(Federal and state aid along with many university aid and grants are awarded by completing the Free Application for Federal Student Aid at www.fafsa.ed.gov)
Most families do not qualify for PELL grants. Must have a very low family contribution. Please don’t be discouraged if you do not qualify for this program! Many families do not.
Current minimum PELL grant is $555; maximum is $5550
Supplemental grant, with priority given to students who have already qualified for a PELL grant.
(salary is paid from 75% government sources & 25% university)
Perkins Loans - $5500/year maximum, need-based; 5% interest,
no origination, 9 month grace period before repayment begins
Stafford Loans –1st year - $5500 maximum
2ndyear - $6500 maximum
3rd & up - $7500 maximum
Subsidized – 3.4% interest; must have demonstrated need; government pays interest while student is in school
Unsubsidized – 6.8% interest; no demonstrated need necessary to qualify; interest begins accruing upon disbursement
All Stafford loans have a 6 month grace period before repayment begins
Direct Plus Loans - 7.9% interest; origination fees; payment
begins 60 days after disbursement; no demonstrated need to qualify
When you complete the Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov the answers enable the federal government to calculate how much of your family’s financial resources should be available to pay for the cost of college expenses.
The FAFSA refers to this calculated number as your “EFC” or “Expected Family Contribution”
Colleges then use that EFC to determine your “demonstrated need” for federal aid such as PELL grants, work-study, etc.
COST of the college/university equals…
Direct Costs (defined costs of tuition, required fees, & room and board, if living on campus)
+ Indirect Costs (estimate for books, travel, expenses)
Minus EFC(Expected Family Contribution - taken from results of FAFSA)
Equals DEMONSTRATED NEED for federal aid
Cost = 15,000
EFC = 7,000
NEED = $8000
Cost = $7,000
EFC = $7,000
NEED = $0
REMEMBER: The Expected Family Contribution (EFC) remains the same, regardlessof the college’s cost.
The challenge becomes finding ENOUGH financial aid and scholarship assistance to MEET/EQUAL the demonstrated need!
SSN, Bank Statements, Driver’s license, mortgage/investment records, previous year’s tax documents (student & parents)
To maximize your amount of aid, fill out FAFSA ASAP after Jan 1; print FAFSA Summary as well as the “Submission Confirmation” page
The SAR is your proof that your FAFSA was received. You should receive your electronic SAR report in about 2-3 weeks.
Report errors immediately to your financial aid office. You can make corrections online at www.fafsa.ed.gov. If you do not receive your SAR in 3-4 weeks call 1-800-433- 3243