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Financing Education Beyond High School

Financing Education Beyond High School. Applying for Financial Aid. ALL colleges will require the Free Application for Federal Student Aid (FAFSA)

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Financing Education Beyond High School

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  1. Financing Education Beyond High School

  2. Applying for Financial Aid • ALL colleges will require the Free Application for Federal Student Aid (FAFSA) • Some schools may also request the “PROFILE” application from College Scholarship Service (CSS) to award institutional aid/scholarships

  3. Application Process • Submit the Free Application for Federal Student Aid (FAFSA) prior to school’s deadline • FAFSA must be submitted annually (January/February is best) • Most aid awarded on a “first-come, first-served” basis • To ensure maximum consideration for federal, state, and institutional aid, contact each school to ask about their: • Required application materials • Application deadlines

  4. FAFSA • Collects family’s personal & financial information in order to determine a student’s Expected Family Contribution (EFC) • May file FAFSA in one of two ways: • Electronically via FAFSA on the Web (preferred method) • Paper FAFSA

  5. PIN Registration for Electronic Signature

  6. PIN Registration for Electronic Signature • Web site: www.pin.ed.gov • Sign FAFSA electronically • Can request PIN before January 1, 2011 • Not required, but speeds processing • May be used by students and parents throughout aid process, including subsequent school years

  7. FAFSA on the Web • Web site: www.fafsa.ed.gov • 2011-2012 FAFSA on the Web available on January 1, 2011 • FAFSA on the Web Worksheet: • Used as “pre-application” worksheet • Questions follow order of FAFSA on the Web

  8. General Student Eligibility Criteria • Must be U.S. citizen or eligible non-citizen • Must be pursuing degree, certificate, or other recognized credential • Must be registered with Selective Service (if male and required) • Eligibility may be suspended or terminated due to drug-related conviction • Must meet Satisfactory Academic Progress requirements

  9. Satisfactory Academic Progress (SAP) Schools are required to have a SAP policy which monitors successful progress towards graduation: • Qualitative (GPA) requirement • Quantitative (course completion) requirement • Maximum timeframe for each degree

  10. FAFSA Questions – Six Steps • Step One –Student information: name, address, SSN, marital status, citizenship status, etc. • Step Two –Colleges to receive the FAFSA results • Step Three –Dependency Questions

  11. FAFSA Questions – Six Steps • Step Four –Parent information: name, SSN, marital status, 2010 income, assets, # in household, # in college, etc. • Step Five –Student income and asset information • Step Six –Signatures (PIN for student and PIN for parent) and application submission

  12. FAFSA Questions: Dependency Status • At least 24 years old by December 31st of the award year covered by the FAFSA (born before January 1, 1988) • Married (at the time of application) • Will be in a Master’s or PhD program in 2011-2012 • On Active Duty in the U.S. Armed Forces for purposes other than training • Is a Veteran of the U.S. Armed Forces • Has children or legal dependents other than a spouse for whom the student provides more than half of their support in 2011-2012

  13. FAFSA Questions: Dependency Status • Both parents are deceased • At age 13 or older, student was in foster care or was a dependent of the court (ward of the court) • Is an Emancipated Minor as determined by a court • Is in a Legal Guardianship (court approved) • Is an “Unaccompanied Youth” (homeless) • Determined to be “independent” by the financial aid administrator based on unusual circumstances

  14. Frequent FAFSA Errors • Parent and Student Social Security Numbers • Divorced/remarried parent information • Untaxed income (401k/403b & child support received for all family members) • U.S. income taxes paid (not withheld) • Missing signatures (PIN)

  15. Special Circumstances You may request a re-evaluation of a processed FAFSA due to: • Loss of employment • Loss of untaxed income or benefits (such as child support, unemployment, etc.) • Separation or divorce • Unusual uninsured medical or dental expenses

  16. What Happens After I Submit the FAFSA? • The FAFSA is processed by the Department of Education • The Expected Family Contribution (EFC) is determined • Results are sent to the student (via email) and the schools listed on the FAFSA

  17. What is the Expected Family Contribution (EFC)? • Calculated using the FAFSA data and a federal formula • EFC is a measure of the family’s financial strength and what they can “reasonably be expected to contribute” towards the educational expenses in 2011-12 • Stays the same regardless of college

  18. Cost of Attendance • Tuition and Fees • Room and Board (on campus or off) • Books and Supplies • Transportation • Personal Expenses

  19. Definition of Need Cost of Attendance (COA) (minus) Expected Family Contribution (EFC) =Financial Need

  20. Role of the Financial Aid Office • Determines eligibility for financial aid • Packages (awards) financial aid • Sends an award notification* which includes: • Programs and amount from each program for which the student is eligible • How and when aid will be disbursed • Terms and conditions of student’s award(s) * May be sent by letter or E-mail notification

  21. Types of Funding • Grants – gift aid, generally based on need • Scholarships – gift aid, generally based on academic achievement or special talent • Loans – must be repaid • Work Study – employment, student earns money to help with educational expenses

  22. The FAFSA is required for: Federal Grants • Pell Grant($5,550 max award 2010-11) • Supplemental Educational Opportunity Grant (SEOG) ($4,000 max award) • Teacher Education Assistance for College and Higher Education (TEACH) Grant ($4,000 max award)

  23. FAFSA also required for:Work Study & most loans • College Work Study • Perkins Loan • Stafford Loans • Some scholarships depending on the school policy • State need-based aid

  24. Subsidized and Unsubsidized Direct Stafford Loans Student Borrower (no co-signer or credit history required) • Subsidized: Must demonstrate “need” • No interest during in-school period, 3.4% in repayment • Unsubsidized: Need is not a consideration • Interest at 6.8% is paid by student or allowed to capitalize • Repayment begins 6 months after graduation

  25. Parent PLUS Loan Parent is Borrower • Annual loan limit: cost of attendance minus student financial aid • Fixed interest rate of 7.9% • Repayment may begin 60 days after loan is fully disbursed or can be deferred if requested by parent

  26. State of Michigan Programs • Michigan Competitive Scholarship • Based on ACT score and financial need • FAFSA filing deadline March 1, 2011 • Maximum award in 2010-11 is $600 • Renewable with a 2.0 college GPA and continued financial need www.michigan.gov/studentaid

  27. State of Michigan Programs • Michigan Educational Trust (MET) • Prepaid college tuition plan that locks in future tuition rates at in-state public colleges at current prices • www.michigan.gov/studentaid or 800-MET-4-KID • Michigan Educational Savings Program (MESP) • Investment program for college costs • www.misaves.comor 877-861-MESP

  28. Institutional Scholarships Contact schools to determine their application requirements • Sometimes an application is required • May want an essay from the student • May require a FAFSA to determine “need” • May require an audition or portfolio

  29. Avoid Being Scammed • The scholarship is guaranteed or your money back • You can’t get this information anywhere else • I just need your credit card or bank account number to hold this scholarship • We’ll do all the work • The scholarship will cost some money • You’ve been selected by a ‘national foundation’ to receive a scholarship or you’re a finalist in a contest you never entered

  30. Next Steps - Summary • Obtain and review admission and financial aid materials from each school being considered • Meet all application deadlines • Complete FAFSA and any additional application materials, such as the College Scholarship Service’s PROFILE application • Investigate other sources of aid

  31. College Goal Sunday Sunday, February 13, 2011 2:00 – 4:00 p.m. Some of the Host Sites: • Eastern Michigan University • Oakland Community College • U of M Dearborn • Baker College of Jackson • U of M Flint • Monroe Community College http://www.MICollegeGoal.org/ (Sign up for a reminder & entry for a laptop)

  32. LAST ONE! Websites: • www.FAFSA4caster.ed.gov– FAFSA4caster for an early introduction to the FAFSA & estimated results • www.emich.edu/finaid - PowerPoint Presentation Financing Education Beyond High School • www.fastweb.com – scholarship search • www.collegeboard.com – Search & Planning • www.studentaid.ed.gov – U.S. DOE info • www.finaid.org/calculators/ - EFC estimator, search and planning

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