Understanding Financial Aid: Types, Application Process, and Myths Debunked

2. Agenda • What is financial aid? • What are the types of financial aid? • How do I apply for financial aid? • Where can I get more information?

3. What is Financial Aid? • Money from a source other than the family to assist with the cost of attending college or career school • Family • Federal Government • States • Colleges • Private sources: companies, organizations

4. Financial Aid Myths • College is too expensive • Only the smartest students receive financial aid • Only students with high financial need receive aid • My parents make too much money • The form is too hard to fill out • The FAFSA is only for grants & scholarships • I only have to complete the FAFSA one time • The estimated family contribution number is the amount I will have to pay

5. Types of Financial Aid • Scholarships: FREE MONEY • Usually awarded based on: • Academic achievements • Interests & career plans • Ethnicity, family background • And/or financial need • Grants: FREE money awarded based on need • Work-Study • Part time jobs for students with financial need • Maybe on campus or off campus • Do not use towards tuition & immediate University payment • Loans-MUST BE PAID BACK • Borrowed $ • Low interest/no interest loans • May need credit worthy cosigner

6. FSA ID: fsaid.ed.gov • What is the FSA ID? • Username & password that you must use to log into certain U.S. Department of Education (ED) websites

7. What is the FAFSA? • Free Application for Federal Student Aid • Standard form that collects demographic and financial information about the student & family • Used to determine financial need (EFC=Estimated Financial Contribution) • Used to apply for federal & state student grants, work-student & loans • fafsa.gov

8. Gather the documents you need • Your driver’s license # (if you have one) • 2018 Tax records • Records of any untaxed income from 2018 • Your FSA ID (to sign your application electronically) • List of colleges you are interested in attending • Your FAFSA information will be sent to these colleges • The college will work to put together a financial aid package for you based on your FAFSA information Optional: Use FAFSA on the Web Worksheet to prepare your answers and get organized

9. fafsa.gov • Fill it out! • Apply on or as soon after October 1 • Use 2018 tax information! • After taxes are filed, be sure to use the IRS data retrieval tool in the FAFSA • Need help? • 1.800.4.FED.AID • Live chat in fafsa.gov • Don’t forget: WATCH FOR THE CONFIRMATION PAGE that says your FAFSA has been submitted, THEN log out

10. Or mystudentaid app

11. Use the irs data retrieval tool

18. Email Confirmation • Check your email for your FAFSA confirmation • SAR (Student Aid Report) • Double check your information: make sure it is correct! • If you used estimated numbers, and have completed your tax return, complete the IRS data retrieval in the FAFSA • Correct any mistakes & resubmit the FAFSA • Meet all deadlines or your could miss out on aid!

19. Instructions to assist

20. Some schools will have this electronic!

21. What happens next? • Receive an email stating additional information is needed OR your award has been posted • Should see this in early spring 2020 • Schools will always try and give you the best, FREE $ first • Federal & State Grants • Work Study • Federal Loans (student & parent loans) • You must accept/decline each type of aid offered • Set up refund process if you have not already!

22. Federal Student Aid Maximums for 2019-2020 • Maximum amounts for 2019-2020: • Federal Pell Grant: $6195 • Direct Loans: $5,500 • Subsidized Student loans: zero interest while in school & during periods of deferment • Unsubsidized Student loans: interest throughout life of loan • No credit check on either loan/no payments while in school • Special repayment plans • Federal Work-Study: depends on funds available at school & student’s need • Federal Direct PLUS loan: (for parents) COA minus other aid received • Parents borrow for their student, basic credit check is conducted • Parents may defer payment while student is enrolled in college • Private Education Loans • In student’s name, but would need a credit worthy cosigner • Cosigner release options/anyone can be a cosigner • Rates based on credit

23. Texas aid • $ amounts for these grants will vary per student • TEXAS Grant (public colleges) • TPEG (public colleges) • TEOG (community colleges) • TEG (private colleges) • ‘Guarantee or Promise’ programs • State exemptions • www.collegeforalltexans.com

24. Professional judgment/special circumstances • Is something from your 2018 taxes different from your current situation? • The college financial aid office has paperwork you may submit (with documentation) to request to have these changes made to better reflect your current situation • Lost wages/income changes • One time lump sums/IRA rollovers • Extreme medical bills/payments, not covered by insurance • Nursing home expenses not covered by insurance • Unusually high child care costs • NOT AN OPTION: • Credit card balances • Vacations • Large mortgage/large car payments

25. Where can I get more info/help? • www.studentaid.gov • Information about aid programs • Links to free scholarship & college searches • 1.800.4.FED.AID • Info about aid programs • Help with FAFSA

26. Social Media

27. Important Resources • www.everychanceeverytexan.org • www.finaid.org • www.studentaid.gov • www.fastweb.com • www.mappingyourfuture.org • www.collegeboard.org • www.planforcollege.com • www.nasfaa.org • www.projectgradhouston.org • www.cafecollegehouston.org • www.houstonfafsa.org

28. QUESTIONS? Chandra Gonzalez Assistant Director, Scholarships & Financial Aid cngonzalez4@uh.edu