slide1 l.
Skip this Video
Loading SlideShow in 5 Seconds..
Financial Aid Workshop Presented by Lake Superior State University PowerPoint Presentation
Download Presentation
Financial Aid Workshop Presented by Lake Superior State University

Loading in 2 Seconds...

play fullscreen
1 / 56

Financial Aid Workshop Presented by Lake Superior State University - PowerPoint PPT Presentation

  • Uploaded on

2010-11 . Financial Aid Workshop Presented by Lake Superior State University. 1. 1. What you will learn tonight:. What is financial aid? Where does the money come from? What is need-based aid? What happens after you file? TIPS for getting the most aid!

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

Financial Aid Workshop Presented by Lake Superior State University

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript


Financial Aid Workshop

Presented by

Lake Superior State University



what you will learn tonight
What you will learn tonight:
  • What is financial aid?
  • Where does the money come from?
  • What is need-based aid?
  • What happens after you file?
  • TIPS for getting the most aid!
  • Time for your questions & answers


what is financial aid
What is Financial Aid?
  • Scholarships
  • Grants
  • Loans
  • Employment opportunities
  • Any funds for college


basic categories of aid
Basic Categories of Aid

Grants & scholarships - Can be merit, talent or need-based. Never have to be repaid!

Gift Aid

Self-Help Aid

Student & Parent Loans -Loans must be repaid eventually!Campus Employment



Sources of Scholarships & Grants

  • Federal
  • Federal Pell Grant
  • Federal Supplemental Opportunity Grant
  • Academic Competitiveness Grant
  • National Smart Grant & new Teach Grant/Loan
  • State
    • Michigan Competitive Scholarship
    • Michigan Tuition Incentive Program (TIP)
    • Institutional
    • Academic Awards
    • Athletic Grants & Need-based Grants
  • Private
    • High school, community, other agencies


federal need based aid
Federal Need-Based Aid

Federal Pell Grant Program

  • Qualifying undergraduates receive from $400 to $5,350 per year (2009-10 limits)
  • Must file the FAFSA each year

You are automatically reviewed for Pell Grant eligibility first!



Federal Need-Based Aid:Academic Competitiveness Grant (ACG)

  • For Pell eligible US Citizens
  • Freshmen get $750; sophomores $1,300
  • A 3.0 GPA required beyond freshman level
  • ACG is for freshmen and sophomores who completed a rigorous HS curriculum


rigorous program in high school
Rigorous Program in High School?
  • Must meet one of 5 categories of rigorous curricula, such as State Scholars Initiative
      • 4 Years of English
      • 3 Years of Math
      • 3 Years of Science
      • 3 Years of Social Studies
      • 1 Year of Foreign Language

Students self-identify on the FAFSA!


state need based grant michigan competitive scholarship
State Need-Based Grant:Michigan Competitive Scholarship

Both merit-based and need-based:

  • Qualifying ACT Score (23 or higher)
  • Financial Need - per FAFSA
  • ACT by December of H.S. senior year
  • File FAFSA by March 1st
  • Up to $1300 per year for up to 5 years!


state grants tuition incentive program tip
State Grants: Tuition Incentive Program (TIP)


To Qualify:

  • Student must have had Medicaid coverage for 24 months within a 3 year period
  • Be a Michigan resident
  • High school grad or earn GED by age 20
  • Apply with the State TIP Office by Aug 31 of year of high school graduation



State Grants:Tuition Incentive Program (TIP)

  • Phase I
  • Pays full tuition and fees for associate degree or up to 80 credits
  • LSSU offers several associate programs!
  • Phase II
  • Pays $1,000 per year for next two years
  • while student completes BA/BS degree



Other Types of Aid:

  • Institutional Funds
  • - Scholarships & Grants
  • Talent-based Aid
  • - Athletic award or Music award
  • Native American Tuition Waiver
  • - Certification from Inter-Tribal Council
  • Michigan Works or Voc .Rehabilitation
  • - Full tuition, fees & books possible



Federal Student Loans:

Federal Perkins Loan

  • Priority to those with exceptional need
  • Loan is currently interest free while in school
  • Maximum loan $4,000 per year
  • - 5% fixed interest rate
  • - Student begins repayment nine months after leaving school
    • Deferment, cancellation, and forgiveness provisions available


federal student loans
Federal Student Loans:

Federal Direct (Stafford) Loan

  • Subsidized – interest-free while in school
  • and/or
  • Unsubsidized – interest charged after disbursed
  • Maximum annual loan limits:
  • $ 5,500 year for freshmen
  • $ 6,500 year for sophomores
  • $ 7,500 year for juniors/seniors
  • Fixed interest rate – (2009-10 interest rate 6.8%)
  • Student begins repayment 6 months after leaving
  • school or attending less than half time



Federal Parent PLUS Loan:

  • Maximum loan varies
  • (must fit within cost of attendance budget of the student)
  • One parent must pass credit check
  • Repayment can be deferred until 6 months after student graduates
  • If parent fails credit check, some loan eligibility reverts to the student
  • Fixed interest rate - new loan rates annually
  • 2009-10 interest rate 7.9%


alternative loans
Alternative Loans
  • Maximum loan varies

- Must fit within cost of attendance budget

  • Students generally need a co-signer
  • Has interest charged once disbursed

- May be deferred while in school

  • Through outside lender

– No cap on interest rate or loan fees unless stated

  • Must apply and pass credit check and debt/income ratio or minimum credit score



Student Employment

  • Federal Work Study
    • Employment during school
    • Non-profit jobs only (on or off campus)
    • Student receives a paycheck
    • only for hours worked
    • Michigan Minimum Wage
    • ($7.40 or higher)
    • Students can participate in America Reads Program – reading to elementary age children


do you qualify for need based aid
Do You Qualify for Need-Based Aid?
  • File the free application for aid (FAFSA)?
  • Know your Expected Family Contribution (EFC) – find out if you are Pell-eligible
  • What is your Cost of Attendance (COA)?
  • Do you have Special Circumstances?


first step file the fafsa by march 1st
First Step: File the FAFSA by March 1st
  • File early – estimate income if necessary
  • Report information from only one household
  • If estimating income, make corrections early
  • List all of the schools you are considering
  • Send additional information directly to the schools if it is requested

30% of all FAFSA filers are “verified”



The FAFSA is filed once per year for each student

attending school who wants to receive federal financial aid



be prepared to supply information
Be prepared to supply information

Parents & Students:

  • E-mail address (optional)
  • Social Security Numbers
  • NAMES as shown on SS cards
  • Dates of birth


be prepared to supply information23
Be prepared to supply information

Parents & Students:

  • Adjusted Gross Income from Fed. Taxes
  • Earnings from Work
  • Amount of Taxes PAID
  • Number in family, number in college


be prepared to supply information24
Be prepared to supply information


Child support received

Payments to a tax-deferred pension (W-2)

IRA deductions & payments to qualified plans (SEP, SIMPLE, Keogh)


be prepared to supply information25
Be prepared to supply information


Cash on hand – as of the day you file the FAFSA

Investments (trust funds, money market & mutual funds, CDs, stocks, bonds, 529 college savings plans, refund value of prepaid tuition plans, land contract sales)

Report NET WORTH (value minus debt) of property other than primary home, family farm or business that has 100+ employees


free application for federal student aid fafsa
Free Application for Federal Student Aid (FAFSA)

No fees – it’s FREE!

Available beginning January 1, 2010

File by MARCH 1st for

Priority Aid in Michigan


completing fafsa on the web
Completing FAFSA on the Web
  • More than 95% of FAFSAs are now filed online.
  • Parents with more than 1 college student can transfer data from original application to others.


answer questions carefully
Answer questions carefully!
  • Who is the Parent?(for Dependent Students)
  • Parents’ marital status
  • Date of parents’ marital status

Sounds simple,

but what happens



if the parents have divorced or separated
If the Parents Have Divorced or Separated
  • Answer the questions about the parent the student lived with most in the last 12 months. If the student did not live with one parent more than with the other, answer about the parent who provided the most financial support during the last 12 months or during the most recent year that the student was supported by a parent. If this parent has remarried as of today, answer the questions about both that parent and the person to whom the parent is married.
  • If the parent is widowed or divorced and has remarried, answer the questions about both that parent and his or her current spouse. The marital status of the student's parents in this case is "married/remarried."



Your Eligibility for Need-Based Aid

  • is based upon an analysis of your information supplied on the FAFSA that is expressed by a number called an EFC (Expected Family Contribution)



What is the EFC ?

  • Your “Expected Family Contribution” (EFC) is the amount the federal formula calculated that your family should be able to contribute toward your education
  • This number will be subtracted from your Cost of Attendance to determine your eligibility for need-based aid


major efc components
Major EFC Components
  • Number of family household members
  • Income of parents
  • Income of student
  • Number in college (parents excluded initially)
  • Net assets of parents & student

There is no “magic” income number for aid - as information changes each year, so does the student’s EFC & eligibility for aid.



How your Eligibility for Need-Based Financial Aid is Determined

Cost of Attendance (COA)

– Expected Family Contribution (EFC)

= Financial Need



Cost of Attendance(Budget that varies from school to school)

  • Tuition and fees
  • Room and board
  • Books and supplies
  • Transportation
  • Miscellaneous personal expenses
  • Loan fees, study abroad costs, dependent or elder care expenses, expenses associated with a disability, or expenses for cooperative education program



Cost of Attendance(Example of costs for on-campus student & in-state tuition)

  • Tuition and fees $8,000
  • Room and board $8,000
  • Books & supplies $1,200
  • Transportation $ 500
  • Miscellaneous $1,300

Maximum Financial Aid (COA) $19,000



Basic Financial Aid Formula

Cost of Attendance (COA) $19,000 (includes $8,000 tuition)

- Expected Family Contribution for example $ 3,000

= Financial Need $16,000



Whether or not you have financial need, the very least you should qualify for is a low interest (6.8% in 2009-10)unsubsidizedFederal Student Loan


when parental information is not needed
When Parental Information is Not Needed:
  • If student was born before January 1, 1987
  • Enrolled in a graduate program
  • Is married
  • Has child(ren)/dependents for whom he/she provides more than half support
  • Veteran of the U.S. Armed Forces or currently serving on Active duty in the U.S. Armed Forces for purposes other than training
  • Is an emancipated minor or in legal guardianship (determined by the court)


when parental information is not needed39
When Parental Information is Not Needed:
  • At age 13 or later:

- both parents (biol. or adoptive) were deceased

- was in foster care

- was a ward of the court

EVEN if no longer in foster care or a ward of the court, or if currently adopted

  • From July 1, 2009 to now, are an unaccompanied, homeless youth or at risk of being homeless
    • Most high school students will not be independent but, in extraordinary circumstances, the college aid administrator can override dependency.


if parent refuses to file the fafsa
If parent refuses to file the FAFSA…
  • Question states “I am UNABLE to provide parental information”
  • Parent must sign a statement indicating that they will not provide ANY support of ANY NATURE, to the student
  • Aid will be limited to $5,500 in unsubsidized loan – no eligibility for grants!
  • Very limited - not good for student


some important fafsa questions that could affect your aid
Some Important FAFSA Questions that Could Affect Your Aid:
  • Did anyone in the household receive benefits from any of these federal programs?

(Supplemental Security Income, Food Stamps, Free or Reduced Price Lunch, TANF or WIC)

  • If parents filed or will file a 1040, were they eligible to file a 1040A or 1040EZ?
  • If one of the parents is a dislocated worker.


who is a dislocated worker
Who is a Dislocated Worker?
  • Has lost their job
  • Has been laid off or received a lay-off notice
  • Receiving unemployment due to lay-off and are unlikely to return to a previous occupation
  • Are self-employed but unemployed due to economic conditions
  • Are a displaced homemaker
  • NOT Seasonal Employees


information not asked for on the fafsa you should ask the school directly
Information not asked for on the FAFSA – you should ask the school directly:

If your family has extra expenses -

  • Younger sibling(s) in private school
  • Parent(s) in college (Other siblings in college are reported on the FAFSA)
  • High medical expenses paid out of pocket without reimbursement


special circumstances
Special Circumstances
  • Cannot be reported on the FAFSA
  • Send explanation to financial aid office at each college
  • College will review your special circumstances & adjust FAFSA info.
    • Request additional documentation
    • Decisions are final and cannot be appealed to U.S. Department of Education


don t forget to sign the fafsa
Don’t forget to sign the FAFSA!
  • Sign up for PIN to file both electronically!
  • Not required, but speeds up processing
  • PIN signature is used throughout aid process
  • Parent(s) need PIN also - uses same PIN for all siblings



If You Make a Mistake or Have to File Estimated Information:

Corrections on the Web

  • Student’s PIN required to access
  • Parents must have PIN to correct parent information (student can’t do it!)
  • Use this to correct “estimated” info that you reported before your taxes were complete!



What Happens Once the FAFSA is Processed?

  • You will be able to check your information on-line and make corrections/updates.
  • You’ll know your Expected Family Contribution for federal eligibility.
  • Schools listed on FAFSA will receive information from the processor electronically.
  • If you have admitted to the school,

you will receive an award letter shortly.





Review your Award Letters

Provides Important Information

  • Types and amounts of aid offered
  • Specific program information
  • Student responsibilities
  • Conditions governing awards
  • Opportunity to accept or decline awards


sample award letter





SAMPLE Award Letter

COA Budget $ 19,000

Less EFC - 3,000

Financial Need $ 16,000

Federal Pell Grant $ 2,400

LSSU Grant 500

LSSU Scholarship 2,000

Perkins Loan 2,000

Federal Work Study 2,000

Federal Sub. Loan 3,500

Total Need-Based Aid $ 12,400







Figuring Out the Best Deal

Develop an Award Comparison Chart

  • Consider direct, non-direct and total costs at each institution
  • Review types, amounts and renewability of gift aid (free money)
  • Compare types and amounts of self-help aid (work-study and/or loans)
  • Determine any amount you’ll need to pay in addition to awards being offered



Financial Aid Timeline

  • Apply for Aid (January-February 2010)
  • Comply with Information Requests and make corrections on the web (Feb-May)
  • Receive Award Letter (February-May)
  • Accept aid & apply for loans (summer)
  • Financial Aid disburses when school starts
  • Re-apply for aid (January-February 2011)



How to Maximize Your Aid:

  • Apply for admission before school deadlines (At LSSU: March 1, 2010 for 2010-11 students)
  • Find out about any institutional applications that may be required at each school. (Private schools & UofM require the College Board Profile to award their need-based aid)
  • File your Free Application for Federal Student Aid (FAFSA) by March 1st
  • Apply for outside scholarships!


look now for other scholarships
Look NOW for other SCHOLARSHIPS!

BEWARE OF SCAMS! Don’t pay for help!

Most SCHOLARSHIP SEARCHES ARE FREE! - good scholarship search site

- links to Michigan aid such as Competitive, MET and TIP


check out schools and compare
Check Out Schools and Compare



Want help filing on-line?

College Goal Sunday

Feb. 14, 2010



Any questions?

Contact the Financial Aid Office at 906-635-2678