Financial Aid Student Aid Programs and Process. Can You Help Me?
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Transcript of Financial Aid Student Aid Programs and Process. Can You Help Me?
Today you will learnToday you will learn
What financial aid isWhat financial aid is What needs analysis isWhat needs analysis is Types of financial aidTypes of financial aid How to apply for How to apply for
financial aidfinancial aid
GrantsFree money or gift aid
LoansSelf-help aid that must be repaidSome loans may be fully orpartially cancelled if borrower fulfills certain requirements
EmploymentSelf-help aid that provides compensation for workMust be earned
TYPES OF FINANCIAL AID
Categories of AidCategories of Aid
Need-based aidNeed-based aid-Student must demonstrate need-Student must demonstrate need
-Need is determined by analyzing student’s and family’s -Need is determined by analyzing student’s and family’s financial situationfinancial situation
Non-need based aidNon-need based aid
--Financial need not consideredFinancial need not considered
-Often given in recognition of special skills, talents, or -Often given in recognition of special skills, talents, or abilitiesabilities
-Some loans may replace expected family contributions-Some loans may replace expected family contributions
Goal of Needs AnalysisGoal of Needs Analysis
Distribute limited resourcesDistribute limited resources Calculate the “Expected Family Calculate the “Expected Family
Contribution” (EFC)Contribution” (EFC) Analyze in a fair and equitable mannerAnalyze in a fair and equitable manner
Need CalculationNeed Calculation
Cost of attendance (COA)Cost of attendance (COA)
- Expected family contribution (EFC)Expected family contribution (EFC)
=Financial Need=Financial Need
Cost of AttendanceCost of Attendance
Tuition and feesTuition and fees Room and boardRoom and board Books and suppliesBooks and supplies TransportationTransportation Technology equipmentTechnology equipment Miscellaneous personal expensesMiscellaneous personal expenses
Expected Family ContributionExpected Family Contribution
Parent’s contribution from incomeParent’s contribution from income
+ Parent’s contribution from assets+ Parent’s contribution from assets
+Student’s contribution from income+Student’s contribution from income
++Student’s contribution from assetsStudent’s contribution from assets
= Expected family contribution= Expected family contribution
Factors that Affect the EFCFactors that Affect the EFC
Number in householdNumber in household Number in collegeNumber in college Taxed and untaxed incomeTaxed and untaxed income Taxes paidTaxes paid AssetsAssets Type of tax return filedType of tax return filed Age of older parentAge of older parent Number of wage earnersNumber of wage earners
Dependency StatusDependency Status
To be considered an independent student:To be considered an independent student:
--Age 24 by 12/31 of the award year, orAge 24 by 12/31 of the award year, or
-Orphan, ward of the court, or-Orphan, ward of the court, or
-Veteran, or-Veteran, or
-Currently serving on active duty in the U.S. Armed Forces -Currently serving on active duty in the U.S. Armed Forces or,or,
-Graduate or professional student, or-Graduate or professional student, or
-Married, or-Married, or
Dependency StatusDependency Status
To be considered an independent student:To be considered an independent student:– Supporting a child, orSupporting a child, or– Supporting someone other than a child, orSupporting someone other than a child, or– Foster child, orFoster child, or– Emancipated minor, orEmancipated minor, or– Child in legal guardianship, orChild in legal guardianship, or– Unaccompanied youth who was homelessUnaccompanied youth who was homeless
Federal Pell GrantFederal Pell Grant
Foundation of aid packageFoundation of aid package Awarded to lowest EFC’sAwarded to lowest EFC’s Unaffected by student’s other aidUnaffected by student’s other aid PortablePortable
Federal Pell GrantFederal Pell Grant
Eligible students includeEligible students include– Undergraduate students without a baccalaureate or first Undergraduate students without a baccalaureate or first
professional degreeprofessional degree– Full-time to less than half-time studentsFull-time to less than half-time students– Certain students enrolled at least half-time in post Certain students enrolled at least half-time in post
baccalaureate teacher certification or licensing baccalaureate teacher certification or licensing programsprograms
Ineligible students includeIneligible students include- Students incarcerated in federal or state penal - Students incarcerated in federal or state penal
institutionsinstitutions
ACGACG
Academic Competitiveness GrantAcademic Competitiveness Grant Eligible students includeEligible students include
-U.S. citizen or eligible non-citizen-U.S. citizen or eligible non-citizen
-Attending 2 yr. or 4 year school-Attending 2 yr. or 4 year school
-Enrolled at least half-time in first or second year-Enrolled at least half-time in first or second year
-Be Pell eligible-Be Pell eligible
-Have completed a rigorous secondary school program-Have completed a rigorous secondary school program
-Have at least a 3.0 GPA at the end of the first year-Have at least a 3.0 GPA at the end of the first year
SMARTSMART
National Science and Mathematics Access National Science and Mathematics Access to Retain Talent Grant Programto Retain Talent Grant Program
Eligible students includeEligible students include
--U.S. citizen or eligible non-citizenU.S. citizen or eligible non-citizen
-Enrolled at least half-time in third or fourth year-Enrolled at least half-time in third or fourth year
-Be Pell eligible-Be Pell eligible
-Major in physical life, computer science, math, technology, -Major in physical life, computer science, math, technology, engineering or certain foreign languagesengineering or certain foreign languages
Campus Based ProgramsCampus Based Programs Federal Supplemental Educational Federal Supplemental Educational
Opportunity GrantOpportunity Grant– FSEOGFSEOG
Federal Work StudyFederal Work Study– FWSFWS
Campus Based ProgramCampus Based Program
Federal funds allocated to schools annuallyFederal funds allocated to schools annually Institutional match is requiredInstitutional match is required School selects recipientsSchool selects recipients Awards are not portableAwards are not portable Not all schools participate in all programsNot all schools participate in all programs
Federal Student LoansFederal Student Loans
Federal Stafford LoanFederal Stafford Loan– SubsidizedSubsidized– UnsubsidizedUnsubsidized– Not credit basedNot credit based
Federal PLUS LoanFederal PLUS Loan– ParentsParents– Graduate and professional studentsGraduate and professional students– Credit basedCredit based
Other Federal ProgramsOther Federal Programs
Federal income tax creditsFederal income tax credits American Opportunity CreditAmerican Opportunity Credit
Up to $2500Up to $2500
Up to 4 years-Up to 4 years-
Lifetime learning creditLifetime learning credit
Up to $2000Up to $2000
Any postsecondary education and training Any postsecondary education and training
Non Federal AidNon Federal Aid
GrantsGrants– InstitutionalInstitutional– StateState– PrivatePrivate
ScholarshipsScholarships– InstitutionalInstitutional– StateState– PrivatePrivate
FAFSAFAFSA
Free Application For Federal Student AidFree Application For Federal Student AidCollects family’s personal and financial Collects family’s personal and financial
informationinformationCalculates the EFCCalculates the EFCEnglish and SpanishEnglish and SpanishFiled two waysFiled two ways
www.fafsa.ed.govwww.fafsa.ed.govPaper FAFSAPaper FAFSA
FAFSA on the Web (FOTW)FAFSA on the Web (FOTW)
www.fafsa.ed.govwww.fafsa.ed.gov First available l/l/2010 for 2010-2011First available l/l/2010 for 2010-2011 FOTW worksheets availableFOTW worksheets available
– Use as pre-application worksheetUse as pre-application worksheet– Questions follow the same order as the web Questions follow the same order as the web
applicationapplication Early estimates availableEarly estimates available
– Via FAFSA ForecasterVia FAFSA Forecaster– FAFSA4caster.ed.govFAFSA4caster.ed.gov
Things to Watch Out ForThings to Watch Out For
Incorrect social security numberIncorrect social security number Divorced/separated parental informationDivorced/separated parental information Income earned by parents/step-parentsIncome earned by parents/step-parents Untaxed incomeUntaxed income U.S. income tax paidU.S. income tax paid Household sizeHousehold size Number of household members in collegeNumber of household members in college Real estate and investment net worthReal estate and investment net worth
Special CircumstancesSpecial Circumstances
Also know asAlso know as– Professional judgment (PJ)Professional judgment (PJ)– Extenuating CircumstancesExtenuating Circumstances
Use if FAFSA does not accurately portray Use if FAFSA does not accurately portray current financial picturecurrent financial picture
Special CircumstancesSpecial Circumstances
Adjustments can be made on a case-by-Adjustments can be made on a case-by-case basiscase basis– Cost of attendanceCost of attendance– FAFSA data elementsFAFSA data elements– Dependency overrideDependency override– Unsubsidized Stafford Loan only optionUnsubsidized Stafford Loan only option
Parents refuse to complete FAFSAParents refuse to complete FAFSA Parents are no longer providing supportParents are no longer providing support
Decision is up to each schoolDecision is up to each school
The Award LetterThe Award Letter
Sent by each financial aid officeSent by each financial aid office IncludesIncludes
– Estimated costsEstimated costs– EFCEFC– Financial needFinancial need– Amounts and types of financial aid offeredAmounts and types of financial aid offered– Instructions on what needs to be done nextInstructions on what needs to be done next
Students should compare net costStudents should compare net cost