Federal Student Aid Financial Aid Basics Myths About

Federal Student Aid Financial Aid Basics

Myths About Financial Aid “…only students with good grades get financial aid. ” Reality: High school diploma, GED and home schooling certificate. . . … more scholarship opportunities available… 2

Myths About Financial Aid “ We make too much money, therefore we’re not getting anything” Reality: Your income is only one item that is looked at regarding your eligibility for aid. 3

Where Does Aid Come From? • Federal Government • State Government • Schools • Private 4

Federal Financial Aid Programs • Federal Grants • Federal Work-Study • Federal Student Loans There is more than $150 billion available in federal aid to help students pay for postsecondary education 5

Gift Aid - Federal Grant Programs • Federal Pell Grant Program – $5, 815 • Iraq and Afghanistan Service Grant - $5, 382 6 • Teacher Education Assistance for College and Higher Education (TEACH) Grant - $3, 728 • Federal Supplemental Educational Opportunity (FSEOG) Grant - $4000

Federal Loan Programs Considerations: • • Subsidized vs. Unsubsidized Interest rate Grace period Death or Permanent Disability Know: • • • 7 Default – 1 st Borrowers REQUIRED to Entrance Counseling Deferment & Forbearance Loan Repayment Plans Public Service Loan Forgiveness (PSLF) Program Teacher Loan Forgiveness

Federal Loan Programs Interest Rate Federal Perkins Loan Federal Stafford/ Direct Loan 5% Fixed Subsidized 4. 29% Fixed Repayment 9 months after school 6 months after school Unsubsidized 4. 29% Fixed Direct PLUS Loans Parents & Graduate or Professional Student 8 5. 84% Fixed 6. 84% Fixed May be deferred until 6 months student drop ½ time or 60 days after loan is fully disbursed Additional Info Ends Sept. 30, 2015. Some students may be able to receive loans if grandfathered through Sept. 30, 2020. Subsidized: no interest charged while in school Unsubsidized: interest accrues while in school Interest accrues while student is in school

FAFSA. GOV • Must file every year Can file Jan. 1 st of senior year • 2017 -18 can file starting October 1 st • • FSA ID (Parent/Student) • Check with college to determine if additional applications need to be completed. I. E. CSS Profile application 9

FSAID. ED. GOV

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FSA ID – Things to Remember • 12 FSA ID used to: • Electronically sign Federal Student Aid documents • Access your personal records • Make legal binding obligations • If you do not have an SSN, cannot create an FSA ID • Parent needs to have their own FSA ID • Don’t use high school email address

FSA ID – Things to Remember • • It is important to include an e-mail address with your FSA ID because: • • 13 Linking your PIN gives you full access to your information online immediately. We use e-mail to communicate important information about your account to you, You can use your e-mail to get your username or password if you forget them, and You can use your verified e-mail address instead of your username when logging in to FSA systems. Access the new How to Create an FSA ID You. Tube video

FAFSA. GOV Homepage 14

IRS Data Retrieval Tool 15

Detailed College Info and Comparison • College’s website • School type • Tuition and fees • Net price average • Graduation rates • Retention rates • Transfer rates 16

Basic Eligibility Requirements Students must be: • U. S. citizen or eligible non-citizen • Registered with Selective Service (Males) (18 -25) • Social Security Number (with limited exceptions) • High school diploma, home schooling certificate, GED or • New Ability to Benefit Alternative • No drug related convictions while receiving Aid • Matriculated – enrolled in an eligible program • Maintain ‘Satisfactory Academic Progress’ • Not in Default or Overpayment Status 17

Dependency Status • If any of the following criteria applies, the student is considered independent: ü 24 years or older ü Married ü Master’s or Doctorate Program ü Children and you provide more than ½ support ü In foster care since turning 13, or ward of the court ü Emancipated minor or was in legal guardianship ü Homeless ü Serving Active Duty in U. S. Armed Force 18

Legal Parent – Who fills out the FAFSA? 19

Separated 20

Deferred Action for Childhood Arrivals (DACA) 21

Cost of Attendance - (COA) • COA includes: Tuition and fees Room and board (Meals) Books and supplies, equipment, transportation & personal expenses • Dependent or elder care expenses • Expenses associated with a disability • • • 22

Expected Family Contribution - EFC • Calculation that uses a federal form and formula • Indicates the family’s financial strength • EFC the same regardless of college the student attends 23

Expected Family Contribution - EFC • Factors: • # of Family Members going to college • Household size • Current Earnings & Family Savings • Information provided on FAFSA • Age of your oldest parent • The lower your EFC, more financial aid eligible to receive 24

College Costs & Financial Need Cost of Attendance (COA) - Expected Family Contribution (EFC) = Financial Need 25

How Much Aid will I Receive? Financial Need = $13, 000 Federal Grants State Grants Scholarships Institutional Grant Loans TOTAL = $5, 000 $2, 000 - Unmet need $13, 000

Expected Family Contribution (EFC) 27

What To Expect After Applying High Level Overview Student completes the FAFSA and signs with FSAID 28 FAFSA is processed by FSA; Student receives a SAR; College receives information if listed on the FAFSA College reviews info and assembles award package for the student Student reviews award package; compares to other award letters; student determines which college to attend

7 Best FAFSA Practices: • Use the Official website – FAFSA. GOV • Have SSN Card when filing FAFSA • Use SSN Card name, not Nickname • Select Correct Award Year • Complete FAFSA early using Estimates • After making corrections, Resubmit • Don’t Forget State Deadlines - link

Student. Aid. gov

Financial. Aid. Toolkit. ed. gov 31

Federal Student Aid Information Center Contact Us 32

QUESTIONS? 33