Financial Aid 101 A Guide to Financial Aid and Scholarships

1. Financial Aid 101A Guide to Financial Aid and Scholarships Presented by Bonnie McCarty Assistant Director of Scholarships, MTSU

2. Sources Of Financial Aid • Federal Aid (such as loans, Work-Study, and need-based grants) • State Aid (such as scholarships and need-based grants) • Institutional Aid (such as academic scholarships and departmental scholarships) • Private Aid (such as employer tuition assistance and private scholarships)

3. Grants and Other Non-Loan Aid • Students may qualify for grants which do not have to be repaid, such as the Pell Grant, TSAC Grant, and SEOG Grant • Must have financial need according to the FAFSA • Must file early, as funds for some programs are limited • Academic Competitiveness Grant is available to Pell-eligible students who meet academic requirements • Students may be offered other financial aid, such as a work-study position

4. Types of Loans:Stafford Loan • Federal student loan which must be repaid • Award Amount: • Ranges from $5500 per year for a dependent freshman to $12,500 for an independent junior or senior • Graduate students may borrow up to $20,500 per year • Full amount can be received for part-time enrollment • Repayment: • Must be repaid beginning 6 months after your last date of enrollment • Generally, repayment occurs within 10 years

5. Types of Loans:Stafford Loan Why should I consider a Stafford Loan instead of a private loan? • Payments are deferred as long as you are enrolled at least half-time • May be interest-free while you are enrolled (if you qualify for a subsidized loan based on FAFSA results) • May have a lower interest rate and more benefits than a private loan • Does not require a credit check or a cosigner • Some or all of loan may be forgiven through teaching or nursing loan forgiveness programs

6. Types of Loans:Teach Grant (Loan Forgiveness Grant) • Available to education majors planning to teach in certain subjects • Student must teach at least 4 years in specific subjects and at specific types of schools, or must repay entire Teach Grant plus backdated interest! • We recommend that freshmen and sophomores carefully consider other options before accepting the Teach Grant, because of the potential repayment penalties.

7. If parents apply for a PLUS Loan but are denied, the student may be eligible to borrow additional Stafford Loan funds of $4000 or $5000 for the year. Types of Loans:PLUS Loan • Federal parent loan which must be repaid • Award Amount: • Up to difference between student’s other aid and student’s Cost of Attendance budget • A credit check is required and the lender may choose to offer less than the maximum amount • Repayment: • Must be repaid by parents beginning 60 days after the disbursement date • Some lenders offer a deferment on payments • Generally, repayment occurs within 10 years

8. Tennessee Education Lottery Scholarship Program • Must be a Tennessee resident by September 1 of senior year • Must be a US citizen or permanent resident • Must graduate from an eligible Tennessee high school • Home school, private school, and GED graduates can qualify with slightly different requirements • Must submit a FAFSA by September 1 of each year • Renewal requirements include GPA and enrollment requirements

9. Tennessee Education Lottery Scholarship Program • HOPE • $4000 per year for 2008-2009 • 21 ACT or 3.0 GPA • General Assembly Merit • $1,000 supplement ($5000 per year) • 29 ACT and 3.75 GPA • Aspire Supplement • $1,500 supplement ($5500 per year) • 21 ACT or 3.0 GPA, AGI less than $36,000 • HOPE Access Grant • $2,750 one year only • 18 ACT and 2.75 GPA, AGI less than $36,000 • Qualify for Hope with 24 hrs/2.75 GPA

10. FAFSA: The Key To It All! • Free Application for Federal Student Aid • The application for federal and state aid such as grants, loans, and work-study • Collects information about income, assets, and household size to determine the types and amounts of aid a student can receive

11. Filing online is faster and easier than paper! How to File Your FAFSA • Apply online at www.fafsa.ed.gov (allow 2 weeks for processing) • Request a PIN to use as your signature at www.pin.ed.gov, and have your parent request one also. • You can print a helpful worksheet at the above website, to help you prepare! • Pick up a paper form in the Financial Aid Office (allow 2 months for processing) You must reapply each year!

12. When to File Your FAFSA • FAFSAs may be filed beginning in January. • If you expect to qualify for need-based aid such as grants, you should file your FAFSA by mid-February. Some types of aid have limited funds and disappear quickly! • Even if you will not qualify for need-based aid, you should file your FAFSA by May 1, to allow enough time for your aid to be processed. • Remember to file a new FAFSA every year!

13. FAFSA Tips • File your FAFSA early, every year. You can use estimated income information even before you file your tax return! • If you are a dependent (and most students are), your parents must sign the FAFSA each time you submit it. The quickest way to sign is with an electronic PIN. • Use a FAFSA on the Web worksheet to help you gather the necessary information. • Review your information carefully, to make sure you answered every question correctly. Mistakes can be costly in both time and money!

14. Student Aid Report • A recap of the information on your FAFSA • Sent by mail or email approximately one week after you file your FAFSA online • IMPORTANT:Contains a Comments section with important information about any errors or problems which must be fixed as quickly as possible!

15. Student Aid Report • Includes your EFC • Expected Family Contribution • Ranges from 0 to 99,999 • Lower numbers equal higher financial need • Schools use your EFC to determine the types and amounts of aid you can receive

16. Verification

17. There’s a 1 in 3 chance you will be selected for verification. Be sure to watch for information from your school, just in case! Verification • Federal regulations require each school to verify 30% (roughly 1 in 3) of the FAFSAs each year. • If you are selected, your school will request several documents, generally by sending a letter or an email. • You must submit the required paperwork to be eligible for any state or federal aid. • Allow 3-4 weeks for your paperwork to be processed. For best results, submit it as quickly as possible, no later than July 1!

18. College Goal Sunday Free Help with Filing Your FAFSA! • February 22, 2009 • Various sites statewide, including MTSU • Assistance with filing your FAFSA • Opportunities to attend a presentation on financial aid or talk to a financial aid professional • Best of all, it’s FREE! Register at www.tn.gov/CollegeGoalSunday

19. Sources Of Scholarships • Institution • Academic • Endowed • Departmental • State • Private Companies and Organizations

20. Institutional Scholarships • Academic Scholarships • Based on GPA and ACT/SAT at most schools. • Some schools consider all incoming freshmen, while some schools require a separate scholarship application. • Most schools require students to apply for admission or submit scholarship application by November or December.

21. Institutional Scholarships • Foundation/Endowed Scholarships • Most schools will have endowed scholarships, with funding provided by private donors such as alumni. • Based on major, residency, occupation of parents, or other factors. • Awarded by various academic and administrative departments at some schools; awarded by Financial Aid Office at others. • Application deadline is generally between December and February.

22. Institutional Scholarships • Departmental Scholarships • Most schools will have departmental scholarships, funded from a department’s budget. • Generally available only to students in particular major or minor, or who participate in a certain organization. • May be available in exchange for service to the institution, even if student isn’t majoring in that area. (For example, a music scholarship may be available to a chemistry major who plays in the orchestra.) • Contact departments of interest for more information.

23. State Scholarships • Three examples: • Tennessee Education Lottery Scholarship • Robert C. Byrd Honors Scholarship • Ned McWherter Scholarship • See website for others! • Most require online application • Deadlines vary • Website: http://www.tn.gov/CollegePays/

24. Robert C. Byrd Honors Scholarship • $1,500 scholarship to attend any eligible postsecondary school (even outside Tennessee!) • 3.5 GPA, or 3.0 GPA and 24 ACT (1090 SAT) • Must enroll within one year of graduation • Random selection—Every eligible student has an equal chance at being selected! • Renewable for a total of 4 years (dependent on federal funding) • Application deadline: March 1 • Application available at www.tn.gov/CollegePays/

25. Ned McWherter Scholars Program • $6,000 scholarship ($3000 from state and $3000 matched by school) • Must attend an eligible Tennessee school • 3.5 GPA and 29 ACT (1280 SAT) • Must be a US citizen and TN resident • Renewable for a total of 4 undergraduate years • Application deadline: February 15 • Application available at www.tn.gov/CollegePays/

26. Private Scholarships • Look for free search websites • Apply, Apply, Apply! • Emphasize your leadership, special skills and qualities, and contributions to your community. • Visit scholarships.web.mtsu.edu/ private.htm for more information.

27. Scholarship Notes • Some employers offer scholarships or tuition assistance to employees or their dependents. • Dependents of state employees and public school teachers may qualify for tuition discounts at public colleges. • Beware of scams!! Don’t pay money to make money!

28. For More Information TSAC website (for lottery and other state scholarships): www.collegepaystn.com Links to TN college websites: www.ecola.com/college.php FinAid! (Great info about financial aid and how it works): www.finaid.com MTSU Financial Aid Office: http://www.mtsu.edu/financialaid