Finding Money for College

Transcription

1 Who offers financial aid? Finding Money for College Financial Aid Basics presented by Tammy Harrison Federal Government State Institution Miscellaneous Sources Organizations Churches Employers Business Cost of Attendance (COA) Federal Government Largest source of financial aid, > $150 billion Awarded primarily based on financial need Must apply every year using the Free Application for Federal Student Aid (FAFSA) What is financial aid? Money to pay for college or career school Gift Aid Grants Scholarships Self-Help Aid Work-study Loans Student Loans Parents Loans Who can get federal student aid? U.S. citizen or permanent resident High school graduate/ged holder Eligible degree/certificate program Valid Social Security number Males registered for Selective Service Satisfactory academic progress in college/career school StudentAid.gov/eligibility complete list 1

2 FREE Application - FAFSA Standard needs analysis form that collects demographic and financial information from student and parents Should be filed electronically, online Requires 2014 Federal Tax Information May be retrieved from IRS beginning Feb 2 W-2 s Other documents as required FAFSA (cont d) Available January 1 each year for the upcoming fall/spring/following summer Colleges may set FAFSA filing deadlines Ex: UALR has a priority deadline of 3/1 Personal Identification Number (PIN) Allows the student and parent to electronically sign the FAFSA online Student must have a PIN At least one parent must have a PIN Special circumstances Contact your school s Financial Aid Office if: Income earned in 2014 is significantly more than what is expected in 2015 due to loss of employment, divorce/separation, unusual medical expenses, one-time income or other unusual circumstances Student has no relationship with either parent but is dependent 2

3 FAFSA processing Student will be sent an notifying when FAFSA processing is complete. Log into record and check for any errors The summary record will also include the EFC Expected Family Contribution EFC is calculated from the data reported on the FAFSA. A federal needs analysis calculation is performed to assess how much the family should be able to contribute to the cost of attendance (in theory). Definition of Financial Need Cost of Attendance (COA) (determined by the school) - Expected Family Contribution (determined by the FAFSA) = Financial Need StudentAid.gov/resources#efc Verification Quality assurance check in the federal financial aid program About 30% of the FAFSAs are selected School is required to ask student/parent to verify data reported on FAFSA by providing supporting documents: Tax data, untaxed income, household size detail, HS diploma, SNAP benefits Common Federal Aid Programs Federal Pell Grant Federal Perkins Loan Supplemental Educational Opportunity Grant Federal Work Study Direct Student Loans Parent Loans for Undergraduate Students Hint: create a file and keep copies of EVERYTHING Role of the Financial Aid Office Determines eligibility for financial aid Prepares financial aid package to meet the student s cost of attendance Sends an award notice to student which includes COA EFC Amount of Financial Need Types and amount of financial aid awards offered to meet costs Terms and conditions of each award Federal Pell Grant Awarded to the neediest students pursuing their first bachelor s degree Portable Available for up to 12 semesters Award amount prorates for student enrolled less than full-time For , award amounts are $602 (5157 EFC) - $5,730 (0 EFC) Annual award amounts may vary, depending upon federal budget 3

4 Federal Supplemental Educational Opportunity Grant (FSEOG) Federal Stafford Student Loan Limits Awarded to: Students pursuing first bachelor s degree Awarded to students who demonstrate greatest financial need Limited funding is awarded by school to first qualified students Award amount varies from $100 to $4,000 Annual student loan limits Freshman: Subsidized Loan - $3,500 Unsubsidized Loan - $2,000 Sophomore: Subsidized Loan - $4,500 Unsubsidized Loan - $2,000 Junior/Senior Subsidized Loan - $5,500 Unsubsidized Loan - $2,000 Additional $ Available if Parents are denied loan Freshman: Unsubsidized Loan - $4,000 Sophomore: Unsubsidized Loan - $4,000 Junior/Senior Unsubsidized Loan - $5,000 Subsidized loans available for up to 150% of degree program Federal Work Study Federal Perkins Loan Awarded to students with financial need Student works on-campus or in community service to earn money awarded. Paid as work is completed. Funds are limited and most commonly awarded to first qualified students Low Interest Loan 5% interest rate 9 month grace period Need based Institution loans the funds Some cancellation options available to forgive the loan William D. Ford Federal Direct Loans Loans are made in STUDENT S name Amounts vary depending upon year in school (fr, so, jr, sr) Repayment begins 6 months after leaving school (6 month grace period) Available Programs Subsidized: requires financial need Government pays interest until student begins repaying loan; 4.66% in ; rate will set July 1. Unsubsidized: financial need is NOT a factor Student is responsible for interest that accrues on loan 4.66% interest rate for undergraduates Federal Parent Loan for Undergraduate Students (PLUS) Interest rate = 7.21% in Parents must qualify for credit worthy loan Parents repay the loan - Only limit is Cost of Attendance Aid Repayment begins 60 days after disbursement Parent may request deferral of payment while student is in school or in grace period 4

5 Arkansas Department of Higher Education (ADHE) - College for You scholarships.adhe.edu State of Arkansas Aid Grants and Scholarships are available to help Arkansas residents attend an Arkansas college or university Student must complete the YOUniversal Application one application for all state programs by the defined deadline! scholarships.adhe.edu *AR General Assembly is in session Currently $2,000 Increases $1,000 per year to max of $5,000 Renewable for a total of 4 years NO FINANCIAL NEED REQUIREMENT Must apply by June 1st Basic requirement Must complete SMART Core 2.5 GPA or 19+ ACT Composite 5

6 Arkansas State Stacking Policy A postsecondary institution shall not award state aid in a student aid package in excess of the cost of attendance When a student receives a student aid package that includes state aid and the student aid package exceeds the cost of attendance, the institution shall repay state aid in the amount exceeding cost of attendance, starting with state aid received under the Academic Challenge Scholarship Federal regulations allow a student to receive financial aid that totals or is less than cost of attendance. Financial aid is intended to help the student meet the cost of attendance. Civic Organizations and Churches Research what is available in community To what organizations and church does student and family belong? Application process usually fall/spring of senior year Small scholarships add up! Institutional Aid Awarded by the school for attendance on that campus only not transferrable Award amounts vary Know the scholarship requirements and deadline Is a separate application required Institutional application CSS Profile It DOES cost to file the CSS Profile fee waivers are available for families with exceptional need Employers Companies may have scholarships available to the children of employees Companies may have educational benefits for their employees Example: University of Arkansas System Employees pay 10% of tuition Dependents attend for 50%-60% of tuition Example of Institutional Aid Scholarship Resources StudentAid.gov/scholarships fundmyfuture.info fastweb.com schoolsoup.com finaid.org/scholarships Free scholarship searches Unusual scholarship examples Tips on getting a scholarship Take time NOW to research available scholarships and apply. You may receive more gift aid and have less student loan debt! 6

7 529 Plans Tax-advantaged savings plan for parents/grandparents to contribute to educational expenses Match (up to $500 per year) may be provided to lower income Arkansans (< $60,000 AGI) Another example Cost of Attendance (Vanderbilt Out of State) $ 62,320 - Expected Family Contribution (EFC) - $ 2,000 Financial Need $ 60,320 r Gift Aid: Pell Grant $ 3,780 SEOG $ 600 Ingram Scholarship $ 42,768 r Self-Help Aid: Work Study $ 3,930 Perkins Loan $ 2,500 Stafford Subsidized Student Loan $ 3,500 t [ Student has remaining need ] Student Loan (Unsubsidized) $ 2,000 Parent Loan (PLUS) $ 3,242 Words of Advice Your high school counselor = GREAT resource Beware of scholarship application fees Create an academic resume that includes an inventory of all extra-curricular, athletic, honors, leadership, and community service activities Begin your search early Don t pay $ to get $ Avoid FAFSA.COM Free help is available $100 million lost annually Don t pay $ to get $ Review your award notice carefully! What are the conditions of the award? Specific major, enrollment, etc. Are awards automatic or is action required? What are the deadlines for accepting/declining award offers? Are the awards renewable? When will I receive the $? Can you show me an example? Cost of Attendance (UALR) $ 21,415 - Expected Family Contribution (EFC) - $ 2,000 Financial Need $ 19,415 Gift Aid: Pell Grant $ 3,780 FSEOG $ 600 AR Academic Challenge Scholarship $ 2,000 UALR Entering Freshman Scholarship $ 8,000 Self-Help Aid: Work Study $ 3,930 Subsidized Stafford Student Loan $ 1,105 [ Fully-Funded: Total Awards = Financial Need ] Student Loan (Unsubsidized) $ 2,000 Remember: Total awards cannot exceed cost of attendance or must be reduced What if I have questions? FAFSA? Use the help functions within the FAFSA (including live chat) Call FED-AID. Arkansas Aid? Call STUDY General Financial Aid? Contact your college s Financial Aid Office Don t pay money for help use FREE resources 7

8 Our goal is to support your goal! Contact us if you have questions or need help! Tammy Harrison University of Arkansas System eversity (501)