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Texas Association of Student Financial Aid Administrators and National Association of Student Financial Aid Administrators. Financing Education Beyond High School 2006-2007. Objectives for Tonight. Give general information about how to apply for financial assistance
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Texas Association of StudentFinancial Aid AdministratorsandNational Association of StudentFinancial Aid Administrators Financing Education Beyond High School 2006-2007
Objectives for Tonight • Give general information about how to apply for financial assistance • Describe what type of financial assistance is available • Promote financial aid awareness to students as early as middle school
Purposeof Financial Aid • The primary purpose of student financial aid is to provide resources to students who would otherwise be unable to pursue a post-secondary education.
Philosophy of Financial Aid • To the extent they are able, parents have primary responsibility to pay for their dependent children’s education • Students also have a responsibility to contribute to their educational costs • Families should be evaluated in their present financial condition • A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect its ability to pay
Applying for Higher Education • Select schools to attend, contact them • admissions applications • housing applications • financial aid and scholarship applications • SAT/ACT scores • TAKS test
Types of Aid • Gift Aid • Grants • Scholarships • Self Help • Loans • Employment
Gift Aid • Scholarships • Federal • Robert C. Byrd Honors Scholarship • State • Institutional • Private Grants • Federal • Federal Pell Grant • FSEOG • Federal/State (LEAP) • State • Institutional • Private
Gift Aid - Scholarships(Where do I look?) • HIGH SCHOOL GUIDANCE COUNSELOR • LIBRARIES • CIVIC/RELIGIOUS ORGANIZATIONS • PROFESSIONAL ORGANIZATIONS • ACADEMIC DEPARTMENTS • FINANCIAL AID OFFICE • Internet (www.finaid.org)
BEWARE! • Don’t be Scammed! • I do not recommend the use of scholarship searches that charge a fee.
Toward EXcellence, Access& Success (TEXAS) Grant • Texas resident • graduated from accredited high in Texas within 16 months of first semester • completed Advanced or Recommended high school curriculum • have financial need • enroll at least full time • portable grant
Self-Help Aid Loans • Federal Perkins Loan • Federal Stafford Loans • Federal Family Education Loan (FFEL) Program • William D. Ford Federal Direct Loan Program • State Loans • Institutional and Private Loans • Employment • Federal Work-Study • State Work-Study Programs • Institutional Work-Study Programs
Two Categories of Aid • Merit-based • Need-based
Definition of Need Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need
Cost of Attendance • Tuition and fees • Room and board • Books and supplies, transportation, and miscellaneous personal expenses • Loan fees • Study abroad costs • Dependent or elder care expenses • Expenses associated with a disability • Expenses for cooperative education program
Definition of Need Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need
Federal Methodology Federal Methodology is the formula created by Congress to determine the Federal Expected Family Contribution (EFC).
Needs Analysis • Family completes FAFSA • Information is placed in Federal Methodology Formula • Expected Family Contribution (EFC) is calculated
Expected Family Contribution for Dependent Student 1. Determine available parent income: Total income (taxable and untaxed); less exclusions (e.g., child support paid) 2. Determine available parental assets 3. Determine portion of available parental income and assets for education 4. Determine student contribution 1 + 2 + 3 + 4 = EFC
Definition of Need Cost of Attendance (COA) – Expected Family Contribution (EFC) = Financial Need
Role of the Financial Aid Office • Determines eligibility for financial aid • Packages aid • Sends an award notification which details: • Student’s cost of attendance • Amount of student’s financial “need” • Types and amounts of aid offered • How and when aid will be disbursed • Student employment conditions • Terms and conditions of aid offer
Free Application for Federal Student Aid (FAFSA) • Family’s personal and financial information required to perform need analysis is collected on FAFSA • Paper versions of FAFSA • “Regular” FAFSA • Renewal FAFSA • Electronic versions of FAFSA • EDE • FAFSA on the Web
Student Aid Report (SAR) • Replays all information (part 1) • Allows for corrections (part 2) • Indicates if there are problems with: • Social Security Administration • INS • Selective Service • Default/Refund
Packaging • School combines various types of aid to meet financial need • Each school has a different “Packaging Philosophy”
Award Letter • COA, EFC and student’s financial need • Types and amounts of financial aid • Deadlines for responding • Other documents to complete; counseling sessions to attend
Where Do I Go From Here? • Review school’s materials for aid application and deadline information • Complete FAFSA • Get Your PIN first • Complete school application (if necessary) • Investigate other sources of aid • Conduct private scholarship search
WHAT TO EXPECT • OBTAIN A PIN NUMBER FROM: • WWW.PIN.ED.GOV • MAIL/TRANSMIT THE FAFSA • RECEIVE THE SAR • REVIEW THE SAR COMMENTS/DATA • MAKE ANY CORRECTIONS NECESSARY • SCHOOL REVIEWS • ADDITIONAL INFO REQUESTED • VERIFY ACCURACY OF ALL INFO • RECEIVE AWARDNOTIFICATION • RESPONSE MUST BE RECD BEFORE AID CAN BE CREDITED TO THE ACCOUNT
Helpful Hints and Tips • Read instructions carefully • Make copies of everything you mail • Promptly respond to all correspondence
Helpful Hints and Tips (cont’d) • Report funds from other sources • Apply for financial aid every year • Maintain Satisfactory Academic Progress (SAP)