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Unraveling the Mysteries of

College Financial Aid

Christopher GannSHS AVID Coordinatorcgann@ems-isd.net

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How Much Does College Cost/Yr?

• Community Colleges – Approx. $8,000 – $15,000

• Public Universities– Approx. $12,000 - $20,000

• Private Schools– Range $18,000 and $48,000

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Where Will I Find the Money?

• Federal Government• State Government• Institution

– (college/university/trade school)• Private• Families• Earnings• Savings

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Federal Philosophy

• Family is responsible for student’s education– To the extent they are able

• Will be responsible until student– Is age 24– Supports their own children– Veteran of U.S. armed forces, etc.

• Guidelines treat families alike• Many families need help

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Student Aid

• Money provided by the federal government, state government, or colleges/universities to help students pay for college.

• Types of aid:– Grants– Loans– Federal Work-Study

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Federal Grants

• Student must file a FAFSA

• Undergraduate students only

• Eligibility based on need

• Pell Maximum = $5,730

• FSEOG Maximum =$4,000– Financial aid office at each school

• TEACH Grant Maximum = $4,00

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State Grants

• TEXAS Grant– Student must file a FAFSA– Texas resident– EFC equal to/less than $4,000– Maximum amounts:

• $7,400 per year at universities• $2,400 per year community colleges• $4,400 per year technical colleges

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Institutional Money

• Student must file a FAFSA• Most college and university campuses

have additional financial aid moneys they award to students. Students much check the campus web site to find what funds are available, what applications are required, and what is the application deadline. As with all other financial aid, the student will not be considered for an award if they do not file by the deadline

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Scholarships• Provider decides

– Awarding criteria– Application deadline– Application forms

• Award amounts vary• Student must search (Internet/other)• HS Career or Counseling office

– Locally available scholarships– Printed information

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Student Loans

• Student must file a FAFSA• Federal or private• Undergraduates and graduates• Subsidized and Non-subsidized• Money must be repaid• 6 mo. grace period after studies end• Borrow and use wisely• Also parent loans

– Different rules apply

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Student Loans

• Unsubsidized/Subsidized– $5,500 first year ($3,500 max. in

subsidized); increases by $1,000 2nd and 3rd years; caps at $31,000; 3.86% interest rate

• PLUS loans– Parent or student borrows; credit check

required; 6.41% interest rate

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Student Loans

• Perkins Loans– Exceptional need required– The school is the lender*– Maximum amount $5,500 per year

($27,500 total maximum)– 5.00% interest rate

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Work-Study

• Federal or institution program• Undergraduates and graduates• Money must be earned• Either on or off campus• Funding levels vary at institutions• Job not guaranteed

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Applications

• FAFSA for Federal, State, Campus money• GPA verification for State money• Other applications for private money

– Check each source individually• Other applications for some Campus money

– Check each campus web site

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Critical FAFSA Information

• Who are biological/adoptive parents?• Live with both:

– Count both incomes• Live with* one:

– Count that parent’s income– Count step-parent’s income if remarried

*The “live with” parent is the one you lived with the most in the last 12 months

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On-Line FAFSA

• More accurate• Faster processing• Easier to make changes• Electronic copy maintained temporarily• Parents and/or students may access

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PINs for Signature

• Parent and student both• Must have name, SSN, DOB and e-mail• If parent does not have SSN

– Does not make student ineligible– Student may apply and parent will sign

• Parent & student may use same e-mail– Permanent e-mail

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PIN Notification

• Will arrive in e-mail within 72 hours• Spam or virus blocker may block message

– More later• Message will refer to a URL• Click and be prepared to print or write

number– May not enter the web site a second time

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Permanent Contact Information

• Students must use permanent information– Usually parent’s information– Phone number– Mail address

AND– E-mail address

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Dependent vs. Independent

• Dependency based on Federal Rules– Not where student lives– Not who claims student on taxes

• Most HS seniors will be Dependent• Must report parent income

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What Happens Next?

Expected Family Contribution (EFC)• Calculated at federal level• Use data on FAFSA• Use formula• Calculate all families• EFC used to determine amount of aid

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Federal Notifications

• SAR: Student Aid Report • ISIR: Institutional Student Information

Report sent to:– Colleges listed on FAFSA

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Will You Recognize Notification?

• If you provided an e-mail address, SAR notification will be sent there– Will come from cpsnotify– Spam and virus blocker may block message– Temporarily stop auto dumping

AND/OR– Check “Junk” or “Trash” files before dumping

• Response within a week

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What to do when Notified?

• When FAFSA is processed a mini-web site for your information is created

• When notified, get on web site and read it– The information you submitted will be

reprinted on one page– This page will be retained for about 45 days– You may print it

• Your EFC will be printed in the upper right– If no numbers (blank), need more information– If all zeros, your family does not need to

contribute

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How to Correct Information

• You need to submit more information if:– There will be message in red or– Certain fields will be marked for changes

• Click in these areas to return to the data entry page and correct or enter data

• Generally both parent and student PINs must be rentered

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State Process & Notification

• Processes data on ISIR• Compares to GPA verification• Determines eligibility for State Grants

– Mailed to students 3 – 4 weeks later

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• Award letters sent by college– List awards, amounts and sources– Shows EFC– Period of enrollment covered

• Response may or may not be required• Students must read carefully

Awarding & Packaging

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Cost of Attendance

Basic Equation of Need #1(CSU)

Expected Family Contribution

Student’s Financial Need

Univ. $15,000

EFC $ 864

= Need $14,136

The amount of Financial aidthe Financial Aid Office will try to find (called a PACKAGE).

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Sample Financial Aid Pkg. #1(CSU)

Financial Aid Package Financial Need

$14,136Pell Grant $3,200 $10,936

State Grant $5,684 $ 5,252

Work Study $2,400 $ 2,852

Loan $2,625 $ 227

Unmet Need $ 277

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Analysis of Sample Pkg. #1

Grants $8,884

Loans $2,625

Work $2,400

Unmet $ 277

0

10

20

30

40

50

60

70

Grants(63%)

Work(17%)

Loans(19%)

Immet(2%)

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Analysis of Sample Pkg. #1

Grants $8,884

Work $2,400

Scholarships $2,000

Savings $ 852

0

10

20

30

40

50

60

70

Grants(63%)

Work(17%)

Scholar-ships(14%)

Savings(6%)

Outside Scholarships:

Church $ 500Internet $1,500

$2,000

Outside Scholarships:

Church $ 500Internet $1,500

$2,000

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Cost of Attendance

Basic Equation of Need(Private School)

Expected Family Contribution

Student’s Financial Need

COA $25,500

EFC $ 864

= Need $24,636

The amount of Financial aidthe Financial Aid Office will try to find (called a PACKAGE).

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Sample Financial Aid Pkg. #2

(Private School)

Financial Aid Package Financial Need

$24,636Pell Grant $3,200 $21,436

Inst. Grant $8,322 $13,114

Work Study $2,400 $ 10,714

Loan $2,625 $ 3,089

Unmet Need $ 3,089

Campus Grant $5,000 $ 5,714

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Analysis of Sample Pkg. #2

(Private School)

Grants $17,522

Loan $ 2,625 $2,625

Work $ 2,400

Unmet $ 2,089

0

10

20

30

40

50

60

70

80

Grants(71%)

Work(10%)

Loan(11%)

Unmet(8%)

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Analysis of Sample Pkg. #2

(Revised -- Private School)

Outside Scholarships:

Church $ 500Internet $1,500

$2,000

Outside Scholarships:

Church $ 500Internet $1,500

$2,000

Grants $17,522Work $ 2,400

Scholarships $ 2,000Savings $ 2,000

0

10

20

30

40

50

60

70

80

Unmet $ 714

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$864 EFC ??

Live at home

Learn to Cook

Rent movies

Toss a frisbee

No pets

Buy used books

Use public transportation

Shop at thrift

stores

Work during school breaks

Ride a bicycle

Savin

gs

($96 Monthly)

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Apply, Don’t Disqualify

Don’t Miss DeadlinesDon’t “Pre-guess”

ComputersDon’t Assume Anything

Create a Safety Net

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• http://www.youtube.com/watch?v=vuSnNjMghE0

• www.hrblock.com

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Next Steps

• Choose college• Wait for financial aid package offers• Send in housing agreements and

payments• Register for classes• Verify information on FAFSA application

with chosen college• Move out!