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Financial Aid 101:A Guide to

Financial Aid and Scholarships

Presented by Bonnie McCarty, Assistant Director of Scholarships, MTSU

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Applying for Financial Aid

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What is financial aid?

Money to pay for college or career schoolGrantsLoansWork-studyScholarships

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Federal Student Aid Requirements

To be eligible, a student must be…A US citizen or permanent residentA High school graduate or GED holderPursuing an eligible degree or certificate programA person with a valid Social Security numberRegistered for Selective Service (males only)Making satisfactory academic progress (i.e.,

Passing enough classes to show progress toward degree)

These rules apply to most types of state and institutional aid also, and may apply to private aid.

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FAFSA: Free Application for Federal Student Aid

Application for federal and state aid Collects information about household income

and sizeUsed to determine eligibility for need-based aidwww.fafsa.ed.gov

Prepare FAFSA worksheetStudent and parent need PINReview answers carefully!

Reapply every year using renewal form

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When to File Your FAFSA

Available on January 1Submit as soon as possible after January 1

to receive need-based grantsSubmit by May 1 if not expecting to receive

need-based grants

TipsWatch out for FAFSA deadlines listed in

scholarship applications!Use estimated income and file early!

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Estimating Your Income

Use 2009 tax return and final 2010 pay stubs to estimate total income & taxes

When 2010 tax return is completed, compare with estimated info on FAFSA

If estimate was correct, make no changesIf estimate was incorrect, contact Financial

Aid Office at school of choice; they will… Instruct you to correct the FAFSA OR Have you submit the tax return for them to make the

correction on the FAFSA OR Determine that no corrections are needed

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College Goal Sunday

Free help with filing FAFSA!January 31 or February 13

(depending on site)35 sites around TennesseeRegister at

www.tn.gov/CollegeGoalSundayMore info at

www.mtsu.edu/financialaid/cgs.shtml

Free Help with Filing Your FAFSA!

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Student Aid Report

Summary of the info on your FAFSASent appx one week after FAFSA is

filedBy email, if email address is providedBy mail, if email address is not provided

Comments section should be checked carefully, and any issues should be addressed as soon as possible

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Student Aid Report

Expected Family Contribution (EFC)Ranges from 0 to 99,999Lower number = higher financial needUsed to determine your eligibility for need-

based aidEFC does not correspond to particular

income amountThe formula considers many factors,

including income, taxes paid, household size, number in college, etc.

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Verification

Required for 30% of FAFSAs by federal law

FAFSA is checked for accuracyMust submit tax documents and other

paperworkSubmit by June 1 for best results

There’s a 1 in 3 chance your FAFSA will be selected for verification. Be sure to watch for information from your school, just in case!

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How much federal student aid can I get?

Financial NeedCost of Attendance budget

TuitionBooksRoom and BoardTravelMiscellaneous

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What happens next?

Award Letter How much aid you can get at that school Often sent by email to student’s school email

account Should include instructions on how to accept aid

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What happens next?

Receiving your financial aidInstitutional charges paid first Refund issued for remaining credit

balance Use refund to purchase books and

supplies, pay for living expenses, and cover other indirect educational costs

Above info is applicable at most schools; check with your schools of interest about their aid policies.

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Questions about applying for aid?

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Types of Federal Aid

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Grants and Other Non-Loan Aid

Grants Do not have to be repaidExamples: Pell, SEOG; TSAA (state grant)Must have financial need according to FAFSAPell Grants are guaranteed (if eligible)Other types of grants have limited fundingSome grants have academic requirements

Federal Work-StudyReceive pay for hours workedVery limited funding, few positions available at

most schools

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Types of Loans:Stafford Loan

Federal student loan which must be repaidAward Amount:

$5500 per year for freshmenAmounts increase for higher grade levels

Repayment: Begins 6 months after graduationGenerally completed within 10 years

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Types of Loans:Stafford Loan

Subsidized Stafford LoanNo interest while in schoolMust have financial need

Unsubsidized Stafford Loan Interest accrues while in schoolAvailable to all students

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Types of Loans:Stafford Loan

Why should I consider a Stafford Loan instead of a private loan?

Payments deferred while in schoolMay be interest-free while in school (if

subsidized)May have lower interest rateDoes not require credit check or cosignerPart of loan may be forgiven for public

service (e.g., nurses, teachers)

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Types of Loans:Loan Forgiveness Programs

“Grant”-Type Programs:Examples: Teach Grant (federal), TN Teaching

Scholars Program, TN Rural Health ProgramAvailable to education, healthcare, and certain service

industry majorsMust meet stringent service requirements or repay

entire “grant” (plus backdated interest in most cases)

Stafford/Perkins Programs:Borrow Stafford or Perkins LoanBegin repaying loan as normalHave portion of loan forgiven after meeting service

requirement for given number of years

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Types of Loans:PLUS Loan

Federal parent loan which must be repaidAward Amount:

Depends on student eligibility and lender approval

Credit check is requiredRepayment:

Repaid by parentsDeferment available while in schoolCompleted within 10 years

If parents apply for a PLUS Loan but are denied, the student may be eligible to borrow additional Stafford Loan funds of $4000 or $5000 for the year.

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Questions about federal and state aid?

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Scholarships from the State

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State Scholarships

Examples: Lottery, Byrd, McWherterMost require online applicationDeadlines varywww.tn.gov/CollegePays/

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Tennessee Education Lottery Scholarship Program

HOPE 21 ACT OR 3.0 GPA$4000 per year

SupplementsGeneral Assembly Merit $1000

29 ACT AND 3.75 GPA

Aspire Supplement $1500$36,000 or less Parent AGI

Can receive one supplement at a time, not both

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Tennessee Education Lottery Scholarship Program

HOPE Access Grant18 ACT AND 2.75 GPA AND

$36,000 or less Parent AGI$2750 for one yearCan qualify for full TELS award

if 2.75 GPA after 24 hours

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Tennessee Education Lottery Scholarship Program

Meet academic requirementsTennessee resident for one yearUS citizen or permanent residentGraduate from eligible Tennessee

high schoolOr meet alternate academic requirements

for other school types (e.g. home school)

Submit FAFSA by September 1 (by February 1 for spring enrollees)

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Wilder-Naifeh Technical Skills Grant

Available at TN Technology CentersPublic technical/vocational school 26 locations across the state

$2000 per yearTennessee resident for one yearSubmit a FAFSA by September 1Not limited by age or academics!

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Robert C. Byrd Honors Scholarship

$1,500 per yearCan be used at any eligible college 3.5 GPA, or 3.0 GPA and 24 ACT (1090

SAT)Random selection among eligible

applicantsDeadline: March 1 Apply at www.tn.gov/CollegePays/

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Ned McWherter Scholars Program

$6,000 scholarship ($3000 from state, $3000 from school)

Attend an eligible TN school 3.5 GPA and 29 ACT (1280 SAT)US citizen and TN residentApplication deadline: February 15Apply at www.tn.gov/CollegePays/

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Questions about state

scholarships?

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Institutional and Private Scholarships

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Institutional Scholarships

Academic ScholarshipsUsually based on GPA and ACT/SATMay consider other factorsMay require scholarship applicationMay have deadline in December or

earlierAmounts, requirements, application

procedures, and deadlines vary widely. Information should be available on the school’s website.

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Institutional Scholarships

Foundation/Endowed ScholarshipsFunding provided by private donors such as

alumniMajor, residency, occupation of parents, or other

factorsApplication deadline generally between

December and February

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Institutional Scholarships

Departmental ScholarshipsFunded from a department’s budgetFor students in particular major or minor, or in

certain organizationExamples: Band, ROTC, Athletics

Usually includes service requirementContact departments of interest for more

information

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Private Scholarships

Look for free search websitesApply, Apply, Apply!Watch for applications with essays

—may have less competitionEmphasize your leadership,

special skills and qualities, and contributions to your community.

Visit our scholarship website at http://www.mtsu.edu/scholarships/private_scholarships.shtml for more information.

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Scholarship Notes

Beware of scams!! Don’t pay money to make money!

Ask employer or parent’s employer

Tuition discounts for state employees

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Questions about institutional or private

scholarships?

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For More Information

College For TN:http://www.collegefortn.org/

Click on “Financial Aid Planning” for many resources!

FinAid:www.finaid.org

Great info on financial aid and how it works!

MTSU Financial Aid Office:www.mtsu.edu/financialaid

www.mtsu.edu/scholarships