Financial Aid 101 Presented by the Adult Education Department at Indian River State College
Objectives • Navigate the financial aid process • Locate and complete the Free Application for Federal Student Aid (FAFSA) • List sources of financial aid and understand financial aid terminology
Financial Aid topics • What is financial need • Cost of attendance (COA) • Expected Family Contribution (EFC) • Types and sources of financial aid • Free Application for Federal Student Aid (FAFSA)
What is Cost of Attendance Includes: • Tuition & Fees • Room & Board • Books, supplies, transportation, etc.
What is Expected Family Contribution or EFC • Amount family can reasonably be expected to contribute • Cost of Attendance – Expected Family Contribution =Financial Need • Parent contribution/Student contribution • Calculated using data from a federal application form and a federal formula • Stays the same regardless of college
Types of Financial Aid • Scholarships – Aid that is awarded on the basis of merit, skill, or unique characteristic that does not have to be repaid • Grants – Aid awarded on the basis of financial need that does not have to be repaid • Loans- Money students and parents borrow to help pay college expenses • Repayment usually begins after education is finished • Only borrow what is really needed • Look at loans as an investment in the future
Sources of Financial Aid • Federal government • States • Private sources • Civic organizations and churches
Government Aid Federal • Largest source of financial aid • Aid awarded primarily on the basis of financial need • Must apply every year using the Free Application for Federal Student Aid (FAFSA)
Government Aid State • Residency requirements • Award aid on the basis of both merit and need oftentimes • Use information from the FAFSA • Deadlines vary by state; check FAFSA on the Web site
Private Sources • Foundations, businesses, charitable organizations, civic & community organizations & churches • Begin researching private aid sources early • Deadlines and application procedures vary widely • IRSC Foundation Scholarships STARS application at https://stars.irsc.edu/STARS/ • Websites such as http://www.collegeboard.com/student/pay/index.html
Common Federal Aid Programs • Federal Pell Grant • Federal Supplemental Educational Opportunity Grant • Federal Work-Study • Subsidized and Unsubsidized Loans
Federal Pell Grant • Awarded amount based on EFC, COA, and enrollment status (full-time, half-time, etc.) • Maximum award for 2011-2012 = $5,550 FSEOG - Federal Supplemental Educational Opportunity Grant • Annual award amounts vary from $100 to $4,000 a year • Students with the lowest EFC’s are awarded first • Priority goes to Federal Pell Grant recipients and is often based on the date you submit your FAFSA
Federal Work Study -FWS • Provides part-time employment while you are enrolled in school • Employment may be on or off campus • Inquire about work-study jobs at IRSC’s Financial Aid Office
Federal Direct Loans • Subsidized – must demonstrate need – U.S. Department of Education will pay (subsidize) the interest that accrues while in school • Unsubsidized – not based on need – most everyone can qualify – Interest accrues while in school
Private Loans • Banks and credit card companies may provide education loans • These type of educational loans will likely have a higher interest rate than government student loans • Requires credit-worthiness • Loans have maximum amounts based on your year in college
Free Application for Federal Student Aid (FAFSA) • Collects demographic and financial information about the student and family • Information used to calculate the Expected Family Contribution or EFC–money a student and parent may reasonably be expected to contribute to the cost of the student’s education per academic year • Colleges use EFC to award financial aid • This form is the basis for all need-based financial aid • Website: www.fafsa.gov • IRSC federal school code is 001493
FAFSA Assistance • Indian River State College’s financial aid department • College Goal Saturday • FAFSA website – • Toll-free 1-800-4FED AID 1-800-433-3243 • Online live assistance • Email (Assistance available M-F 8 am – 12pm Sat 9am-6pm)
How much did you learn? • 1) Do you complete the FAFSA form only once while you are attending college? • 2) Do grants have to be repaid? • 3) Does the cost of attendance include room and board?
How did you do? • 1) Do you complete the FAFSA form only once while you are attending college? No, it is completed every year that you are in college. • 2) Do grants have to be repaid? No. • 3) Does the cost of attendance include room and board? Yes, regardless of whether or not you stay on campus.