FINANCIAL AID 101. December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Overview What is Financial Aid? Types of Financial Aid How Financial

FINANCIAL AID 101

December 5, 2008Prepared by S. MeyerConnectEDU

FINANCIAL AID 101 Overview

What is Financial Aid? Types of Financial Aid How Financial Aid is Awarded The Financial Aid Process Resources


FINANCIAL AID 101 Defining Financial Aid

Financial Aid is money needed to help pay for college.

Financial Aid can come from:Federal governmentState government CollegesPrivate organizations


FINANCIAL AID 101 Who Qualifies for Financial Aid? Financial need HS diploma or GED Valid Social Security number Enrollment at least half time in an eligible institution US citizen or an eligible non-citizen Maintain satisfactory academic progress once in

college Certify that federal student aid will only be used for

educational purposes Comply with the Selective Service registration, if

required


FINANCIAL AID 101 Types of Financial Aid

Gift Aid Work Study Military Loans


FINANCIAL AID 101 Types of Financial Aid – Gift Aid

Gift Aid generally doesn’t need to be repaid Grants:

Based on financial need From government and colleges Two federal grants: Pell and Supplemental

Educational Opportunity Grant (SEOG) Scholarships:

Based on various criteria From colleges and other organizations


FINANCIAL AID 101 Types of Financial Aid – Work-Study

Federal Work-Study Program: Provides jobs for undergraduates Students work part time, usually on campus Money earned helps pay for college Programs vary from school to school Colleges award a maximum amount

students can earn annually Work–Study amounts are generally

included in the Award Letter


FINANCIAL AID 101 Types of Financial Aid – Military Tuition Assistance:

Up to $250 per semester credit ($4500/year). Montgomery G.I. Bill:

Service members who commit to 3 years of full-time duty receive up to $37,224 in tuition coverage.

College Fund:Combined with the Montgomery G.I. Bill, eligible Armed Services enlistees receive up to $70,000 toward tuition upon honorable discharge.

Loan RepaymentEach branch of the Military has it’s own version of this program, which enables service people to pay back part or all college debt while serving.


FINANCIAL AID 101 Types of Financial Aid – Loans

Three types of loans: Federal Private Home Equity


FINANCIAL AID 101 Types of Financial Aid – LoansFederal: Stafford Loans Borrower: Student Offer both subsidized (needs-based)

and unsubsidized (non-need based). Loan limit is $5,500 for freshman Interest rate fixed at 6.8%* Repayment begins 6 months after

graduating or dropping below half-time status



Federal: PLUS Loans Borrower: Parent Not based on need Loan limit is the cost of tuition Interest rate fixed at 8.5%* Repayment begins immediately after

loan is made.


FINANCIAL AID 101 Types of Financial Aid – LoansFederal: Perkins Loan Borrower: Student Based on need Loan limit is $4,000/year Interest rate is 5%* Repayment begins 9 months after

graduating or dropping below half-time status



Private Loans Designed to supplement federal loan

programs Credit-based loans offered by private

lenders Terms and conditions vary Should be considered last



Home Equity Parents can borrow against money

already put into your home Generally carry low interest rates and

high fees Typically a term loan or a line of credit


FINANCIAL AID 101 How Financial Aid is AwardedThe following types of aid are based on

financial needGrantsPerkins loansSubsidized Stafford loansFederal Work-Study Program


FINANCIAL AID 101 How Financial Aid is AwardedHow much aid you will receive to pay for

college is determined by using the following factors

Cost of Attendance (COA) Expected Family Contribution (EFC)


FINANCIAL AID 101 How Financial Aid is AwardedCost of Attendance (COA) Tuition Room & Board Books Transportation Personal expenses


FINANCIAL AID 101 How Financial Aid is Awarded

Expected Family Contribution (EFC) The amount you may be expected to

contribute annually You don’t pay it up front Used to determine how much aid you’re

eligible for Calculated from student and parent

financial information you provide


FINANCIAL AID 101 Financial Aid Process- Applying

Applying for Financial Aid To get aid you must apply

FAFSA (Free application for Federal Student Aid)

Additional Forms (may be required by the college)

Scholarships Apply regardless of family income

No one makes too much or too little to apply


FINANCIAL AID 101 Financial Aid Process- Applying

To get aid you must apply!

No one makes too much or too little!


FINANCIAL AID 101 Financial Aid Process - Applying

FAFSA: The Free Application for Federal Student Aid

Determines Financial Aid you will receive from the Federal Government

It is FREE! Complete online or on paper as soon as

possible after January 1st

Must be completed every year by each student



Getting ready for FAFSA: Apply for a Department of Education PIN # at

www.pin.ed.gov Needed every year when applying for aid Parents and students need separate PIN’s

Complete the Pre-Application Worksheet for FAFSA (available online): Available January 1st

Collect information and prepare answers for FAFSA – organized like FAFSA



To complete your FAFSA application you will need financial information for both parents and students:Bank statementsIncome amounts (W-2 or tax returns)Investment recordsOther


FINANCIAL AID 101 Financial Aid Process - Submitted

Now that FAFSA is complete….. Check if additional forms are required by

the college Apply for scholarships

Use free scholarship searches


FINANCIAL AID 101 Financial Aid Process - Submitted

Student Aid Report (SAR) Sent to you after FAFSA is processed Contains your Expected Family

Contribution (EFC) Information automatically sent to

colleges you listed Check the information and make

corrections if needed


FINANCIAL AID 101 Financial Aid Process - SubmittedAward Letters and Offers: Colleges start sending Award letters in March Received from the college financial aid office Compare different college offers:

Aid vs. COA Gift award vs. borrowed money Types of loans

Accept an offer from the college you are going to attend

Select lenders and sign Master Promissory Notes (MPN’s) for accepted loans

Funds directed to college


FINANCIAL AID 101 Resources


FINANCIAL AID 101 Resources - PrepHQ Financing College:

Provides additional information on this presentation

onTrack:Helps to compare award packages and applying for college-specific financial aid and scholarships


FINANCIAL AID 101 Resources – PrepHQ

Financing College link in PrepHQ

FINANCIAL AID 101 Resources – PrepHQ


Calculating the Expected Family Contribution in PrepHQ


FINANCIAL AID 101 Resources – PrepHQ - onTrack

onTrack link in PrepHQ

Students can join onTrack in PrepHQ for customized financial aid information – indicate the colleges you are interested in and let PrepHQ calculate how much it will cost you to attend. onTrack also has worksheets, tutorials and

December 5, 2006Prepared by S. MeyermyFootpath, LLC

FINANCIAL AID 101 Resources – PrepHQ - onTrack

Documents

FINANCIAL AID 101. December 5, 2008Prepared by S. Meyer ConnectEDU FINANCIAL AID 101 Overview What is Financial Aid? Types of Financial Aid How Financial