Paying for College Financial Aid 101 Mary Anne Hunter College Access Team

1. Paying for College Financial Aid 101 Mary Anne Hunter College Access Team CO Dept. of Higher Education

2. College Access Team • The College Access Team helps families break down the financial barriers to college. • Colorado Department of Higher Education • Funded by a Federal College Access Challenge Grant • 700+ financial aid, scholarship, FAFSA and financial education workshops • FREE

3. Disclaimer • The information presented is informational only.  All program information is general in nature and is not necessarily all inclusive.  The Colorado Department of Higher Education (CDHE) makes no representation regarding suitability of the information presented.  The reference to websites external to CDHE have been provided for convenience and should not be construed to indicate endorsement.   Rules and regulations governing financial aid programs may be subject to change without notice.

4. What we’ll cover in this presentation • College Cost – the student budget • What kind of financial aid is available • How to apply for financial aid • Scholarships • Helpful websites

5. What do we mean by “College”? • 2-Year or Community College • Certificate • Associates Degree • 4-Year College • Bachelors Degree • Masters Degree • Vocational or Technical College • Certificate • Proprietary/Trade Schools • Certificate • Associates Degree • Bachelors Degree

6. Cost of Attendance (COA)Student Budget • Cost of attendance refers to the cost for attending college for one year (2 semesters) • Colleges often define total cost of attendance to include: • Tuition and fees • Room and board • Books and supplies • Medical expenses • Transportation • Personal expenses Fixed Costs Variable Costs

7. College Costs (Examples Only) Direct Variable

8. Resident –vs- Non-Resident Tuition(Examples Only) Source: Hispanic Scholarship Fund

9. Western Undergraduate Exchange Program (WUE) • Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington, Wyoming • Reciprocal agreement to discount non-resident tuition • Must maintain specific GPA and meet special deadlines • Dependent upon school and program of study • www.wiche.edu/wue

10. TYPES OF FINANCIAL AID • Grants • Federal, State, Institutional • Don’t need to be paid back • Scholarships • Don’t need to be paid back • Maintain certain grades • Work-study • Part-time work around your class schedule • Student Loans • Federal Loans • Paid back at federally backed low interest rates with helpful terms • There are federal loans for students (Stafford loans) and parents (PLUS loans) • Private Loans • Use federal first and be sure to research the rates and terms carefully if you need a private loan to fill the gap.

11. Pays a portion of total in-state tuition per credit hour… • $62 per credit hour at public 2/4-year colleges & universities • = approx. $1488 p/year • $31 for Pell-eligible students at private Colorado colleges (University of Denver, Regis University and Colorado Christian University) • Must apply – just once at www.collegeincolorado.org • Must be admitted to participating institution • Available for undergraduates only • Paid directly to the college

12. Stafford Loans • Low fixed interest rates • 6 month grace period • In student’s name • No credit check/income verification Subsidized Stafford • Need-based • Interest Rate = 3.40%(2011-12) • Government pays interest while in school & during grace period Unsubsidized Stafford • Not need-based • Interest rate = 6.8% • Student pays interest/accrues while in school & during grace period • Can pay quarterly or capitalize

13. Annual Loan Limits

14. Federal Parent Loan for Undergraduate Students PLUS Loans • In parent name - for parents of undergrad. dependent students • Fixed interest rate of 7.9% • Credit check required • If denied, student is eligible for additional unsubsidized Stafford allowance • Repayment begins 6 weeks after the loan is fully disbursed – or - parent may defer repayment: • while the student on whose behalf the parent borrowed the loan is enrolled on at least a half-time basis, and • for an additional six months after the student ceases to be enrolled at least half-time. • $ = up to unmet need • Fees - up to 4%

15. Private/Alternative Student Loans • Higher interest rates and variable (Prime/LIBOR) • Based on credit score & income = parents typically co-sign • Interest rate & fees determined by credit score • Less favorable repayment & deferment terms than Federal student loans • Use federal loans first • Consider PLUS/home equity loans • Talk to financial aid office first

16. Satisfactory Academic Progress (SAP) • Three components: • Grade Point Average (GPA) – usually C Average – determined by college – could be different than academic standard • Completion Rate – must complete certain percentage of classes • Credit Limit – cannot exceed determined credit total for program of study (i.e. 180 total) • Probation/Suspension • Appeal process

17. How do I apply?Start with the FAFSA Free Application for Federal Student Aid (FAFSA) • Apply Early! Some Financial Aid is awarded on a first-come-first-served basis • Must file every year after January 1 • Up to 10 colleges can be designated to receive FAFSA data

18. How to Submit the FAFSA • Online application is fastest – up to 10 days processing time • Student and one parent need to get Personal Identification Numbers (PIN) to sign application electronically • Parent and Student Information required: • Social security numbers, drivers license numbers, DOB • 2010 tax records, bank statements, savings/investments, business value • Complete FAFSA online at http://www.fafsa.gov • 1-800-4FEDAID for assistance • BEWAREof any service that requires you to pay a fee to submit your FREE application

19. Documents/Information Needed For the 2011-2012 school year you will need financial information from 2010. You will need to refer to: • Student’s & parent’s Social Security Numbers. Be sure it is correct! • Student’s alien registration or permanent resident card (if you are not a U.S. citizen) • Student’s driver's license (if any) • Student’s & Parents’ 2010 W-2 Forms and other records of money earned • Student’s & Parents’ 2010 Federal Income Tax Return - IRS 1040, 1040A, 1040 EZ • Foreign Tax Return, or Tax Return for Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands, the Marshall Islands, the Federal States of Micronesia, or Palau • Student’s & Parents’ 2010 untaxed income records • Veterans noneducation benefit records • Child support received • Worker's compensation • Student’s & Parents’ current bank statements • Student’s & Parents’ current business and investment mortgage information, business and farm records, stock, bond and other investment records

20. Taxes & Untaxed Income

21. IRS Matching Option for Income Information Filers may need to wait up to 3 weeks after e-filing tax return to request data download

22. Dependent – vs – Independent…use parents income/asset info. Can student answer “Yes” to any of the following…. • Were you born before January 1, 1988? • As of today, are you married? • At the beginning of the 2011-2012 school year, will you be working on a master's or doctorate program? • Are you currently serving on active duty in the U.S. Armed Forces for purposes other than training? • Are you a veteran of the U.S. Armed Forces? • Do you have children who will receive more than half of their support from you between July 1, 2011, and June 30, 2012? • Do you have dependents (other than your children or spouse) who live with you and who receive more than half of their support from you, now and through June 30, 2012?

23. Who is considered a parent? • If your parents are married, answer the questions about both parents. • If your parent is widowed or single, answer only the questions about that parent. • If your parents have divorced or separated, answer only the questions about the parent that you lived with most during the last 12 months. If you did not live with one parent more than the other, answer only the questions about the parent who provided most of your financial support during the last 12 months. • If your parent has remarried after being widowed or divorced, answer the questions about both your parent and your stepparent. • If you have a legal guardian, you cannot use your legal guardian's information on your application. A legal guardian is not considered a parent in the financial aid process. • If you have foster parents, you cannot use your foster parent's information on your application. A foster parent is not considered a parent in the financial aid process. • If you were adopted, follow the instructions above for parents, based on your parents' current marital status. • Note: The following people are not considered parents on this form unless they have legally adopted you: grandparents, foster parents, legal guardians, older brothers or sisters, and uncles or aunts.

24. Investments to Include and Exclude • INCLUDE •  Real estate (do not include the home • you live in) •  Trust funds • Uniform Gifts/Transfers to Minors Act • Accounts (UGMAs /UTMAs) • Money market funds • Mutual funds • Certificates of deposit • Stocks, stock options, bonds & other • securities • Installment and land sale contracts • (including mortgages held) • Commodities • Qualified educational benefits or • education savings accounts (e.g. • Coverdell savings accounts, 529 • college savings plans and the refund • value of 529 prepaid tuition plans) • Business and/or investment farm value includes: • the market value of land, buildings, machinery, equipment, inventory, etc. Business and/or investment farm debt means only those debts for which the business or investment farm was used as collateral. • EXCLUDE • - The home you live in • - Value of life insurance • - Retirement plans (401[k] plans, pension funds, annuities, non-education IRAs, Keogh plans, etc.) • - Cash, savings and checking accounts already reported • Business value does not include the value • of a small business if your family owns • and controls more than 50 percent of • the business and the business has 100 • or fewer full-time or full-time • equivalent employees. • Investment farm value does not include • the value of a family farm that your • live on and operate.

25. Frequent FAFSA Errors • Social Security Numbers • Divorced/remarried parental information • Income earned by parents/stepparents • Untaxed income • U.S. income taxes paid • Household size • Number of household members in college • Assets & investment – realestate • FAFSA is not signed (by student & one parent) Errors Cause Delays

26. Extenuating Circumstances • Decreased income from 2010 • High medical expenses not covered by insurance • Special needs students • No place to report on FAFSA • Contact Financial Aid Office • Provide documentation • Need may be recalculated

27. What is the Expected Family Contribution (EFC) • Calculated amount family can reasonably be expected to contribute toward student’s education each academic year – But not necessarily what family may end up paying out-of-pocket • Two components + Parent contribution + Student contribution • Protections/Allowances: family maintenance costs - # in family – # going to college - age of oldest parent

28. Financial Need Cost of Attendance (COA) - Expected Family Contribution (EFC) ______________________________ = Financial Need

29. EFC Remains Constant

30. The Financial Aid Process FAFSA to Processor FAFSA Data Student Aid Report (SAR) College(s) Financial Aid Office STUDENT Check if accepted for Admission Requested documents/ Accept Award Package Financial Aid Award

31. Get FREE Help with the FAFSA COLLEGE GOAL SUNDAY • February of each year • 15 locations around the state • Information on scholarships and college planning • Scholarship giveaways • www.collegegoalcolorado.org

32. SCHOLARSHIPS Inquire about scholarships through: • High School • College(s) student is interested in attending – Admissions/Financial Aid • Local businesses • Religious organizations • Places of employment • Networking – Facebook, Twitter, MySpace, social gatherings, neighbors • Internet • www.collegeincolorado.org • https://secure.collegeincolorado.org/Images/CiC/pdfs/scholarship_list.pdf • www.fastweb.com • CollegeInvest • www.collegeinvest.org

33. What Are Scholarship Awards Based On? • GPA • GENDER • AGE • TALENT • HOBBIES • RELIGION • 1ST GENERATION COLLEGE STUDENT • ATHLETICS • COMMUNITY SERVICE • FINANCIAL NEED • ETHNCITY • COLLEGE MAJOR/ MINOR • GEOGRAPHIC LOCATION • CLUBS/TEAMS • LEADERSHIP ACTIVITIES

34. CollegeInColorado.org

35. The Match-Up 15,425 SCHOLARSHIPS!

36. Everything You Need to Know DEADLINE REQUIREMENTS DONOR HOW TO APPLY WHERE TO SEND APP. MATCH SUMMARY

37. CollegeInColorado.org

38. Helpful Tools • FAFSA • http://www.fafsa.ed.gov • FAFSA 4Caster • http://www.fafsa4caster.ed.gov • See what your EFC might look like • Types of federal financial aid & the process • http://studentaid.ed.gov • College In Colorado • http://www.collegeincolorado.org • CollegeInvest • http://www.collegeinvest.org • www.educationcents.org • Western Undergraduate Exchange Program (WUE) • www.wiche.edu/wue

39. Questions?