FINANCIAL AID APPLICATION OVERVIEW

FINANCIAL AID APPLICATION OVERVIEW

Free Application for Federal Student Aid 2011-2012FAFSA

Free Application for Federal Student Aid 2011-2012FAFSA

WHY COMPLETE A FAFSA?

Federal Student Aid uses the data on your FAFSA to calculate an Expected Family

Contribution (EFC)

Total cost of Attendance - EFC

= Financial Need

Estimated Family Contribution (EFC)

Your Expected Family Contribution (EFC) is the number that’s used to determine your

eligibility for federal financial aid. This number results from the financial

information you provided in your FAFSA application.

EFC Cont…

Calculation takes into account the following:

• Adjusted Gross Income (AGI)• Untaxed Income (Do not include BAH)• Assets and Benefits• Number in Household• Number in Household Attending College

WHAT AM I ELIGIBLE FOR ?Grants – Free Money

•Federal Pell Grant (for 2010-2011) if EFC is 5273 or lower•Maximum award $5550

Award amounts remain unchanged for 2011-2012

•Federal Supplemental Educational Grant (FSEOG) Institutional funds –award amounts up to $1000

What else am I Eligible for?

Loans•Subsidized Loans –must show need. •Unsubsidized Loans•Perkins Loans •Plus loans – Parents can borrow up to cost of attendance minus any other financial aid award amounts

•Federal Work Study

Enrollment Status

Full time =12 credit hours per SEMESTER Half time = 6 credit hours per SEMESTER

…Not sure?

Documents Needed

• 2009 W2 • 2009 Federal Tax Return•Current bank statements and other Financial Information

Completing the 2011-2012 FAFSA

Online (FAFSA on the web) at www.fafsa.ed.gov

FAFSA on the web has built-in-help to guide you through the application process

The schools you list on your application will receive your processed information faster.

Schools to Receive Information

2011-2012FAFSA on the Web Worksheet

Complete this Worksheet to assist you when you file your FAFSA online

DO NOT SUBMIT THIS WORKSHEET!

Section 1 – Student Information

To be completed with applicant information only

General information such as name, SSN, state of legal residenceMarital status (of student)

Selective Service Registration for under 25’s (male) Drug Convictions

Section 2 STUDENT DEPENDENCY STATUS

A student is considered independent ONLY if they can answer YES to ONE of the questions in section 2.

• Born before 1 January 1988• Married• Have children or dependents other than

children that you provide more than 50% support.• Active duty• Veteran of the U.S. Armed Forces

Section 3 PARENTAL INFORMATION

• If student answered NO to all questions in section 2, then parents must complete section 3

• This section must still be completed even if the applicant does not live with their parents

Section 4 STUDENT FINANCES

• To be completed by independent students only

• If the applicant is dependent and has provided the requested parental information then this section does not need to be completed.

NEW FAFSA/IRS LINK

• On the IRS Web site, enter the requested information.

• Once the IRS has validated your identification, your IRS tax information will display. You can either transfer your information from the IRS, or choose to return to FAFSA on the Web from the IRS Web site.

• If you transfer your IRS tax information, questions that are populated with tax information will be marked with “Transferred from the IRS”

What Happens After you Apply

• Results sent to all schools listed on FAFSA• Applicant will receive results via e-mail within 3-5 days (if submitted online)• Student Aid Report (SAR)• View and print the SAR• SAR will have Estimated Family Contribution and Data Release Number (DRN)

How much can I borrow?(Independent Students)

1st year undergrad $9,500 total Maximum of $3500 in subsidized

2nd year undergrad $10,500 total Maximum of $4500 in subsidized 3rd year and beyond $12,500 total Maximum of $5500 in subsidizedGraduate students $20,500 total Maximum of $8500 in subsidized

… And the borrowing limit for Dependent Students

1st year undergrad $5,500 total$3,500 Subsidized

2nd year undergrad $6,500 total$4,500 Subsidized

3rd year and beyond $7,500 total$5,500 Subsidized

Paying back Student LoansFIXED Interest Rates:

Subsidized Loans: 3.4%Unsubsidized Loans: 6.8%

Due to be paid back 6 months after Graduation, stop attending, drop to less than half time attendance

Perkins Loan 5% interest ratePay back 9 months after Graduation…..

Plus Loan – 7.9% Fixed interest ratePay back 60 days after disbursement (while still in

school)

Repayment Options

1. Standard Plan - fixed payment, fixed time not to exceed 10 years.

2. Graduated Plan – payments gradually increase, fixed time not to exceed 10 years.

3. Extended Plan – must owe over $30, 000, not to exceed 25 years

4. Income Contingent Plan – terms vary.

Information can be found by visiting the Information can be found by visiting the following links:following links:

http://www.fastweb.org/

And this site…

www.college.gov

STATISTICSAVERAGE ANNUAL INCOME

•High School diploma $30,500

•Associate Degree $37,500

•Bachelor’s Degree $53,500

•Master’s Degree $67,500

REMEMBER

NEED MORE HELP ?

For further assistance with the FAFSA application call 1-800-4-FED-AID or

1-800-433-3243 toll free or access www.fafsa.ed.gov

You may also access the Departments federal student aid Web site at

www.studentaid.ed.govFor scholarship searches check out

www.fastweb.org and/or www.finaid.org