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Paying For College: Getting Started

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  1. Paying For College: Getting Started Alabama School of Fine Arts

  2. Financial Aid Myths • Financial Aid isn’t available • Aid is only available at certain colleges • Aid is only for the best students • Our income is too high to qualify • We should pick the school that offers the most aid • Financial aid is the only source of money available • Financial aid will only cover tuition costs • Costs are the best way to compare colleges

  3. Who Pays for College? From: “Don’t Miss Out: The Ambitious Student’s Guide To Financial Aid”

  4. Undergraduate Student Aid (in Billions) by Source, 2006-07 Source: Trends in Student Aid, 2007

  5. Merit Based on talent or other special qualities Need-Based Must show eligibility through pre-determined formula Two Major Types of Aid

  6. Gift “Free money” (grants or scholarships) Do not need to be paid back Self-Help You earn it (work) or You pay it back (loans) Sources of Aid

  7. Principles of Need Analysis • To the extent they are able, parents have primary responsibility to pay for their dependent children’s education • Students have a responsibility to contribute to their educational costs • Families should be evaluated in their present financial condition • A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect its ability to pay

  8. Free Application for Federal Student Aid (FAFSA) • Family’s personal and financial information required to perform need analysis is collected on FAFSA • www.fafsa.ed.gov • Completed after January 1 during senior year • Typical deadline is Feb. 1 –March 1

  9. CSS PROFILE • Like the FAFSA on steroids • Requires a nonrefundable registration fee of $9, plus $16 for each college or scholarship program to which you want information sent. • Limited number of fee waivers are granted to first-time applicants based on the financial information provided on the PROFILE

  10. Tuition and Fees Books and Supplies Room and Board Transportation + Miscellaneous Expenses = Cost of Attendance Expected Family Contribution Parent’s Contribution from Income Parent’s Contribution from Assets Student’s Contribution from Income Student’s Contribution from Assets How Financial Need is DeterminedCost of Attendance- Expected Family Contribution= Financial Need

  11. Need Varies Based on Cost

  12. Institutional Majority of financial aid awarded through the college Could be need or merit based Many types, varieties, and amounts Pay close attention to application procedures/deadlines Understand terms/conditions of award and renewal Private Affiliations Churches Civic Organizations Unions Ancestry Employers Special Interests Corporations Foundations Local Scholarships Military Sources of Gift Aid

  13. Where to Look for Scholarships • You and your family’s employers, place of worship, civic clubs, etc. • ASFA Scholarship Opportunities list • Linked off Naviance and Sharepoint • Local, state and national • Guidance Office at the high school you are zoned for • Local scholarships not likely to be sent to ASFA • Collegenet.com/mach25 • MeritAid.com

  14. Case Studies: Nikki @ U. Penn • Family of 4 makes $78,000 and owns $107,000 home with $10,000 savings. N has $2,500 savings in her name. EFC of $11,480. Financial Aid Package

  15. Case Studies: Nikki @ UA • Family of 4 makes $78,000 and owns $107,000 home with $10,000 savings. N has $2,500 savings in her name. EFC of $11,986. Financial Aid Package

  16. Case Studies: Darius @ U Penn • Father deceased. Family of 4 makes $37,400 with minimal savings. EFC of $0. Penn expects mother to contribute $300 in savings and D. to save $300 from summer job. Financial Aid Package

  17. Case Studies: Darius @ UAB • Father deceased. Family of 4 makes $37,400 with minimal savings. EFC of $1,958. Financial Aid Package

  18. Scams • If it sounds too good to be true… • Signs something is fishy: • You’re a winner! (of something you never applied for) • For a small fee, we’ll send you a list of scholarships. • We’ll do the work for you • Guaranteed results or very high success rates • We need a bank account or credit card number to verify your information. • High pressure of any sort

  19. Information Sources • FinAid.org • Comprehensive financial aid information • Free scholarship search • Various calculators, including need analysis • College Gold by Mark Katrowicz • Don’t Miss Out: The Ambitious Student’s Guide to Financial Aid. Octameron Press • The Scholarship Book: The Complete Guide to Private-Sector Scholarships, Grants and Loans for Undergraduates. Daniel Cassidy, National Scholarship Research Service • Payscale.com/college-education-valueCollege ranking based on graduates’ long-term earnings