Financial Aid for College 2010-2011 December 9, 2009

1. Financial Aid for College2010-2011December 9, 2009

2. What We’ll Talk About Financial Aid Basics College Costs Application Process Eligibility Determination Financial Aid Programs Tax Credits

3. What Is CFNC? 501(c)(3) nonprofit -administers grants, loans and savings program on behalf of the state State-funded K-16 partnership (NCDPI, NCCCS, NCICU, UNC) administered by UNC General Administration State agency responsible for statewide college aid programs – grants scholarships, loans, 529 savings

4. Primary Goal = Access GOAL To increase the college-going rate in North Carolina with particular attention toward “first-generation” college students. Two obstacles facing first-generation college students: (1) Can I really go to college in NC? (2) Can I afford to go to college?

5. CFNC.org Usage Statistics 2,767,885 Student Accounts created 138,012 High School Transcripts delivered 9,585 Daily Visitors Average visit is 9 mins 1,455,881 Online Applications submitted As of July 31, 2009

6. Financial Aid Basics Gift Aid Grants Scholarships Self Help Employment Loans

7. Financial Aid Basics Merit-based aid Special talent Academics Athletic Other Need-based aid Financial consideration

8. Financial Aid Basics Family is responsible for costs to the extent of ability to pay college costs Purpose of need-based financial aid is to provide access and choice Eligibility determination is annual

9. College Costs Tuition Required Fees Room Meals (Board)

10. College Costs Books and Supplies Transportation Personal and Miscellaneous Expenses Loan Fees

11. College Costs North Carolina Averages 2 Year Public 4 Year Public 4 Year Private $ 9,200 $14,500 $27,000 National Averages 2 Year Public 4 Year Public 4 Year Private $12,900 $17,175 $35,000 NC averages calculated by NCSEAA for 2007-08 academic year. National averages from College Board.

12. Ways to Pay for College Savings Current Income Grants and Scholarships Federal Education Loans Private Loans

13. Application Process Free Application for Federal Student Aid (FAFSA) fafsa.gov Signature PIN pin.ed.gov

14. Application Process FAFSA On the Web Worksheet

15. Application Process Apply Early (after January 1) Meet your college’s deadlines Do not wait until you are admitted Complete all questions accurately Print and save the FAFSA for your own records

16. 2010 FAFSA Day Saturday, February 19, 2011 9:00 a.m. to 12:00 p.m. at most locations Register at CFNC.org/fafsaday or call 866-866-CFNC Brief FAW

17. FAFSA Who provides information on the FAFSA? Dependent student and parent(s) Independent student and spouse (if married)

18. FAFSA – Dependency Status Dependent student answers NO to all of these questions Born before January 1, 1987? Working on Masters or Doctorate in 2010-11? Is married? Has children or other dependents of his/her own that he/she supports (more than 50%) Is on active duty in the U.S. Armed Forces? Is a veteran of the U.S. Armed Forces?

19. FAFSA – Dependency Status Parents are deceased or student is a ward of the court? Student is in foster care or a ward of the court at any time when he/she was 13 years of age or older? Is an emancipated minor or is in legal guardianship? Has been verified as an unaccompanied youth who is a homeless child or youth or at risk of homelessness?

20. FAFSA – Who is a Parent? Two biological or adoptive parents married to each other Single parent Parent and Stepparent

21. Application Process College Scholarship Service Profile Form Institutional Financial Aid Application

22. Application Process – FAFSA Results Student Aid Report FAFSA Results An estimate of the Pell Grant award amount An indication of student loan eligibility Links to College Navigator for detailed information about the institutions selected: Programs offered Tuition and fees Graduation rates, etc. Campus financial aid office gets a copy of your Student Aid Report

23. Eligibility Determination Student and Parent Information is analyzed Income (taxable and untaxed) Assets Family size, number of family members in college Other characteristics Expected Family Contribution Student Contribution + Parent Contribution

24. Eligibility Determination Cost of Attendance minus Expected Family Contribution equals Financial Aid Eligibility (Need)

25. Eligibility Determination College A College B College C 9,200 14,500 27,000 - 5,000- 5,000- 5,000 4,200 9,500 22,000 EFC remains the same. Changes in cost equals changes in eligibility

26. Financial Aid Programs – Federal Grants Federal Programs Federal Pell Grant Federal Supplemental Grant (FSEOG)

27. Financial Aid Programs – Federal Self-Help Programs Federal Work Study Federal Perkins Loan Federal Education Loans Subsidized Stafford Loan Unsubsidized Stafford Loan Parent Loan for Undergraduate Students GradPLUS

28. Financial Aid Programs – Other Federal Programs Post 911 GI Bill Greatly expanded benefits for veterans of U.S. armed services VA.gov Check with office designated to work with veterans on campus

29. Financial Aid Programs – State Aid NC Student Incentive Grant NC Education Lottery Scholarship Sector-based aid Community College Grant UNC Need-based Grant NC Legislative Tuition Grant & State Contractual Scholarship

30. Financial Aid Programs – State Aid Teaching Fellows Prospective Teacher Scholarship Loan Other programs for future teachers for those already in college Nurse Scholars Nurse Education Scholarship Loan North Carolina Loan Program for Health, Science and Mathematics Robert Byrd Honors Scholarship Child Welfare Postsecondary Support Program

31. Financial Aid Programs – Institutional and Private Aid from your Campus Grants, Scholarships, Employment, Yellow Ribbon program for Veterans Check with Financial Aid Office Aid from Others Local Organizations Employers and Church Your High School Check with your School Counselor

32. Financial Aid Programs College Payment Plan Private Student Loans Other Loans Don’t Get Hooked

33. Additional Information Award letters and notices from your college Paper Electronic Apply each year Student must make satisfactory academic progress Ask questions Keep copies

34. Additional Information Verification Special Circumstances Death Disability Divorce/Separation Loss of Employment Unusual Medical/Dental Expenses Other

35. Paying For College – Good Financial Habits Financial Literacy 101

36. Tax Credits - Calendar Years 2009 and 2010 Consult the most recent IRS publications and with your tax adviser IRS.gov has the most recent information and definitions for various programs, including American Opportunity Tax Credit Lifetime Learning Tax Credit Tuition and Fees Tax Deduction Student Loan Interest Deduction

37. American Opportunity Tax Credit Maximum credit is $2500 Available for the first 4 years of postsecondary education Up to 40% refundable credit Some limitations apply if Modified Adjusted Gross Income exceeds $80,000 (single filer) or $160,000 (married filers) Phased out if Modified Adjusted Gross Income exceeds $90,000 (single filer) or $180,000 (married filers)

38. Lifetime Learning Tax Credit Maximum credit is $2000 Available for all years of postsecondary education or for courses to acquire or improve job skills Some limitations apply if Modified Adjusted Gross Income exceeds $50,000 (single filer) or $100,000 (married filers) Phased out if Modified Adjusted Gross Income exceeds $60,000 (single filer) or $120,000 (married filers)

39. Questions? CFNC.org 866-866-CFNC