Financial AidFinancial Aid

Presented ByPresented BySylvia CarmonaSylvia Carmona

11“Education is not expensive, it's priceless."

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What is Financial Aid?What is Financial Aid?Goal of Financial AidGoal of Financial AidApplication Process Application Process How Financial Aid Need is DeterminedHow Financial Aid Need is DeterminedTypes of Financial AidTypes of Financial AidThe Award LetterThe Award LetterTimeline of the Financial Aid ProcessTimeline of the Financial Aid ProcessHelpful WebsitesHelpful Websites

AgendaAgenda

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What is Financial Aid?What is Financial Aid?Financial Aid is a general term Financial Aid is a general term colleges use to describe all of the colleges use to describe all of the programs that help families pay for programs that help families pay for college or vocational training.college or vocational training.

Gift AidGift AidGrants and Scholarships Grants and Scholarships (free money)(free money)

Self HelpSelf HelpWork study (job opportunity Work study (job opportunity to earn money)to earn money)Loans (money borrowed Loans (money borrowed that must be repaid)that must be repaid)

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Goal of Financial AidGoal of Financial AidPrimary goal is to assist Primary goal is to assist students in paying for their students in paying for their educational investment and is educational investment and is achieved by:achieved by:

Evaluating family’s ability Evaluating family’s ability to pay for educational to pay for educational costscosts

Distributing limited Distributing limited resources in an equitable resources in an equitable mannermanner

Providing a balance of Providing a balance of gift aid and self-help aidgift aid and self-help aid

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Financial Aid MythsFinancial Aid Myths

Students with the highest GPA’s get all Students with the highest GPA’s get all the aidthe aid

Income is too high to qualifyIncome is too high to qualify

Friend/sibling did not qualifyFriend/sibling did not qualify

Attend college that offers the most aidAttend college that offers the most aid

College is too expensive to attendCollege is too expensive to attend

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Role of the Financial Aid OfficeRole of the Financial Aid Office

Determines eligibility for financial Determines eligibility for financial aidaid

Packages aidPackages aid

Provides an award notification Provides an award notification detailing the programs and detailing the programs and amount from each program for amount from each program for which the student is eligiblewhich the student is eligible

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Application ProcessApplication ProcessAll Schools:All Schools:

Free Application for Federal Student Aid (FAFSA)Free Application for Federal Student Aid (FAFSA) Paper or on the WebPaper or on the Web

Cal Grant - Grade Point Average (GPA) Verification Cal Grant - Grade Point Average (GPA) Verification Form or school must submit GPA electronically.Form or school must submit GPA electronically.

Deadline is March 2, 2014Deadline is March 2, 2014

Some Schools:Some Schools:

Institutional Aid ApplicationInstitutional Aid Application Many schools that offer institutional financial Many schools that offer institutional financial

aid require an institutional aid application in addition aid require an institutional aid application in addition to the FAFSA. Check with the school you are to the FAFSA. Check with the school you are interested in for details. interested in for details.

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FAFSA on the Web: FAFSA on the Web: www.fafsa.ed.govwww.fafsa.ed.gov

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To Register for a PIN: To Register for a PIN: www.pin.ed.govwww.pin.ed.gov

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FAFSA Processing ResultsFAFSA Processing Results

FAFSA processed – results electronically sent to all listed FAFSA processed – results electronically sent to all listed schools schools

You will be notified of the FAFSA’s processing results by:You will be notified of the FAFSA’s processing results by:

E-mail acknowledgement if student’s e-mail address was E-mail acknowledgement if student’s e-mail address was provided (either paper or web filers). Generally, this will provided (either paper or web filers). Generally, this will be received within 72 hours if you filed on the web.be received within 72 hours if you filed on the web.

Paper Student Aid Report (SAR) if student’s e-mail Paper Student Aid Report (SAR) if student’s e-mail address was not provided (either paper or web filers). address was not provided (either paper or web filers). This can take 3-6 weeks from when the federal This can take 3-6 weeks from when the federal processor received your application if you filed a paper processor received your application if you filed a paper application.application.

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What’s Next?What’s Next?

After you have received your SAR (either After you have received your SAR (either via the web, or on paper),via the web, or on paper),

The schools you listed on the FAFSA may send The schools you listed on the FAFSA may send you a request for further documentation (tax forms, you a request for further documentation (tax forms, citizenship verification, etc.)citizenship verification, etc.)

You will then receive an award packet from your You will then receive an award packet from your college indicating the type of aid you are being college indicating the type of aid you are being offered. offered.

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Important TipsImportant Tips

Find out application and deadline Find out application and deadline requirementsrequirements

Be accurate, complete and legibleBe accurate, complete and legible

Make copies of all completed formsMake copies of all completed forms

Comply with all information requestsComply with all information requests

Meet deadlinesMeet deadlines

Get a proof of mailing from the post officeGet a proof of mailing from the post office

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Is There Life After Missed Is There Life After Missed DeadlinesDeadlines

Yes but ………Yes but ………

Award letters may be delayedAward letters may be delayed

Certain funds may be unavailable:Certain funds may be unavailable:

Institutional Grants and ScholarshipsInstitutional Grants and Scholarships

Free Federal Money (FSEOG)Free Federal Money (FSEOG)

Work-StudyWork-Study

Lower interest loan (ex. Federal Perkins Loan)Lower interest loan (ex. Federal Perkins Loan)

*Cal Grant GPA form MUST be submitted by March *Cal Grant GPA form MUST be submitted by March 2,2014. 2,2014.

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Factors in Need AnalysisFactors in Need Analysis

IncomeIncome

Asset Equity (excluding home equity)Asset Equity (excluding home equity)

Family SizeFamily Size

Number of Family Members in CollegeNumber of Family Members in College

(excluding parent(s)(excluding parent(s)

Age of ParentsAge of Parents

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Federal Government’s Philosophy Federal Government’s Philosophy Toward AidToward Aid

To the extent they are able, parents have To the extent they are able, parents have primary responsibility to pay for their primary responsibility to pay for their dependent children’s educationdependent children’s education

Students also have a responsibility to Students also have a responsibility to contribute to their educational costscontribute to their educational costs

A family’s ability to pay for educational A family’s ability to pay for educational costs must be evaluated in an equitable costs must be evaluated in an equitable and consistent manner, recognizing that and consistent manner, recognizing that special circumstances can and do affect its special circumstances can and do affect its ability to payability to pay

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Definition of Financial NeedDefinition of Financial Need

Cost of Attendance (COA for one year)Cost of Attendance (COA for one year) - Expected Family Contribution (EFC)- Expected Family Contribution (EFC) ____________________________________________________________________= Student’s Financial Need (eligibility)= Student’s Financial Need (eligibility)

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COMPONENT #1COMPONENT #1Cost of AttendanceCost of Attendance

Tuition and feesTuition and fees

Room and boardRoom and board

Books and Books and supplies, supplies, equipment, equipment, transportation, and transportation, and miscellaneous miscellaneous personal expensespersonal expenses

Loan feesLoan fees

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COMPONENT #2COMPONENT #2Expected Family ContributionExpected Family Contribution

Parents available incomeParents available income

Parent’s income supplement from assetsParent’s income supplement from assets

Student’s contributionStudent’s contribution

______________________________________________________________________

= Expected Family Contribution (EFC)= Expected Family Contribution (EFC)

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Federal MethodologyFederal Methodology

Federal Federal Methodology is the Methodology is the formula created by formula created by Congress to Congress to determine the determine the Expected Family Expected Family Contribution (EFC).Contribution (EFC).

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Parental InformationParental Information If parents are both living and married to each other, If parents are both living and married to each other, use both parents. use both parents.

If parent is widowed or single, use that parent only.If parent is widowed or single, use that parent only.

If parents are separated or divorced.If parents are separated or divorced. Use the parent with whom the student has lived, or Use the parent with whom the student has lived, or

from whom the student has received the most from whom the student has received the most support, for the past 12 monthssupport, for the past 12 months

If that parent has remarried, step-parent If that parent has remarried, step-parent information information must be includedmust be included, whether or not that , whether or not that person is actually “supporting” the studentperson is actually “supporting” the student

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Need Varies Based on CostNeed Varies Based on Cost

X

Y

Z

Cost of Expected Family NeedAttendance Contribution (Variable) (Variable) (Constant)

1

2

3

EFC EFC

$10,000

$8,000

$5,000

$3,000

$7,000

$5,000

$2,000

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Special CircumstancesSpecial Circumstances

Drop in Family IncomeDrop in Family Income

Disability or Death of a Family MemberDisability or Death of a Family Member

Divorce/Separation of ParentsDivorce/Separation of Parents

Any Other Special CircumstancesAny Other Special Circumstances

All appeals go directly to the All appeals go directly to the Financial Aid OfficeFinancial Aid Office

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Types of Financial AidTypes of Financial Aid

Gift AidGift Aid

Self Help Aid Self Help Aid Loans & EmploymentLoans & Employment

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Federal Pell Grant ProgramFederal Pell Grant ProgramAwarded to eligible undergraduates pursuing Awarded to eligible undergraduates pursuing first undergraduate certificate or degree first undergraduate certificate or degree

Actual award amount based on Cost of Actual award amount based on Cost of Attendance, Expected Family Contribution Attendance, Expected Family Contribution (EFC), and enrollment status (EFC), and enrollment status

For 2013-2014, for EFCs’ between 0 and 100, For 2013-2014, for EFCs’ between 0 and 100, the Pell Grant range is $5645 (max) to a the Pell Grant range is $5645 (max) to a minimum of $605.minimum of $605.

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Federal Supplemental Federal Supplemental Education Opportunity GrantEducation Opportunity Grant

(FSEOG)(FSEOG)Campus-based aidCampus-based aid

For undergraduates pursuing first undergraduate For undergraduates pursuing first undergraduate degree or certificatedegree or certificate

Priority to students with exceptional financial need (i. Priority to students with exceptional financial need (i. e. students with the lowest EFCs at that school)e. students with the lowest EFCs at that school)

Amounts vary by schoolAmounts vary by school

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Cal GrantsCal GrantsCal Grants are for California residents, attending a Cal Grants are for California residents, attending a California college or university who demonstrate California college or university who demonstrate financial need, meet the program and academic financial need, meet the program and academic requirements, and apply on time. There are income requirements, and apply on time. There are income and asset ceilings associated with the Cal Grant and asset ceilings associated with the Cal Grant program.program.

Cal Grant ACal Grant A

Cal Grant BCal Grant B

Cal Grant CCal Grant C

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Scholarship ResourcesScholarship ResourcesSchool need-based and non-need based programsSchool need-based and non-need based programs Academic, athletic, and other talent-based Academic, athletic, and other talent-based

scholarships and grantsscholarships and grants

Private business scholarshipsPrivate business scholarships

Civic organization scholarshipsCivic organization scholarships

Local library resourcesLocal library resources

Local businesses and civic organizationsLocal businesses and civic organizations

Parents’ places of employmentParents’ places of employment

FASTWEB- FASTWEB- www.fastweb.orgwww.fastweb.org

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Work StudyWork Study

Undergraduate or graduate students are eligible.Undergraduate or graduate students are eligible.

Employment on or off campus (most are on Employment on or off campus (most are on campus).campus).

Eligible employersEligible employers SchoolSchool Federal, state, or local public agencyFederal, state, or local public agency Private non-profit organizationPrivate non-profit organization For-profit organizationFor-profit organization

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Federal Perkins LoanFederal Perkins LoanInterest rate: 5% (upon repayment).Interest rate: 5% (upon repayment).

Subject to school’s FAFSA priority application deadlineSubject to school’s FAFSA priority application deadline

Eligible StudentsEligible Students Undergraduate or graduate studentsUndergraduate or graduate students Priority to exceptional needPriority to exceptional need Loan amount variesLoan amount varies

Maximum annual loanMaximum annual loan $5500 undergraduate students (max. of 27,500 as undergraduate)$5500 undergraduate students (max. of 27,500 as undergraduate) $8,000 graduate and professional degree students (max. 60,000, $8,000 graduate and professional degree students (max. 60,000,

including undergraduate loans).including undergraduate loans).

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Federal Stafford LoanFederal Stafford LoanSubsidized and UnsubsidizedSubsidized and Unsubsidized

School determines loan eligibility and delivers loan proceeds to School determines loan eligibility and delivers loan proceeds to the studentthe student

Subsidized Stafford: Must demonstrate “need”Subsidized Stafford: Must demonstrate “need”

Unsubsidized Stafford: Need is not a considerationUnsubsidized Stafford: Need is not a consideration

Annual loan limits (combined subsidized and unsubsidized):Annual loan limits (combined subsidized and unsubsidized): $5500 for Freshmen Students-$2,000 is Unsub.$5500 for Freshmen Students-$2,000 is Unsub. $6500 for Sophomore Students-$2,000 is Unsub.$6500 for Sophomore Students-$2,000 is Unsub. $7,500 for Juniors and Seniors- $2,000 is Unsub.$7,500 for Juniors and Seniors- $2,000 is Unsub.

Interest rate is currently 3.86% for Undergraduate/Graduate.Interest rate is currently 3.86% for Undergraduate/Graduate.Unsubsidized Loans (graduate or professional)- 5.41%Unsubsidized Loans (graduate or professional)- 5.41%

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Federal Plus LoanFederal Plus Loan

PParent arent LLoan for oan for UUndergraduate ndergraduate SStudentstudentsParent of a dependent undergraduate studentParent of a dependent undergraduate studentAnnual loan limit = COA minus other aidAnnual loan limit = COA minus other aidParents may choose to start repaying Parents may choose to start repaying immediately or defer payments until 6months immediately or defer payments until 6months after student’s graduation or drop below half-after student’s graduation or drop below half-time enrollmenttime enrollmentA requirement that applicant not have an A requirement that applicant not have an adverse credit history.adverse credit history.Up to 4.204% in processing feeUp to 4.204% in processing feeInterest rate is fixed at 6.41%.Interest rate is fixed at 6.41%.

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The Award LetterThe Award Letter

Provides Important InformationProvides Important Information

Types and amounts of aid Types and amounts of aid offeredoffered

Specific program informationSpecific program information

Student responsibilitiesStudent responsibilities

Conditions governing awardsConditions governing awards

Opportunity to accept or decline Opportunity to accept or decline awardsawards

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Financial Aid TimetableFinancial Aid Timetable

Apply for AidApply for Aid (January-February 2014) (January-February 2014)

Receive Award LetterReceive Award Letter (April-May) (April-May)

Comply with Information RequestsComply with Information Requests (April-May)(April-May)

Verification & CoordinationVerification & Coordination (summer) (summer)

Financial Aid DisbursementFinancial Aid Disbursement (start of (start of first term)first term)

Re-apply for aidRe-apply for aid (January-February (January-February 2015)2015)

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Helpful Web SitesHelpful Web SitesScholarship SearchesScholarship Searches

www.fastweb.comwww.fastweb.com

www.finaid.orgwww.finaid.org

www.collegeboard.com/payingwww.collegeboard.com/paying

EFC estimatorEFC estimator

www.studentaid.ed.govwww.studentaid.ed.gov

Cal GrantsCal Grants

http://www.csac.ca.govhttp://www.csac.ca.gov

Department of EducationDepartment of Education

www.ed.govwww.ed.gov