“how can i pay for college?” financial aid basics for college counselors

“How Can I Pay For College?”Financial Aid Basics for College Counselors

Matthew F. NewlinUniversity of Missouri-St. Louis

Federal & State Aid overview FAFSA online

◦ Steps to completing the FAFSA successfully◦ What is the EFC?

Grants Loans State Awards Scholarships

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Federal Aid Programs◦ Pell Grant◦ SEOG◦ TEACH Grant◦ Stafford Loans◦ Perkins Loan◦ Federal Work-Study◦ ACG and SMART Grant

State of Missouri Aid Programs◦ Bright Flight Scholarship◦ A+ Program◦ Access Missouri Grant

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Website for counselors and mentors:◦ Handbook◦ FAFSA information◦ Student aid information◦ EFC Formula Guide

www.fsa4counselors.ed.gov

Website for students and parents:◦ FAFSA4caster◦ Aid eligibility ◦ Loan repayments

www.studentaid.ed.gov

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Were you born before January 1, 1988? As of today, are you married? At the beginning of the 2011-12 academic year, will

you be working on a graduate degree? Are you currently serving on active duty? Are you a veteran of the U.S. Armed Forces? Do you have children who receive more than half of

their support from you? Do you have dependents (other than children) who

you support? Are both your parents deceased? Are you an emancipated minor? Legal

guardianship?

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1. Complete FAFSA2. Apply for PIN (both student and parent)3. Submit online4. Check status of FAFSA5. View Student Aid Report (SAR)

information6. Make any necessary corrections7. Confirm FAFSA is received by institution

www.fafsa.ed.gov

www.fafsa4caster.ed.gov

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Estimated Family Contribution◦ NOT what the student/parent(s) are required to pay◦ Based on all information entered on FAFSA

Definition of Need:◦ Cost of Attendance – EFC = Need◦ Lower EFC = greater need

But, Matt, what about students who cannot/will not supply parental information?

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*Will remain $5,550 for 2011-12

Pell Grant◦ $5,550 maximum (tentatively) for 2011-2012◦ Student must be working on 1st undergraduate

degree◦ Lower EFC = higher Pell award

SEOG◦ Awards range from $100 – $4,000 ◦ Only awarded to Pell recipients◦ Very limited funds for each institution◦ Typically only awarded to lowest EFCs

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TEACH Grant◦ $4,000/year based on enrollment◦ Must have a FAFSA completed◦ Education majors◦ Strict requirements for post-graduation job

selection◦ 75th percentile or higher on college admissions

test, 3.25 GPA for renewal or transfer students

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Subsidized Stafford Loan◦ Need-based loan◦ Does not accrue interest while student is enrolled

at least half-time◦ Six-month grace period

Unsubsidized Stafford Loan◦ Does not require financial need◦ Does accrue interest while the student is enrolled◦ Six-month grace period

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Perkins Loan◦ “First come, first served” due to limited funds◦ Does not accrue interest while student is enrolled

at least half-time ◦ Nine-month grace period◦ Awarded by the school

Parent PLUS Loan◦ Option for parents of dependent students◦ Based on parent’s credit◦ Repayment begins while student is in school

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Grade Level 2011-2012

Freshmen $3,500 + $2,000 (Unsub)*

Sophomore $4,500 + $2,000 (Unsub)*

Junior $5,500 + $2,000 (Unsub)*

Senior $5,500 + $2,000 (Unsub)*

Maximum Undergraduate $31,000(maximum $23,000 Sub)

*Students are not required to accept full loan amounts offered.

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Type of Loan 2011-2012

Stafford – Subsidized 4.5%

Stafford – Unsubsidized 6.8%

Perkins 5.0%

Parent PLUS(Parent loan for undergrads)

7.9%

Bright Flight Program◦ ACT of 31 or above / SAT verbal 800 or above and

math 790 or above◦ $1,500/year for 2011-2012◦ 2.5 cum GPA for renewal

Access Missouri Grant◦ April 1st FAFSA deadline◦ EFC range: 0 – 12,000 ◦ Public 2-year: $300 – $1,000◦ Public 4-year: $1,000 - $2,150 ◦ Private: $2,000 - $4,600

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Institutional◦ ACT/SAT based (Merit)◦ Application based (Competitive)◦ Apply for admission early◦ Research deadlines

Employers/Organizations◦ Parent(s) place of employment◦ Clubs, activities, memberships◦ Typically very limited resources

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Online◦ Fastweb.com◦ BrokeScholar.com◦ CollegeScholarships.com◦ CollegeBoard.com◦ St. Louis Scholarship Foundation (sfstl.org)◦ Encourage students to always complete the essay

portion!

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Grants

Loans

Scholarships

Work-Study

FAFSA OutsideAssistance

Internet ASKING QUESTIONS!

Questions?Matthew Newlin

University of Missouri-St. Louisnewlinm@umsl.edu

314.516.5528

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