Presentation Transcript

1. Financial Aid Seniors 2014
2. General Information regarding Financial Aid for the 2014-15 School Year
3. Typically students pay for their post high school education through savings they have, working their way through school, earning scholarships (for good grades, test scores, activities), having parents help them and by applying for grants & loans. Most students have to use a combination of methods to be able to pay for their schooling at the next level. Up to this point in time, you as students have been told about the great benefits for those who go on to school and earn a degree. We know from statistics that on the average, the more education a student has, the better the chance of finding a job and the higher the earning power they will have in their career. One discussion item that has to be part of the conversation with students and parents regarding plans after high school now is the cost of earning a degree and what is feasible and what is not. Our goal is to help get you information to use in making this decision. If all goes well for each of you, by March, April or May you will be able to set down with your folks and lay out the offers you have from the schools you are interested in attending and this will help you in making your final decision of where you will go or if the decision is do I go to work or go to school. The following pages have the highlights of the Financial Aid process for you and your folks to look over. Financial Aid is simply another option for you to consider using. Involvement with the Federal Government & Financial Aid is a student and parent choice. Please visit with the folks as to whether or not you will file a FAFSA. How Will you pay for College & Vo-Tech?
4. What is financial aid? Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses. It may come from the Government, the State or the school you attend. One of the beliefs our country was founded upon was that everyone should have an opportunity to continue their education to the level they want and those who could not afford it could have some financial help available. Financial Aid comes in the form of scholarships, grants, loans and work study programs or employment.
5. More Resources to help understand Financial Aid -MORE INFORMATION is available … -FREE printable FACT SHEETS are available online www.studentaid.ed.gov/pubs -Some common myths that prevent students from applying for financial aid but shouldn’t are: -My parents make too much money! -Only students with good grades get financial aid! -The form is too hard to fill out! -You have to apply in order to find out what you qualify for. Until you apply you really don’t know.
6. Resources (cont.) FACT SHEETS that are available at www.studentaid.ed.gov/pubs -What’s so important about doing the FAFSA and why should I complete it online? -Many schools, Programs or Scholarships either require it or strongly recommend completing it. Filling out the FAFSA form is quick, easy, accurate, and safe—get a PIN # for the signature --makes it very quick instead of mailing it in. -Make sure you use www.FAFSA.gov Other websites with financial aid help may charge you. Those are not the Free Federal ones you want to use. College Goal Sunday: February 23rd, 2014 www.CollegeGoal.org is the website for more information on this help date. Our closest site is at Hutchinson Community College. You can get help on the FAFSA and drawings are held for several $500 scholarships. Just by attending you are entered into the drawing.
7. - I certainly can help on some questions but not all. Most parents will share with me how easy it is to fill out the FAFSA once their taxes are complete. It becomes as simple for them as having the tax document in front of you and checking the correct line of the tax form and input of the data to the FAFSA form. It has become so much easier too since the government has an option to check a box to automatically upload your tax return information for you. It becomes real difficult to make a mistake then on the dollar amounts. - I typically tell all students my best resource and one of their best resources for students and parents is the financial aid office and the financial aid administrator at the institution the student is seeking admittance and an award letter from. They have always been of great help to me and our students/parents in the past when questions have came up. Don’t hesitate to use them. - I have also had some parents share with me that they have received help from whoever they have do their taxes. - Typically, once a parent and student have been through the process this year they have it figured out for all the years of their education and any other members of the family too. Other resources
8. Types of financial Aid Scholarships Student Commitment of time & effort for scholarship money. Academic or Activities. Grants Need based money students do not pay back. Loans Money borrowed now with the goal of attaining a degree & job to be able to pay back at a later date. Investing for your future. The key here is to not go so far in debt that when you get the job you seek you can afford to live and pay bills. Sometimes college loans and repayment can get out of control. Employment Work either on campus/off campus to supplement a students income.
9. Why does every school I’m looking at talk about Financial Aid and why should I consider completing the FAFSA? -Schools know that any source of financial help for students is a great benefit to them not only for their future but for their pocketbook. Applying for all available funds you can is always the best advice that schools will give you. -Financial Need is determined by using the FAFSA data (FAFSA stands for the Free Application for Federal Student Aid) you submit to the government who in turn sends the your information to the school(s) you are looking at. -Many scholarships and grants require financial need and the FAFSA to be filled out. If you don’t fill out the forms you are left out of the running for aid and future opportunities. -In some cases a student will not know what financial help is available unless they fill out the FAFSA. -If you are offered any Financial Aid it is your choice whether or not you take it. It is not mandatory to accept the offers be it loans, grants or scholarships. -Filling out the FAFSA is not mandatory either, but recommended. This is why so many of the recruiters you talk to tell you to make sure you fill it out. It is a student/parent decision. Please talk to your folks about it!
10. FAFSA Eligibility -Be a US citizen or an eligible non-citizen -Have valid SSN -Males must register with Selective Service at 18 years old -Maintain satisfactory academic progress in postsecondary institution (SAP) (good grades as defined by the institution) -Show the student qualified for postsecondary education -HS diploma, GED or home-school setting approved by state law (this is why you can’t get financial aid for your college classes this year) -Passed Ability to Benefit Test (ABT) -Enroll in a minimum of six hours towards degree or certificate (not remedial work)
11. Some terms you must know: Cost of Attendance (COA) -Every school creates their own COA(it may be different for each school so this is why you have to research what costs are) -Direct Costs (paid directly to the school) Tuition and fees Books and supplies Room and Board (if living on campus) -Indirect Costs (necessary for school but not paid to the school) Dependent Care Transportation Purchase of a computer Misc Expenses Room and Board (if living with parents or off campus)
12. Expected Family Contribution (EFC) -Amount of money a family can reasonably be expected to contribute based on their income. -Stays the same regardless of school -Two components -parent contribution -student contribution -Calculated using an approved federal formula from submitted FAFSA data
13. Financial Need Cost of Attendance (COA) Expected Family Contribution (EFC) _____________________ = Financial Need *When you apply at a post secondary school, you fill out an admission application, scholarship application & the FAFSA. The Institution then sends you a Financial Aid Package which lists your awards & costs.
14. More Terms to know: Types of Federal Financial Aid -Federal Pell Grant- Most common grant given. -SEOG(Supplemental Educational Opportunity Grant) -TEACH Grant (Teacher Education Assistance Grant) -Federal Work-Study -Federal Direct Stafford Loans (Subsidized/Unsubsidized) -PLUS Loans (Parent Loans for Undergraduate Students)
15. Make sure you understand the difference between Grants, Scholarships (Gift Aid) & Loans Scholarships -Funds typically don’t require repayment -Awarded on merit, skill and even financial need -Finding scholarships takes extra effort-FASTWEB, writing essays, etc.. Grants -Funds typically don’t require repayment -Generally awarded on the basis of financial need -Awarded on basis of “first come – first serve” on FAFSA.
16. Federal Aid Grants -PELL GRANT – think free funding FAFSA determines student eligibility Credit hours enrolled determine grant amount Maximum was $5500 per year 1st year -SEOG – Pell eligibility is a consideration for this grant—more money for need based help. -TEACH GRANT – Requires student commitment to teach 1 year for every year of scholarship money given. Read all information carefully about this one as teaching is a requirement in a high-needs subject area or a designated school district. Failure to complete this and you must pay back all scholarship money & 12% interest on it.
17. Loans are Financial Aid -Money students and parents borrow to help pay school expenses. -Stafford Loans – no credit check for students, $3500 max award 1st year. Increases each year after. -Students – repayment immediately after graduation or termination of the educational program. This is new – it use to be a 6 month grace period. -Parents – repayment typically begins once funds are disbursed, in Sept. or Oct. of the school year.
18. Types of Federal Loans -All federal education loans begin repayment when student graduates, leaves schools or drops to less than half-time enrollment. Full time enrollment is 12 college credit hours. -This is the 2ndyear I’ve been to financial aid meetings where the presenter said “private loans might be better interest rates than what the Feds can offer” -Stafford Direct Loans -Subsidized–no interest charged while in school -Unsubsidized–borrower responsible for interest -Fixed at 3.86% interest -Parent PLUS Loan -Credit check is required -Repayment can start 60 days after disbursement -Borrower is responsible for repayment -Private Loans – be mindful of terms and repayment requirements
19. Federal Direct Stafford Loan Limits (dependent students)
20. Federal Work-Study is also considered Financial Aid -Student responsible to seek and obtain a job -Generally on campus, doesn’t have to be. -Minimum wage or more -Flexible work schedule -See school for their employment practices
21. Employment Federal Work-Study, State Work-Study, Institutional Jobs -Allows student to earn money to help with educational costs. Will be minimum wage or higher. -Generally jobs are on campus -Earn a paycheck -Non-monetary compensation such as room and board
22. Dependent vs Independent Who is an Independent student? Someone who any one of the following hold true for. -Born before January 1, 1990 -Married -In a graduate degree program -Active duty U.S. Military -Veteran of the U.S. Armed Forces -Children or dependents that receive more than half their support from you -In foster care, orphan or ward of court since age 13 -An emancipated minor -In legal guardianship -Determined homeless (by homeless liaison or director of an eligible shelter) Dependent student – can’t answer yes to any of the questions ***Dependency Override – school policies vary***
23. Other Sources of Financial Aid -State Scholarships -Schools -Funds offered by the school -Private Sources -Civic organizations -Religious affiliation -Employers
24. Satisfactory academic progress changes (SAP) To Maintain Financial Aid -Required policies -Measures student progress -GPA (qualitative) -Pace (hours attempted and earned) -Maximum hours -Important SAP words -Warning, Suspension, Appeal Probation, Academic Plans
25. verification -If your FAFSA is selected for verification… Now what? -Student/parents will need to provide an IRS Tax Transcript -This is the only acceptable IRS form -Encourage all students to use the IRS tax retrieval on the FAFSA- to have the IRS Tax retrieval available just check the box on the FAFSA form.
26. Completing the FAFSA Get a pin # on the www.FAFSA.gov website now for both student & parent. (Dec.) Get your taxes completed or use an estimate if they will not be finished til later. (Feb. or March) Transfer information from the Tax forms to the FAFSA. (Every question lists for you what line to transfer the information from off of the Income Tax Return form) Fill out the FAFSA on-line, not the paper form. (www.fafsa.gov) List the schools/institutions you want to receive the information from FAFSA & submit data. Watch your e-mails for a response from the Federal Government that they have received your information. This report is called a SAR (Student Aid Report). Scan it for accuracy. Wait for the award letters and financial aid packages from the schools/institutions you have applied at. Make your comparisons of costs and make your final decision. (April/May/June) Steps in filling out the FAFSA
27. Comments for you to consider Numbers and statistics seem to tell the story about student finances. Did you know ….. University administrators state that they lose more students to dropping out due to credit card debt than to actually failing out academically. -45% of college students are in credit card debt and the average debt is more than $3000. -national student loan debt now exceeds national credit card debt? -all schools who offer certificate programs are required to share critical information about gainful employment (GE), what the chances are you will find a job with the degree you are getting, the cost of the degree, the average wages, etc…?
28. Focus for 2014-15 Students -Net Price calculators -Required of all schools- this is a listing of all costs so that when a student gets on campus there are no surprise charges showing up. -IRS Tax Transcript box on the FAFSA.
29. Kansas Board of Regents Scholarships
30. KBOR Undergraduate Program Kansas Comprehensive Grant (FY 99) -Available to public & private 4-yr schools -Need-based; full-time enrollment required -Only FAFSA application required for consideration no state application required -$16.1 million awarded to 9,412 students in FY 13 -$3,500 max./$200 min. – Private Institutions -$1,500 max./$100 min. – Public Institutions
31. KBOR Undergraduate Program Kansas State Scholarship (FY 64) -Available to public, private 4 yr institutions & community colleges -Need & merit-based; full-time enrollment required -Kansas Scholars Curriculum (KSC) Completion required -Must file FAFSA and state application -$99,601 awarded to 1,112 students in FY13 -$1,000 maximum award
32. KBOR Undergraduate Program Kansas Ethnic Minority Scholarship (FY 90) -Available to public, private 4 yr institutions & community colleges -Need & merit-based; full-time enrollment required -Must file FAFSA & state application -$347,230 awarded to 196 students in FY 13 -$1,850 maximum award
33. KBOR Undergraduate Program Vocational-Technical Scholarship (FY 88) -Available to technical schools & colleges, community colleges and state universities w/technical programs -Need Based-high demand areas. -$118,500 awarded to 237 students in FY 13 -New Award amount $1000 maximum award
34. KBOR Undergraduate Program Kansas Career Work Study Program (FY 89) -Available to public 4 yr institutions -Need-based; FAFSA required; students may be enrolled either part-time or full-time; application process takes place at the institution -Students work in career-related occupations off-campus -$1 million awarded to 396 students in FY13 – award amounts vary
35. KBOR Undergraduate Program – Service required Kansas Teacher Service Scholarship (FY 91/Rev.Program FY 08) -Available at Kansas public, private 4 year schools & community colleges -Merit-based/competitive -State application required -Enrolled at least part-time or full-time -Enrolled in coursework leading to a bachelor’s or master’s degree in a hard-to-fill teaching discipline -Priority to upper class undergraduate students & current teachers
36. KBOR Undergraduate Program – Service required -Kansas Teacher Service Scholarship (FY 91/Rev.Program FY 08) cont -Must plan to work in hard-to-fill discipline or underserved geographic area of Kansas -Service obligation – 1 year of service for 1 year of scholarship -$5,482 maximum award for AY 2013-14 (award increased each year based on CPI). -Award amount prorated based on number of hours enrolled -$1.3 million awarded to 249 students in FY 13
37. KBOR Undergraduate Programs – Service required Kansas Nursing Service Scholarship (FY 90) -Available to public, private 4-yr institutions, community college & technical schools/colleges -Need-based -full-time enrollment required -Students must acquire a sponsor -State application required -Service obligation – 1 year of service for 1 year of scholarship -$383,750 spent serving 129 students in FY 13 -$3,500 for RN/$2,500 for LPN maximum awards
38. KBOR Programs Questions? Additional information and application materials for state-funded student financial assistance programs is available on line at the Kansas Board of Regents website: www.kansasregents.org Contact: Diane Lindeman Director of Student Financial Assistance 785-296-4749 dlindeman@ksbor.org
39. For your consideration ……Why Employers want employees who went to College or Voc. Ed programs.… Better written & oral communication skills Stronger leadership skills & chance to develop them Critical thinking & judgment practice Project Management & Organization Skills Global Understanding; perspective Research skills, willingness to learn & adapt, ability to learn independently Responsibility & deadline oriented (can be on time) Ability to innovate, create, read between the lines. Remember, no single major has the market cornered on transferrable skills, but an education gives young people the best opportunity to develop skills an employer wants, even if they have to teach specific skills for their job setting.