Financial Assistance 101

1. Financial Assistance 101 Making a college education affordable

2. Financial aid rocks! http://www.youtube.com/watch?v=e2d7IfFgxTs

3. Purpose of this Presentation • To address financial concerns of students of CLHS with regard to financial assistance for college • To inform students and their parents of CLHS of the variety of options in financial assistance • To inform students and parents/guardians of application procedures, deadlines, and suggested timelines • To familiarize students and parents/guardians with useful resources for college financing • To introduce the Free Application for Federal Student Aid (FAFSA)

4. Is a college education worth the money? How much will college cost? What is financial aid? How is financial need determined? What are my options for financial assistance? Do I have to pay back my loans while I am in school? What is FAFSA? Do I have to accept the offers I receive? Is our income too high to qualify for financial assistance? How do I apply for assistance? When are the deadlines? Common Questions About Financial Aid

5. Is a college education worth the money? In 2010, individuals with higher education had a lower unemployment rate and higher earnings.  Note: Earnings are for full-time wage and salary workers ages 25 and over. Source: Bureau of Labor and Statistics, Current Population Survey (May 27, 2010) U.S. Bureau of Labor and Statistics.(2010) Current Population Survey. Retrieved July 28, 2011 from http://www.bls.gov/emp/ep_chart_001.htm

6. How much will college cost? • The cost of attendance in college generally include: • Tuition and fees • Room and board • Books and supplies • Transportation • Personal expenses •                      ~The College Board, 2009 • There are some variations in costs of room and board and tuition fees, with some colleges offering flexibility in dormitory options and meal plans. Additionally, tuition in private colleges is fixed, while at public institutions it is based on the student's course load or state of residence. • There are various college cost calculators that can be found online, including ones atwww.collegeboard.com,http://www.finaid.org, and https://www.michigancap.org/ • The College Board. (2009). Financial aid. In College counseling sourcebook: Advice and strategies from experienced school counselors (6th ed.) (pp. 8-1 - 8O). New York, New York.

7. How is financial need determined? • Financial need is determined by a formula determined by the U.S. Congress. • The information that is provided on your FAFSA application (income, assets, number of family members, etc.) is used to determine the amount of financial aid that you will be awarded. • These numbers are also used to determine the Expected Family Contribution (EFC). • Different rates are applied to students with varying circumstances; i.e. students dependent on their parents, students independent of their parents, students with dependents, etc. http://www2.ed.gov/programs/fws/index.html

8. Financial Need Formula Cost of Attendance- Expected Family ContributionFinancial Need http://gpschools.schoolwires.net/1768201029131455687/lib/1768201029131455687/FinanAidPres.pdf

9. What are my options for financial assistance? There are three main types of financial aid that your student may be eligible for: •  Grants and scholarships •  Loans •  Work-study The College Board. (2009). Financial aid. In College counseling sourcebook: Advice and strategies from experienced school counselors (6th ed.) (pp. 8-1 - 8O). New York, New York. http://trends.collegeboard.org/student_aid/report_findings/indicator/304#f84

10. Grants Grants - This type of "Gift Aid" is money that does not have to be paid back. Eligibility - Only undergraduate students who demonstrate the most financial need are eligible. FAFSA is required. Types of Grants - There are both Federal and State Grants. http://www.emich.edu/finaid/grants.php

11. FEDERAL GRANTS Pell (In danger) Federal Supplemental Education Opportunity Grant (SEOG) Academic Competitiveness Grant SMART TEACH         STATE GRANTS Michigan Competitive Scholarship (No longer available) Tuition Incentive Program Robert C. Byrd Scholarship King-Chavez-Parks Future Faculty Fellowship Types of Grants http://www.emich.edu/finaid/grants.php http://gpschools.schoolwires.net/1768201029131455687/lib/1768201029131455687/FinanAidPres.pdf

12. How are grant amounts determined? The student's Expected Family Contribution (EFC).  Determined by FAFSA.   The cost of attendance. (Depends on Institution)  The student's enrollment status. (Full or Part)  If the student attends for the full academic year. http://pellgrantqualifications.com/

13. Help with FAFSA College Goal Sunday: provides face-to-face help to fill out the FAFSA form online. College Goal Sunday 2012:     -  Sunday, February 12th      -  2:00 pm - 4:00 pm     - Halle Library at Eastern Michigan University For more information visit: http://www.micollegegoal.org/ http://www.micollegegoal.org/Students/Home/tabid/1350/Default.aspx

14. FAFSA True Website: www.fafsa.ed.gov/ Business Website: www.fafsa.com Needed Information/Materials:      - Student Information/Dependency Status     - Parent and Student Financial Information              - income             - assets             - family size             - number of students in college FAFSA determines eligibility for federal and state grants, scholarships, and work study programs, in addition to federal loans FAFSA Hard Copy http://www.fafsa.ed.gov/ http://gpschools.schoolwires.net/1768201029131455687/lib/1768201029131455687/FinanAidPres.pdf http://www.collegeboard.com/parents/pay/scholarships-aid/21395.html

15. Scholarships Scholarships - Another form of "Gift Aid" that the student does not have to pay back. Criteria - Based on academic achievements or special talents. Types of Scholarships - Visit www.fastweb.com Two more recommended websites : www.michigan.gov/studentaid http://www.emich.edu/finaid/scholarships/Scholarships11-12.xls

16.  Scholarships come in all varieties United Youth Fitness Scholarship                         Coca-Cola Scholarship                               Hispanic Scholarships                                                                    Hope Scholarship Athletic Scholarships Essay Scholarship Contests GEAR UP! Michigan Scholarship Best Buy Scholarship           http://www.finaidfacts.org/scholarship_types.htm

17. College Scholarship Service (CSS)/PROFILE Determines student's eligibility for nonfederal student aid. Colleges use the information completed on the PROFILE to award funds.  Requires more financial information than FAFSA. Can only be completed online, after October 1st  Visit: www.collegeboard.org https://profileonline.collegeboard.com/prf/index.jsp http://www.collegeboard.com/student/pay/scholarships-and-aid/8374.html https://profileonline.collegeboard.com/prf/PXRemotePartInstitutionServlet/PXRemotePartInstitutionServlet.srv

18. Michigan Education Trust (MET) Pre-purchased undergraduate tuition for a student living in Michigan that will attend a Michigan public university/college or in-district tuition at community colleges. If a student chooses to go to school out of state or to a private college MET will be refunded or it can be applied directly towards the private or public out-of-state college. If you have a MET contract, contact the MET offices or go to their website for information on the details of your contract and how it can be applied to the college you will be attending. Similar Program:     - Michigan Education Savings Plan (MESP) http://www.michigan.gov/setwithmet/0,1607,7-237-43437---,00.html http://www.michigan.gov/documents/setwithmet/3183web_206979_7.pdf http://www.michigan.gov/documents/fullbenefits_10188_7.pdf http://www.misaves.com/faq/index.shtml http://www.michigan.gov/setwithmet/0,1607,7-237-44460-154276--,00.html

19. 3 Categories of Loans: Student loans Federal Direct (formerly Stafford) Perkins Parent loans, e.g.:  PLUS (Parent Loan for Undergraduate Students) Private student loans Also, there are consolidation loans and peer-to-peer education loans Important Terms: Subsidized: Need based Interest free while in school 3.4% interest rate Unsubsidized: Non-need based You pay interest but can defer 6.8% interest rate Loans: Categories and Terms http://www.finaid.org/loans/

20. Federal Direct Loans: low interest student must be at least half time can be used at a four- year college, community college, or trade, career, or technical school  can be subsidized or unsubsidized  Federal Student Loans • Federal Perkins Loan: • low interest • need based • repayment begins 9 months after graduation • 5% interest rate • Up to $5,500 for undergraduate students • Desirable based on interest rate and repayment terms http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp http://www2.ed.gov/programs/fpl/index.html Flanagan, L. (personal communication, July 29, 2011)

21. Direct PLUS Loan is available for parents with dependent children. Certain qualifications must be met: Parent must be either biological or adoptive. Student must attend at least half-time in a school that participates in the Direct Loan program "To qualify as dependent, the student must be under 24 years, unmarried, has no dependents, a veteran,a graduate or professional degree student, or a ward of the court." Parent must not have a bad credit history Student and parent must be U.S. citizens or eligible non-citizens Parent Loans http://studentaid.ed.gov/PORTALSWebApp/students/english/parentloans.jsp

22. Private Loans Also known as Alternative Education Loans, are used to make up the difference between what the government allows you to borrow and the actual cost of your education.   Private loans  come from private lenders that might include banks, colleges, or other organizations. Student should fill out the FAFSA  to see how much federal money they qualify for first, since most private loans have high interest rates.  http://www.finaid.org/loans/privatestudentloans.phtml includes a listing of the best private student loans. http://www.finaid.org/loans/privatestudentloans.phtml

23. Work Study • Students can work for 10-15 hours a week through the Federal Work Study Program • About 3400 post secondary institutions participate in the Federal Program. • Student's compensation must be minimum wage or above. • Eligibility is determined by the U.S.Department of Education, using the information reported on the FAFSA as well as the expected family contribution (EFC). http://www2.ed.gov/programs/fws/index.html The College Board. (2009). Financial aid. In College counseling sourcebook: Advice and strategies from experienced school counselors (6th ed.) (pp. 8-1 - 8O). New York, New York.

24. When are the deadlines? 2011-2012 FASFA DEADLINES Federal Deadlines - Online applications must be submitted by midnight Central Daylight Time, June 30, 2012. State Deadlines - Each state has different deadlines. Michigan's deadline is March 1st, by midnight, Central Standard Time. College Deadlines : Not all colleges have the same deadlines. Contact the college(s) you plan on attending for deadline information. http://www.fafsa.ed.gov/fotw1112/pdf/Deadlines.pdf

25. Ideal Timeline September – October    - Apply to college(s)     - Start applying for scholarships     - Find out college's scholarship requirements November - December - Continue applying for scholarships     - Organize materials for FAFSA  January - February     - File the FAFSA and CSS/Profile(the earlier the better!) March - April - Receive financial aid packages from each school May 1 - Make final college decision     - Contact your future college's financial aid office to make sure everything is set for next year.  Summer before college     - Work to make money to help pay for college! https://profileonline.collegeboard.com/prf/index.jsp, http://www.fafsa.ed.gov/fotw1112/pdf/PdfFafsa11-12.pdf The College Board. (2009). Financial aid. In College counseling sourcebook: Advice and strategies from experienced school counselors (6th ed.) (pp. 8-1 - 8O). New York, New York., Flanagan, L. (personal communication, July 29, 2011) 

26. Is our income too high to apply for financial assistance? • College Aid is meant to make a college education affordable, whatever your financial situation. • Home equity is no longer reported on the FAFSA. • There are several factors considered how much aid a student will receive, including number of college age children in the family, income, medical expenses and children's assets. •  The best way to find out is to fill out the FAFSA!! http://www.petersons.com/college-search/financial-aid-higher-income.aspx http://www.collegeboard.com/parents/pay/scholarships-aid/21395.html 

27. Sample Offers  The College Board. (2009). Financial aid. In College counseling sourcebook: Advice and strategies from experienced school counselors (6th ed.) (pp. 8-14 - 815). New York, New York. Green School Blue School

28. Do I have to accept the offers I receive? No!   You get to decide if the offer is best for your  family and your financial situation.

29. Useful Resources FAFSA on the web                www.fafsa.ed.gov To request FAFSA pin           www.pin.ed.gov Student Aid on the Web        www.studentaid.ed.gov/ Free Scholarship Search     www.fastweb.com College Board                      www.collegeboard.com             Check the websites of the colleges you are interested in!

30. QUESTIONS?

31. References • Charta Squad.(2010) FAFSA Hooray [video file] Retrieved from http://www.youtube.com/watch?v=e2d7IfFgxTs • Eastern Michigan UniversityOffice of Financial Aid/Grants (2011). Education First. Retrieved on July 28, 2011 from http://www.emich.edu/finaid/grants.php • Federal Student Aid. (2010). Home: FAFSA on the web. Retrieved July 31,2011 from http://www.fafsa.ed.gov/ • FinAidFacts.org. (2011) Types of Scholarships, Retrieved August 2, 2011 from http://www.finaidfacts.org/scholarship_types.htm • FinAid Page LLC. (2011)The Smart Student Guide to Financial Aid, Retrieved August 1, 2011 from http://www.finaid.org/loans/ • Flanagan, L. (personal communication, July 29, 2011)  • Florian, Judy. (n.d.) Financial Aid 101. Retrieved July 31, 2011 from Grosse Pointe North High School site: http://gpschools.schoolwires.net/1768201029131455687/lib/1768201029131455687/FinanAidPres • Michigan College Goal Sunday. (2011) College Goal Sunday 2012. Retrieved July 29, 2011 from http://www.micollegegoal.org/Students/Home/tabid/1350/Default.aspx

32. References • Pell Grant Qualifications.(2008) Retrieved July 28 from http://pellgrantqualifications.com/ • Peterson's (2011). Peterson's college search.  Retrieved August 1, 2011 from http://www.petersons.com/college-search/financial-aid-higher-income.aspx • State of Michigan. (2011) Michigan Education Trust: Student handbook for full, limited and community college benefits contracts.  Retrieved July 29, 2011 from http://www.michigan.gov/documents/fullbenefits_10188_7.pdf • State of Michigan. (2011). Set with MET: Frequently asked questions. Retrieved on August 2, 2011 from http://www.michigan.gov/setwithmet/0,1607,7-237-44460-154276--,00.html • State of Michigan. (2011) MET: Priority information for parents. Retrieved July 29, 2011 from http://www.michigan.gov/documents/setwithmet/3183web_206979_7.pdf •  State of Michigan. (2011) SET with MET - What is MET?. Retrieved July 29, 2011 from http://www.michigan.gov/setwithmet/0,1607,7-237-43437---,00.html

33. References • The College Board.(2011) College financing calculators: Do the math. Retrieved July 28, 2011 from http://www.collegeboard.com/student/pay/add-it-up/401.html • The College Board. (2009). Financial aid. In College counseling sourcebook: Advice and strategies from experienced school counselors (6th ed.) (pp. 8-1 - 8O). New York, New York. • The College Board. (2011). CSS/Financial Aid PROFILE. Retrieved July 31, 2011 from https://profileonline.collegeboard.com/prf/index.jsp • The College Board. (2011).Profile online 2011-12 participating institutions.  Retrieved on August 2, 2011 from https://profileonline.collegeboard.com/prf/PXRemotePartInstitutionServlet/PXRemotePartInstitutionServlet.srv • The College Board. (2011). Student loans for college. Retrieved July 31, 2011 from http://www.collegeboard.com/student/pay/loan-center/433.html • The College Board. (2010). Trends in studentaid 2010. Retrieved July 30, 2011 from http://trends.collegeboard.org/student_aid/report_findings/indicator/304#f84 • TIAA-CREF Tuition Financing Inc.(n.d.) Michigan Education Savings Programs FAQ. Retrieved on August 2, 2011 from http://www.misaves.com/faq/index.shtml • U.S.Bureau of Labor and Statistics.(2010) Current Population Survey. Retrieved July 28, 2011 from http://www.bls.gov/emp/ep_chart_001.htm

34. References • U.S. Department of Education. (2010, November). Do you need money for college? Federal student aid at a glance 2011-12. [handout] Federal Student Aid. • U.S. Department of Education. (2009). Federal Perkins Loan Program, Retrieved August 1, 2011 from http://www2.ed.gov/programs/fpl/index.html • U.S. Department of Education.(2009).Federal Work Study (FWS) program, Retrieved July 28, 2011 from http://www2.ed.gov/programs/fws/index.html • U.S. Department of Education (2011). Student Aid on the Web, Retrieved August 1, 2011 from http://studentaid.ed.gov/PORTALSWebApp/students/english/parentloans.jsp