S. Armed Forces

22.  If student answered NO to all questions in section 2, then parents must complete section 3  This section must still be completed even if the applicant does not live with their parents  Tax, income, and other financial information  Dislocated worker status  Assets

23. Information about the student (and spouse):  Tax, income, and other financial information  Dislocated worker status  Assets

24.  On the IRS Web site, enter the requested information.  Once the IRS has validated your identification, your IRS tax information will display. You can either transfer your information from the IRS, or choose to return to FAFSA on the Web from the IRS Web site.  If you transfer your IRS tax information, questions that are populated with tax information will be marked with “Transferred from the IRS” Successful IRS Retrieval on your FAFSA could help to avoid lengthy processing times if you are selected for the process of verification.

25.  Each school has a Federal School Code  You will have a chance online to search for school codes  Write the name of the school if you do not know the school code  Up to 10 school codes can be listed

26.  Results sent to all schools listed on your FAFSA.  Applicant will receive results via e-mail within 3-5 days.  Student Aid Report (SAR):  View and print the SAR  SAR will have Estimated Family Contribution(EFC) and Data Release Number (DRN) Pop Quiz What does FAFSA stand for? The Free Application for Federal Student Aid

27. Determining your award package

28.  The estimated cost, including direct and indirect costs, of a particular institution.  Direct: Tuition, fees, books, and room and board (if living on campus)  Indirect: Travel, miscellaneous, and room and board (if not living on campus)  This value varies from college to college.

29. Federal Student Aid uses the data on your FAFSA to calculate an Expected Family Contribution (EFC) The EFC is the number that’s used to determine your eligibility for federal financial aid.

30. Calculation takes into account the following:  Adjusted Gross Income (AGI)  Untaxed Income (Do not include BAH)  Assets and Benefits  Number in Household  Number in Household Attending College

31. Cost of Attendance – Expected Family Contribution = Financial Need

32. COA= $55,850 - Minus EFC= 2000 Need= $53,850 COA= $28,406 - Minus EFC= 2000 Need= $26,406 Examples of Need: Somewhere Special University Pop Quiz Fill in the blank: NEVER pay for completion!!!!! FAFSA

34. Providing you with an early estimate of your eligibility for federal student aid. Giving you an experience similar to FAFSA on the Web Allowing you to transfer all of your FAFSA4caster data to FAFSA on the Web once you are ready to apply for aid. Increasing your knowledge of the financial aid process, and providing information about other sources of aid. www.fafsa4caster.ed.gov

35. If you will be receiving tuition assistance (including military TA) or veteran’s educational benefits you may still be eligible for financial aid funds! Make sure to apply for all of your funding options!

36.  APPLY, APPLY, APPLY!  Make sure to meet any deadlines or priority dates your school may have by applying early!  Apply for Scholarships!  Make sure to complete your financial aid file!  Maintain log-in information.  Keep in close contact with your school Financial Aid Office.  Ask questions! Pop Quiz True or False: Your school may have a deadline for FAFSA or file completion. True.

38. For further assistance with the FAFSA application call 1-800-4-FED-AID or 1-800-433-3243 toll free or access www.fafsa.ed.gov You may also access the Departments federal student aid Web site at www.studentaid.ed.gov For scholarship searches check out www.fastweb.org and/or www.finaid.org