Unraveling the Mysteries of College Financial Aid

1. Unraveling the Mysteries of College Financial Aid Christopher Gann SHS AVID Coordinator cgann@ems-isd.net

2. How Much Does College Cost/Yr? • Community Colleges • Approx. $8,000 – $15,000 • Public Universities • Approx. $12,000 - $20,000 • Private Schools • Range $18,000 and $48,000

3. Where Will I Find the Money? • Federal Government • State Government • Institution • (college/university/trade school) • Private • Families • Earnings • Savings

4. Federal Philosophy • Family is responsible for student’s education • To the extent they are able • Will be responsible until student • Is age 24 • Supports their own children • Veteran of U.S. armed forces, etc. • Guidelines treat families alike • Many families need help

5. Student Aid • Money provided by the federal government, state government, or colleges/universities to help students pay for college. • Types of aid: • Grants • Loans • Federal Work-Study

6. Federal Grants • Student must file a FAFSA • Undergraduate students only • Eligibility based on need • Pell Maximum = $5,730 • FSEOG Maximum =$4,000 • Financial aid office at each school • TEACH Grant Maximum = $4,00

7. State Grants • TEXAS Grant • Student must file a FAFSA • Texas resident • EFC equal to/less than $4,000 • Maximum amounts: • $7,400 per year at universities • $2,400 per year community colleges • $4,400 per year technical colleges

8. Institutional Money • Student must file a FAFSA • Most college and university campuses have additional financial aid moneys they award to students. Students much check the campus web site to find what funds are available, what applications are required, and what is the application deadline. As with all other financial aid, the student will not be considered for an award if they do not file by the deadline

9. Scholarships • Provider decides • Awarding criteria • Application deadline • Application forms • Award amounts vary • Student must search (Internet/other) • HS Career or Counseling office • Locally available scholarships • Printed information

10. Student Loans • Student must file a FAFSA • Federal or private • Undergraduates and graduates • Subsidized and Non-subsidized • Money must be repaid • 6 mo. grace period after studies end • Borrow and use wisely • Also parent loans • Different rules apply

11. Student Loans • Unsubsidized/Subsidized • $5,500 first year ($3,500 max. in subsidized); increases by $1,000 2nd and 3rd years; caps at $31,000; 3.86% interest rate • PLUS loans • Parent or student borrows; credit check required; 6.41% interest rate

12. Student Loans • Perkins Loans • Exceptional need required • The school is the lender* • Maximum amount $5,500 per year ($27,500 total maximum) • 5.00% interest rate

13. Work-Study • Federal or institution program • Undergraduates and graduates • Money must be earned • Either on or off campus • Funding levels vary at institutions • Job not guaranteed

14. Applications • FAFSA for Federal, State, Campus money • GPA verification for State money • Other applications for private money • Check each source individually • Other applications for some Campus money • Check each campus web site

15. Critical FAFSA Information • Who are biological/adoptive parents? • Live with both: • Count both incomes • Live with* one: • Count that parent’s income • Count step-parent’s income if remarried *The “live with” parent is the one you lived with the most in the last 12 months

16. On-Line FAFSA • More accurate • Faster processing • Easier to make changes • Electronic copy maintained temporarily • Parents and/or students may access

17. PINs for Signature • Parent and student both • Must have name, SSN, DOB and e-mail • If parent does not have SSN • Does not make student ineligible • Student may apply and parent will sign • Parent & student may use same e-mail • Permanent e-mail

18. PIN Notification • Will arrive in e-mail within 72 hours • Spam or virus blocker may block message • More later • Message will refer to a URL • Click and be prepared to print or write number • May not enter the web site a second time

19. Permanent Contact Information • Students must use permanent information • Usually parent’s information • Phone number • Mail address AND • E-mail address

20. Dependent vs. Independent • Dependency based on Federal Rules • Not where student lives • Not who claims student on taxes • Most HS seniors will be Dependent • Must report parent income

21. What Happens Next? Expected Family Contribution (EFC) • Calculated at federal level • Use data on FAFSA • Use formula • Calculate all families • EFC used to determine amount of aid

22. Federal Notifications • SAR: Student Aid Report • ISIR: Institutional Student Information Report sent to: • Colleges listed on FAFSA

23. Will You Recognize Notification? • If you provided an e-mail address, SAR notification will be sent there • Will come from cpsnotify • Spam and virus blocker may block message • Temporarily stop auto dumping AND/OR • Check “Junk” or “Trash” files before dumping • Response within a week

24. What to do when Notified? • When FAFSA is processed a mini-web site for your information is created • When notified, get on web site and read it • The information you submitted will be reprinted on one page • This page will be retained for about 45 days • You may print it • Your EFC will be printed in the upper right • If no numbers (blank), need more information • If all zeros, your family does not need to contribute

25. How to Correct Information • You need to submit more information if: • There will be message in red or • Certain fields will be marked for changes • Click in these areas to return to the data entry page and correct or enter data • Generally both parent and student PINs must be rentered

26. State Process & Notification • Processes data on ISIR • Compares to GPA verification • Determines eligibility for State Grants • Mailed to students 3 – 4 weeks later

27. Awarding & Packaging • Award letters sent by college • List awards, amounts and sources • Shows EFC • Period of enrollment covered • Response may or may not be required • Students must read carefully

28. Expected Family Contribution Basic Equation of Need #1(CSU) Cost of Attendance Univ. $15,000 EFC $ 864 Student’s Financial Need = Need$14,136 The amount of Financial aid the Financial Aid Office will try to find (called a PACKAGE).

29. Sample Financial Aid Pkg. #1(CSU) Financial Aid Package Financial Need $14,136 Pell Grant $3,200 $10,936 State Grant $5,684 $ 5,252 Work Study $2,400 $ 2,852 Loan $2,625 $ 227 Unmet Need $ 277

30. Analysis of Sample Pkg. #1 Grants $8,884 Work $2,400 Loans $2,625 Unmet $ 277

31. Analysis of Sample Pkg. #1 Grants $8,884 Work $2,400 Scholarships $2,000 Savings $ 852 Outside Scholarships: Church $ 500 Internet $1,500 $2,000

32. Expected Family Contribution Basic Equation of Need(Private School) Cost of Attendance COA $25,500 EFC $ 864 Student’s Financial Need = Need$24,636 The amount of Financial aid the Financial Aid Office will try to find (called a PACKAGE).

33. Sample Financial Aid Pkg. #2(Private School) Financial Aid Package Financial Need $24,636 Pell Grant $3,200 $21,436 Inst. Grant $8,322 $13,114 Work Study $2,400 $ 10,714 Campus Grant $5,000 $ 5,714 Loan $2,625 $ 3,089 Unmet Need $ 3,089

34. Analysis of Sample Pkg. #2(Private School) Grants $17,522 Work $ 2,400 Loan $ 2,625$2,625 Unmet $ 2,089

35. Analysis of Sample Pkg. #2(Revised -- Private School) Grants $17,522 Work $ 2,400 Scholarships $ 2,000 Savings $ 2,000 Unmet $ 714 Outside Scholarships: Church $ 500 Internet $1,500 $2,000

36. Live at home Rent movies Ride a bicycle Use public transportation Learn to Cook $864 EFC ?? ($96 Monthly) Savings Shop at thrift stores No pets Toss a frisbee Buy used books Work during school breaks

37. Apply, Don’t Disqualify Don’t Miss Deadlines Don’t “Pre-guess” Computers Don’t Assume Anything Create a Safety Net

38. http://www.youtube.com/watch?v=vuSnNjMghE0 • www.hrblock.com

39. Next Steps • Choose college • Wait for financial aid package offers • Send in housing agreements and payments • Register for classes • Verify information on FAFSA application with chosen college • Move out!