Understanding Financial Aid:

1. Understanding Financial Aid: Basic information you need to know about paying for higher education Senior Parent Financial Aid Night December 18th, 2013 Hillcrest High School

2. Plan to go to college Things to consider: • How much will it cost? • Can I afford college? • What is financial aid? • What is a FAFSA? • When and how do I apply? • Where can I get help? Goal: To have all these questions answered by the end of the presentation!

3. What are the costs? Tuition & Fees Room & Board Transportation Books & Supplies Miscellaneous Living Expenses + Cost of Attendance (COA)

4. Average College Costs

5. Sticker Price vs. Net Price *If you’re thinking you can’t afford college, there’s still hope! The Sticker Price is the price before any financial aid is factored in. Generally speaking, the net price of a school is significantly less than the advertised cost of the school because of the institutional, federal, and private aid you may receive from a variety of sources. Net Price Calculations Go to College A’s website Search in the search box “net price calculator” Input family income and demographic information free of charge for an estimated prediction of how much that school will actually cost your student *Actual aid amounts will be awarded based on your FAFSA

6. Free Application for Federal Student Aid (FAFSA) • What is a FAFSA? It is the first step in the financial aid process. A FAFSA is used to apply for state and federal financial aid programs. In addition, some colleges use it to award institutional aid. The application is available at no fee. Three Ways to Access a FAFSA

7. Expected Family Contribution A need analysis formula established by Congress determines a student’s Expected Family Contribution; using information reported on the Free Application for Federal Student Aid (FAFSA). Expected Family Contribution (EFC)

8. EFC is constant! Three Examples… COA (Cost of Attendance) EFC (Expected Family Contribution) FINANCIAL NEED College A $10,000 $3,000 $7,000 - = $20,000 $3,000 College B $17,000 - = College C $35,000 $3,000 $32,000 = -

9. Financial Need How much aid can a student receive? Cost of Attendance (COA) Expected Family Contribution (EFC) Financial Need - = TIP • Ask Questions: • What percentage of my financial need will you meet? • What percentage of the financial aid offer will be made up of loans? • Who to Ask: The University’s Financial Aid Office

10. Yes I have financial need! Now what?

11. How will youpay for four years of college? Start Early…

12. What is Financial Aid? Financial aid helps make up the difference between what you can afford to pay and the cost of college. gift aid Grants Scholarships Work-Study Loans self-help aid Note: Funds may be merit-based, need-based, or non need-based.

13. Sources of Financial Aid Financial aid comes from a variety of sources.

14. Types of Financial Aid • Grants – need based money you don’t have to pay back • Pell Grant – Federal grant given based on calculated financial need • MAP Grant – Given to qualifying IL residents attending IL state schools • Scholarships – free money you don’t have to pay back • Institutional, government, or private • Need-based, academic, talent/athletic, random drawings • Loans – money that you borrow from a lender with the promise to pay it back after you graduate or leave school for an amount of time (usually a 6 month grace period) • Student loans • Parent loans (PLUS loan) • Federal Work Study (FWS)– Money that you earn through a campus job, if eligible • Must find a job on your own (Career Services Office)

15. The Big Three Grant Programs Maximum Award Amounts for 2013-14 • State of Illinois Monetary Award Program (MAP) • Federal Pell Grant • Federal Supplemental Education Opportunity Grant (FSEOG) Total = $14,365 * Based on funding as of publication date. Announced grant awards could increase or decrease throughout the academic year.

16. Scholarships • Gift awards that you must qualify for. Many have: • Academic requirements, or • Athletic requirements, or • Community Service/Leadership requirements, or • Miscellaneous requirements (height, major, special interests, organizational involvement, etc) Rule of Thumb: Scholars receive scholarships. *Encourage your student to search out sources of scholarships and to complete all necessary application materials to apply for them.

17. Some trusted scholarship websites… Requesting registration/log in info (matching studentto scholarship) Not requesting prior registration to search for scholarships: Merit Aid http://www.meritaid.com/page/meritAid/meritAidList.jsp Fin Aid http://www.finaid.org/scholarships/ College Board Scholarship Search https://bigfuture.collegeboard.org/scholarship-search • College Greenlight • www.collegegreenlight.com • Fastweb • www.fastweb.com • What’s Next Illinois • https://secure.whatsnextillinois.org/Financial_Aid_Planning/Scholarships/_default.aspx Shifting through scholarship deadlines and application requirements does take time, so start weeks in advance!

18. Hillcrest Scholarship Lists *These lists are printed out and available in the College and Career Center section of the Hillcrest library.

19. U. S. Department of Education • Federal Loan Programs, 2013-14 Type Rate Amount Grace

20. Federal Work-Study A need-based employment program that provides on- and off-campus jobs to students.

21. Subsidized vs. Unsubsidized • To understand the difference between the two, consider this: When will interest begin to accrue?

22. Is college worth the cost? The min. wage in IL is $8.25/hr = $330/week = $1,320/month = $15,840/year Individuals with higher levels of education earn more and are more likely than others to be employed. Source: Illinois Department of Employment Securities, Learn More Earn More, 2010.

23. Understanding the FAFSA • FAFSA - Free Application for Federal Student Aid > fafsa.ed.gov • Free and safe government form which must be completed in order for schools to determine if you are eligible for aid • Application becomes available January 1st • Suggested deadline for submission is February 15th • Available to complete in Spanish online or on paper form • Many scholarships and grants require a submitted FAFSA -Whether you think you are eligible for financial aid or not, the FAFSA is necessary to receive aid directly from the school

24. Cracking the Code • FAFSA – Free application for federal student aid • SSN – Social security number • PIN – Personal identification number • EFC – Expected family contribution • Amount family is expected to contribute to your schooling that year • COA – Cost of attendance (all encompassing) • Tuition, school fees, books and supplies, room and board, etc. • SAR – Student aid report • FWS – Federal work study • MPN – Master promissory note

25. Completing the FAFSA • What information is needed? • Social Security Number. Be sure that it is correct! • Records of income, such as income earned from work and business, child support paid or received, and any other untaxed income. If available, refer to the W-2 Forms and the Federal Income Tax Return IRS 1040, 1040A, or 1040EZ. • Information about assets, such as savings, certificates of deposit, stock options, bonds, 529 plans and other college savings programs, and investment real estate, business, and farm. • Driver’s license number, if the student has one. • Dates of birth, include the month, day and year (student and parent). • Month and year of marriage, separation, divorce or other change in martial status (student and parent). • Alien Registration Number,if you (student) are not a U.S. citizen. • Notes: • Parental information is required unless a student is at least 24 years of age or meets the criteria for filing as an independent student as described on the Free Application for Federal Student Aid. Refer to www.FAFSA.gov. • A student must report his or her income and assets and those of the parents (if a dependent student) or spouse (if married). • Use income records for the year prior to the academic year for which a student is applying: for instance, if filling the 2014-2015 FAFSA, refer to 2013 tax information.

26. Other Things To Know • Apply early • Information reported on the FAFSA is confidential and is used ONLY to determine financial aid eligibility • You may be asked to submit documentation to the financial aid office for verificationpurposes • Supplemental applications or forms may be required • Keep track of application DEADLINES! • Keep a copy of everything you submit • You must reapply every year

27. The Financial Aid Process

28. What can I do now? • APPLY FOR FAFSA PIN- FAFSA.ED.GOV • CALCULATE NET PRICE • EACH SCHOOL HAS A NET PRICE CALCULATOR ON THEIR WEBSITE • APPLY FOR SCHOLARSHIPS • CREATE FOLDERS (I.E.DEADLINES, SCHOLARSHIPS AND FAFSA) • CONTACT COLLEGES FOR ADDITIONAL AID INFORMATION, IF APPLICABLE

29. Any more questions Feel free to reach out to your: Illinois Student Assistance Commission representative: Keena Tolbert – (309) 351-5247 keena.tolbert@isac.illinois.gov Illinois College Advising Corps College Adviser: Christina Banks – (708) 799-7000 ext. 5671 cbanks@bhsd228.com or banks3@uillinois.edu