what you need to know about financial aid
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What You Need to Know About Financial Aid. Office of Student Financial Aid Montgomery College. Topics We Will Discuss…. What is Financial Aid Cost of Attendance Expected Family Contribution Determining Financial Need Sources and Types of Financial Aid - PowerPoint PPT PresentationTRANSCRIPT
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What You Need to Know About Financial Aid
Office of Student Financial Aid Montgomery College
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Topics We Will Discuss…
•What is Financial Aid •Cost of Attendance •Expected Family Contribution •Determining Financial Need •Sources and Types of Financial Aid •Free Application for Federal Student Aid •Follow-up Steps/Resources •Questions & Answers
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What is Financial Aid?
Financial aid is funds provided to students and families to help pay for postsecondary educational expenses.
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What is Cost of Attendance (COA)?• Tuition and fees• Room and board• Books and supplies • Transportation• Miscellaneous personal expenses • Costs will widely vary from college to
college
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What is Expected Family Contribution (EFC)?•Amount family can reasonably be
expected to contribute•Two components
▫ Parent contribution▫ Student contribution
•Calculated using data from a federal application form and a federal methodology
•Stays the same regardless of college
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What is Financial Need?
Cost of Attendance (COA)
– Expected Family Contribution (EFC)
= Financial Need (Eligibility)
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Need and Eligibility Depend on Cost
Private 4-year
COA $42,979- EFC $12,000= Need $30,979
Private 4-year
COA $42,979- EFC $12,000= Need $30,979
Public 4-year COA $22,953
- EFC $ 12,000 = Need $ 10,953
Public 4-year COA $22,953
- EFC $ 12,000 = Need $ 10,953
Public 2-year
COA $16,068- EFC $12,000
= Need $ 4,068
Public 2-year
COA $16,068- EFC $12,000
= Need $ 4,068
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Types of Financial Aid
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Grants
•Money that does not have to be paid back•Usually awarded on the basis of financial
need
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Scholarships
•Money that does not have to be paid back•Awarded on the basis of merit, skill or
unique characteristic
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Employment
•Program provides student with employment
•Earned while attending school•Money does not have to be repaid
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Loans
•Money students and parents borrow to help pay college expenses
•Repayment usually begins after education is finished or when enrollment falls below required enrollment status
•Only borrow what is really needed
•Look at loans as an investment in your future
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Sources of Financial Aid
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Federal Government
•Largest source of financial aid•Aid awarded primarily on the basis of
financial need•Must apply every year, beginning in the
student’s senior year of high school, using the Free Application for Federal Student Aid (FAFSA)
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Federal Government Check basic eligibility requirements:• Be a U.S. citizen or eligible non-citizen • Have a valid Social Security number • Comply with Selective Service registration, if
required (www.sss.gov for more information) • Have a high school diploma, a General
Educational Development (GED) Certificate or pass an approved ability-to-benefit (ATB) test
• Be working toward a degree or certificate in an eligible program at a school that participates in the federal student aid programs
• Maintain satisfactory academic progress once in school
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Federal Government Programs• Federal Pell Grant• Federal Supplemental
Educational Opportunity Grant
• Teacher Education Assistance for College & Higher Education Grant
• Federal Work Study• Federal Perkins Loan• Federal Direct Loans
(Stafford subsidized & unsubsidized)
• Federal Direct PLUS Loan
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Federal Grant Programs• Federal Pell Grant
▫ Available for undergraduate students▫ Need-based grant▫ Awards up to $5,550 (2010-2011)
• Federal Supplemental Educational Opportunity Grant▫ For undergraduate students with exceptional
financial need▫ Priority given to Pell Grant recipients▫ $100-$4,000
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Federal Grant Programs• Teacher Education Assistance for College &
Higher Education Grant (TEACH)▫ Available to students who intend to teach in a high
need field (Bilingual Ed., Foreign Language, Math, Science, Special Ed.)
▫ Must agree to serve as a full-time teacher in a public or private elementary or secondary school that serves low-income students
▫ Must commit to teach for four academic years▫ Failure to complete service obligation converts
grant into unsubsidized student loan▫ Grants of up to $4,000 per academic year
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Federal Work-Study
•Money earned while attending school•Does not have to be repaid•For undergraduate and graduate students•Jobs can be on campus or off campus•Students are paid at least federal
minimum wage
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Federal Perkins Loan
• Undergraduate students can borrow up to $5,500
• 9-month grace period; repayment period up to 10 years
• Deferment and cancellation provisions for teaching, nursing, law enforcement, etc.
• Priority given to those with exceptional need
– Eligibility for Federal Pell Grant is determined first
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Federal Direct Loans
• Subsidized Stafford (Need-based)
• Unsubsidized Stafford (Not need-based)
• Annual and aggregate loan limits
• 6-month grace period, repayment period varies from 10-25 years
• Not credit-based
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Federal Direct Loans-Annual & Aggregate Borrowing Limits –
Year Type of Loan Dependent Independent
1st Year Student Subsidized $3,500 $3,500
Unsubsidized $2,000 $6,000
2nd Year Student
Subsidized $4,500 $4,500
Unsubsidized $2,000 $6,000
3rd & 4th Year Student
Subsidized $5,500 $5,500
Unsubsidized $2,000 $7,000
Aggregate Loan Limits
$31,000(Max. $23,000
Subsidized)
$57,500(Max. $23,000
Subsidized)
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Federal Direct PLUS Loan
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Federal Loans - Interest Rates • Perkins - 5%
• Subsidized Stafford - 2010-2011 4.5% 2011-2012 3.4%
• Unsubsidized Stafford - 6.8%
• Direct PLUS Loan - 7.9%
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Financial Aid Process
FAFSA4casterPIN
FAFSA Worksheet
SARVerificationFollow-up
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Pre-FAFSA Tasks• Get information about financial aid programs• Apply for a Federal Student Aid PIN (student &
parent) www.pin.ed.gov• Collect financial documents to complete FAFSA
(income tax return, W-2 form, other records of income). Full list of what you need is at www.fafsa.ed.gov
• FAFSA on the Web Worksheet • FAFSA4caster - www.fafsa4caster.ed.gov
▫Early estimate of EFC
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PIN Website
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FAFSA on the Web Worksheet
•Used as “pre-application” worksheet
•Questions follow order of FAFSA on the Web
•4-page booklet containing:
▫Instructions
▫4 sections
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FOTW Worksheet – Section 1
General Student Information:•Name •Social Security Number•Citizenship•Marital Status•Selective Service Registration•Drug Conviction Status•Parent’s Educational Background
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FOTW Worksheet – Section 2
Student Dependency Status
•If all “No” responses, student is dependent
•If “Yes” to any question, student is independent
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FOTW Worksheet – Section 3
Parent Information•Social Security Number•Name•Date of Birth•Dislocated Worker Status
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FOTW Worksheet – Section 3
Financial data for parents of dependent students:
•Tax filing status•Adjusted Gross Income (AGI) for 2010•Income earned from work•Receipt of benefits from certain federal
means-tested programs•Additional financial information•Untaxed income
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FOTW Worksheet – Section 4
Financial data for student (and spouse):•Tax filing status •Adjusted Gross Income (AGI) for 2010•Income earned from work•Dislocated worker status •Receipt of benefits from certain federal
means-tested programs•Additional financial information•Untaxed income
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FOTW Worksheet – Additional Information A student may be asked to provide more
information about:•Parent’s assets and net worth•Student’s assets and net worth
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Filing out a FAFSA – www.fafsa.gov
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Post-FAFSA Tasks •Receive a Student Aid Report (SAR)
▫SAR contains EFC•Review SAR and make corrections if needed
▫Use PIN to make corrections▫Corrections to estimated income▫Add/Delete school codes
•Follow-up with schools▫Verification process ▫Additional documents may be required▫Communicate special circumstances to the school
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State Government
•Residency requirements•Awards based on merit and need •Deadlines vary by state; check paper
FAFSA or FAFSA on the web•Use the information on the FAFSA
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Maryland
Maryland Higher Education Commission•State deadline: March 1st
•Maryland has financial aid programs based on financial need, merit or career track
•State aid may be used at public and private colleges/universities (primarily in MD)
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MarylandNeed based programs:•Howard P. Rawlings
▫Educational Assistance Grant Annual award $400-$3,000
▫Guaranteed Access Grant Annual award $400-$13,700
•Part-time Grant▫Annual award $200-$2,000
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Maryland
Legislative Scholarships:•Senatorial Scholarships
▫Award amount varies ▫Contact Senator for application
•Delegate Scholarships▫Award amount varies ▫Contact Delegate for application
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Maryland
Unique Major•Funds awarded for the Senatorial and
Delegate scholarships may be used at an out-of-state institution if the student’s academic program is not offered at a Maryland institution
•Review website for more information on how to apply www.mhec.state.md.us
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Maryland
Additional resources and information
College 411: Student Guide
An Academic Year: Preparing for College
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Institutional Aid Programs•Colleges offer their own grants and
scholarships•Need-based and merit-based programs•Academic, athletic, and other talent-based
scholarships and grants•Institutional aid may be for only the fist
year or renewable for subsequent years•Contact the school’s admissions and
financial aid office for applications and deadlines
UNIVERSITY
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Private Sources of Student Aid
•Private businesses•Political and advocacy organizations•Religious and social organizations•Parent and student’s place of employment•Foundations•Unions•Deadlines and application procedures vary
widely•Begin researching private aid sources early
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Private Sources of Student Aid• Internet Scholarship Searches
▫ Provide a student profile▫ Receive scholarship information▫ Contact scholarship providers directly
• Scholarship Websites▫ www.collegeboard.com/paying▫ www.fastweb.com▫ www.collegequest.com▫ www.finaid.org▫ www.freescholarships.com▫ www.salliemae.com/scholarships▫ www.college-scholarships.com
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CSS/Financial Aid Profile
•Financial aid application service of The College Board
•Used to award private grant & scholarship funds
•Check for a listing of participating institutions/ scholarship programs▫www.collegeboard.com
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Deadlines are Important!!!
•Financial aid forms and applications are just like homework; you have to turn them in correctly and on time
•Schools have different deadlines for admissions and financial aid; research each school to find out the deadlines
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Be Careful!!!!!
•Filling out FAFSA is free!!!•Avoid scholarship scams
▫Exclusive scholarship information▫Scholarship guaranteed!▫You’ve been selected!▫Application fees▫Free seminar or candidate interview
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Where do I go from here?
•High school guidance office or college/career center
•Books▫The Scholarship Book▫The College Blue Book: Scholarships,
Fellowships, Grants and Loans▫Peterson’s Scholarships, Grants and Prizes▫College Board Scholarship Handbook
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College Goal SundayWhat:• Receive free help to complete FAFSAWhen:• Sunday, February 13, 2011• 2-4pm• Snow Date: February 20, 2011
Same time & locationWhere:• Montgomery College• Takoma Park/Silver Spring Campus• Charlene R. Nunley Student Service Center
For more information:www.CollegeGoalSundayMD.org
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Follow-up
•Financial aid is a process•Follow-up is key•No news is good news ---not the case in
financial aid•Be your own advocate!
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Questions & Answers