Piecing Together… Financial Aid & You!

1. Piecing Together… Financial Aid & You!

2. What will be discussed: • Types of Aid • Eligibility Requirements • Cost of Attendance • Applying for Financial Aid • Scholarships • Additional Information

3. Types of Aid Types of aid may be divided into two categories: • Gift Aid, such as grants and scholarships, does not require repayment. Scholarships generally are awarded on the basis of academic achievement or for services rendered, while grants are typically awarded based on financial need. • Self-help aid, as the name implies, is not “free money” like gift aid. It comes in the form of loans and employment programs. A loan is borrowed money that the borrower must repay with interest. Employment programs give students the opportunity to work and earn money to assist with educational expenses.

4. Federal Financial Aid What is Federal Financial Aid? Financial aid is a variety of federal programs including grants, loans, and work-study.  These programs are available to assist students in funding education beyond high-school.  The funds may be used for educational expenses including tuition, fees, room, board, books, supplies, transportation, and personal expenses.

5. General Eligibility Requirements • Must be enrolled or accepted for enrollment in eligible program of study • Must be at least half time to receive loans • Must be pursuing a degree, certificate, or other recognized credential • Must be a U.S. citizen or eligible non-citizen • Must be registered with Selective Service (if male and required)

6. General Eligibility Requirements (cont.) • May not have eligibility suspended or terminated due to being convicted of a drug-related offense • Must have valid Social Security Number (SSN) • May not be in default on a federal student loan • Must not owe an overpayment of federal grant or loan funds • Must be making Satisfactory Academic Progress (SAP)

7. Cost of Attendance(COA) Cost of Attendance (COA) is the estimated amount it will cost for a student to attend an institution for one academic year. It includes tuition and fees, room and board, books and supplies, transportation, and personal miscellaneous expenses. Schools typically use estimates based on the average amounts spent by students. Only some of the amounts, such as tuition and fees, will actually be paid to the institution. Students and parents may obtain COA figures from different institutions to determine affordability and plan a budget. Cost of Attendance can differ greatly based on the institution the student plans on attending and where the student plans to live while attending. Financial Aid Administrators use Cost of Attendance figures in part to determine a student’s eligibility for financial aid.

8. Federal Pell Grant • Awarded to eligible undergraduates who have not already earned a bachelor’s degree • Actual award amount based on Estimated Family Contribution (EFC) and enrollment status • Maximum award for 2008-09 = $4,731

9. Federal Supplemental Educational Opportunity Grants (FSEOG) • Eligible students: • Federal Pell Grant recipients • Demonstrate “exceptional financial need” • Award amounts are determined by the institution

10. Academic Competitiveness Grant Program (ACG) An eligible student may receive an Academic Competitiveness Grant of $750 for the first academic year of study and $1,300 for the second academic year of study. To be eligible for each academic year, a student must: • Be a U.S. citizen; • Be a Federal Pell Grant recipient; • Be enrolled full-time in a degree program; • Be enrolled in the first or second academic year of his or her program of study at a two-year or four-year degree-granting institution;

11. Academic Competitiveness Grant Program (ACG) (cont.) • Have completed a rigorous secondary school program of study (after January 1, 2006 if a first-year student, and after January 1, 2005 if a second-year student); • If a first-year student, not have been previously enrolled in an undergraduate program; and, if a second-year student, have at least a cumulative 3.0 grade point average on a 4.0 scale.

12. NATIONAL SMART GRANT PROGRAM (SMART) An eligible student may receive a National SMART Grant of $4,000 for each of the third and fourth academic years of study. • Be a U.S. citizen; • Be a Federal Pell Grant recipient; • Be enrolled full-time in a degree program; • Major in physical, life or computer science, engineering, mathematics, technology, or a critical foreign language • Have at least a cumulative 3.0 grade point average on a 4.0 scale in the coursework required for the student’s major.

13. FEDERAL WORK STUDY(FWS) • Provides jobs on or off campus to eligible students. • Students may work in a college department or a community service agency. • Funds are limited.

14. LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP (LEAP) • Students must be Louisiana residents. • Awards are based on need and the availability of funds. • Available only to eligible undergraduates enrolled full-time at the point of disbursement who have an overall grade point average (GPA) of 2.0 or higher.

15. LA Go Grant • New state funded grant • Available to Pell eligible first-time freshmen who are Louisiana residents • Award amount is prorated based on enrollment. Maximum annual award is $2,000. Lifetime award amount is $10,000 • FAFSA serves as the application

16. Stafford Loans • Subsidized: Must demonstrate “need.” Need is calculated based on the following formula: COA – EFC – Other resources = Need • Unsubsidized: Non-need based • Base annual loan limits (combined subsidized and unsubsidized amounts): • $3,500 sub & $2000 unsub for 1st year undergraduates • $4,500 sub & $2000 unsub for 2nd year undergraduates • $5,500 sub & $2000 unsub for each remaining undergraduate year

17. Stafford Loans (cont.) • Additional unsubsidized loan eligibility available for independent undergraduates and dependent students whose parents are unable to borrow a PLUS Loan based on credit: • $4,000 per year for 1st and 2nd year undergraduates • $5,000 per year for remaining years of undergraduate study • Aggregate Stafford loan limits: • $31,000 in combined subsidized and unsubsidized loans for dependent undergraduates • $57,500 in combined subsidized and unsubsidized loans for independent undergraduates and dependent undergraduates with parents unable to borrow a PLUS loan. A maximum of $31,000 of this amount may be subsidized.

18. Parent PLUS loans • Low-interest loan made to parents of undergraduate dependent students by private lenders.  An 8.5% fixed interest rate applies to all loans disbursed after July 1, 2006.   A variable rate not to exceed 9% applies to all loans disbursed before July 1, 2006. • Available to creditworthy parents regardless of financial need. A credit check will be performed by the selected lender. • Amount borrowed may be up to the cost of education as determined by the school, less any other financial aid and resources. • Loan origination fees are charged by the lender.    • Repayment begins 60 days after loan is disbursed.

19. “TEACH” Grants • New Program for the 2008-2009 academic year for students who are interested in becoming math and science teachers in schools serving low income families • All conditions must be met or the grant will become an unsubsidized Federal Stafford Loan

20. FAFSA 4caster www.fafsa4caster.ed.gov FAFSA4caster will: • Automatically generate a Federal Student Aid PIN for use when signing the FAFSA • Instantly calculate eligibility for federal student aid • Generate a FAFSA—a FAFSA populated with student FAFSA4caster data will be available when the student is ready to file the official FAFSA

22. Applying for Financial Aid The Free Application for Federal Financial Aid (FAFSA) may be filed online at www.fafsa.ed.gov There is a section on the website that tells you what you need to have before filing.

23. www.fafsa.ed.gov

24. The First Page

25. Dependency Status Questions

26. Parent Section

27. School Code

28. ACG eligibility certification

29. Signature Page

30. Confirmation Page

31. School Application Process • Once your school receives the FAFSA, the financial aid administrators will process the FAFSA and award your financial aid package. In some cases you will be required to provide additional information and/or documentation to the school. The federal processor randomly selects 30% of all FAFSA’s to be verified by the school. • It is a good idea to be familiar with the financial aid process at your school.

32. How much aid can I get? In general, depends on your financial need. • Financial need determined by Expected Family Contribution (EFC) and cost of attendance (COA) • EFC comes from what you report on FAFSA • COA is tuition, fees, room and board, transportation, etc. COA – EFC = financial need

33. Need Varies Based on Cost

34. Scholarships • Students should contact the school they plan on attending to determine what scholarships are available and how to apply. This information is typically also available on the school’s website. • Search for “outside” scholarships on free online search engines such as one of the following: Fast Web, Scholarship Central, Mach 25, Collegeboard, Scholarships.com, Scholarship Coach, Go College, Broke Scholar

35. The Tuition Opportunity Program for Students (TOPS) provides students attending a Louisiana public college or university an amount equal to tuition at the school attended. TOPS may not cover all fees that an institution charges. Contact the school to determine how much TOPS pays and what fees (if any) it does not cover.

36. Eligibility Generally, only Louisiana residents who graduate from a Louisiana high school are eligible to apply for TOPS. To receive the award, students must meet the eligibility requirements listed on LOSFA’s website. • Application The Free Application for Federal Financial Aid (FAFSA) also serves as the application for TOPS. TOPS is a merit based program and none of the financial information on the FAFSA is used to determine eligibility for TOPS. The application deadline is July 1.

37. TOPS Contact Information Website: www.osfa.state.la.us Address: LOSFA P.O. Box 91202 Baton Rouge, LA 70821-9202 Phone: 1-800-259-5626 ext. 1012

38. Calendar • After your junior year-Begin applying for admission. Check with the school about admission deadlines. • Spring Semester of your senior year-File the FAFSA to apply for federal aid and/or TOPS. The FAFSA is available January 1. Remember the TOPS application deadline is July 1. • Remember that you must file a FAFSA annually.

39. Beware of Direct Marketing Offers of Assistance • Don’t get hooked by misleading offers • The scholarship is guaranteed or your money back.” (No one can guarantee your scholarship before it is awarded.) • “You can’t get this information anywhere else.” (Everyone has access to the same information.)

40. Beware of anyone who says…. • “We need your credit card information to hold your scholarship.” (You should never have to give this information to legitimate providers.) • “The scholarship requires a small fee.” (Never pay a fee to get a scholarship.)

41. Other Misleading Offers • “You are a finalist” for an award you never applied for. (If you did not apply, it is not a legitimate offer.) • “Come to our seminar and we’ll show you how to get more financial aid. You only have to pay a small fee.” (This is a sales pitch. Don’t pay for information that you can get elsewhere for free.)

42. Remember You should never have to pay: • For information about college financial aid • To apply for federal financial aid • To receive financial aid for college

43. Contact information: • Cathy Simoneaux • Director, Office of Scholarships and Financial Aid • E-mail: cmsimone@loyno.edu • www.loyno.edu/financialaid • Tiffany D. Magee • Director, Office of Financial Aid & Scholarships • E-mail: tiffany.magee@ololcollege.edu • www.ololcollege.edu