FINANCIAL AID WORKSHOP Kimber Decker | November 2012

1. FINANCIAL AID WORKSHOP Kimber Decker | November 2012

2. KIMBER DECKER Regional Director Nelnet Partner Solutions phone: 570.620.2944 e-mail: kimber.decker@nelnet.net

3. FINANCIAL AID DEFINITIONS AND TERMS

4. DEFINITIONS • GRANTS • Financial aid you do not have to pay back • WORK-STUDY • Lets you work and earn money to help pay for school • LOANS • Borrowed money that you must repay with interest

5. STUDENT ELIGIBILITY • Must be enrolled as a regular student in an eligible program • Must be a U.S. citizen or eligible non-citizen • Must make Satisfactory Academic Progress (SAP) • Must be registered with Selective Service, if required

6. FINANCIAL NEED • Financial need is determined by a formula: • Cost of Attendance • - Estimated Family Contribution (EFC) • Financial Need • If your family’s financial circumstances warrant, the Financial Aid Administrator can adjust the formula’s data elements or your cost of education. • Examples: • A parent lost his/her job • Unusual medical/dental bills not covered by insurance

7. COST OF EDUCATION • Tuition and fees • Room and board • Books and supplies • Transportation • Misc/personal expenses

8. US DEPARTMENT OF EDUCATION (US DOE) FINANCIAL AID PROGRAMS

9. US DOE FINANCIAL AID PROGRAMS • Federal Pell Grant • Federal Supplemental Educational Opportunity Grant • Federal Work-Study Program • Federal Perkins Loan • Federal Direct Stafford Loan • Federal Direct PLUS Loan

10. FEDERAL PELL GRANT • Award to help undergraduate students pay for education • Provides funds to every eligible student • Does not have to be paid back • Based on the EFC • Up to $5,550

11. CAMPUS-BASED PROGRAMS

12. CAMPUS-BASED PROGRAMS • Federal Supplemental Educational Opportunity Grant (FSEOG) • Federal Work-Study Program • Federal Perkins Loan

13. CAMPUS-BASED PROGRAMS • Participating schools receive certain amount of funds for each program. • When funds are depleted for the year, no more awards for that program are given. • Most schools set deadlines early each calendar year. • You should apply early, or you may miss out on “campus-based” programs.

14. FSEOG • Awarded to undergraduate students with exceptional financial need • Determined by the school • Priority given to Federal Pell Grant recipients • Does not have to be paid back • Maximum amount = $4,000 per year (dependent on school’s funding) • $959 Million to an estimated 1.3 million recipients in 2012-2013

15. FEDERAL WORK-STUDY PROGRAM • Provides jobs for undergraduate and graduate students who have financial need • Gives students opportunity to earn money for educational expenses • Example: Traveling • Encourages community service work • Includes on-campus and off-campus jobs • 1.2 Billion given to an estimated 768,000 students in 2012-2013

16. FEDERAL PERKINS LOAN • Awarded to undergraduate and graduate students with exceptional financial need • Determined by the school • For undergraduate students, priority given to Federal Pell Grant recipients • School is the lender • Interest rate = 5% • Grace period = nine months after you graduate, leave school, or drop below half-time

17. FEDERAL PERKINS LOAN • LOAN LIMITS • Undergraduate study • $3,000 per year • $15,000 total debt • Graduate/professional study • $5,000 per year • $30,000 total debt (includes any Perkins loan borrowed as an undergraduate) • Dependent on school’s funding

18. FEDERAL FAMILY EDUCATION LOAN PROGRAMS (FFELP)

19. FEDERAL STAFFORD LOAN • Low interest loan made to students attending school at least half-time • Federal government • Eligible to students regardless of need or family’s income • It is possible for a student to have a Stafford loan partly based on financial need and partly not on need.

20. FEDERAL STAFFORD LOAN • Subsidized Stafford Loan • Need-based • Government pays the interest on the loan while the student is in school and during the grace period • Unsubsidized Stafford Loan • Not need-based • Student is responsible for interest during in-school and grace periods

21. Federal Direct Loan Maximums Up to $5,500 for first year students of which no more than $3,500 may be a subsidized Direct Loan. Student loan amounts are determined by the institution. Dependent Total Additional UndergraduatesSubsidized Unsubsidized First Year $3,500 $2,000 Second Year $4,500 $2,000 Third Year and Beyond $5,500 $2,000 Independent Total Additional Undergraduates SubsidizedUnsubsidized* First Year $3,500 $6,000 Second Year $4,500 $6,000 Third Year and Beyond $5,500 $7,000 *Includes dependents whose parents are unable to borrow under the PLUS Program. DIRECTLOAN LIMITS

22. FEDERAL STAFFORD LOAN • Subsidized loan = interest rate is fixed at 3.4% after July 1, 2012 • Unsubsidized loan = interest rate is fixed at 6.8% • Origination fee = .5% • Default fee = 1%

23. FEDERAL PLUS LOAN • Are for parents who want to borrow money to help pay for their child’s education • May borrow up to the cost of education minus any financial aid

24. FEDERAL PLUS LOAN • Interest rate is fixed at 7.9%. • Loan repayment begins 60 days after money is disbursed. • Check is made out to parent and school. • Student must be enrolled at least half-time.

25. STATE AID PROGRAMS 25

26. NJCLASS State supplemental loan program that provides eligible students with an additional affordable source of funds for meeting college expenses For all New Jersey students attending in-state or out-of-state schools. For all out-of-state students attending a New Jersey schools. One of the lowest fixed supplemental loan interest rates in the country beginning with: 10 Year Repayment Loan of 5.9% 20 Year Repayment Loan (s): Option 1- 20 Year Loan 7.59% Option 2- 20 Year Loan 7.59% Option 3- 20 Year Loan 7.89% * Funds are disbursed on a first-come, first-serve basis

27. FINANCIAL AID PACKAGEING The relationship between state, federal, and institutional aid programs. The FAFSA is used to determine eligibility for federal, state and some institutional need-based aid. In 2010-2011 New Jersey collected four additional data elements to determine state grant eligibility. Estimated Family Contribution (EFC) determines eligibility for federal programs (Pell, FSEOG, FWS, etc.) New Jersey Eligibility Index (NJEI) determines eligibility for a Tuition Aid Grant In 2010-2011, New Jersey is collecting four additional data elements to determine state grant eligibility. Visitwww.hesaa.orgfor EFC and NJEI Estimator

28. OTHER WAYS TO FINANCE YOUR EDUCATION • Tuition Payment Plan • Private loan • Home equity loan • Line of credit

29. Net Price Calculator • All institutions must have a net price calculator posted on their websites. • Students will be able to estimate the individual net price per institution. • Based on full-time degree/certificate seeking undergraduate students.

30. The Cycle of Financial Aid • Jan-March – Students/Parents complete the FAFSA • March-May – Schools send award letters • June-July – School sends Fall Semester bill • August – Payment for Fall bill is due

31. Where Do I Go From Here? • Obtain and review admission, financial aid materials and deadlines from each school to which you are applying • Meet all application deadlines • FAFSA • State Aid • CSS Profile if applicable • Admission

32. Private Scholarship Search • Institution/College web sites • Local library resources • Local businesses, civic organizations and churches • Parent’s employer(s) • www.petersons.com • www.hesaa.org • www.fastweb.com • www.collegeboard.com

33. SUMMARY • Apply early. • Make copies of all documents. • Ask questions. • Do not panic.

34. WEBSITES • www.nelnet.com • www.petersons.com • www.collegeboard.com • www.fastweb.com • www.hesaa.org

35. QUESTIONS