What You Need to Know About Paying

for CollegePresented at Gull Lake High School

Jodee Stanton, GLHS School Counselor

Alisha Cederberg, Kalamazoo Valley Community College

Nancy Timmons, Kalamazoo Community Foundation

Mari Draeger, Gull Lake Community Schools Foundation

Topics To Be Discussed Tonight

• What is Financial Aid?

• Sources, Categories and Types of Financial Aid

• Free Application for Federal Student Aid (FAFSA)

• Foundation Scholarships

• Frequently Asked Questions and Application Tips

What is Financial Aid?

•Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses.

Sources of Financial Aid

• Student Financial Aid comes from five primary sources:

• 1. Federal Government

• 2. State Government

• 3. Institutions (colleges and universities)

• 4. Private Sources (associations, foundations, employers and unions)

• 5. Parent/Student

Federal Government

• Largest source of financial aid

• Free Application for Federal Student Aid (FAFSA) determines need-based eligibility for federal programs

• Must apply each year using the FAFSA

• Aid Programs include: grants, work study and student loans

State Government

• Residency requirements usually apply

• Award aid on the basis of both merit and need

• Use information from the FAFSA and/or state aid applications

• Aid Programs include grants and scholarships

Postsecondary InstitutionsColleges and Universities

• Award aid on the basis of both merit and need

• Aid may be gift aid or self-help aid

• Use information from the FAFSA and/or institutional applications

• Check with each college or university for deadline and application requirements

Private Sources

• Foundations, businesses, charitable organizations…

• Begin researching private aid sources early

• What is available in the community?

• To what organizations and churches do student and family belong?

• Companies may have scholarships available to children of employees.

• Deadlines and application procedures vary widely

• Small scholarships add up!

Categories of Financial Aid

• There are two (2) categories of Aid:

• Merit-based (academics, athletics, leadership, fine and performing arts)

• Need-based (demonstrated financial need)

• In order to document financial need and qualify for federal and state need-based programs, the student and parent need to file a Free Application for Feral Student Aid (FAFSA) after January 1st of senior year

Applying for Federal Financial Aid

Alisha Cederberg

Kalamazoo Valley Community College

Assistant Director of Financial Aid

• Financial Aid can help cover direct costs

• Tuition and Fees

• Room and board

• Books

• Financial aid can also assist in indirect costs

• Living expenses

• Travel

Costs for College

• Established by the institution

• Includes direct and indirect costs

• Helps establish financial need

Cost of Attendance (COA)

• FAFSA

• FREE Application for Federal Student Aid

• Available Online

• www.fafsa.gov

• Also sometimes called “FotW” (FAFSA on the Web)

• Must Renew FAFSA each school year (July 1 to June 30th)

• Can also complete a paper FAFSA or call by phone 1-800-433-3243

How Do I Apply?

• FREE – cannot emphasize this enough…the FAFSA will not ask for your credit card number

• Pay sites provide NO BENEFIT as eligibility is based on the information you provide on your FAFSA

• Information on the FAFSA is likely to be verified and will the be the same whether or not you pay someone else to complete it for you

FAFSA

• FAFSA is available at www.fafsa.gov

• “Skip technology” simplifies the application

• You will know the answer to almost all of the questions

• Only one question you cannot answer incorrectly: The Student’s Social Security Number!! (schools and families can update and fix everything else).

FAFSA – Required Information

The FAFSA asks a series of questions to determine if a student is independent or dependent.

Dependent students will need to include parent(s) information on the FAFSA

Dependent students will also need parent(s) to sign the FAFSA

Dependency Questions

• If the parents have divorced or separated: Answer the questions about the parent you lived with more during the past 12 months If exactly equal time, who provides most support?

NOT: * who claims student on taxes

* who will result in highest eligibility

• If this parent has remarried as of today, answer the questions about both that parent and the person to whom the parent is married (ie... Step parent)

Which parent on FAFSA?

• Parent 1 & Parent 2

• Biological parents living together must report both income if not married

• FAFSA now recognizes same-sex marriages if married in state or jurisdiction that permits same-sex marriage

• Otherwise, parent information remains the same

• If biological parents are not living together, pick household based on residence

Parent Income - Updates

• For the 2015-2016 school year, you will need your 2014 tax data

Tax Information

• For 2015-2016 FAFSA: Feature will be available in late February for those who file 2014 taxes early

• You can complete your FAFSA and update it with the IRS DRT 2-3 weeks after you have sent in your tax information to the IRS

• Requires taxes to be filed

• Address match

• Will not work under a limited set of circumstances

IRS Data Retrieval Tool (IRS DRT)

• You will sign the FAFSA using your PIN

• www.pin.ed.gov

• Unique to your SSN

• Cannot be shared!

• Parents of dependent students will have their own PIN

Sign & Submit the FAFSA

• The FAFSA is used to calculate Expected Family Contribution (EFC)

• EFC determines eligibility for the federal Pell Grant

• COA – EFC=financial need

Expected Family Contribution (EFC)

• Grants

• Scholarships

• Work programs (work-study)

• Loans

Four Types of Financial Aid

• Free money!

• Federal Pell Grant is the biggest source of grant money

• Eligibility is based on the EFC determined by the FAFSA (0-5188 EFC’s qualify)

• Is limited to 6 years (or the equivalent of 12 full-time semesters

• SEOG – priority to Pell Grant recipients

• Institutional Grants

Grants

• Free money

• Usually requires a separate application as determined by the donor

• FAFSA is often required

• Many state scholarships require a specific FAFSA submission date

• Scholarships can be local, national, institutional, regional…all sorts of “als”

• Always check with employers for tuition reimbursement

• Student is responsible for researching, applying

Scholarships

• Work-study programs (federal and institutional, no state funds)

• Self-help program that provides on-campus (and sometimes off-campus) employment to eligible undergraduate and graduate students

• Each institution determines awarding rules and priorities for work-study dollars

Employment

• Federal Direct loans

• Perkins Loan

• Parent PLUS Loan for parents of dependent students

• Graduate PLUS Loan for graduate students

• Private/alternative loans

Loans

• Subsidized

• Low-interest loans for financially needy undergraduate students

• Interest does not accrue while the student is in school

• Limited based on grade level, financial need, and time spent completing your program

• Unsubsidized

• Low-interest, not need-based

• Dependency status/grade level determines eligibility

Federal Direct Loans

• Amount determined by grade level, dependency status:

• Dependent Freshman qualify for $5500 ($3500 can be subsidized)

• Independent Freshman qualify for $9500 ($3500 can be subsidized)

Federal Direct Loan (cont.)

• Tuition Incentive Program

• For students who received Medicaid coverage for 24 months within a 36 month period

• Phase I:Covers tuition and mandatory fees for associate degree/certificate program at Community College

• Phase II: Provides $2000 tuition assistance at an eligible in-state four-year college/university

• Michigan Competitive Scholarship: $630

• Michigan Tuition Grant: $1524 per year

Michigan Programs

• You must be admitted as a regular student into an eligible program

• Check with your institution

• Award letter

• Requirements to complete financial aid eligibility

• Requirements may vary from college to college

• Requirements/next steps may be fund specific

What to do next?

• Complete a FAFSA each year

• 2015-2016 FAFSA will be available January 1, 2015

• Attend classes, pass classes

• Continue scholarship search

Continued Eligibility

Searching for Scholarships

Nancy Timmons

Kalamazoo Community Foundation

Donor Relations Manager

www.kalfound.org

HISTORY• 1925

• Dr. W.E. Upjohn

• Established Kalamazoo Community Foundation with a $1,000 gift of stock

• Today

• Kalamazoo Community Foundation is one of the largest and successful community foundations in investments and as a scholarship provider.

2014 Scholarship Awards

• $1,184,000 in total scholarship awards

• 380 awards

• 53 scholarship funds

Keep a list of school & volunteer activities

Read and follow the instructions carefully

Write an essay pertinent to the scholarship

Proof your application & use spell check

Choose your references wisely

Follow-up with the organization

Keep copies of everything

BEAT(don’t just meet) the DEADLINE

BUILD A BETTER APPLICATION

CLARENCE REMYNSE SCHOLARSHIP• High school senior and Kalamazoo County resident or

attends a Kalamazoo County High School

• Financial need (file FAFSA by March 1)

• Business, Science, Engineering, Education, Psychology,• Law, Medicine

• Planning to seek a baccalaureate degree as a full-time student at a College or University

• Demonstration of Leadership & Service

• December 1 Deadline Renewable Awards of $250-$7,500

2015 General Application

• Available at www.kalfound.org by end of December

• Web-based Application – eGrant

• 41 Scholarships for undergrads & graduate students

• One application – apply for up to 8 scholarships and submit online

• Recommendations and transcripts can be uploaded into application

• March 31 deadline, unless stated otherwise

PARTNERS IN EDUCATION

• Student who is a permanent resident of Kalamazoo County or graduating or graduated from a Kalamazoo County High school

• Pursue a two- or four-year degree or trade, technical, vocational or certificate program full-time at a college/university or program within the State of Michigan

• 2.80-3.80 GPA and demonstrate school/community involvement, leadership & work ethic; must demonstrate financial need.

• Multiple awards up to $2,000 (renewable)

• March 31 deadline

BHARGAVA FAMILY SCHOLARSHIP

• High Schools Senior who is a Kalamazoo County resident or attends a high school within Kalamazoo County

• Minimum 3.75 GPA and 28 ACT or 1240 SAT

• Demonstration of leadership & service

• Full-time enrollment, four-year college/university

• Preference PPS students/KAMSC/Asian Indian

• Awards of $1,000

• March 31 Deadline

E. EARL WRIGHT SCHOLARSHIP

• Must be a resident of Kalamazoo County or a student graduating or graduated or received a GED from a school within Kalamazoo County

• Planning to enroll full- or part-time in a two year degree program or vocational or technology training

• Minimum 2.00 GPA

• Demonstration of extracurricular/volunteer activities and work experience

• March 31 deadline Awards up to $1,000

EARL HAAS SCHOLARSHIP

• Must be a resident of Kalamazoo County or a student graduating or graduated from a high school or alternative school or received a GED within Kalamazoo County

• Planning to enroll full- or part-time in a two- or four-year degree program or vocational or technology training

• Must demonstrate financial need

• March 31 deadline Awards up to $1,000

Searching for Scholarships

Continued

Mari Draeger

Gull Lake Community Schools Foundation

GLCSF Trustee

GLCS Foundation Scholarships & ProgramsGLCS Foundation

Focus• Grants

• Scholarships

• Spark Series

• Distinguished Academic Scholars

How to Apply for Scholarships

• Go to www.glcsf.org and click on “Our Scholarships”

• Pick up an application packet in the GLHS Guidance office, if needed

• 33 scholarships available

• Deadline: February 27 at 3 pm

Questions?

• Beat the Deadlines!

• Friday, February 27 --Gull Lake Foundation Scholarships

• Sunday, March 1 --FAFSA (Free Application for Federal Student Aid

• Tuesday, March 31 --Kalamazoo Community Foundation Scholarships

Power Point available on the GLHS Guidance website under Financial Aid/Scholarship Information

• Thank YOU for being here!