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Financial Aid - PowerPoint PPT Presentation


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Financial Aid. Funding for College. We all want a piece of the Money Tree !. What Are the Ways to Pay for Education After High School?. Ways to Pay for College. Saved Money Earned Money Borrowed Money Gift Money. Let’s take a look at each of these. PAYCHECK. Saved Money.

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financial aid

Financial Aid

Funding for College

we all want a piece of the money tree
We all want a piece of the Money Tree!

What Are the Ways to Pay for Education After High School?

ways to pay for college
Ways to Pay for College

Saved Money

Earned Money

Borrowed Money

Gift Money

Let’s take a look at each of these.

PAYCHECK

saved money
Saved Money

Money that you’ve saved over time

PROS:

  • You don’t have to pay back this money

CONS:

  • It takes a long time to save enough money to entirely pay for college
earned money
Earned Money

PAYCHECK

  • Types of Earned Money
    • Employment at a Job
    • Federal Work-Study during attendance at college
      • Paid by the college for the hours you work
      • Usually employed at a department in the college
      • Must say you’re interested in Work-Study when you complete the Free Application for Federal Student Aid (FAFSA)
slide6

Earned Money, continued

PAYCHECK

PROS:

CONS:

  • Earn a paycheck during the school year
  • Some Work-Study jobs may allow for time to study
  • Not a full-time job, so there is time for college life
  • Not a full-time job, so may not be sole source of financial assistance
  • Not everyone is eligible for Work-Study (may depend of financial need and time in which you complete the FAFSA)
borrowed money
Borrowed Money

Money that you will have to pay back (loans)

Types of loans:

  • Private loans
  • Federal Student Loans

Private Loans

  • Loans taken out through a bank or private lender

PROS:

  • Can help pay for school when you don’t have the money upfront

CONS:

  • Some private loans tend to have higher interest rates
  • You have to pay the money back (plus interest)!
slide8

Borrowed Money, continued

Federal Student Loans

  • You get these by completing the FAFSA (we’ll take a look at the FAFSA a little later)

PROS:

CONS:

  • Can help you pay for school if you do not have the money upfront
  • Some tend to have smaller interest rates than private loans
  • You have to pay the money back (plus interest)!
gift money
Gift Money

Money that is awarded or given to you that you don’t have to pay back

  • Scholarships
    • Usually based on merit or other requirements
    • Usually need to apply for them
  • Grants
    • Usually based on financial need
    • May be received through the FAFSA

PROS:

  • FREE money! You don’t have to pay it back!

CONS:

  • Not everyone gets gift money
  • Usually requires completing some from of application
free application for federal student aid fafsa
Free Application for Federal Student Aid (FAFSA)

What is it, Why should I complete it, and What will I get from it? (The process of the FAFSA)

what is the fafsa
What is the FAFSA?
  • The FAFSA is a way to apply for financial aid to pay for college
  • It is FREE to complete
  • www.fafsa.ed.gov is the official web site. Never use a FAFSA web site that charges money to complete it!
why should i complete the fafsa
Why should I complete the FAFSA?
  • Completing the FAFSA “opens the door” to receiving financial aid!
    • Federal Student Loans
    • Grants
    • Federal Work-Study
    • You are not “setting anything in stone” by completing the FAFSA
    • Some scholarships have the requirement of completing the FAFSA
what do i get from completing the fafsa
What do I get from completing the FAFSA?
  • Types of financial aid through the FAFSA:
    • Loans:
      • Direct Subsidized Loans: The government pays the interest for the loan while you’re attending college
        • For students with financial need
        • 3.4% fixed interest rate (this may change for the 2013-2014 year)
      • Direct Unsubsidized Loans: The interest accrues while you’re attending college and you’ll ultimately have to pay it when you repay your loan
        • No financial need is required to be eligible
        • 6.8% fixed interest rate (this may change for the 2013-2014 year)
      • Direct PLUS Loans: Available to graduate students and parents of undergraduate students
        • 7.9% fixed interest rate
        • Requires a credit check
      • Federal Perkins: Offered directly from the college for those with exceptional financial need
        • 5% interest rate
        • The college is the loan lender
        • Not every college participates in this loan

FAFSA

PAYCHECK

Loans

Work-Study

Grants

Source: studentaid.ed.gov

what do i get from completing the fafsa continued
What do I get from completing the FAFSA? (continued)
  • Grants: Awarded to students with financial need.
    • Federal Pell Grants
      • For undergraduate students
      • May receive up to $5,645/year
    • Federal Supplemental Educational Opportunity Grants (FSEOG)
      • For undergraduate students with exceptional financial need
      • May receive between $100-$400/year
      • Available on a first-come, first-served basis
      • Not every college participates in this grant
    • Teacher Education Assistance for College and Higher Education (TEACH) Grants
      • For students who plan to become a teacher in a high-need field in a low-income area
      • May receive up to $4,000/year
      • Must complete service obligations for this grant or it will be converted into a Direct Unsubsidized Loan for you to repay!
    • Iraq and Afghanistan Service Grants
      • For students whose parent/guardian died as a result of military service in Iraq or Afghanistan
      • May receive up to $5,550/year (amount may change in the 2013-2014 FAFSA)
      • Must meet additional eligibility criteria

Source: studentaid.ed.gov

what do i get from completing the fafsa continued1
What do I get from completing the FAFSA? (continued)

PAYCHECK

  • Federal Work-Study
    • Part-time employment while attending college
    • Available to part-time and full-time students with financial need
    • Not every college participates in Federal Work-Study
    • Check “yes” on the FAFSA when it asks if you’re interested in Federal Work-Study

Source: studentaid.ed.gov

how do i receive types of aid from the fafsa
How do I receive types of aid from the FAFSA?
  • The federal government uses a formula to calculate your financial need.
    • The Cost of Attendance (COA) is how much it will cost you to attend a college
    • The Expected Family Contribution (EFC) is an idexnumber calculated to figure out how much financial aid your are eligible to receive

The formula to calculate your financial need:

COA–EFC = Financial Need

Your financial need determines what types of aid you will be eligible to receive to help pay for college.

Source: studentaid.ed.gov

when should i complete the fafsa
When should I complete the FAFSA?
  • You may start completing a FAFSA as soon as January 1st
  • Some colleges have Financial Aid Deadlines or Priority Deadlines, so check with the institution
  • Some aid is awarded on a first-come, first-served basis, so sooner is better!
who completes the fafsa
Who completes the FAFSA?
  • Information is needed from the person who will be attending the college (the student)
  • Parent/guardian information may be required for students who are deemed to be “dependent”.
  • “Independent” students do not need to use parent/guardian information. They only use their own.
  • The next slide shows the dependent vs. independent status criteria.
who completes the fafsa continued
Who completes the FAFSA? continued
  • A student may use only his/her information to complete the FAFSA, or be deemed an “independent”, if any one or more of the below criteria are met:
  •  Born before Jan. 1, 1990
  •  Married (as well as separated but not
  • divorced)
  •  Working on a master’s/doctorate
  • degree during 2013-2014 school year
  •  Currently serving on active duty for the
  • U.S. armed forces for purposes other
  • than training
  •  Veteran of the U.S. armed forces
  •  Has children who will receive more than
  • ½ of their support from the student
  • between July 1, 2013 and June 30,
  • 2014
  •  Has dependents (other than children or spouse)
  • who lives with the student & receives more than
  • ½ of their support from the student, now &
  • through June 30, 2014
  •  At any time since the student turned 13, both
  • parents were deceased, the student was in foster
  • care, or was a dependent or ward of the court
  •  The court has determined the student to be an
  • emancipated minor or that the student is in a
  • legal guardianship
  •  Was determined to be homeless any time on or
  • after July 1, 2012
  •  Was determined by a director of a runaway or
  • homeless youth basic center or transitional living
  • program any time on or after July 1, 2012 to
  • be an unaccompanied youth who was homeless
  • or was self-supporting and at the risk of being
  • homeless

Source: studentaid.ed.gov

how do i complete the fafsa
How do I complete the FAFSA?
  • Complete it online at www.fafsa.ed.gov
  • Information you will need in order to complete the FAFSA (if you are a “dependent”, you will need both your information and your parent/guardian’s):
    • Social Security Number
    • Drivers License Number (if you have one)
    • 2013 Tax Returns
    • Records of untaxed income
      • Child support, interest income, veterans noneducation benefits, etc.
    • Cash, savings and checking account balances; investments (such as stocks, bonds and real estate but not the house in which you live); business & farm assets
how do i complete the fafsa continued
How do I complete the FAFSA? continued
  • You will use the information to complete the application, providing information about your finances and the colleges in which you are considering attending.
  • The last step to complete the FAFSA is to sign it electronically with a PIN.
    • The student must sign, and if a “dependent”, must have a parent/guardian sign as well.
    • Get a free PIN at www.pin.ed.gov.
i completed submitted the fafsa now what
I completed & submitted the FAFSA. Now what?
  • Check your email!
    • You will receive a confirmation email from FAFSA to acknowledge your submission
    • In 7-10 days, you’ll receive a Student Aid Report (SAR) in your email, which is a summary of information you submitted in the FAFSA. Check to make sure this information is correct!
  • Your SAR will be sent to the colleges you named to receive the information when you completed the FAFSA.
    • The colleges will look through your SAR and decide what financial aid they can each award you.
    • You MUST be applied and accepted to a college in order for them to look at your SAR and send out an Award Letter!
  • The colleges will each send you an Award Letter, which lays out what types of financial aid you are eligible to receive. This is where you get to see if you got loans, grants, and/or work-study.
  • Based on your Award Letter, you get to decide if you want to accept all, some or none of the financial aid listed. The choice is yours, but keep in mind that student loan amounts you accept will have to repaid somewhere down the road!
long story short
Long story, short…

Let’s do a quick recap!

a quick recap
A Quick Recap
  • Types of Financial Aid:
    • Saved Money (Money saved throughout time)
    • Earned Money (Through a job or Federal Work-Study)
    • Borrowed Money (Loans)
    • Gift Money (Scholarships and Grants)
  • The FAFSA (www.fafsa.ed.gov):
    • You complete the FAFSA in order to receive federal financial aid to pay for college
    • Types of Aid through the FAFSA:
      • Student Loans
      • Grants
      • Federal Work-Study
if you have questions
If you have questions…

ASK!

  • Talk to your school counselor
  • Talk to college financial aid departments
  • Visit helpful web sites:
    • www.studentaid.ed.gov
    • www.fafsa4caster.gov