High School Financial Aid Workshop

1. High School Financial Aid Workshop Brad Barnett, MS, AFC Accredited Financial Counselor Senior Associate Director James Madison University Office of Financial Aid & Scholarships November 17, 2009

2. Consult with Appropriate Stakeholders Talk to Those Involved in This Decision • If parents are assisting students with paying for college it is important students take the time to sit and discuss details with them • Financial aid is a long-term process • How much debt are students willing to accumulate • How much debt can parents afford

3. Learn More About Schools • Understand the costs of schools • Examine the types of schools • Learn about individual deadlines of schools • Try not to let cost be a large deterrent • MANY colleges are willing to work with students

4. Options • Personal savings • Investments (e.g., 529 plans, ESA’s, Mutual Funds, etc.) • Payment plans • Part-time employment • Grants (federal and state) • Scholarships (institutional and private) • Federal Loans (student and parent) • Private Loans (student and parent)

5. PackagingandAvailable Aid

6. Cost of Attendance • Tuition & fees • Room & board • Books, supplies, transportation, & miscellaneous personal expenses, including documented costs for personal computer • Loan fees • Study abroad costs • Dependent care expenses • Disability-related expenses • Cooperative education program costs

7. EFC = Expected Family Contribution • The federal government determines a family’s ability to pay for post-secondary expenses (including living expenses) • The figure schools use to determine a student’s eligibility for need-based aid

8. Principles of Need Analysis • To extent they are able, parents have primary responsibility to pay for dependent child’s education • Students also have responsibility to contribute to educational costs • Families should be evaluated in their present financial condition • Family’s estimated ability to pay for educational costs must be evaluated in equitable & consistent manner, recognizing that special circumstances may affect family’s ability to pay

9. Definition of Need Cost of attendance (COA) – Expected family contribution (EFC) = Financial need

10. Financial Aid Sources Four primary sources of financial aid are: • Federal • State • Institutional • Private

11. Federal Aid Sources www.fafsa.ed.gov

12. Major Federal Programs • Pell Grant • Supplemental Educational Opportunity Grant (SEOG) • Academic Competitiveness Grant (ACG) • National Science and Mathematics Access to Retain Talent Grant (National SMART Grant) • Teach Grant • Federal Work Study (FWS) • Perkins Loan • Stafford & Direct Loans (subsidized/unsubsidized) • Parent PLUS Loans

13. Federal Perkins Loan(Might be different in 2010-11) • Eligible students • Undergraduate and graduate students • Priority to students who show “exceptional need,” as defined by school • Loan amount varies • Maximum annual loan • $5,500 - undergraduate students • $8,000 - graduate & professional students

14. Federal Perkins Loan(Might be different in 2010-11) • Interest rate: 5% • 9-month grace period • Repayment period may be up to10 years • Deferment & cancellation provisions available

15. Stafford & Direct Loans(Might be different in 2010-11) • Available under: • Federal Family Education Loan (FFEL) Program with funds provided by lenders (e.g., banks or credit unions) • Federal Direct Student Loan (Direct Loan) Program with funds provided directly by federal government via participating schools • School determines loan eligibility & delivers loan proceeds to students • Subsidized fixed 4.5% interest rate for 2010-11 loans • Unsubsidized fixed 6.8% interest rate

16. Stafford & Direct Loans • Subsidized: Must demonstrate “need” • Unsubsidized: Need is not considered • Base annual loan limits (combined subsidized & unsubsidized): • $5,500 for 1st year undergraduates ($3,500 max sub) • $6,500 for 2nd year undergraduates ($4,500 max sub) • $7,500 for each remaining undergraduate year ($5,500 max sub) • $8,500 for each year of graduate/professional study

17. Stafford & Direct Loans Additional unsubsidized loan eligibility for independent undergraduate, graduate, & dependent students whose parents are unable to borrow Parent PLUS: • $4,000 per year for first & second years of undergraduate study • $5,000 per year for remaining years of undergraduate study • $12,000 per year for graduate & professional students

18. Stafford & Direct Loans: Repayment • 6-month grace period • Maximum repayment period between 10 & 30 years depending on repayment plan chosen • Deferment & cancellation provisions available

19. Parent PLUS(Might be different in 2010-11) • Parent loan program for parents of dependent undergraduate students • Annual loan limit: COA minus other aid • Fixed interest rate of 8.5% for FFELP Parent PLUS Loan and 7.9% for Direct Loan Parent PLUS

20. Parent PLUS • Repayment begins 60 days after loan is fully disbursed; or • Parents can request postponement of payment until 6 months after a student ceases to be enrolled at least half-time; interest may be capitalized

21. State Aid Sources

22. Major State Programs • Commonwealth Award • Virginia Guaranteed Assistance Program • Tuition Assistance Grant Program (private only) • College Scholarship Assistance Program • Two Year College Transfer Grant

23. Public College & Universities • Programs • VGAP • Commonwealth Award • CSAP • Transfer Grant (Community College to 4 Year) • Amounts vary at each institution based on funding • Generally have FAFSA Priority Filing dates

24. Private Colleges & Universities • Program - Tuition Assistance Grant Program • Award amounts are based on the number of eligible students and the amount of funds appropriated by the General Assembly • Maximum 2010-11 Annual Award to be determined: • The undergraduate award is usually around $3,000 • The graduate award is usually less than $2,000 • Application deadline is July 31st! Talk to a private college or university for more details.

25. Community College to Four Year College • Two Year College Transfer Grant • Be a first-time entering freshman no earlier than summer 2007 • Be a full-time undergraduate in-state student meeting selective service requirements • Have received an Associate’s degree at a Virginia two-year public institution with a cumulative GPA of 3.0 on a scale of 4.0 for the Associate’s degree • Enroll into a Virginia four-year public or Virginia four-year private nonprofit college or university by the fall following completion of Associate’s degree • Have financial need: defined as a federally calculated EFC of 8,000, or less • Maximum annual standard award is $1,000 ($500 per term), with an additional $1,000 ($500 per term) for students enrolled into a degree program in: engineering, mathematics, nursing, teaching, or science • Limited to three years or 70 credit hours • Maintain college GPA of 3.0 on a 4.0 scale and continue to demonstrate financial need (maximum EFC of 8,000)

26. Other State Aid • Higher Education Teacher Assistance Program • Foster Care Grant (VCCS only) • Virginia War Orphan Education Program • Virginia Dept. of Rehabilitative Services • Virginia Part-time Tuition Assistance Program • And many more

27. More information on State Aid Please visit www.schev.edu

28. Institutional Aid Sources

29. Institutional Aid Types of Institutional Aid • Need-based or merit-based grants • Scholarships • Loans: Student and Parent loans • Work-study Application Process: • The Financial Aid Office at each institution can explain what type of aid is available and the application procedures

30. Financial aid from private resources can be the most elusive of all aid programs Available From: Local businesses Civic groups Churches Private benefactors National organizations Employment Where to Look: High school counselors Write, call, or visit businesses, civic groups, churches, etc. Public libraries Internet Private Aid Sources

31. Private Scholarship Search Free Internet scholarship search engines: • FinAid.org – http://www.finaid.org • The College Board – http://www.collegeboard.com • FastWeb.com – www.fastweb.com • Scholarship Resource Network Express – www.srnexpress.com • GoCollege.com: The Collegiate Websource – http://www.gocollege.com

32. Private Scholarship Search • Local library resources • Local businesses & civic organizations • Parents’ employers

33. Avoid Being Scammed To check legitimacy of scholarship search services or individuals, for information about financial aid scams, & tips to avoid being scammed visit these Web sites: • Better Business Bureau: http://www.bbb.com • U.S. Department of Education: http://studentaid.ed.gov/students/publications/lsa/index.html • Federal Trade Commission: www.ftc.gov/bcp/conline/publs/alerts/ouchart.htm

34. Preliminary Tentative Estimated Official Final (not an accurate description) Non-preliminary Actual Two Types of Financial Aid Award Notices

35. Finally • Read each document • Keep copies of EVERYTHING • Be aware of deadlines • File taxes early • Watch out for verification • Respond to all correspondence • START LOOKING NOW!

36. Helpful Websites • http://studentaid.ed.gov/students/attachments/siteresources/StudentGuide.pdf • http://studentaid.ed.gov/PORTALSWebApp/students/english/fafsa.jsp?tab=funding • http://www.fafsa.ed.gov/ • http://www.finaid.org/ • http://www.ed.gov/students/prep/college/thinkcollege/early/edlite-index.html • http://www.virginiamentor.org/

37. Questions Brad Barnett, MS, AFC Senior Associate Director James Madison University Office of Financial Aid & Scholarships MSC 3519 Harrisonburg, Virginia  22807 (540) 568-2894 barnetbd@jmu.edu www.jmu.edu/finaid