Financing your Education

1. Financing your Education Big Bend Community College

2. Questions we will answer. What is financial aid? Where does it come from? What aid is available? Who is eligible? How do I apply?

3. What is Financial Aid? • Scholarships • Grants • Loans • Employment opportunities

4. Types of Aid • Gift aid: Grants and scholarships (need-based or merit-based) • Self-help aid: Loans and employment (need-based or non-need-based)

5. General Student Eligibility Criteria • Must be enrolled or accepted for enrollment in eligible program of study • Must be pursuing degree, certificate, or other recognized credential • Must be US citizen or eligible noncitizen • Must be registered with Selective Service (if male)

6. General Student Eligibility Criteria cont. • Must have valid Social Security Number • 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 (as defined by school)

7. Goals of Financial Aid • Primary goal is to assist students in paying for college and is achieved by: -Evaluating family’s ability to pay educational costs -Distributing limited resources in an equitable manner -Providing balance of gift aid and self-help aid

8. Definition of Need Cost of attendance (COA) or Budget minus Expected family contribution (EFC) ___________________________________= Need

9. Cost of Attendance • Tuition and fees • Room and board • Books, supplies, transportation, and miscellaneous personal expenses • Loan fees • Study abroad costs • Dependent care expenses • Disability-related expenses • Documented costs for a personal computer

10. Need Varies Based on Cost X 1 Y 2 Z 3 EFC EFC Expected Family Contribution (Constant) Need (Variable) Cost of Attendance (Variable)

11. Principles of Need Analysis • To extent they are able, parents have primary responsibility to pay for dependent student’s education • Students also have responsibility to contribute to educational costs

12. Independent Student Definition • At least 24 years old by Dec. 31 of award year covered by the FAFSA • Married • Has children or dependents (other than a spouse) for whom the student provides more than half support • Orphan or ward/dependent of the court • Veteran of US Armed Forces • Determined to be “independent” by financial aid administrator based on unusual circumstances

13. Federal Pell Grants • Awarded to eligible undergrads pursuing first bachelor’s degree • Portable • Maximum award for 2008-09 = $4,731 • Academic Competitiveness Grant-has to be Pell eligible and completed rigorous secondary classes

14. Federal Supplemental Educational Opportunity Grants (FSEOG) • Eligible students: -Undergraduates pursuing first bachelor’s or professional degree - Awarded first to students with “exceptional financial need” (students with lowest EFCs at that school) -Priority to Federal Pell Grant recipients

15. Federal Work-Study (FWS) Earnings • Eligible students: Undergraduate, graduate, and professional students • Employment may be on or off campus

16. Federal Perkins Loans • Eligible students: Undergraduate, graduate, and professional students -Priority to students who show “exceptional need” as defined by school • Maximum annual loan amounts: - $4,000 per year undergrad students - $6,000 grad and professional students

17. Stafford Loan • Student loans available under: -Federal Family Education Loan (FFEL) program with funds provided by lenders -Federal Direct Student Loan program with funds provided directly by federal government via participating schools • School determines loan eligibility and delivers loan proceeds to students

18. Stafford Loans • Subsidized: Must demonstrate “need” • Unsubsidized: Not based on “need” • Base annual loan limits (combined sub and unsub - $ 5,500 for 1st year dependent undergrads - $ 9,500 for 1st year independent undergrads - $ 6,500 for 2nd year dependent undergrads - $10,500 for 2nd year independent undergrads - $ 5,500 for each remaining undergrad year

19. Stafford Loans • Additional unsub loan eligibility for independent undergrad, grad, and dependent students whose parent are unable to borrow PLUS: -$4,000 per year for 1st and 2nd year -$5,000 per year for remaining years of under-grad study

20. Application Process • Submit FAFSA prior to school’s deadline • Most aid awarded on “first-come, first-served” basis • To ensure maximum consideration for federal, state, and institutional aid, check information from each school to determine: • Required application materials • Application deadlines

21. FAFSA • Collects family’s personal and financial information used to calculate student’s EFC • Available in English and Spanish • Electronically via FAFSA on the Web

22. FAFSA on the WEB • Web site: www.fafsa.ed.gov • 2009-10 FAFSA on the Web available on or after Jan. 1, 2009 • Pre-application Worksheet: available early November at high schools • Questions follow order of FAFSA on the Web • Apply as soon after Jan. 1 as income can be estimated

23. PIN Registration • Web site: www.pin.ed.gov • Can get PIN before Jan. 1, 2009 • Not required, but speeds processing • May be used by students and parents throughout aid process, including subsequent school years

24. CAUTION! • Avoid being charged a fee to file the FREE application for Federal Student Aid • Completion and processing of the FAFSA are FREE • If filing via FAFSA on the Web, go directly to www.fafsa.ed.gov • Contact financial aid office for help completing the FAFSA

25. FAFSA Processing Results • Central Processing System (CPS) notifies student of FAFSA processing results by: -Paper Student Aid Report (SAR) if paper FAFSA was filed and student’s e-mail address was not provided -SAR Information Acknowledgement if filed electronically via FAFSA on the Web

26. Where Do I Go From Here? • Obtain and review admissions and financial aid Web sites and materials for each school to which you are applying • Meet all application deadlines -Complete FAFSA and other application materials if required by school -Submit all requested follow-up documents • Investigate other sources of aid

27. Other Government Resources • Corporation for National and Community Service (AmeriCorps) www.americorps.gov • Veteran’s benefits-www.gibill.va.gov • ROTC scholarships or stipends • Bureau of Indian Affairs (BIA) grants • State Division of Vocational Rehabilitation • US Dept. of Health and Human Services(HHS) Bureau of Health Professions-www.bhpr.hrsa.gov/dsa

28. Other Sources of Funds • State grants, scholarships, loans, and work programs (usually only need the FAFSA) • State Need grant and State Work Study in WA • School need-based and non-need-based programs (academic, athletic and other talent-based scholarships and grants) • Private business scholarships (Wal-Mart, Gates Foundation, etc) • Civic organization scholarships (Elks, PTA, etc)

29. Private Scholarship Search Free Internet scholarship search engines: • Finaid on the Web: www.finaid.org • College Board: www.collegeboard.com • FastWeb: www.fastweb.com • Scholarship Resource Network Express: www.srnexpress.com • GoCollege: The Collegiate Websource: www.gocollege.com

30. Private Scholarship Search • Local library resources • Local businesses and civic organizations • Parents employers • High school counselor or career office

31. Avoid Being Scammed To check legitimacy of scholarship search services or individual, for information about financial aid scam, and tips to avoid being scammed visit these Web sites: US Dept. of Education: www.studentaid.ed.gov/students/publications/lsa/index.html Federal Trade Commission: www.ftc.gov/bcp/conline/publs/alerts/ouchart.htm Better Business Bureau: www.bbb.com

32. Questions? André Guzman (509) 793-2031 Rita Delgado (509) 793-2032 José A. Esparza (509) 793-2072 BBCC Financial Aid (509) 793-2034 BBCC toll free #: (877) 745-1212 Big Bend Community College