Presentation Transcript

1. Financial Aid 101:A Guide to Financial Aid and Scholarships

   Charles Harper, M.Ed. Director of Financial Aid Belmont University

2. Applying for Financial Aid

3. What is financial aid? Scholarships (Institutional, Private) Grants (Institutional, Federal, State) Work-study(Campus-based, Federal) Loans (Federal, Private, Institutional)
4. Federal Student Aid Requirements To be eligible, a student must be… A US citizen or permanent resident A high school graduate or GED holder Pursuing an eligible degree or certificate program A person with a valid Social Security number Registered for Selective Service (males only) These rules apply to most types of state and institutional aid and may apply to private aid.
5. FAFSA Free Application for Federal Student Aid Application for federal and state aid Collects information about household income and assets, family size, and number in college Used to determine eligibility for need-based aid Required for students to receive grants, loans, the lottery scholarship, and other types of state and federal aid May also be required for some types of institutional scholarships
6. FAFSA: PIN (Personal Id Number)www.pin.ed.gov Must be obtained to file the FAFSA Please note that both the student and the parent will require separate pin numbers in order to sign the fafsa. This means you will each have to separately apply for pin numbers using your own personal information.
7. Timeframe to file the FAFSA Available on January 1 Submit as soon as possible after January 1 to receive need-based grants Watch out for FAFSA deadlines listed in scholarship applications Can use estimated income, if needed
8. FAFSA Free Application for Federal Student Aid Apply at www.fafsa.gov
9. College Goal Sunday Free help with filing FAFSA! Late January through mid-February Dates and days of week vary by site 35 sites around Tennessee www.tn.gov/CollegeGoalSunday Website has list of locations and dates Pre-register online If possibly eligible for grants: File FAFSA in early January. Don’t wait for College Goal Sunday—may be too late!
10. Estimating Your Income Use 2012 tax return and final 2013 pay stubs to estimate total income & taxes When 2013 tax return is completed, compare with estimated info on FAFSA If estimate was correct, make no changes If estimate was incorrect, correct the FAFSA and resubmit it Be sure to submit, not just save! Student and parent will sign again with their PIN numbers.
11. Changes in Income Has your family lost income this year due to job loss or retirement? Has your family had extensive out-of-pocket medical expenses? (several thousand dollars in 2013) The financial aid office may be able to adjust the FAFSA to reflect the actual financial picture. Special Circumstances Request Talk with counselor about your options
12. Student Aid Report Summary of the information provided on your FAFSA Sent approx. one week after FAFSA is filed By email, if email address is provided By mail, if email address is not provided Comments section should be checked carefully, and any issues should be addressed as soon as possible
13. Student Aid Report Expected Family Contribution (EFC) Ranges from 0 to 99,999 Lower number = higher financial need Used to determine your eligibility for need-based aid EFC does not correspond to particular income amount The formula considers many factors, including income, taxes paid, household size, number in college, etc.
14. Verification Required by federal law 1-in-3 chance of being selected each time you submit your FAFSA, or correct and resubmit your FAFSA FAFSA is checked for accuracy Must submit tax transcripts and other paperwork Submit all required paperwork as soon as possible for best results Process can delay receipt of aid by as much as 1 month! Must complete verification at each school you’re considering Easiest: Make final choice by May 1, then just complete verification at that school
15. How much financial aid can I get? This depends on a few factors, including Financial Need Your EFC from your FAFSA Other aid you’re receiving Cost of Attendance budget Tuition Books Room and Board Travel Miscellaneous This is the max amount of aid you can receive.

16. Types of Federal Aid

17. Federal Need-Based Grants Do not have to be repaid Must have financial need according to FAFSA Pell Grants are guaranteed for eligible students Other types of grants have limited funding File FAFSA early to qualify! Some grants have academic requirements
18. Federal Grants Examples: Pell Federal grant $605-5645 EFC of 0-5081 in 2013-2014 (may vary in future years) Guaranteed for eligible students Supplemental Educational Opportunity Grant (SEOG) Federal grant Amount varies, discretion of school Not guaranteed—Schools may only be able to award 10-20% of all eligible students
19. Federal Work-Study Receive wages for hours worked Must have financial need according to FAFSA Funds are limited based on Priority generally given to returning students with FWS positions in current year School may require interested students to submit FAFSA and/or FWS application by certain date Check with schools of interest to ask about application requirements Other jobs outside FWS program are probably available on-campus Check with school’s career center or individual departments
20. Types of Loans:Stafford Loan Federal student loan which must be repaid Award Amount: $5500-7500 per year, depending on grade level Amount isn’t based on financial need Repayment: Begins 6 months after graduation Generally completed within 10 years
21. Types of Loans:Stafford Loan Subsidized Stafford Loan $3500-5500 per year, depending on grade level No interest while in school (Interest rate: 3.86%) Must have financial need Amount is based on remaining financial need after grants, scholarships, and other resources (e.g., tuition discounts) Unsubsidized Stafford Loan $2000 per year for dependent students Interest accrues while in school (Interest rate: 3.86%) Available to all students, not based on financial need
22. Types of Loans:Stafford Loan Why should I consider a Stafford Loan instead of a private loan? Payments deferred while in school Interest-free while in school (Subsidized) May have lower interest rate Does not require credit check or cosigner Part of loan may be forgiven for public service (e.g., nurses, teachers)
23. Types of Loans:Loan Forgiveness Programs “Grant”-Type Programs: Examples: Teach Grant (federal), TN Teaching Scholars Program, TN Rural Health Program Available to education, healthcare, and certain service industry majors Must meet stringent service requirements or repay entire “grant” (plus backdated interest in most cases) Stafford/Perkins Programs: Borrow Stafford or Perkins Loan Begin repaying loan as normal Have portion of loan forgiven after meeting service requirement for given number of years
24. Types of Loans: PLUS Loan Federal parent loan which must be repaid Award Amount: Depends on student eligibility and lender approval Credit check is required Repayment: Repaid by parents (Interest rate: 6.41%) Deferment available while student is enrolled at least half-time Completed within 10 years

25. Types of State Aid

26. State Scholarships and Grants Examples: Lottery, TSAA Grant, Several loan forgiveness “grant” programs Most require online application Deadlines vary www.tn.gov/CollegePays/
27. State Need-Based Grant TSAA (TN Student Assistance Award) $1000-4000 (depending on school type) Not guaranteed—Funds awarded until expended File FAFSA as early to be considered Does not have to be repaid Must have financial need according to FAFSA EFC of 2100 or less
28. Tennessee Education Lottery Scholarship Program HOPE Scholarship The primary scholarship in the lottery program 21 ACT OR 3.0 GPA ACT must be taken before student begins college Cumulative weighted GPA through end of high school GPA is only considered if student attended eligible high school Home school and ineligible high school graduates must qualify with 21 ACT $2000 per year at 2-yr school $4000 per year at 4-yr school
29. Tennessee Education Lottery Scholarship Program Supplements General Assembly Merit $1000 29 ACT AND 3.75 GPA Aspire Supplement $1500 $36,000 or less Parent AGI Can receive one supplement at a time, not both
30. Tennessee Education Lottery Scholarship Program HOPE Access Grant 18 ACT AND 2.75 GPA AND $36,000 or less Parent AGI Not available to homeschool students $1750 for 1 year at 2-yr school $2750 for 1 year at 4-yr school Can qualify for full TELS award if 2.75 GPA after 24 hours
31. Tennessee Education Lottery Scholarship Program Meet academic requirements Tennessee resident for 1 year US citizen/eligible non-citizen Graduate from Tennessee high school, homeschool, or GED Homeschool: Must have been homeschooled for two years prior to graduation Submit FAFSA by September 1 (by February 1 for spring enrollees)
32. Tennessee Education Lottery Scholarship Program Keeping the Scholarship Meet GPA requirements 2.75 after 24 & 48 attempted hours 3.0 after 72 & 96 attempted hours Meet enrollment requirements Enroll in at least 1 class every fall & spring Don’t change your enrollment status after the start of a semester (e.g., drop from full-time to part-time) Stay within time limits 5 years 120 attempted hours Most students will run out of hours before graduating! Be careful to take only the classes you need and to pass them the first time!!
33. Ned McWherterScholarsProgram $6,000 scholarship ($3000 from state, $3000 from school) Attend an eligible TN school 3.5 GPA and 29 ACT (1280 SAT) US citizen and TN resident Application deadline: February 15 Apply at www.tn.gov/CollegePays
34. Private Scholarships Look for free search websites Apply, Apply, Apply! Watch for applications with essays —may have less competition Emphasize your leadership, special skills and qualities, and contributions to your community.
35. Scholarship Notes Beware of scams!! Don’t pay money to make money! Ask employer or parent’s employer about scholarships or tuition assistance Tuition discounts at public schools State employees Children of state employees Children of K-12 public school teachers Children of UT/TBR employees

36. Questions?