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Financing a College Education: What is Available and How to Apply

Financing a College Education: What is Available and How to Apply. Topics We Will Cover. Types of financial aid and their sources Eligibility for need-based financial aid Cost and “Expected Family Contribution” (EFC) Free Application for Federal Student Aid (FAFSA)

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Financing a College Education: What is Available and How to Apply

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  1. Financing a College Education:What is Available and How to Apply

  2. Topics We Will Cover • Types of financial aid and their sources • Eligibility for need-based financial aid • Cost and “Expected Family Contribution” (EFC) • Free Application for Federal Student Aid (FAFSA) • “myths” about tax return requirements • Special Circumstances - what to report & how • Scholarships • Other Resources

  3. Types and Sources • Scholarships • most are merit-based • sources: college, state, private, federal • more details later • Grants • most are need-based • do not have to be paid back • sources: federal, state, college, private

  4. Types and Sources (cont’d) • Work-Study • part-time job, usually on campus • can be need-based or non-need-based • sources: federal, college • flexible hours and schedule • connection to campus • better grades • sense of responsibility

  5. Types and Sources (cont’d) • Need-based federal loans for students • Subsidized Federal Stafford Loan • $3500/Fr $4500/So $5500/Jr $5500/Sr • current interest rate, fixed: 3.86% • interest is not charged until graduation • repayment begins after six month grace period • Federal Perkins Loan • up to $5000/yr, varies by college • constant interest rate, fixed: 5% • interest is not charged while enrolled • repayment begins after nine month grace period

  6. Types and Sources (cont’d) • Non-need-based federal loans for students • Unsubsidized Federal Stafford Loan • $2000/yr (dependent); $4000-5000/yr (indep) • notneed-based • current rate, fixed: 3.86% • interest is charged while enrolled • can defer interest costs while in school • repayment begins six months after graduation

  7. Other Loan Options • Both can be used to cover all remaining costs • Federal PLUS Loan (for parents) • current interest rate, fixed: 6.41% + fee • repay after it is fully disbursed; can be deferred while enrolled • source: federal government • Alternative Loans (for students) • rates may be variableorfixed, and are based on credit history • repayment varies, usually after graduation • source: private lenders

  8. Eligibility for Need-Based Aid • The student and his/her custodial parents are expected to pay what they are able. • A non-custodial parent does not report financial information on the FAFSA. Some colleges require this on a separate application. • The Free Application for Federal Student Aid (FAFSA)will determine the “expected family contribution” (EFC). An index, not a literal figure.

  9. Eligibility for Need-Based Aid • Online applicationwww.fafsa.gov • An annual FAFSA, after January 1 • Must be a U.S. citizen or permanent resident • Illinois deadline for MAP Grant = TBA (February??) • College/University deadlines vary – ask / check Web site • Estimate now and update later. If 2013tax return is completed first (ideal) use the IRS Tool! • Apply for a PIN (student & parent) www.pin.ed.gov • Other applications might be required

  10. FAFSA4caster.ed.gov

  11. Net Price Calculators Intended to provide an idea of eligibility for need-based aid Some schools report scholarship eligibility as well Not an application for financial aid Not an official “award letter”

  12. Determining “Financial Need” If the amount you are able to pay is less than the full cost, you have “financial need” and can receive need-based financial aid. Cost of Attendance - Expected Family Contribution (“EFC”) = Financial Need

  13. When the cost is different, your need will be different… and so will your eligibility for aid! Differences in Cost & Need

  14. Differences in Financial Aid Lake Forest U of IL C. of DuPage Financial Need $45,000 $25,000 $7,000 College Grant 24,800 3,300 0 State Grant 4,700 4,700 1,300 Federal Grant 1,600 700 700 Student Loan 5,500 5,500 5,500 Work-Study 2,500 3,000 0 Total Aid $39,100$17,200 $7,500

  15. FAFSA Home Page

  16. Applying for a PIN … • Student need one - - Parent needs one • Can apply today !

  17. FAFSA Help Online

  18. If Tax Return is not Ready…

  19. If Tax Return Is Ready… • IRS Data Retrieval Tool (DRT), built into the FAFSA • safe & secure process • reduces errors and probability of “audit” (verification) • available early February • 2 wksafter E-filing • 8 wksafter sending by mail • IRS authenticates your identity first • immediate transfer of key answers • Can provide estimated values the first time, and update with actual values and DRT later

  20. IRS Data Retrieval Tool…

  21. More FAFSA Help • You do not have to pay! • Financial Aid Offices • FAFSA Completion Nights • Go to www.isac.org • Type “outreach activities calendar” in Search box • Scroll through the list to find events near you

  22. FAFSA.com is notthe same

  23. Special Circumstances Examples of items not on the FAFSA: • income change (work, child support, etc) • large healthcare costs • educational costs • support of extended family Consideration will vary from school to school • check with financial aid office/Web for “how to” • provide numbers + explanation + daytime phone

  24. Scholarships • Each provider determines the criteria • Ability is a significant factor in selection • Needmay play a part in the decision • Scholarships are applied toward a student’s need

  25. Types Academic Athletic Community Service Departmental Fine Arts Leadership Sources Colleges & Universities Corporations Employers State of Illinois Scholarships

  26. Scholarships • Identifying Sources • free online “searches” • be cautious if a fee is charged • free seminars may be “hooks” to pay for something • Individual application processes • Be aware of deadlines!

  27. Scholarship Resources • www.apiasf.org (Asian & Pacific Islanders …) • www.collegeboard.com • www.fastweb.com • www.gmsp.org (Gates Millenium Scholars …) • www.hsf.net (Hispanic Scholarship Foundation) • www.needalift.org (military) • www.scholarships.com • www.uncf.org • many more

  28. Other Resources: Just Ask! • College Financial Aid Offices • College and Career Resource Center • U.S. Dept of Educationwww.studentaid.gov • Parents’ Employers • State of Illinoiswww.collegeillinois.org • Public Libraries • Other loan programs and payment plans.

  29. www.studentaid.gov

  30. www.collegeillinois.org

  31. Time for Questions… If you have general questions later : Mark Anderson Associate Director of Financial Aid Lake Forest College anderson@lakeforest.edu • Please begin the subject line with ‘Lake Park HS’

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