What You Need To Know About Financial Aid Financial Aid 101.
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Transcript of What You Need To Know About Financial Aid Financial Aid 101.
What You Need To Know About Financial Aid
What You Need To Know About Financial Aid
Financial Aid 101
What is Financial Aid? Grants Loans Student Employment Scholarships
Where do I start? How is Financial Aid
awarded? Estimated Family
Contribution (EFC) Cost of Attendance (COA) Financial Need
Tips and Tools
FINANCIAL AID101 Pop Quiz
Throughout this presentation there will be opportunities to test your knowledge about financial aid and win
some prizes. Good luck!
All information in this presentation is general and although we would strongly encourage
you to consider UMUC-Europe,
the information should be applicable at any school you are considering.
Grants, Loans, Student Employment, & Scholarships
Federal Pell Grant Maximum award $5550 (for 2011-2012) Award amounts may be reduced for 2012-2013
Federal Supplemental Opportunity Grant Educational Grant (FSEOG)
Institutional funds Other State and Institutional Grants
Grants are need-based financial awards that do not have to be repaid. Award amounts
vary depending on the student’s enrollment status and need level.
Federal Stafford Loans Subsidized Loans
Need-Based Not available for Graduate
Students starting school year 2012-2013
Unsubsidized Loans Fixed 6.8% Interest Rate
Both are due to be paid back 6 months after Graduation, stop attending, drop to less than half time attendance
Federal Stafford Loans
Federal Stafford Loans
1. Standard Plan - fixed payment, fixed time not to exceed 10 years.
2. Graduated Plan – payments gradually increase, fixed time not to exceed 10 years.
3. Extended Plan – must owe over $30, 000, not to exceed 25 years
4. Income Based Plan – terms vary.
Federal Stafford Loans
Federal Parent PLUS and Graduate PLUS Loans Fixed 7.9% Interest Rate Credit-Based Parents and Graduate Students can borrow up to cost
of attendance minus any other financial aid award amounts.
Pay back 60 days after disbursement (while still in school)
Apply through www.studentloans.gov
Other Types of Student Loans
Federal Perkins Loans Fixed 5% Interest Rate Pay back 9 months after Graduation
Types of jobs available: Work -Study (on and off
campus) Non-Work-Study (on
campus) Off-campus regular
employment
Studies have shown that students who work part time while attending courses actually
perform better academically.
Places to look: High School
Counselor Booster Club, PTA,
etc. Surrounding
Community Local Businesses,
Spouses Clubs, Community Clubs, etc.
The College/University you plan on attending
On the internet
Private money awarded on either merit or need.
Your High School
Your Local Community
Your College/University
This graph depicts the expanding
competition as you apply for
scholarships on different levels.
National/Worldwide scholarship
competitions would be outside of these circles.
Pop QuizName one type of
federal student loan.
Stafford Subsidized and Unsubsidized, Perkins, and Graduate
and Parent PLUS Loans.
Filling out the FAFSA
www.fafsa.gov FAFSA has built-in-help to guide you through the
application process.
W-2’s and other records of money earned
Federal Tax Return(s) Current bank statements Current business and
investment mortgage information, business and farm records, stock, bond and other investment records
Untaxed Income Records BAS AmountsYou will need the above for
yourself and your spouse or parents (if applicable).
You may be selected for the process of Verification.
This means your school will be required to verify the information you put on your FAFSA by collecting additional documentation from you.
NEW FOR 2012-2013: Institutions will only be able to accept Tax Return Transcripts directly from the IRS, in the event a student is selected for verification.
If selected for verifi
cation
your school w
ill be unable
to disburse
funds to you
until you have completed
this process.
Complete this worksheet before filing your FAFSA to assist you when filling out your
FAFSA!
Do not submit this worksheet!!!
To be completed with applicant information only
General information such as name, SSN, state of legal residence
Marital status (of student) Selective Service Registration for under
25’s (male) Drug Convictions High School Information
A student is considered independent ONLY if they can answer YES to ONE of 13 questions (samples below):
Born before 1 January 1989 (2012-2013)
Married Have children or dependents other than children that you provide more than 50% support.
Active duty Veteran of the U.S. Armed Forces
If student answered NO to all questions in section 2, then parents must complete section 3
This section must still be completed even if the applicant does not live with their parents
Tax, income, and other financial information
Dislocated worker status
Assets
Information about the student (and spouse):
Tax, income, and other financial information
Dislocated worker status
Assets
On the IRS Web site, enter the requested information.
Once the IRS has validated your identification, your IRS tax information will display. You can either transfer your information from the IRS, or choose to return to FAFSA on the Web from the IRS Web site.
If you transfer your IRS tax information, questions that are populated with tax information will be marked with “Transferred from the IRS”
Successful IRS Retrieval on your FAFSA could help to avoid lengthy processing times if you are selected for the process of verification.
Each school has a Federal School Code You will have a chance online to search
for school codes Write the name of the school if you do not
know the school code Up to 10 school codes can be listed
Results sent to all schools listed on your FAFSA.
Applicant will receive results via e-mail within 3-5 days.
Student Aid Report (SAR): View and print the SAR SAR will have Estimated Family
Contribution(EFC) and Data Release Number (DRN)
Pop QuizWhat does FAFSA stand
for?
The Free Application for Federal Student Aid
Determining your award package
The estimated cost, including direct and indirect costs, of a particular institution. Direct: Tuition, fees, books, and room and board (if living on
campus) Indirect: Travel, miscellaneous, and room and board (if not living
on campus)
This value varies from college to college.
Federal Student Aid uses the data on your FAFSA to calculate an Expected Family
Contribution (EFC)
The EFC is the number that’s used to determine your eligibility for federal
financial aid.
Calculation takes into account the following:
Adjusted Gross Income (AGI) Untaxed Income (Do not include
BAH) Assets and Benefits Number in Household Number in Household Attending
College
Cost of Attendance
– Expected Family Contribution
= Financial Need
COA= $55,850
- MinusEFC= 2000
Need= $53,850
COA= $28,406
- MinusEFC= 2000
Need= $26,406
Examples of Need:
Somewhere Special UniversityPop Quiz
Fill in the blank: NEVER pay for
completion!!!!! FAFSA
•Providing you with an early estimate of your eligibility for federal student aid.
•Giving you an experience similar to FAFSA on the Web
• Allowing you to transfer all of your FAFSA4caster data to FAFSA on the Web once you are ready to apply for aid.
•Increasing your knowledge of the financial aid process, and providing information about other sources of aid.
www.fafsa4caster.ed.gov
If you will be receiving tuition assistance (including military TA) or veteran’s educational benefits you
may still be eligible for financial aid funds!
Make sure to apply for all of your funding options!
APPLY, APPLY, APPLY! Make sure to meet any deadlines or priority dates your school may have by applying early!Apply for Scholarships!Make sure to complete your financial aid file!Maintain log-in information.Keep in close contact with your school Financial Aid Office.Ask questions!
Pop QuizTrue or False:
Your school may have a deadline for FAFSA or
file completion.
True.
For further assistance with the FAFSA application call 1-800-4-FED-AID or
1-800-433-3243 toll free or access www.fafsa.ed.gov
You may also access the Departments federal student aid Web site at
www.studentaid.ed.govFor scholarship searches check out
www.fastweb.org and/or www.finaid.org