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Financial Aid For College

Financial Aid For College. December 5, 2007 Rossford Guidance Dept. Financing Your Education. Who is eligible? What is financial aid? When do I apply? Where does it come from? Why apply? How do I apply?. FAFSA on the Web. Web site: www.fafsa.ed.gov

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Financial Aid For College

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  1. Financial Aid For College December 5, 2007 Rossford Guidance Dept.

  2. Financing Your Education • Who is eligible? • What is financial aid? • When do I apply? • Where does it come from? • Why apply? • How do I apply?

  3. FAFSA on the Web • Web site: www.fafsa.ed.gov • 2008-09 FAFSA available on or after January 1, 2008 • FAFSA On the Web Worksheet & built-in edits to help prevent costly errors • Paper FAFSA only available as a download

  4. PIN Registration • Web site: www.pin.ed.gov • Can get PIN before January 1, 2008 • Both student and one parent will need a pin

  5. CAUTION! • Avoid being charged a fee to file the Free Application for Federal Student Aid • Processes of completing & processing FAFSA areFREE • If filing via FAFSA on the Web, be sure to go directly towww.fafsa.ed.gov • Contact financial aid office for help completing FAFSA • Do not go towww.fafsa.com • New www.FAFSA4caster.ed.gov • Estimate of cost, comparison between public/private, up-loads to your FAFSA form

  6. Who are the Parents? Don’tmix and match families! Choose the primary custodian family.

  7. College Goal Sunday February 10, 2008 – 2:00 p.m. • Owens Community College – Toledo and Findlay • BGSU Firelands • Terra Community College

  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. What is Financial Aid? • Grants • Loans • Employment opportunities • Scholarships

  10. Types of Need-Based Aid • Gift aid: Grants & scholarships (need-based or merit-based) • Self-help aid: Loans & employment (need- or non-need-based)

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

  12. 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

  13. EFC – Expected Family Contribution • Federally determined formula • The EFC does not measure willingness to pay! • The EFC is a measure of your family’s financial strength • The EFC is not the amount of money that your family must provide. Rather, you should think of the EFC as an index that colleges use to determine how much financial aid you would receive if you were to attend their school FAFSA4Caster

  14. Need Varies Based on Cost

  15. Grants • Federal Pell Grant • Academic Competitiveness Grant • National Science and Math Access to Retain Talent Grant • Federal Supplemental Educational Opportunity Grant • Ohio College Opportunity Grant • Ohio Choice Grant

  16. Federal Pell Grant • Awarded to eligible undergraduates pursuing first bachelor’s or professional degree & certain students enrolled in post-baccalaureate teacher certification or licensing programs • Portable • Maximum award for 2008-09 = $4,800? • Still being determined by Congress

  17. Academic Competitiveness Grant (ACG) • First and second year undergraduate students • Federal Pell Grant recipient • U.S. citizen • Full time • Completed rigorous secondary school program • Award amounts: • $750 first year students • $1300 second year students

  18. National Science and Mathematics Access to Retain Talent (SMART) Grant • Third and fourth year undergraduate students • Federal Pell Grant recipient • U.S. citizen • Full time • Eligible major • 3.0 GPA • Award amount: • $4,000 for third and fourth year of study

  19. Federal Supplemental Educational Opportunity Grant (FSEOG) • Eligible students • Undergraduates pursuing first baccalaureate or professional degree • Awarded first to students with exceptional financial need (Federal Pell Grant recipients) • Each school own priority deadline • Annual award amounts • $100 minimum • $4,000 maximum

  20. Ohio College Opportunity Grant • Ohio resident • Based on EFC • Application deadline October 1, 2008 • Students qualify for OCOG by completing FAFSA

  21. Ohio Choice Grant • Ohio resident • Attend private Ohio college • Eligibility not based on need or academic merit • Contact Financial Aid Office • Currently around $700, but this may be eliminated by State legislature

  22. Loans • Student is the borrower • Federal Perkins Loan • Federal Stafford Loan • Parent is the borrower • Federal PLUS Loan

  23. Federal Perkins Loan • Eligible students • Undergraduate and graduate students • Priority to students who show “exceptional need,” as defined by school • Loan amount varies (max. $4000/yr) • Depends on need, other aid, available funds • Each school has their own priority deadline • 5% fixed interest rate • 9 month grace period after graduation

  24. Stafford Loans • 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 • Fixed 6.8% rate (Subsidized may be less) • 6 month grace period after graduation • Between 10 to 25 years to repay

  25. Stafford Loans • Subsidized: For students with financial need • EFC < COA • Interest free when in school and grace period • Unsubsidized: Eligible regardless of need • EFC > COA • Student pays interest while in school or allows it to accrue

  26. Stafford Loans • Base annual loan limits (combined subsidized & unsubsidized): • $3,500 for 1st year undergraduates • $4,500 for 2nd year undergraduates • $5,500 for each remaining undergraduate year • Loan Fees • Perkins – No • Stafford – Yes, up to 3%, taken at disbursement

  27. PLUS • Parent loan program for parents of dependent undergraduate students • Repayment begins 60 days after loan is fully disbursed for parent borrowers • Fixed interest rate • FFEL: 8.5% • Direct Loan: 7.9%

  28. Alternative Loans • Credit check required • Interest rates vary • Repayment different • “Branded” • Universities may have agreements with loan providers to offer private loans to students • These may look like university-approved loans or even like federal loans • Read the fine print – rates may be variable and there may be no limit to how much you borrow!

  29. Federal Work-Study (FWS) • Employment may be on or off campus • Receive paycheck, does not reduce bill owed to college • Not counted as income on FAFSA following year • Each school own priority deadline

  30. Scholarships • Federal and State • Ohio Academic Scholarship • Robert C. Byrd • Personal Affiliations • Churches, Fraternal Organizations • Scholarship Searches • Public Library • www.fastweb.com • Guidance Counselors

  31. College Specific Scholarships • Websites • Almost every college has a webpage dedicated to scholarships • Go to Financial Aid page • Only some will apply to you • Scholarships go to students who apply! • Deadlines

  32. Avoid Being Scammed • Do not pay to complete FAFSA • Spend the time, not money • If it sounds too good to be true, it probably is! • Never invest more than a postage stamp • No guarantees

  33. Keep in Contact • The college Financial Aid Office may be your greatest resource! • Complete school financial aid application if required • Respond to any requests for information from a financial aid office • Return award letter if required

  34. Don’t ASSUME you can’t afford it! Compare Financial Aid Packages. Apples are NOT oranges!! Cost Comparison

  35. Questions Guidance website Thank you for your time!

  36. FAFSA on the Web • Web site: www.fafsa.ed.gov • 2008-09 FAFSA on the Web available on January 1, 2008 • FAFSA on the Web Worksheet: • Used as “pre-application” worksheet • Questions follow order of FAFSA on the Web

  37. FAFSA on the Web Good reasons to file electronically: • Built-in edits to prevent costly errors • Skip-logic allows student and/or parent to skip unnecessary questions • More timely submission of original application and any necessary corrections • More detailed instructions and “help” for common questions • Ability to check application status on-line • Simplified renewal application process

  38. Student Financial Aid (SFA) PIN • Web site: www.pin.ed.gov • Sign FAFSA electronically • Can request PIN before January 1, 2008 • Not required, but speeds processing • May be used by students and parents throughout aid process, including subsequent school years

  39. FAFSA on the Web Worksheet 2008-09 FAFSA on the Web Worksheet—8-page booklet containing: • Instructions • 97 questions in 5 sections • Worksheets A, B, and C

  40. FOTW Worksheet: Section 1 General student information: • Name • State of legal residence • Social Security Number • Driver’s license number

  41. FOTW Worksheet: Section 1 General student information: • Citizenship • Marital status • Date of legal residence • Selective Service registrationstatus

  42. FOTW Worksheet: Section 1 General student information: • Self-help preferences • Receipt of first bachelor’s degree • Parents’ educational background • Drug conviction status

  43. FOTW Worksheet: Section 2 Student’s dependency status: • If all “No” responses, student is dependent • If “Yes” to any question, student is independent

  44. FOTW Worksheet: Section 3 Data for parents of dependent students: • Parents’ marital status • Date of parents’ marital status

  45. FOTW Worksheet: Section 3 Data for parents of dependent students: • E-mail address (optional) • Social Security Number • Last name • Date of birth

  46. FOTW Worksheet: Section 3 Data for parents of dependent students: • State and date of legal residence

  47. FOTW Worksheet” Section 3 Financial data for parents of dependent students: • Tax filing status and return type • If parents filed or will file a 1040, were they eligible to file a 1040A or 1040EZ?

  48. FOTW Worksheet: Section 3 Data for parents of dependent students: • Did anyone in the parents’ household receive benefits from any of the federal programs listed?

  49. FOTW Worksheet: Section 3 Financial data for parents of dependent students: • Adjusted Gross Income (AGI) for 2007 • Income earned from work • Income tax paid for 2007

  50. FOTW Worksheet: Section 3 Data for parents of dependent students: • Exemptions claimed for 2007 • Household size • Number in college

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