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High School Financial Aid Workshop. Brad Barnett, MS, AFC Accredited Financial Counselor Senior Associate Director James Madison University Office of Financial Aid & Scholarships November 17, 2009. Consult with Appropriate Stakeholders. Talk to Those Involved in This Decision

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High school financial aid workshop
High School Financial Aid Workshop

Brad Barnett, MS, AFC

Accredited Financial Counselor

Senior Associate Director

James Madison University

Office of Financial Aid & Scholarships

November 17, 2009


Consult with appropriate stakeholders
Consult with Appropriate Stakeholders

Talk to Those Involved in This Decision

  • If parents are assisting students with paying for college it is important students take the time to sit and discuss details with them

  • Financial aid is a long-term process

    • How much debt are students willing to accumulate

    • How much debt can parents afford


Learn more about schools
Learn More About Schools

  • Understand the costs of schools

  • Examine the types of schools

  • Learn about individual deadlines of schools

  • Try not to let cost be a large deterrent

    • MANY colleges are willing to work with students


Options
Options

  • Personal savings

  • Investments (e.g., 529 plans, ESA’s, Mutual Funds, etc.)

  • Payment plans

  • Part-time employment

  • Grants (federal and state)

  • Scholarships (institutional and private)

  • Federal Loans (student and parent)

  • Private Loans (student and parent)


Packaging and available aid
PackagingandAvailable Aid


Cost of attendance
Cost of Attendance

  • Tuition & fees

  • Room & board

  • Books, supplies, transportation, & miscellaneous personal expenses, including documented costs for personal computer

  • Loan fees

  • Study abroad costs

  • Dependent care expenses

  • Disability-related expenses

  • Cooperative education program costs


Efc expected family contribution
EFC = Expected Family Contribution

  • The federal government determines a family’s ability to pay for post-secondary expenses (including living expenses)

  • The figure schools use to determine a student’s eligibility for need-based aid


Principles of need analysis
Principles of Need Analysis

  • To extent they are able, parents have primary responsibility to pay for dependent child’s education

  • Students also have responsibility to contribute to educational costs

  • Families should be evaluated in their present financial condition

  • Family’s estimated ability to pay for educational costs must be evaluated in equitable & consistent manner, recognizing that special circumstances may affect family’s ability to pay


Definition of need
Definition of Need

Cost of attendance (COA)

– Expected family contribution (EFC)

= Financial need


Financial aid sources
Financial Aid Sources

Four primary sources of financial aid are:

  • Federal

  • State

  • Institutional

  • Private


High school financial aid workshop 1335154

Federal Aid Sources

www.fafsa.ed.gov


Major federal programs
Major Federal Programs

  • Pell Grant

  • Supplemental Educational Opportunity Grant (SEOG)

  • Academic Competitiveness Grant (ACG)

  • National Science and Mathematics Access to Retain Talent Grant (National SMART Grant)

  • Teach Grant

  • Federal Work Study (FWS)

  • Perkins Loan

  • Stafford & Direct Loans (subsidized/unsubsidized)

  • Parent PLUS Loans


Federal perkins loan might be different in 2010 11
Federal Perkins Loan(Might be different in 2010-11)

  • Eligible students

    • Undergraduate and graduate students

    • Priority to students who show “exceptional need,” as defined by school

  • Loan amount varies

  • Maximum annual loan

    • $5,500 - undergraduate students

    • $8,000 - graduate & professional students


Federal perkins loan might be different in 2010 111
Federal Perkins Loan(Might be different in 2010-11)

  • Interest rate: 5%

  • 9-month grace period

  • Repayment period may be up to10 years

  • Deferment & cancellation provisions available


Stafford direct loans might be different in 2010 11
Stafford & Direct Loans(Might be different in 2010-11)

  • Available under:

    • Federal Family Education Loan (FFEL) Program with funds provided by lenders (e.g., banks or credit unions)

    • Federal Direct Student Loan (Direct Loan) Program with funds provided directly by federal government via participating schools

  • School determines loan eligibility & delivers loan proceeds to students

  • Subsidized fixed 4.5% interest rate for 2010-11 loans

  • Unsubsidized fixed 6.8% interest rate


Stafford direct loans
Stafford & Direct Loans

  • Subsidized: Must demonstrate “need”

  • Unsubsidized: Need is not considered

  • Base annual loan limits (combined subsidized & unsubsidized):

    • $5,500 for 1st year undergraduates ($3,500 max sub)

    • $6,500 for 2nd year undergraduates ($4,500 max sub)

    • $7,500 for each remaining undergraduate year ($5,500 max sub)

    • $8,500 for each year of graduate/professional study


Stafford direct loans1
Stafford & Direct Loans

Additional unsubsidized loan eligibility for independent undergraduate, graduate, & dependent students whose parents are unable to borrow Parent PLUS:

  • $4,000 per year for first & second years of undergraduate study

  • $5,000 per year for remaining years of undergraduate study

  • $12,000 per year for graduate & professional students


Stafford direct loans repayment
Stafford & Direct Loans: Repayment

  • 6-month grace period

  • Maximum repayment period between 10 & 30 years depending on repayment plan chosen

  • Deferment & cancellation provisions available


Parent plus might be different in 2010 11
Parent PLUS(Might be different in 2010-11)

  • Parent loan program for parents of dependent undergraduate students

  • Annual loan limit: COA minus other aid

  • Fixed interest rate of 8.5% for FFELP Parent PLUS Loan and 7.9% for Direct Loan Parent PLUS


Parent plus
Parent PLUS

  • Repayment begins 60 days after loan is fully disbursed; or

  • Parents can request postponement of payment until 6 months after a student ceases to be enrolled at least half-time; interest may be capitalized



Major state programs
Major State Programs

  • Commonwealth Award

  • Virginia Guaranteed Assistance Program

  • Tuition Assistance Grant Program (private only)

  • College Scholarship Assistance Program

  • Two Year College Transfer Grant


Public college universities
Public College & Universities

  • Programs

    • VGAP

    • Commonwealth Award

    • CSAP

    • Transfer Grant (Community College to 4 Year)

  • Amounts vary at each institution based on funding

  • Generally have FAFSA Priority Filing dates


Private colleges universities
Private Colleges & Universities

  • Program - Tuition Assistance Grant Program

  • Award amounts are based on the number of eligible students and the amount of funds appropriated by the General Assembly

  • Maximum 2010-11 Annual Award to be determined:

    • The undergraduate award is usually around $3,000

    • The graduate award is usually less than $2,000

  • Application deadline is July 31st! Talk to a private college or university for more details.


Community college to four year college
Community College to Four Year College

  • Two Year College Transfer Grant

  • Be a first-time entering freshman no earlier than summer 2007

  • Be a full-time undergraduate in-state student meeting selective service requirements

  • Have received an Associate’s degree at a Virginia two-year public institution with a cumulative GPA of 3.0 on a scale of 4.0 for the Associate’s degree

  • Enroll into a Virginia four-year public or Virginia four-year private nonprofit college or university by the fall following completion of Associate’s degree

  • Have financial need: defined as a federally calculated EFC of 8,000, or less

  • Maximum annual standard award is $1,000 ($500 per term), with an additional $1,000 ($500 per term) for students enrolled into a degree program in: engineering, mathematics, nursing, teaching, or science

  • Limited to three years or 70 credit hours

  • Maintain college GPA of 3.0 on a 4.0 scale and continue to demonstrate financial need (maximum EFC of 8,000)


Other state aid
Other State Aid

  • Higher Education Teacher Assistance Program

  • Foster Care Grant (VCCS only)

  • Virginia War Orphan Education Program

  • Virginia Dept. of Rehabilitative Services

  • Virginia Part-time Tuition Assistance Program

  • And many more


More information on state aid
More information on State Aid

Please visit

www.schev.edu



Institutional aid
Institutional Aid

Types of Institutional Aid

  • Need-based or merit-based grants

  • Scholarships

  • Loans: Student and Parent loans

  • Work-study

    Application Process:

  • The Financial Aid Office at each institution can explain what type of aid is available and the application procedures


High school financial aid workshop 1335154

Financial aid from

private resources

can be the most

elusive of all aid

programs

Available From:

Local businesses

Civic groups

Churches

Private benefactors

National organizations

Employment

Where to Look:

High school counselors

Write, call, or visit businesses, civic groups, churches, etc.

Public libraries

Internet

Private Aid Sources


Private scholarship search
Private Scholarship Search

Free Internet scholarship search engines:

  • FinAid.org – http://www.finaid.org

  • The College Board – http://www.collegeboard.com

  • FastWeb.com – www.fastweb.com

  • Scholarship Resource Network Express – www.srnexpress.com

  • GoCollege.com: The Collegiate Websource – http://www.gocollege.com


Private scholarship search1
Private Scholarship Search

  • Local library resources

  • Local businesses & civic organizations

  • Parents’ employers


Avoid being scammed
Avoid Being Scammed

To check legitimacy of scholarship search services or individuals, for information about financial aid scams, & tips to avoid being scammed visit these Web sites:

  • Better Business Bureau: http://www.bbb.com

  • U.S. Department of Education: http://studentaid.ed.gov/students/publications/lsa/index.html

  • Federal Trade Commission: www.ftc.gov/bcp/conline/publs/alerts/ouchart.htm


Two types of financial aid award notices

Preliminary

Tentative

Estimated

Official

Final (not an accurate description)

Non-preliminary

Actual

Two Types of Financial Aid Award Notices


Finally
Finally

  • Read each document

  • Keep copies of EVERYTHING

  • Be aware of deadlines

  • File taxes early

  • Watch out for verification

  • Respond to all correspondence

  • START LOOKING NOW!


Helpful websites
Helpful Websites

  • http://studentaid.ed.gov/students/attachments/siteresources/StudentGuide.pdf

  • http://studentaid.ed.gov/PORTALSWebApp/students/english/fafsa.jsp?tab=funding

  • http://www.fafsa.ed.gov/

  • http://www.finaid.org/

  • http://www.ed.gov/students/prep/college/thinkcollege/early/edlite-index.html

  • http://www.virginiamentor.org/


Questions
Questions

Brad Barnett, MS, AFC

Senior Associate Director

James Madison University

Office of Financial Aid & Scholarships

MSC 3519

Harrisonburg, Virginia  22807

(540) 568-2894

barnetbd@jmu.edu

www.jmu.edu/finaid