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Why Would Someone Need Financial Aid?
To help cover the cost of tuition: A yearly fee charged by the
academic institution
Tuition assists in funding: Staffing (Secretaries,
Admin. Assistants, etc.) Faculty (Teachers,
Counselors, Social Workers, etc.)
Facilities (Custodial Staff) Libraries Computer Labs Residence Halls And more
Where Does Financial Aid Come From?
ScholarshipsPrivate sources
including corporations, foundations, and community based organizations
Financial AidGrants
The Federal Government & State (PELL & TAP)
Student LoanFederal & Private
Financial Aid…
Is defined as - “funding intended to help students pay education expenses, to include:Tuition and fees,Room and boardBooks and supplies,
etc.,
for education at a College or University (public or private).”
The Application Process:To apply for
Financial Aid:Complete the free
application for federal student aid (FAFSA) at www.fafsa.ed.gov
All students must apply for a PIN at www.pin.ed.govThis acts as your
digital signature
Grants… Are defined as “funds
awarded by the State and Federal Government”
There are four types of Federal Grants:1) Federal Pell Grants2) New York State
Tuition Assistance Program (TAP)
3) Federal Supplemental Education Opportunity Grants (FSEOG)
4) Teacher Education Assistance for College and Higher Education (TEACH) Grant
1) Federal Pell Grant:Designed to help students
who demonstrate the greatest financial need
Range from $1,176 - $5,550 per year for full-time students Based solely on financial
needOnce FAFSA is filled out,
students are eligible for Pell No need to check an extra
box or fill out another formFor undergraduate students
only and may not exceed four years of study
3) Federal Supplemental Educational Opportunity Grants (FSEOG)
Campus-based aidGiven to students who
show the greatest needFunding is awarded to
the Pell Grant students who have the lowest EFC’s
Expected Family Contribution
Once Pell-eligible students receive FSEOG, all those ineligible Pell students may be eligible to receive grants
4) Teacher Education Assistance for College and Higher Education (TEACH) GrantUp to $4,000 per year in grant assistance
Student serves at least 4 years as a full-time teacher in a public or private elementary or secondary school serving low-income families
To Apply:Complete FAFSA
Students do not need to demonstrate financial needBe a U.S. citizen or eligible non-citizenEnrolled in an institution participating in the TEACH
Grant ProgramBe enrolled in courses to become a teacherMust maintain a certain GPA
Many require a 3.0 GPASign a TEACH Grant to serveHave eight calendar years to complete their 4 years of
service
Loans…Are defined as “a fund
that is borrowed from a financial institution that is expected to be paid off 6 months after receiving your undergraduate diploma or your post-graduate endeavors”
There are three types of Federal education loans:Stafford LoansPlus LoansPerkins Loan
Loan Categories:1) Subsidized -
a) Available for students with financial needb) Interest is charged while the student is in school,
being paid by the Government, until graduation and repayment begins
2) Unsubsidized –a) For students who do not qualify for subsidized loansb) Typically need assistance beyond they maximum
subsidized loans offeredc) Begins accruing interest immediately
3) Private –a) Similar to unsubsidized Federal loans
i. Should be a last resortii. Higher interest rates and shorter repayment periods than
Federal loans
Types of Loans:• Federal Perkins Loans – low-interest (5%) loans for both undergraduate and graduate students with exceptional financial need.• Subsidized Stafford Loans – awarded based on financial need. A student will not be charged interest before beginning repayment or during periods of deferment. The Federal Government “subsidizes” the interest during these times.• Unsubsidized Stafford Loan – are not awarded based on financial need. Any eligible students can take out unsubsidized Stafford Loans. A student will be charged interest from the time the loan is distributed to the time the loan is repaid in full.• Federal PLUS Loan – a loan borrowed by a parent on behalf of a child to help pay for tuition and school related expenses at an eligible college/university.
Scholarships…Are defined as “an
award of money for school tuition, given by either a public or private corporation, organization, or college”
There are 5 types of scholarships:Merit-BasedNeed-BasedEthnicity-BasedInstitutional-BasedGeneral
Scholarship Types:Merit-Based – financial need for which financial need is not used
to determine the recipient. The recipient may be determined by students’ athletic, academic, artistic, or other abilities.
Need-Based – financial aid for which the student and family’s financial situation is a primary factor in determining the recipient. In most cases the scholarship will cover all or part of the tuition and may even cover living expenses.
Ethnicity-Based – financial aid where applicants must initially qualify by race, religion, or national origin. After filtering the applicants based on their ethnicity, additional factors are taken into consideration to determine the final recipients.
Institutional-Based – scholarships awarded by a specific college/university to students planning to attend that institution.
General – other scholarships which are awarded for a variety of reasons which do not fall into one of the above categories
How to Find ScholarshipsThe InternetReference BooksContacting the
colleges/universities a student plans to attend
State Education Organizations
www.fastweb.com This website allows
students to create a profile. The website will then send emails to the student that applies to their profile
Money.CNN.com – 2009 StatsCollege seniors who
graduated last year owed an average of $24,000 in student loan debt, up 6% from the year before.
At the same time, unemployment for recent college graduates jumped from 5.8% in 2008 to 8.7% in 2009 - the highest annual rate on record.
Student loan debt levels throughout the 50 states ranged from $13,000 to $30,000 last year. The highest amounts of debt were found mainly in the Northeast, with the lowest levels in the West.
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