College Financial Aid

1. CollegeFinancial Aid Everyone CAN afford to go to college

2. Myths about Financial Aid • My parents can’t afford to send me to college • My parents make too much money, so I’ll never get help • Only people with perfect GPA’s get scholarships • You must pay someone to help you get financial aid

3. Categories of Financial Aid • Gift Aid Grants – free money not to paid back Scholarships – based on talent, merit • Self-Help Aid Loans – to be paid back with interest Work Study – part time job on/off campus

4. Truth about Financial Aid • No one is going to knock on your door or call you on the phone and give you free money for college. • YOU must act to seek out the money that is available to you.

5. Is it Worth the Trouble? • Yes! More than $4,,000,000 was awarded to students attending college in Texas in 2003-2004. • 78.0% was from the federal government. • 22.0% was from the state or institutions or private sources. • 58.33% was in the form of loans.

6. Select your school • Two year community, junior or technical college average cost per year is approximately $5000 (without room and board) and then transfer to a university. • Four year universities average cost range from $12,000 to $20,000+ per year including room and board.

7. Apply ! • You are guaranteed NOT to be admitted if you don’t apply. • DON”T wait for test scores, essay, etc. APPLY NOW • All Texas 4 year universities use the “Texas Common Application”. Go on line to complete the application. • Two year colleges use separate applications

8. Financial Aid begins with FAFSA Free Application for Federal Student Aid Submit the FAFSA online as soon as you have your parents’ tax information after January 1, 2007. NOW! Apply for the Federal PIN number at www.PIN.ed.gov DO NOT lose the number!

9. After you submit the FAFSA You will receive an email from the Department of Education with the results of the FAFSA called the Student Aid Report (SAR). Review the Student Aid Report and make any necessary corrections online at www.fafsa.ed.govusing your Federal PIN

10. The Student Aid Report (SAR): Summarizes the information you provided States the amount the federal government thinks your family can spend on college known as: Expected Family Contribution, or EFC

11. Expected Family ContributionEFCFederal Needs Analysis Formula Student contribution from income + Student contribution from assets + Parent contribution from income + Parent contribution from assets = EFC Expected Family Contribution

12. Principles of Needs Analysis • To the extent they are able, parents have primary responsibility to pay for their dependent children’s education • Students also have a responsibility to contribute to their educational costs • Families should be evaluated in their present financial condition • A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect a family’s ability to pay

13. Contact the Financial Aid Office Get a contact person who knows your name. Keep notes of who you talk to, what they said and the date. Be friendly, courteous, patient and start early. Remember – Money goes to the first in line. Remember – No one is going to find you and GIVE you money. You must ask.

14. Role of the Financial Aid Office • Determines eligibility for financial aid • Packages aid • Sends an award notification which includes: • Student’s cost of attendance • Student’s EFC • Amount of student’s financial need • Programs and amount from each program for which the student is eligible • How and when aid will be disbursed • Terms and conditions of student’s award • Monitor’s Satisfactory Academic Progress

15. Cost of Attendance • Tuition and Fees • Books and Supplies • Room and Board • Transportation • Miscellaneous/Personal Expenses • Dependent Care • Study Abroad • Expenses Associated with a Disability

16. Definition of Need Cost of Attendance - Expected Family Contribution = Financial Need

17. Federal Pell Grant • Awarded to eligible undergraduates pursuing first bachelor’s degree • Actual award amount based on • Expected Family Contribution (EFC) • Enrollment status • Current maximum award = $4,050

18. Federal Supplemental Educational Opportunity Grant (FSEOG) • Eligible students • Undergraduates pursuing first bachelor’s • Awarded first to students with exceptional financial need (i.e., students with the lowest EFCs at that school) • Priority to Federal Pell Grant recipients • Annual award amounts • $100 minimum • $4,000 maximum

19. Texas Grant • Must be Texas Resident • Graduated from a Texas public or accredited private high school • Submit your final semester transcript • Complete Recommended or Advanced curriculum • Must have financial need as determined by school • Must be enrolled at least 3/4 time (9 hours min) • Must maintain a 2.5 GPA to remain eligible

20. Scholarships Institutional Scholarships – each college has scholarships that they award. Departmental Scholarships – for students who have a declared major (engineering or choir). Private Scholarships:

21. Private Scholarships Contact student’s and parent’s employers Contact community and civic groups Beware of scholarship “application fees” Counselors’ Office – outside in file cabinet & webpage Internet: College Board’s Scholarship Search www.collegeboard.com/paying FastWeb Scholarship Search www.fastweb.com Scholarship Resource Network Express www.srnexpress.com

22. Federal Work Study Employment may be on/off campus Eligible employers School Federal, state, or local public agency Private nonprofit organization For-profit organization Schools must use portion of FWS funds for community service activities Work-Study allows students to gain valuable work experience and form relationships with faculty and staff.

23. Federal Perkins Loan Eligible students Undergraduate or graduate students Priority to students who show exceptional need Loan amount varies Maximum annual loan $4,000 undergraduate students $6,000 graduate and professional degree students Interest rate: very competitive Nine-month grace period Repayment period may be up to10 years

24. Federal Stafford Loan Subsidized Stafford: Must demonstrate “need”, no interest until you stop school Unsubsidized Stafford: Need is not a consideration Base annual loan limits (combined subsidized and unsubsidized) $2,625 for Freshman Grade Level (0-29 credit hours) $3,500 for Sophomore Grade Level (30-59 hours) $5,500 Junior and Senior Grade Level (60 and above) $8,500 for each year of graduate/professional study Variable interest rate, capped at 8.25%

25. Federal Stafford Loan • Additional unsubsidized loan eligibility for independent undergraduates, graduate students, and dependent studentswhose parents are denied by the lending institution under the Parent PLUS Loan program: • $4,000 per year for freshman and sophomore years of undergraduate study • $5,000 per year for junior and senior years of undergraduate study • $10,000 per year for graduate and professional students

26. Federal Parent PLUS Loan • Borrowers are parents of dependent undergraduate students • Annual loan limit: cost of attendance minus other aid • Variable interest rate, not to exceed 9% • Interest rate for 7/1/2006 – 6/30/2007 is 8.50% • Loan fees based on principal amount of each loan: • FFEL Program: 1% insurance premium and 3% origination fee • Direct Loan Program: 4% loan fee • Repayment begins 60 days after loan is disbursed

27. Private Loans • Provide additional source of funds to meet cost of education • FAFSA is not required • Privately guaranteed • Limited Deferment and Forbearance Options • Non-subsidized • Most require school certification

28. Financial Aid Tips for Students Complete the 2006-2007 FAFSA as soon as possible after January 1, 2006 Keep copies of all forms Know the deadlines Be sure to respond to all requests from the financial aid office ASAP! Requested financial aid forms are available online Contact the Financial Aid Office EARLY

29. CollegeFinancial Aid Everyone CAN afford to go to college