Finding Money for CollegeScholarship & Financial Aid 101

TWHS Fall 2019

Finding Scholarships • University-Funded Scholarships

BIG money comes directly from the college or university.

• Academic Merit

• Financial Need-based

• Athletic (Except D-III)

• Freshman-only Scholarships

• Transfer Scholarships

• Scholarships by Major

• Leadership-Based

• Non-Resident Scholarships

• Alumni Associations

• Stackable or Non-Stackable

Corporate Funding

• Dependent Scholarships are common at many workplaces. Contact your HR Department.

• Military Veteran? Money is available through VA and Hazelwood Act.

• Membership Benefits: Family participation in organizations can result in scholarship eligibility (Kiwanis, Elks, Masons, Unions).

• Alumni: Legacy Scholarships

National Scholarships

• HUGE money for winners

• HUGE number of applications (10,000-50,000)

• Coca-Cola, Gates Millennium Scholars

• Westinghouse-Siemens, Burger King

• Reagan-GE

• Some national scholarships have minority categories (McDonald’s).

National Scholarship Search Engines

Local Scholarships

• Houston Area

• Montgomery County

• Local Area

Applying for Need-Based Financial Aid:

FAFSA, TASFA, & CSS Profile

This Photo by Unknown Author is licensed under CC BY-SA

All Applications Open OCTOBER 1ST

How Financial Aid is Determined

• Cost of Attendance (COA) includes tuition & fees, room & board, books & supplies, and miscellaneous. COA is determined by university.

• FAFSA generates the Expected Family Contribution (EFC). Expected Family Contribution (EFC) is amount a family can reasonably be expected to contribute. Amount is calculated by FAFSA and is the same no matter where the student attends college.

• Colleges listed on FAFSA receive this EFC and use this number to package aid. They will take the Cost of Attendance (COA) and subtract your EFC and try to fill as much of the financial need as possible.

• Some schools (mostly private) may meet full need.

FINANCIAL NEED

• The difference between Cost of Attendance (COA) & Expected Family Contribution (EFC) determines need.

COA

-EFC

FINANCIAL NEED

• COA varies from school to school

• EFC stays constant.

The Process Remember that college must receive any required

follow-up paperwork before aid is awarded.

US Department of Ed

(Calculates EFC)

Notify student

(Often posted in college account)

STUDENT MUST ACCEPT AID OFFERED!

Award student

School releases funds

College

Private/Public/

2-Year

School determines need

Submit FAFSASAR to student

Types of Financial Aid

Types of Financial Aid

Federal & State Grants

FEDERAL

• Pell Grant

• Supplemental Ed. Opportunity

Grant (SEOG)

STATE

• Texas Grant

• Texas Public Ed. Grant (TPEG)

Work Study

• Need-based, on campus

employment

• Earn money to help pay

educational expenses.

• At least minimum wage, paid

monthly

• Part-Time Hours

Types of Federal Loans

Student

• Need based

• Subsidized loans do not accrue

interest while student is in school

• Maximum Annual Amount (2018-

19 Award Year) for freshmen was

$6,095.

• Repayment begins 6 months after

graduation or dropping below half-

time enrollment.

Parent Plus

• Based on Parent’s Credit

• Approved – parent may borrow up

to cost of attendance, less any

financial aid

• Denied – If parent is denied due to

adverse credit, student can be

offered additional unsubsidized

loans.

Who can receive federal student aid?

(FAFSA application)

Enrolled in degree or

certificate program

Satisfactory academic

progress

Males registered for

Selective Service

Valid SSN

HS diploma/GED

U.S. Citizen or

permanent resident

FAFSA

Results from FAFSA may qualify students for aid in the form of grants, loans, or work-study.

Some scholarships require for FAFSA to be on file.

Links US tax returns with student application

May be filed beginning on October 1, the fall prior to the academic year the students plans to attend.

Prior year’s income information is used on the FAFSA.

So, for the 2020-21 academic year, the FAFSA must be filed with the 2018 tax information.

Check with each college to find out their FAFSA priority deadline.

FAFSA Overview

• Gather Documents• Register for an FSA ID• Complete Application

https://studentaid.ed.gov/sa/sites/default/files/fafsa-process.png

FAFSA

• Gather Documents• SSN Number or Alien Registration Number• Federal Tax Return, including W-2 ➢prior year; for 2020-21 application you’ll use 2018 taxes

• Records of untaxed income• Cash, savings, checking account balances• Dates of Birth; Marital Status• FSA ID

FAFSA-FSA ID

• The FSA ID acts as your login and electronic signature for the FAFSA

• Students AND at least one parent need an FSA ID

• Create an FSA ID at fsaid.ed.gov• Email address• Username/Password• SSN• Birthdate• Full legal name

*Persons without SSN may not make an FSA ID

Complete your FAFSA as a DependentWho is considered a parent?• Biological parent(s)• Adoptive parent(s)• Biological parent and stepparent (if remarried)NO ONE ELSE can be reported as a parent.If parents are divorced, report based on the parentyou stayed with the most over the last year.If you don’t live with a parent, report on the lastparent you lived with.

Complete your FAFSA as IndependentWho is considered an independent student?• 24 or older• Married• Financially supporting children or grandchildren• In Foster Care• Under legal guardianship with someone other thana parent• Homeless or at-risk• Emancipated• Other special circumstances

FAFSA

• Complete the FAFSA: fafsa.ed.gov

• Login to application using FSA ID• Create a Save Key to return to

application at a later time• Student Information• College Selection• Dependency Status• Parent Information & Taxes• Student Taxes• Sign and Submit• Confirmation Page

Texas Application for State Financial Aid (TASFA)

As a result of Senate Bill 1528, certain non-citizens qualify for financial aid at Texas public universities and colleges.

Students must graduate from a Texas high school.

Have lived in Texas for at least three years.

Sign an Affidavit stating that they will apply for residency at earliest opportunity to do so.

Used by many Texas Colleges

Determines undocumented student state aid eligibility

Details at state website: www.collegeforalltexans.com

TASFA

• Gather Documents• Notarized Residency Affidavit• Tax Return from the previous year• Current tax return, W-2, tax return transcript• Texas Grant Qualifications• Proof of Selective Service registration (if male, ages 18-25)

TASFA

• Complete the TASFA• Download the application

• Make copies of applications• Submit to each college individually• Ensure all forms are completed

*Priority deadline to submit TASFA is March 15th

CSS ProfileAid & Private Colleges• College Search Service Profile (CSS Profile)

• https://student.collegeboard.org/css-financial-aid-profile

• Must also complete the FAFSA

• Some private institutions require the CSS/Financial Aid Profile with College Board

• More extensive questions about finances

• Used for institutional aid

• Fee is required, unless student qualified for and used SAT fee waiver.

CSS Profile

• Determine if any schools you’ve applied to require the CSS Profile• Gather Documents

• Most recent tax return and the prior year’s• W-2 forms• Records of untaxed income • Current bank statements• Records of savings, stocks, bonds, etc.

CSS Profile

• Sign in to your College Board account at cssprofile.collegeboard.org

• Follow instructions to navigate each section• Payment: $25 for first report and $16 for

each one that follows; fee waivers available for low-income students

• Submit and keep track of dashboard

What do I need to do after I submit a financial aid

application?

FAFSA

• Financial verification• If an * appears next to the EFC on the Student Aid Report (SAR)• Gather verification forms and tax transcripts to be sent individually to

each college• Follow up with colleges individually to make sure financial aid awards are

processed• Make corrections

• If corrections need to be made or colleges need to be added, login to FAFSA, Make a Correction and reprocess

• Note that sometimes corrections may trigger the verification process

TASFA

• Follow up with colleges to ensure that they have received all required documents

CSS Profile

• Check the Dashboard to add colleges, keep up with notifications• Upload required documents to IDOC (Institutional Documentation

Service)

Cost Considerations

• Sticker Price vs. Net Cost

• Scholarships and need-based grant aid may lower cost of attendance.

• Private institutions may offer substantial scholarships or may meet significant need.

• Many public universities award academic scholarships based upon a student’s rank or GPA, combined with SAT or ACT score.

• Many out-of-state schools, especially southern schools, may offer generous scholarships to Texas students with strong GPA and test scores.

ALSO CONSIDER:

• Percentage of students who receive merit and need-based aid

• Average Amount of Aid Packages Awarded

• Retention & Graduation Rates

College Search Tools

• U.S. Department of Education’s College Navigator & College Scorecard: http://collegecost.ed.gov/index.aspx

• Naviance Student’s Super Match College Search Tool

• www.collegeboard.org

• College Return on Investment Report: https://www.payscale.com/college-roi

U.S. Dept. of Ed. College Affordability & Transparency Centerhttp://collegecost.ed.gov/index.aspx

• Net Price Calculator:• Helps show that sticker price of college is often not what students

actually pay.

• Estimates net cost of tuition, room & board, after subtracting scholarships, grants, and financial aid.

• College Navigator:Search for and compare colleges based upon:

• Costs

• Majors

• Size of school

• Retention Rates

• Graduation Rates

Naviance Student’s College Finder & SuperMatch: student.naviance.com

A college’s sticker price is not necessarily what student will pay.

Note how affordable a private school that meets full need can be.

• A college’s sticker price is not necessarily what you will pay.

Look up college Net Price on Naviance Student.

College Board’s Big Future College Search:collegeboard.org

Calculate your net price.