April 11, 2023

High School Counselor Workshop

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Financing A Education

What is financial aid?

Where does it come from?

What aid is available?

Who is eligible?

How do students apply?

Goals of Financial Aid

Primary goal is to assist students in paying for college and is achieved by:

Evaluating a families’ ability to pay educational costs

Distributing limited resources in an equitable manner

Providing balance of gift aid and self-help aid

Role of the Financial Aid Office

Determine aid eligibility using federal formula

Package aid depending on availability of funds

Send award notifications including: Award amount for each program for

which student is eligible Disbursement methods and time frames Terms and conditions of each award

Financial Aid Basics5

Sources of Financial Aid6

Federal Financial Aid

Grants Pell Grant- $5,550 max Supplemental Education Opportunity Grant (SEOG)-

$4000 max Teach Grant- agree to teach in low-income areas, $4000

max

Work-Study Need based award provides funds earned through part-

time employment on and off-campus Student receives paycheck to help with expenses Limited funding available

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Federal Financial Aid, cont.

Loan ProgramsTypes

Federal Direct Student Loan– student’s name Perkins Student Loan- student’s name Parent PLUS – parent’s name, fixed interest rate,

credit check required

Consider Low Interest Rates No Payment In School Grace Period

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General Student Eligibility Criteria

Must be enrolled or accepted for enrollment in eligible program of study

Must be pursuing degree, certificate, or other recognized credential

Must be U.S. citizen or eligible noncitizenMust be registered with Selective Service

(if male)May not have been convicted of possession

or sale of drugs while receiving federal aid

General Student Eligibility Criteria

Must have valid Social Security Number (SSN)

May not be in default on a federal student loan

Must not owe an overpayment of a federal grant or loan

Must be making satisfactory academic progress (as defined by school)

State Aid

Next Presentation!

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Institutional Aid

Need Based or Merit Based Aid awarded by HCC

Endowment and Foundation Funds (i.e. HCC Educational

Foundation, Inc. Scholarships)

Institutional Operating Funds (i.e. HCC Grants)

Criteria may differ for each scholarship and may or may

not include the following:

Financial Need

Academic Merit

Learning Program

Special Skills or Talents

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Private Sources

Financial aid funding that comes from private organizations

Civic Organizations

Professional Associations

Private Businesses

Deadlines and application procedures can vary widely

Use reliable scholarship search services

http://www.fastweb.com

http://www.collegeboard.com/student/pay

http://www.finaid.org

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Awards14

Awards are based on enrollment status

For most institutions:12+ credits = F/T9-11 credits= Quarter-Time6-8 credits= Half-Time1-5 credits= Less than Half-Time

Determining Financial Need15

The Cost of Attendance (COA)16

Note: COA is determined by individual schools

What happens with my financial aid?17

Students may receive FA up to their COA

FA will pay for your direct costs (tuition and fees and room and board if living on-campus)

If your FA is in excess of your T&F you will receive a refund check (to help pay for indirect expenses)

Example= $5000 in FA, $3000 bill, $2000 rebate

College Cost Comparison Chart

Full Time Students

Community

College

(HCC)

4-year Public Resident of Maryland

(UMCP)

4-year Private Resident of Maryland

(JHU)

Tuition/Fees $2,708 $8,053 $39,150

Books & Supplies $1,600 $1,025 $1,200

Room & Board $7,906 $9,575 $12,040

Transportation $750 $ 1,000 $1,000

Personal $1,600 $ 1,400 $1,400

Total COA $14,564 $21,053 $54,790

EFC $7,000 $7,000 $7,000

Need $7,564 $ 14,053 $47,790

To extent they are able, parents have primary responsibility to pay for dependent child’s education

Students have a responsibility to contribute to educational costs

Families should be evaluated in their present financial condition

Family’s estimated ability to pay educational costs must be evaluated in equitable and consistent manner, recognizing that special circumstances may affect family’s ability to pay

Principles of Need Analysis

Federal Methodology

Federal Methodology is the formula created

by Congress to determine the EFC.

EFCExpected Family Contribution

The Free Application for Federal Student Aid (FAFSA) takes into account: Income (parent(s) and student) Assets (parent(s) and student) Number in Household Number in College State of Residence Marital Status Dependency Status

Note: EFC remains the same regardless of college/university

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FAFSA FACTS

When to completeSchools to listDefinition of a ParentDependency StatusDependency OverridesProfessional JudgmentsTax Information

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Independent Student Definition

At least 24 years old by December 31 of award year covered by the FAFSA

Graduate or professional student Married Has children or dependents (other than a spouse) for whom

the student provides more than half support Orphan or ward/dependent of the court or in foster care

since age 13 Veteran of U.S. Armed Forces or currently serving on active

duty (for other then training purposes) in the Armed Forces In legal guardianship as determined by state or emancipated

minor Determined to be homeless or unaccompanied youth

Frequent FAFSA Errors

Parent and student Social Security Numbers

Divorced/remarried parental informationIncome earned by parents/stepparentsUntaxed incomeU.S. income taxes paid Household sizeNumber of household members in collegeReal estate and investment net worth

FAFSA on the Web

www.fafsa.gov

2011-2012 applications will be available starting January 1

IRS data retrival after 1/30/11

FAFSA Forecaster available

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PIN Registration

• Web site: www.pin.ed.gov

• Can request PIN before January 1, 2011

• Not required, but speeds up processing

• May be used by students and parents throughout aid process, including subsequent school years

Application Process

Submit FAFSA prior to school/state deadline

Most aid awarded on “first-come, first-served” basis

To ensure maximum consideration for federal, state, and institutional aid, check information from each school to determine:

Required application materials

Application deadlines

Reliable Sources of Financial Aid

Financial Aid Offices at college/university

Federal websites

State websites

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Other Ways to Pay for College30

Cash, Check or Money Order

Tuition Payment Plans (at college/university)

529 Savings & Prepaid Tuition Programs

Employer Tuition Reimbursement Plan

Military Tuition Assistance

Veterans Benefits and Veterans Deferred Payment Plan

Tuition Waivers

Alternative Loans

Fraud and Scams

Do NOT pay someone to complete your FAFSA – contact the guidance counselor or college financial aid office.

No one can guarantee you a scholarship for a minimal fee

Attempt to contact the Better Business Bureau if you are suspicious.

Mark Your Calendars!

YOU CAN AFFORD COLLEGE HCC Saturday, February 12, 2011

COLLEGE GOAL SUNDAY Various dates and sites

http://collegegoalsundaymd.org/

HELP COMPLETING THE FAFSA!

Howard Community College - Financial Aid Services

Phone: 443-518-1260E-Mail: finaid@howardcc.eduWebpage:

Go to www.howardcc.edu Select “Admissions” tab Click on “Pay for College” Select “Financial Aid Services” on the left column

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Questions??