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Funding Your College Education: Financial Aid 101. Presenter: Sandra Hanley Advisor Lake/Geauga Educational Assistance Foundation. Agenda. What is Financial Aid? What are the types and sources of Financial Aid? How do colleges award Financial Aid? What is the Financial Aid process?

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Funding your college education financial aid 101

Funding Your College Education:Financial Aid 101

Presenter: Sandra Hanley Advisor

Lake/Geauga Educational Assistance Foundation


  • What is Financial Aid?

  • What are the types and sources of Financial Aid?

  • How do colleges award Financial Aid?

  • What is the Financial Aid process?

  • What if my family’s financial situation has changed?

  • How do you find scholarships?

What is financial aid
What is Financial Aid?

Any funds provided to students and families to help pay for college expenses.

May be awarded from:

Federal Government

State Government


Private Sources


Two types of financial aid
Two Types of Financial Aid…

Gift Aid

Funds which do not need to be repaid




Self-Help Aid

Funds which must be repaid or earned



Work Study

Colleges award aid based on
Colleges Award Aid Based on…


Based on GPA and/or ACT/SAT test scores, special talents, athletic abilities, Leadership/service

Usually notified after accepted for admission

Financial Need

Cost of Attendance - EFC = Financial Need

Tuition and Fees

Room and Board

Books and Supplies


Miscellaneous Expenses

Expected family contribution efc
Expected Family Contribution (EFC) Attendance

Parental Income

Parental Assets (excluding retirement accounts and primary residence)

Age of Older Parent

Family Size

Number in College

Student Income

Student Assets

EFC is calculated when the Free Application for Federal Student Aid (FAFSA) is submitted by the student.

EFC Factors:

Efc tells the college s financial aid office
EFC Tells the College’s Financial Aid Office… Attendance

…It does not indicate what the student will owe.





EFC tells a Financial Aid Office what a student is eligible for in Federal, State and institutional monies…

Free application for federal student aid fafsa www fafsa gov
Free Application for Federal Student Aid (FAFSA)

Collects information from the family and is used to calculate the student’s Expected Family Contribution (EFC)

Cannot be completed until 1/01/14

Uses tax information from 2013

Estimate taxes if deadlines need to be met!

Must be filed every year

Some processed FAFSA’s may be selected for a process called Verification

Beware of sites and companies that charge to file the FAFSA!

Application tips
Application Tips Attendance

  • Be aware of DEADLINES!!! Check college’s Financial Aid Website for more information

  • Get a PIN for the student and one parent whose information will be on the FAFSA

Application tips continued
Application Tips Continued Attendance

  • File the FAFSA on-line:

  • Submit supplemental applications (like the CSS Profile) if necessary

  • Think before you spend money on financial aid consultants, scholarship search companies!


Paperwork needed to complete the fafsa

Paperwork/information needed from parent(s) and student: Attendance

2013 W2 Forms

2013 1040s’

Social Security Numbers

Asset information




Mutual Funds

Rental Property

Savings Account

Checking Account

529 Plans

Untaxed Income



Contributions to a retirement plan

Not included:

Social Security Income

Social Security Disability

Business Value if under 100 employees

Retirement Fund Values ($ paid into an account is considered untaxed income)

Download a FAFSA on the Web worksheet from

Paperwork Needed to Complete the FAFSA

Irs data retrieval
IRS Data Retrieval Attendance

  • Available in February 2014

  • Recommended way to provide tax information on the FAFSA

  • Parent and student must have a PIN

  • Taxes will be available for download from the IRS 2 weeks after filing electronically or 5-8 weeks if filing by paper.

  • Meet deadlines! Estimate taxes if necessary and do corrections with data retrieval.

  • Parents/students who do data retrieval will not have tax information selected for verification. (Other information may be selected.)

After filing the fafsa
After Filing the FAFSA… Attendance

  • Watch for the Student Aid Report (SAR)

    • If the student’s e-mail is on the FAFSA the SAR will be e-mailed to the student.

  • Is the student selected for Verification?

    • Notified on the SAR or institution may select

    • If eligible for the Pell Grant, student will be selected

    • To verify tax information, the school will require an IRS Tax Transcript.

      • Request transcript on-line:

  • Did you receive a Financial Aid Award Letter from the college(s)?

    • Check on-line!!!!

  • Accept/apply for the awards

    • On-line!!! Check the Financial Aid Website or award letter for instructions

  • Watch for the first quarter/semester bill in mid-July

Common fafsa concerns
Common FAFSA Concerns Attendance

  • Why is my information on the FAFSA?

    • The FAFSA is an application. Federal regulations dictate that parental information needs to be included until a student meets certain criteria or turns 24.

  • Does putting my information make me liable for college costs?

    • No. The FAFSA is just an application. It does not make you liable for your student’s educational costs.

  • I’m remarried. Why should my spouse’s info be on the FAFSA?

    • Because your spouse is in the student’s household. FAFSA asks about a student’s household in which he/she resides.

My financial situation has changed
My Financial Situation Has Changed… Attendance

  • If your financial situation is not reflected accurately on the 2014-2015 FAFSA you can petition the Financial Aid Office to review your situation. The college’s Financial Aid Office has final say on what situation is “Reviewable”.

  • Example of Reviewable Situations

  • Loss of job

  • Reduction of overtime

  • Medical Bills

  • Divorce/Separation

  • Private Elementary or Secondary School Tuition

  • Example of Non-Reviewable Situations

  • Credit Card Bills

  • Mortgage Payments

  • Co-pays for Medical Check-ups

  • Parent Student Loan Payments

Financial aid timeline
Financial Aid Timeline Attendance

File the FAFSA

Check Deadlines!

Receive Award Letter

Send in Deposit

Payment Due

Bills Sent

May 1st


Jan 2014







  • Bills are sent by semester/quarter

  • Financial aid must be accepted and processed by August

  • If you don’t receive a financial aid award letter by late March your student may be selected for Verification!

  • Colleges are going GREEN! Check for the award letter on-line!

Loans in the student s name
Loans in the Student’s Name Attendance

Federal Loans

Alternative/Private Loan

Direct Stafford Loan

Perkins Loan

  • Awarded to neediest students on first-come first-serve basis

  • Interest is subsidized

  • Fixed Interest Rate 5%

  • First year maximum up to: $5500

  • Colleges can award different amounts up to the first year maximum (Campus based aid)

  • Principal repayment starts 9 months after the student graduates or the last date of attendance

  • Non-need based

  • Student:

    • Must pass a credit check

    • Needs a co-signer

  • Variable interest rate (Can be up to 23%)

  • Student can be approved one year and not the next

  • Principal payment can be required while the student is in college

  • Can be:

    • Subsidized (need based, interest subsidized)

    • Unsubsidized (non-need based, interest accumulates)

  • Fixed Interest Rate 3.86%*

  • First year maximum: $5500

  • Principal repayment starts 6 months after the student graduates or the last date of attendance


Loan in the parent s name
Loan in The Parent’s Name Attendance


  • The FAFSA must be filed in order to apply!

  • Parent must pass a credit check

    • Does not take debt to income ratio into consideration

  • Fixed interest rate 6.41%*

  • Payments can be deferred until after the student graduates

  • If the parent is denied the student is granted additional unsubsidized Stafford eligibility


Federal grants
Federal Grants Attendance

  • Pell Grant

    • 2013-2014 Maximum $5645

    • Award based on student’s EFC and enrollment

    • For undergraduate students


    • Campus Based Aid (First-come-first-serve)

    • College awards to the neediest students

    • Can be up to $4000

  • TEACH Grant

    • For education majors who agree to teach a specific topic (Example: Math, Science, certain foreign languages…)

    • College must participate in the program

    • Students must agree to teach at least 4 years in a low-income school.

State grants
State Grants Attendance

  • Ohio College Opportunity Grant (OCOG)

    • Award based on EFC and Enrollment

      • EFC must be 2190 or less

    • Must be enrolled in a 4-year Public or Private college

      • Private College award 2013-2014: $2080

      • Public College award 2013-2014: $920

      • Proprietary College award 2013-2014: $664

  • Other grants include (

    • Ohio War Orphans Scholarship

    • Ohio Safety Officers College Memorial Fund

Institutional outside scholarships
Institutional/Outside Scholarships Attendance

  • Institutional Monies

    • Differs by institution

    • Check undergraduate catalogue for more information

  • Outside Scholarships

    • Local Scholarships

      • Check the Guidance Office


    • National Scholarships

      • Check with the Reference Desk at libraries




Beware of scholarship scams! Check them out!

Questions??? Attendance

Sandra Hanley

LEAF Advisor

Scheduled Tuesdays:

7:45 am to 12:15 pm

440-352-3341 ext. 4320

[email protected]

LEAF Resource Center