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Welcome to Wellesley College

MASFAA “Just the FACTS” Core Training

Materials adopted from the NASFAA Core Training

Lynne Myers, Director of Financial Aid, College of the Holy CrossKendra Lider-Johnson, , MEFA

Day One ~ December 4, 2012

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Housekeeping Details

• Introductions• Restrooms• Lunch Schedule / Location• Technology Reminders (beepers, phones,

etc.)• Extra Supplies• Questions (today and after today)

Massachusetts Association of Student Financial Aid Administrators Just the FACTS! Presents…

Overview of the Student Aid Programs

Module 1A

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What is Financial Aid?

Financial aid is money supplied by a source other than the family to assist with the costs of a student’s postsecondary education.

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The Basics

• What is financial aid– Need-based– Non need-based

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Types and Sources of Aid

• Types of Aid

– Grant & Scholarship

– Loan

– Employment

– Other

• Sources of Aid

– Federal

– State

– Institution

– Private

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Need Analysis Formula

Cost of attendance (COA)– Expected family contribution

(EFC)

= Need

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Cost of Attendance

• Determined annually by school

• Varies from school to school

• Includes basic components and may also include allowances based on the needs of individual students

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Cost of Attendance

• Includes the following basic components:– Tuition and fees– Room and board– Books and supplies– Transportation– Miscellaneous personal expenses– Other expenses

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Cost of Attendance

• More details next week………

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Student Eligibility

Student must meet general eligibility criteria, including but not limited to:• Be U.S. citizen or eligible noncitizen • Be regular student in eligible program at an eligible school• Not owe overpayment or be in default on Title IV grant or loan• Maintain satisfactory academic progress

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Student Eligibility

• More details next week………

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Title IV Programs• Federal Pell Grant Program• Teacher Education Assistance for College

and Higher Education (TEACH) Grant Program

• Iran and Afghanistan Service Grant

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Title IV Programs

• Campus-Based Programs– Federal Supplemental Educational

Opportunity Grant (FSEOG) Program– Federal Work-Study (FWS) Program– Federal Perkins Loan Program

• Federal Direct Student Loan (Direct Loan) Program

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Federal Pell Grant Program

• “Foundation” of aid package

• Awarded to students with lowest EFCs

• Unaffected by student’s other aid

• Portable

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Federal Pell Grant Program

Eligibility criteria:

• Undergraduates without baccalaureate or first professional degree

• Less-than-half-time students are eligible

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Federal Pell Grant Program

• Eligibility criteria: – Certain students enrolled at least half time in post-

baccalaureate teacher certification or licensing programs

– Students incarcerated in federal or state penal institutions are ineligible

• 2011-12 award amounts– Minimum = $555– Maximum = $5,550

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Teacher Education Assistance for College and Higher Education (TEACH) Grant Program• Incoming undergraduate students must have a

3.25 GPA or score above the 75th percentile on an admissions test– GPA requirement does not apply current teachers

earning graduate degrees and retirees from other professions

– Continuing undergraduate students must maintain 3.25 GPA

• Sign agreement to serve as a highly qualified full-time teacher in a Title I school for at least 4 academic years within 8 years of graduation

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TEACH Grant Program

If recipient does not fulfill service agreement, funds become a Direct Unsubsidized Stafford Loan

• Repay with interest accruing from date funds received

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TEACH Grant Program

• Maximum full-time annual award: $4,000

• Undergraduate and postbacculaureate students may receive up to a total of $16,000

• Graduate students may receive up to a total of $8,000 (excluding amount received at undergraduate level

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Iraq and Afghanistan Service Grant

• Starts with the 2010-2011 award year• Non-need based grants• Made to qualifying student with

parent/guardian who died as a result of U.S. military service in Iraq or Afghanistan after September 11,2001

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Campus-Based Programs

• Funds allocated annually to schools (Institutional match required)

• School selects recipients

• Awards are not portable

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Federal Supplemental Educational Opportunity Grant Program (FSEOG)• Student Eligibility:

– Undergraduate (including part time) without baccalaureate or first professional degree

– “Exceptional financial need” (lowest EFCs)– Priority to Federal Pell Grant recipients

• Annual amounts: $100 minimum $4,000 maximum

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Federal Work-Study Program

• Student Eligibility:– Undergraduate and graduate or professional

degree students– Students must be paid at least minimum wage

(higher of Federal or State)– No minimum enrollment

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Federal Perkins Loan Program

• Student Eligibility:– Undergraduate and graduate or professional

degree students– Priority for “exceptional financial need”

– Willingness to repay

– Determination of Federal Pell Grant eligibility, if undergraduate student

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Federal Perkins Loan Program

• Interest rate: 5%• No loan fees• Annual loan limits

– $5,500: undergraduate– $8,000: graduate or professional

degree student

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Federal Direct Loan Programs

• Federal Direct Stafford Loan

• Federal Direct Unsubsidized Stafford Loan

• Federal Direct PLUS Loan– PLUS Loan is available for graduate students

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Federal Direct Loans: Program Components• Subsidized loans: need-based

– Interest paid by federal government during in-school, grace, and deferment periods

• Unsubsidized loans: non-need-based– Interest paid by student– Interest may be paid as it accrues during

in-school, grace, or deferment periods or be capitalized (added to principal)

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Federal Direct Loan Program

• Subsidized Stafford Loans first disbursed on or after July 1, 2012, and before July 1, 2013, to undergraduate students– Fixed rate of 3.4%

• All other Stafford Loans first disbursed on or after July 1, 2006: – Fixed rate of 6.8%

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Direct Loan Programs Interest Rates

• Direct PLUS interest rates:– Fixed rate of 7.9%

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Federal Direct Loan Programs

• Annual loan limits apply to academic year• Base annual Stafford Loan limits:

– $3,500 for first-year undergraduates– $4,500 for second-year undergraduates– $5,500 for third- and subsequent-year undergraduates– $8,500 for graduate and professional students– $2,000 of unsubsidized eligibility

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Other Federal Resources

• Corporation for National and Community Service

• Department of Veterans Affairs• Reserve Officer Training Corps (ROTC)• Department of the Interior/Bureau of

Indian Affairs (BIA) Grants• Vocational rehabilitation services

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Department of Health and Human Services Programs• Nursing Student Loan (NSL)• Health Professions Student Loan (HPSL)• Primary Care Loan (PCL)• Scholarships for Disadvantaged Students

(SDS)• Loans for Disadvantaged Students (LDS) • National Health Service Corps (NHSC)

Scholarships