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Financial Aid 101. For High School Students and Their Parents. Bristol Eastern High School December 6, 2011.

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Presentation Transcript
slide1

Financial Aid 101

For High School Students and Their Parents

Bristol Eastern High School

December 6, 2011

slide2

This presentation was developed by Stacey Musulin in concert with other staff members at the University of Connecticut Office of Student Financial Aid Services. This presentation uses materials created by the National Association of Student Financial Aid Administrators

The information in this presentation was based on rules and regulations interpreted as of the date of its creation. Please note that programs may change over time. Also, many forms of aid are based on individual schools’ policies and available funding. Examples used in this presentation should not be considered guarantees of aid a student would receive. Contact your school for details about application procedures and eligibility questions.

topics we will discuss tonight
Topics We Will Discuss Tonight

3

  • What is financial aid?
  • Cost of attendance (COA)
  • Expected Family Contribution (EFC)
  • What is financial need?
  • Types of financial aid
  • Free Application for Federal Student Aid (FAFSA)
  • Post-Application processes
    • Special circumstances appeals
what is financial aid
What is Financial Aid?

4

Financial aid consists offunds provided to students and families to help pay for postsecondary educational expenses

sources of aid
Sources of Aid
  • Federal Department of Education
    • Largest source of aid
    • Students apply every year using Free Application for Federal Student Aid (FAFSA)
  • State Departments of Education
  • School/ Institutional sources
  • Private sources
    • Professional Organizations
    • Clubs
    • Employers
what is cost of attendance coa
What is Cost of Attendance (COA)?
  • Also known as the “budget”
  • Varies widely from school to school
    • Also dependent on student status (in-state vs. out-of-state, full-time vs. part-time) and housing
  • Combined direct and indirect costs related to educational program
    • Direct: Billed by the college (e.g., tuition, room & board)
    • Indirect: Anything not on the fee bill, but necessary to program (e.g., books, computer expenses, dependent care, mileage)
      • Indirect costs estimated by the college, may not be what student actually pays
what are the costs
What are the costs?

Tuition & Fees(billed)

Room & Board (billed if on-campus)

Transportation

Books & Supplies

+

Miscellaneous Living Expenses

Cost of Attendance (COA)

what is the expected family contribution efc
What is the Expected Family Contribution (EFC)?

9

  • Misnomer: EFC is NOT necessarily what a family will actually pay!
    • It is a measure of a family’s financial strength
  • Calculated using data from a federal application (FAFSA) form and a federal formula
  • Determines the types and amounts of aid that students are eligible to receive
  • Stays the same regardless of college
    • Exception: Special Circumstance appeal
  • Two components for dependent students:
    • Parent contribution
    • Student contribution
efc for dependent student basic federal methodology version
EFC for Dependent Student (basic Federal Methodology version)

Parental contribution from income & assets

+ Student contribution from available income & assets

= Expected Family Contribution

(adjusted if more than one dependent in college)

institutional methodology
Institutional Methodology
  • Some schools, through the CSS Profile application or their own financial aid applications, may require different information to calculate a separate, Institutional EFC
  • The Institutional EFC and those schools’ policies determine how institutional aid is distributed
financial need
Financial “Need”

NB: The official “Need” figure is not necessarily what is needed to pay the bill

Cost of Attendance (COA)

- Expected Family Contribution (EFC)

= Financial Need

(billed and miscellaneous non-billed expenses)

(schools will use this figure to determine eligibility for need-based aid)

important tips cost of attendance
Important Tips: Cost of Attendance
  • KNOW YOUR COST OF ATTENDANCE!
  • COA may be adjusted to meet individual students’ needs, if the school accepts an appeal
  • COA increase may result in more need-based aid
    • Must be able to document additional expenses
      • E.g., fee bill for more-expensive meal plan or receipt for computer purchase
  • Contact your school for details!
types of financial aid1
Types of Financial Aid
  • Scholarships (not repaid)
    • Need or merit-based
  • Grants (not repaid)
    • Need-based
  • Loans (must be repaid)
    • Need and non-need types
    • Federal or private lenders
    • Student or parent as borrower
  • Employment ($ earned through work)
    • Need and non-need types
    • Work-Study (need-based)
scholarship searches
Scholarship Searches
  • Guidance Counselor
  • Local businesses and civic organizations
  • State Dept. of Education
  • Places of employment
    • Student or parent
  • Internet - many sites, including:
    • http://fastweb.com
    • http://fastap.org
  • College or University
    • Academic, athletic, and other talent-based scholarships

Important Tip: There are scholarship scams! Do not pay for scholarship searches/ applications.

Important Tip: Start Early! Application deadlines and procedures vary depending on source of aid!

federal grant programs fafsa needed for all apply annually
Federal Grant Programs(FAFSA needed for all – Apply annually)
  • Federal Pell Grant
  • Federal Supplemental Educational Opportunity Grant (SEOG)
  • Federal Teacher Education Assistance for College and Higher Education (TEACH) Grant
pell grant
Pell Grant
  • Awarded to high-need, eligible undergraduates pursuing first Bachelor’s degree and certain students enrolled in post-baccalaureate teacher certification or licensing programs
  • Portable (not attached to a particular school)
  • Actual need-based award amount based on COA, EFC, and enrollment status (more to come later)
  • Maximum authorized award for 2011-2012 academic year was $5,550
federal supplemental educational opportunity grant fseog
Federal Supplemental Educational Opportunity Grant (FSEOG)
  • Need-based – High-need students a priority
  • Maximum award $4,000, but dependent on school packaging policy and available funds
teach grant
TEACH Grant
  • Schools choose whether to participate and what specific requirements are
  • U.S. citizen or eligible non-citizen
  • FAFSA completion required, but not need-based
  • Award amounts up to $4000 per year
  • Conditions
    • GPA 3.25 or qualifying score on admissions test
    • Sign “Agreement to Serve”: Teach in school serving low-income students (Title I) for 4 years within 8 years of leaving university for each agreement signed
    • Must teach in identified high-need field
    • If conditions not met, grant will turn into Unsubsidized Stafford loan with accumulated interest from time of initial disbursement
federal self help aid
Federal “Self-Help” Aid
  • Federal Work-Study (FWS)
  • Federal Perkins Loan
  • Federal Stafford Loan
    • Subsidized Stafford Loan
    • Unsubsidized Stafford Loan
  • Federal Parent PLUS Loan
federal work study fws
Federal Work Study (FWS)
  • Eligibility based on need, available funding, and school policies
  • Allows student to earn money to help pay educational costs
  • Paycheck or other compensation (e.g., payments off fee bill)
    • Determined by school policy
  • Employment may be on or off-campus (per school policies)
  • Eligible employers may be:
    • School that student attends
    • Federal, state, or local public agencies
    • Certain private nonprofit and for-profit organizations

Tip: FWS earnings, if indicated specially on the FAFSA, do not count in the expected family contribution (EFC) calculation for the following school year!

federal perkins loan
Federal Perkins Loan
  • School lends Federal funds
  • Student is borrower – no cosigner or credit check
  • No fees!
  • Amount dependent on funding and school policies but there are maximums
  • Interest rate: 5%
    • Does not accrue while in school or in grace period
  • 9-month grace period after graduation (or if student drops below ½-time status)
  • Repayment period may be up to10 years
  • Deferment and cancellation provisions available
federal direct stafford loans
Federal Direct Stafford Loans
  • Student is borrower – no cosigner or credit check
  • Amount undergraduate and graduate students can borrow varies by academic year/ # of completed credits
  • ½ % fee charged
    • i.e., if $100 borrowed, $99.50 will disburse
  • No repayment required while in school at least ½-time
  • 6-month grace period after graduation or if drop below ½-time status
  • Maximum repayment period between 10 and 30 years depending on repayment plan chosen
  • Deferment and cancellation provisions available
federal direct stafford loans1
Federal Direct Stafford Loans
  • Subsidized: Must demonstrate “need”
  • Unsubsidized: Not based on “need”
  • Annual loan limits (combined subsidized and unsubsidized) for dependent students:
    • $5,500 for 1st year undergraduates
      • $3,500 maximum subsidized
    • $6,500 for 2nd year undergraduates
      • $4,500 maximum subsidized
    • $7,500 for each remaining undergraduate year
      • $5,500 maximum subsidized
  • Total/aggregate limit for dependent undergrads: $31,000
    • $23,000 maximum subsidized
federal direct subsidized stafford
Federal Direct Subsidized Stafford
  • Need-based, dependent on Cost of Attendance (COA) and Expected Family Contribution (EFC) figures
  • Annual maximum eligibility to borrow dependent on student status
  • Interest Rate fixed 6.8% for undergrads as of the 2012-2013 school year
  • Interest does not accrue while in school at least ½-time or in grace period
federal direct unsubsidized stafford
Federal Direct Unsubsidized Stafford
  • Not need-based, but should fill out FAFSA to borrow maximum possible subsidized loan
  • Interest Rate fixed 6.8% and accrues from time money is disbursed
    • Can pay interest while in school!
  • Amount eligible to borrow dependent on student status
  • Students whose parents refuse to complete a FAFSA may be able to borrow a limited amount of unsubsidized Stafford loan in special circumstances
parent direct plus loans
Parent Direct Plus Loans
  • Loan program for parents (biological, adoptive, or step-parent in household) of dependent undergraduate students
  • Applicants must be considered “credit–worthy”
  • Annual loan limit: COA minus other aid
  • Fixed interest rates
    • 7.9% Direct PLUS Loans
  • 2.5% fee charged
    • i.e., if $100 borrowed, $97.50 will disburse
  • Repayment begins 60 days after loan is fully disbursed for parent borrowers
    • Parents may defer payment while student is in school at least ½-time
    • Must apply for deferment with Dept of Education – not automatic!
    • Other deferments, forbearances, cancellations possible in special circumstances
financing alternatives
Financing Alternatives
  • Monthly Payment Plans
    • Allows payments to be spread over 10 months or less
    • Dependent on school
      • Contact school for information
  • Alternative/Private Loans
    • Applicants must be “credit–worthy”
    • Payments may be deferred while student is in school
      • Dependent on lender
    • Usually the loan of “last resort”
      • Interest rates, fees, and repayment policies determined by individual lenders and subject to change
tips for borrowing
Tips for Borrowing
  • Additional unsubsidized loan eligibility available for independent undergraduate and dependent students whose parents are unable to borrow PLUS (credit denied):
    • $4,000 per year for 1st and 2nd year undergraduates
    • $5,000 per year for remaining years of undergraduate study
  • Parents and students who will be applying for PLUS or private/alternative loans should:
    • Consider lower-cost/interest Federal loan options first
    • Consider the total cost of borrowing
    • Double-check credit scores (www.annualcreditreport.com) prior to filling out applications
    • Consider co-signing options for better interest rates
the forms

FAFSA (Free Application for Federal Student Aid)

CSS Profile Application

  • Used primarily by private colleges
  • Pay for each report sent to a school plus small registration fee
  • https://profileonline.collegeboard.com

Institutional Applications

  • Check school publications and websites
The Forms
  • Required for all types of Federal and some state and institutional aid
  • www.fafsa.ed.gov
    • DO NOT go on the .com site – that’s a service for fee
what is the fafsa
What is the FAFSA?
  • A standard form that collect demographic and financial information about the student and family
    • Information is used to calculate the EFC using the federal formula
  • Electronic version is preferred & faster
    • English and Spanish versions
  • Information is sent to secure Dept. of Education system called CPS
  • Did I mention it’s free?
general federal student aid criteria
General Federal Student Aid Criteria
  • Must be enrolled or accepted for enrollment in eligible program of study
  • Must be pursuing degree, certificate, or other recognized credential
  • Must be U.S. citizen or eligible noncitizen
  • Must be registered with Selective Service (if male and required)
  • May not have eligibility suspended or terminated due to drug-related conviction
general federal student aid criteria continued
General Federal Student Aid Criteria (Continued)
  • Must have valid Social Security Number (SSN)
    • Including parent of dependent student
  • Must not be in default on a federal student loan
    • Applies to parent applying for PLUS loan
  • Must not owe an overpayment of federal grant or loan funds
  • Must continue to make Satisfactory Academic Progress (as defined by school)
      • GPA , % of completed credits, maximum credit limit
about deadlines
About Deadlines:
  • Each college may set its own deadline for filing the FAFSA, the Profile, or an additional institutional financial aid application
    • Know the deadline for each school to which you apply!
  • For the 2012-2013 academic year, the FAFSA is available on January 1, 2012
  • The FAFSA may be filed at any time during the academic year to be considered for Pell Grant and Stafford and/or PLUS loans
    • Understand that if you file late, you may miss out on forms of aid that are limited
first step get a student parent financial aid personal identification numbers pin
First Step: Get a Student & Parent Financial Aid Personal Identification Numbers (PIN)
  • Web site: www.pin.ed.gov
  • Can request PIN now
  • Sign FAFSA electronically
  • May be used by students and parents throughout aid process, including subsequent school years’ FAFSAs and signing Federal Direct Loan MPNs

Tip: Get student AND parent PINs now!

fafsa on the web
FAFSA on the Web

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  • Website: www.fafsa.gov
  • 2012–13 FAFSA on the Web available on January 1, 2012
  • FAFSA on the Web Worksheet:
    • Used as “pre-application” worksheet
    • Questions follow order of FAFSA on the Web
good reasons to file electronically
Good reasons to file electronically

40

  • Built-in edits to prevent errors
  • Skip logic allows student and/or parent to skip unnecessary questions
  • Option to use Internal Revenue Service (IRS) data retrieval
  • More timely submission of original application and any necessary corrections
  • More detailed instructions and “help” for common questions
  • Ability to check application status on-line
  • Simplified application process in the future
irs data retrieval
IRS Data Retrieval

41

  • Available early February 2012 for 2012–13 processing cycle
  • Participation is voluntary
  • Reduces documents requested by financial aid office
  • Not available when filing status is Married-Separately (all others possible)
how irs data retrieval works
How IRS Data Retrieval Works
  • While completing FAFSA, the student and/or parent may submit real-time request to IRS for tax data
  • IRS will authenticate taxpayer’s identity
  • If match found, IRS sends real-time results to applicant in new window
  • Student and parent choose whether or not to transfer data to the online FAFSA
    • These are separate transfers, one for the student and one for the parent
fafsa on the web worksheet
FAFSA on the Web Worksheet
  • 4-page PDF booklet
  • Cautions:
    • Worksheet does not include all FAFSA questions
    • Section #s on Worksheet don’t necessarily coincide with section #s on paper FAFSA
    • Many families will be asked to provide additional information
      • Child Support Paid
      • Untaxed Income (including untaxed interest, IRA deductions, Child Support received)
      • Assets (NOT IRAs) Businesses/Investment Farm value

Tips:

  • Using this worksheet might help to organize information prior to going online
  • Have this and supplemental information handy to make data entry easier
what information to collect before starting the fafsa process
What information to collect before starting the FAFSA process:
  • Social Security Numbers (student and parents)
  • Alien Registration # (permanent residents only)
  • Student’s driver’s license number
  • State residency information
  • Marital information (dates)
  • 2011 W-2 Forms (statement of earned wages)
    • May estimate for initial completion by deadlines
  • 2011 Tax forms (student & parent, if applicable)
    • May use last year’s data to estimate for initial completion by deadlines
  • Email addresses
  • Other income info (contributions to tax-deferred pensions/savings, child support paid/received, etc.)
  • Investment information (NOT IRAs)
  • School codes (also available on online FAFSA)
general tips for completing the fafsa
General Tips for completing the FAFSA:
  • Read each question carefully
    • Some questions apply to students, others to parents – don’t mix!
    • Some questions tell you what income/ asset data NOT to include – be careful!
  • Double-check all data entry
  • If estimating income/ asset information, supply your best HONEST guess
    • You may go back and make corrections (possibly IRS Data Retrieval) if there are significant changes
  • When using tax forms, double-check the type of form you are using (1040EZ, 1040A, 1040) to reference the correct specific line numbers
section 1 general student info
Section 1 – General Student Info
  • General student information
  • Citizenship information
  • Drug conviction status
  • Parent’s educational background
  • Grade level for the 2012-2013 school year
    • First year undergraduate
  • Type of Program?
    • Certificate/ Diploma
    • Associates degree
    • Bachelor’s degree

TIPS FOR SECTION 1:

  • “Your” and “Yourself” refer to the Student!
  • Use full, legal names – no nicknames!
  • You are not a 1st year Graduate student - yet
section 2 dependency status to determine whether or not parent information required on fafsa
Section 2 – Dependency StatusTo determine whether or not parent information required on FAFSA
  • Students may be only considered Independent if they are
    • Born before January 1, 1989
    • Married at time of application
    • Have children/ dependents for whom student provides over ½ financial support during upcoming year
    • In Graduate school (already earned a Bachelor’s degree)
    • On active duty stats in US Armed Forces
    • A veteran of the US Armed Forces
    • An orphan, Ward of the Court, or in foster care
      • anytime when age 13+
    • Considered “unaccompanied youth” and “homeless” / “at risk of being homeless”
      • As determined by director/ professional staff of shelter or program any time on/after 7/1/2011
    • Legally considered “emancipated minor” or in “legal guardianship”
      • NOTE: THIS IS DIFFERENT FROM A DIVORCED PARENT HAVING CUSTODIAL STATUS!!!!

Tip: In extreme circumstances, dependency status may be appealed. Contact your school’s financial aid office for more details.

section 3 dependent student s parent info
Section 3: Dependent Student’s Parent Info
  • Household size & # in college
  • Dislocated Worker Status
    • Receiving unemployment benefits and unlikely to return to that field/job
    • Is “displaced homemaker,” laid-off, or lost own business due to economic conditions
  • Parent(s) Financial Data
    • Tax Filing Status and type of return (1040EZ, 1040A, 1040)
      • Eligible to file 1040 EZ or A if make less than $100,000, does not itemize, and does not have income from self-employment, own farm, alimony, or capital gains on a required Schedule D
    • Adjusted Gross Income for 2011
    • Income earned from work (may be different than AGI)
    • Federal Income Tax for 2011
    • Untaxed Income
    • Receipt of benefits from “means-tested programs” (e.g., SSI,TANF, WIC, Food Stamps)
    • Investment/Business information
tips for section 3 parent info
Tips for Section 3 – Parent Info
  • “Parents” do not include grandparents or other relatives/ friends/ legal guardians with whom the student may live, but who have not formally adopted the student
  • When parents are divorced, give information about the primary custodial parent (with whom the student lived longer during the past year)
    • To break a tie, give information about which parent provided more financial support
  • When parents are remarried, given information about the primary custodial parent AND that parent’s spouse (the stepparent in whose household the student lives most)
tips for section 3 parent info continued
Tips for Section 3 – Parent Info(continued)
  • Household Questions:
    • Include student and siblings if parent(s) will provide over half support from 7/1/2012- 6/30/2013 even if the student will not be living with the parent during that time (i.e., in college)
    • Include other dependents if they live in the house and if parent(s) will provide over half support from 7/1/2012- 6/30/2013
    • # in college figure must be children/ dependents who are enrolled at least ½-time
    • Do not include parents in # in college even if the parents are in college
  • Income tax info: What was OWED, not paid!
    • Enter tax amount on 1040 – not necessarily what was on W-2
  • Double-check all data entry!
tips for section 3 parent info continued1
Tips for Section 3 – Parent Info(continued)
  • Do NOT include these in assets questions:
    • Net worth of the home you live in
    • Retirement accounts (e.g., 410K, IRA, pensions)
    • Net worth of family-owned (greater than 50% ownership) business employing less than 100 people
    • Net worth of family farm on which you live
tips for section 3 parent info continued2
Tips for Section 3 – Parent Info(continued)
  • Do include these in assets questions:
    • Cash, savings, checking account balances
    • Net worth (Value – Debt) of rental/investment properties
      • If you live in your investment property, do NOT include the percentage of the area in which you reside
    • Educational benefit/ savings accounts (e.g., 529, Coverdell)
      • Include as parent asset even if the student is the beneficiary
    • Net worth of family business if employs over 100 employees
    • Net worth of investment farm
section 4 student s financial info
Section 4: Student’s Financial Info
  • If independent, household information
  • Dislocated Worker Status
    • Receiving unemployment benefits and unlikely to return to that job
    • Is “displaced homemaker”
  • Financial Data:
    • Tax Filing Status and type of return (1040EZ, 1040A, 1040)
      • Eligible to file 1040 EZ or A if make less than $100,000, does not itemize, and does not have income from self-employment, own farm, alimony, or capital gains on a required Schedule D
    • Adjusted Gross Income for 2011
    • Income earned from work (may be different than AGI)
    • Federal income Tax for 2011
    • Untaxed Income
    • If independent, receipt of benefits from “means-tested programs” (e.g., SSI,TANF, WIC, Food Stamps)
    • Investment/Business information
tips for section 4 student info
Tips for Section 4 – Student Info
  • See previous tips for:
    • 1040 A/ EZ eligibility question
    • Income tax (enter what was on 1040, not W-2)
    • Asset inclusion/ exclusion
  • Do NOT include scholarship/ financial aid amounts as income UNLESS you will pay taxes on it (i.e., if you must include this as taxable income on 1040)
    • This usually occurs only if the scholarship exceeds the billed educational expenses
additional info tips
Additional Info & Tips
  • Obtain Federal School Code for each college
    • Up to 10 codes allowed – Feds will send info to schools
    • Available online if you don’t have them handy (follow prompts)
  • Housing plans for each college (used by schools to determine Cost of Attendance)
    • On-campus (allows for billed room & board/meals)
    • Off-campus (allows for rent & meals)
    • With parent (allows for meals)
signatures
Signatures
  • Required
    • Student
    • One parent (dependent students)
  • Use PIN number for Electronic signature
  • Missing signatures = FAFSA rejection!
frequent fafsa errors
Frequent FAFSA Errors:
  • Transposed letters and Social Security Numbers
    • Double-check everything!
  • Including divorced non-custodial parent information when not required
  • Forgetting to include untaxed income
  • Indicating taxes paid on W-2 and not OWED on 1040
  • Household size mistakes
  • Including parents in # in college
  • Forgetting to include required investment information
  • Including family business information when not required
    • Missing Signatures!
fafsa processing results
FAFSA Processing Results:
  • Central Processing System (CPS) notifies student of results by:
  • Student Aid Report (SAR) email if FAFSA filed and student’s email address was provided
    • Direct link to online SAR
  • Students with PINs may view SARs online at www.fafsa.ed.gov
  • Paper SAR sent if no email address provided

Tip: Review your SAR carefully for accuracy and keep a hard copy!

fafsa processing results continued
FAFSA Processing Results: (continued)

Tip: Respond to requests for additional information/ documentation ASAP!

  • Central Processing System (CPS) notifies school of results by:
  • Institutional Student information Record (ISIR)
    • Based on codes specified on FAFSA
    • Information sent within 10-14 days after FAFSA submitted to CPS
  • College reviews ISIR
    • Colleges may request additional information for verification or to resolve database mismatches or conflicting information
after the fafsa is processed
After the FAFSA is processed…
  • FAFSA Processing
    • Log in and make corrections online
      • Remember IRS Data Retrieval Option
    • Send information to school to change ISIR & send to CPS
  • Federal Verification
    • 30% of applicants must supply documentation verifying FAFSA info
    • Give specific documentation to schools only if they request it
    • If selected, provide requested documentation ASAP!
special circumstances
Special Circumstances
  • Contact each financial aid office about unusual/ extreme circumstances such as: (not exhaustive list)
    • Change in employment status
    • Medical expenses not covered by insurance
    • Change in marital status or household size
    • Student inability to obtain parent information
  • School will request additional documentation to review on case-by-case basis
  • Different schools may interpret cases differently per their policies
  • School decisions are final and cannot be appealed to US Dept. of Education
the financial aid barrel

Gift Aid = $5,000 Grant

Unmet Need = $6,000

Work study = $2,000

Other loans: $2,000 Unsubsidized Stafford

Need-based loans = $3,500 Subsidized Stafford

$1,500 Perkins

EFC = $5,000

The Financial Aid “Barrel”

$25,000 - $5,000 = $20,000

COA - EFC = Need

Hypothetical example only!

PLUS Loan eligibility, Unsubsidized Stafford, or alternative loans may be used to “fill” unmet need and EFC

the award notification
The Award Notification
  • School, College, or University prepares an award package and then notifies the student
    • May be sent by email, letter, or made available via a online system
    • Continue to check email or online systems in case aid office requests additional information
  • Student responds to the award notification
    • Meet all deadlines!
    • Keep copies for your records!
tips making decisions @ aid
Tips: Making Decisions @ Aid
  • Never decline aid you don’t understand!
    • Ask questions!
  • Borrow Federal loans before private ones, as these offer fixed interest rates and guaranteed benefits:
    • Perkins
    • Subsidized Direct Stafford
    • Unsubsidized Direct Stafford
    • Direct Parent PLUS
tips making decisions @ aid continued
Tips: Making Decisions @ Aid (continued)
  • If applicable, shop around for lenders (private loan programs)
    • Origination, Default Fees may vary by lender
    • Private loan interest rates (dependent on credit, can vary significantly)
    • Repayment terms/ benefits (e.g., auto-withdrawal for reduced interest?)
    • Customer Service/ Reputation (e.g., selling loans)
    • Ask if school has “suggested” lender list and review their selection criteria
tips making decisions @ aid continued1
Tips: Making Decisions @ Aid (continued)
  • Consider the long-term costs of borrowing
    • Will student be borrowing the same amount for 4+ years?
    • Will student/parent pay the interest while in school? (best)
    • Will interest not be paid while in school? (interest accrues on interest, increasing total cost)
    • www.finaid.org – Great Resource!
      • See calculator section to see total cost of borrowing over various terms, including monthly payment estimates and amount of interest paid
where do i go from here
Where Do I Go From Here?
  • Obtain aid application requirements from each school
    • Forms
    • Deadlines
  • Research private scholarships
    • Applications
    • Deadlines
  • Apply for PIN for FAFSA
  • Assemble financial information
    • FAFSA Worksheet
resources
Resources
  • Federal Student Aid
    • http://studentaid.ed.gov (US Dept of Education) – links to FAFSA sites
      • 1-800-4-FED-AID (1-800-433-3243)
      • TTY: 1-800-730-8913
    • FAFSA4caster online tool (early estimate – not EFC guarantee: www.fafsa4caster.ed.gov)
  • www.pin.ed.gov - to get PIN
  • www.fafsa.ed.gov – to fill out FAFSA
    • See Help>Getting Started>“Before You Apply”
      • Filling Out a FAFSA FAQs
resources1
Resources
  • More from Federal Student Aid:

www. studentaid.ed.gov/pubs

      • Funding Education Beyond High School: The Guide to Federal Student Aid
      • Your Federal Student Loans: Learn the Basics…
      • EFC formula
  • College Goal Sunday: www.collegegoalsundayct.org
      • January 29, 2012
      • Locations across the state
      • Get 1-1 assistance in filling out the FAFSA
resources continued
Resources(continued)
  • FinAid!(independent and objective financial aid information)
    • http://www.finaid.org
  • Mapping Your Future (tips on applying for aid, saving for college, budgeting, etc)
    • http://www.mappingyourfuture.org
  • School/ College Financial Aid Office websites
    • Check each school’s website for information!