Finding Money for CollegeBasics of Financial Aid and the FAFSA

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We will talk about:

• Purpose of Education• Cost of attendance• Federal student aid• State student aid• Student aid from colleges• Scholarships from other sources

Purpose of Education

“Education that prepares children for life must go beyond fundamental skills to stimulate creativity, intellectual curiosity and honest inquiry...For all these reasons, there is no better investment that individuals, parents and the nation can make than an investment in education of the highest possible quality. Such investments are reflected and endure, in the formation of the kind of social conscience that our world so desperately needs.”

His Highness the Aga Khan at the Foundation Stone Ceremony of the Aga Khan Academy

Higher Education matters – a college diploma opens the door to a lifetime of higher earnings

Bachelor’s degree holders earn $1 million more over a lifetime than high school graduates

Doctorate degree holders earn $2 million more

Those who attend college but don’t receive a degree earn only $300 more annually than high school graduates

Higher Education Pays Average Annual Salary Earned by Degree Type

While there are many benefits of a college education, the reality is that college costs are rising at an increasing rate

TRUE/FALSE: I can’t afford college, or I can’t afford to go the college of my dreams

False

Many students and parents see the tuition price, the cost of living in the dorms, and the price of textbooks and say there is just no way they could ever afford it. Let’s face it, college is expensive! It’s the largest single investment many families ever make. However, two out of three students get at least some financial aid to help make college more affordable, according to Sallie Mae, the largest education lender.

Average Debt of Top Private Colleges

About two-thirds of recent graduates borrowed to help pay for their college education. Graduates of private schools walked away with an average of $28,100 in student debt, according to The College Board

University Annual Cost Average Debt at Graduation

Princeton University #1 $50,269 $5,225

* Williams College #1 $55,360 $8,369

Yale University #3 $53,700 $9,254

* Scripps College #29 $55,700 $9,435

Harvard University #1 $53,652 $10,102

* Pomona College #4 $54,010 $10,592

California Institute of Technology #5

$50,703 $10,760

* Wellesley College #6 $54,050 $12,495

TRUE/FALSE: I should go to community college for the first two years to complete my core classes before I go to a four-year University?

Pros:Save money Did poorly in high school, so only option is to transfer out later with much better gradesSmaller class sizes (option available at Liberal Arts colleges) 

Cons:Not all classes may transfer (loss of time and money)Networking (people you meet in top universities are different and high achievers than those in CC)Most big-named universities take little to NO transfersLittle to no financial aidResearch indicates that someone who attends a 4-year college is more likely to finish college than those who attend CC

False

Sources of Funding

• Parental Contribution• Federal & State Grants – Free $ but must apply for ($4,000 -

$7,400/Year)• Federal Loans

• Direct Loans – loan directly to the student; can be subsidized or unsubsidized

• Direct PLUS loans – unsubsidized loans made to the parent of student• PERKINS Loans – need based and must attend specific schools

• Private Loans• Private Scholarships

Average Cost of Attendance

• Tuition and fees ($10,138)• Loan fees (depends on loan company)• Room and board ($11,362)• Books and supplies (750)• Transportation ($1,470)• Miscellaneous living expenses ($2,766)

___________________________________________________• $27,086 Average Cost of Attendance for Undergraduate

at UT Austin for 2013 -2014

What is financial aid?

• Money to pay for college or career school• Grants• Loans (Private vs. Public Loans)• Work-study• Scholarships

Who can get federal student aid?

• U.S. citizen or permanent resident (generally)• High school graduate/GED holder• Eligible degree/certificate program• Valid Social Security number• Males registered for Selective Service• Satisfactory academic progress in college/career

school

Who can get other kinds of financial aid?

• States, colleges, and private scholarships have their own eligibility criteria.

• Be sure you know what you need to do to qualify.

How much federal student aid can I get?

In general, depends on your financial need.•Financial need determined by Expected Family Contribution (EFC) and cost of attendance (COA)•EFC comes from what you report on FAFSA and depends on you and your family’s income and assets•COA is tuition, fees, room and board, transportation, etc.

COA – EFC = financial need

How much federal student aid can I get?Maximum amounts for the major programs for a dependent freshman in 2014-15:•Federal Pell Grant: 2014-15 max award TBD [$5,645 in 2013-14]•Direct Subsidized and Unsubsidized Loans: $5,500 total (increases after first year)•Federal Work-Study: depends on funds available at school•Direct PLUS Loan (for parents): COA minus other aid received

Funds from other programs are available; see StudentAid.gov/needmoney for details.

How much federal student aid can I get?

For early estimate, use FAFSA4caster:•Go to www.fafsa4caster.ed.gov •Enter some financial information•Get an estimate

How much state, school, and private scholarship money can I get?

Depends on the program; do your research!•Our state aid: www.collegefortexans.com (limited $ so apply early!)•Ask college financial aid offices for info about aid available at their schools•Free scholarship search at StudentAid.gov/scholarships

How do I apply for aid?

• Federal student aid: fill out Free Application for Federal Student Aid (FAFSASM) at www.fafsa.gov

• State aid: www.applytexas.org• School aid: contact financial aid offices at schools

you are considering• Scholarships: visit scholarship website or call

contact number for information

How do I apply for federal student aid?

1. Get a PIN at www.pin.ed.gov. • Your parent might need a PIN too.• Choose your own PIN or let the site choose one for you.• Don’t tell anyone your PIN!

How do I apply for federal student aid?

2. Gather the documents you need to apply. • Find checklist at StudentAid.gov/resources#fafsa-

documents• Optional: Use FAFSA on the Web Worksheet to prepare

your answers. (Get the Worksheet at StudentAid.gov/resources#worksheet)

How do I apply for federal student aid?

3. Fill out your FAFSA at www.fafsa.gov. • Apply on or after January 1 but as early as possible to

meet all deadlines.• There is only a certain amount of money so applying

earlier may get you more money.• Need help? Use the help functions within the FAFSA

(including live chat) or call 1-800-4-FED-AID.• Don’t forget: watch for the confirmation page that says

your FAFSA has been submitted. THEN log out.

How do I apply for federal student aid?

4. Watch for response by e-mail or by mail. • Double-check that your info is correct by logging on at

the FAFSA site and reviewing your data.• Correct any mistakes and submit the corrected info.

How do I apply for federal student aid?

5. Watch for e-mails or letters from the schools you are considering.

• Give the schools any additional paperwork they ask for.• Meet all deadlines or you could miss out on aid!

Scholarships

Types of ScholarshipsType of

ScholarshipsSome Examples Approx. Aid

Federal

Federal Pell Grant Federal Supplemental Educational Opportunity Grants (FSEOG) Teacher Education Assistance for College and Higher Education (TEACH) Academic Competitiveness Grant (ACG) Grant National Science and Mathematics Access to Retain Talent (SMART) Grant

$750 to $5,500

State

Helping Outstanding Pupils Educationally (HOPE) Scholarship in Georgia Virginia Guaranteed Assistance Program (VGAP) Illinois Future Teacher Corps (IFTC) Program

Can cover up to full tuition

College

Odyssey Scholarship – University of Chicago Robertson Scholarship – Duke University and University of North Carolina Jefferson Scholarship – University of Virginia

Can cover up to full tuition

Corporations Buick Achievers Scholarship Program; Coca-Cola Scholars Program; Dell

Scholars Program; Ronald McDonald House; Gates Millennium Scholarship $1,000 to

$25,000

Non-Profit Organizations

Elk Lodge Most Valuable Student Scholarship for community service Horatio Alger Scholarship Award for overcoming adversity SEED Foundation Scholarship for students of Asian-Indian descent

$500 to $20,000

Career Specific

Siemens Math, Science and Technology Award Scholarships Davidson Institute for Talent Development; Media Fellow Program Chicago Engineering Student Incentive Award for High School Seniors National Academy of Television Arts and Sciences (NATAS)

$800 - $50,000

Transfer Students / Non-Traditional

Students

Phi Theta Kappa Honor Society Scholarships American Association of University Women (AAUW) Scholarships

$1,000 to $7,500

Searching for Scholarships

• MUST start AS SOON AS POSSIBLE• Start with www.fastweb.com• Best way to learn of scholarships is the web; look for private

organizations and companies giving away scholarships; most schools have scholarships that are for their school only

Strategies for Scholarships:• It’s a numbers game – apply to as many as you can• Watch for deadlines• Make sure you meet qualifications so you have a chance• Prioritize scholarships based on deadline and amount• Use calendars and reminders to stay organized

Other Scholarship Tips

• Create and use a professional email address just for this• Clean up the content of your social medial (Facebook, Twitter, etc.)

and remove any questionable/inappropriate content• Google your name and see what shows up• Save a copy of your application before you send it so you know what

you wrote• Have a friend proofread or review essays you wrote for suggestions• IMPORTANT: Beware of scholarship scams! If you have to pay

money just to apply, it is probably a scam

Scholarship Resources

• Federal Loan

• Fafsa.ed.gov

• General advice on college applications

• Collegenavigator.ed.gov

• Collegecost.ed.gov

• General advice on financial aid

• https://bigfuture.collegeboard.org/pay-for-college

• http://www.collegeconfidential.com/financial_aid/

Popular Search Engines

– Fastweb.com

– Scholarships.com

– Finaid.org

Resource for Undocumented Students

– Educators for Fair Consideration (E4FC)

International Scholarships

– IEFA.org

Scholarships for Disadvantaged Students

– http://www.hrsa.gov/loanscholarships/scholarships/disadvantaged.html

Ready To Get Started??

• Recap of websites mentioned:• www.studentaid.gov (general financial aid information including scholarship,

checklists, worksheets, etc.)• www.fafsa4caster.ed.gov (federal financial aid calculator)• www.collegefortexans.com (Texas state aid information)• www.fastweb.com (Scholarship matching site)• www.fafsa.gov (Federal Aid application)• Hotline assistance: 1-800-4-FED-AID

• List of Documents available for more resources and assistance:• Do you Need Money for College? (general information)• Scholarship List (List of Scholarships)• FAFSA Help Guide ebook (help uide to understanding FAFSA)• 2014-2015 FAFSA Web screen shots (step-by-step guide for filling out

FAFSA application)

Questions?