Pre-College Overview

1. Pre-College Overview For High School Students, Parents and Counselors NewYorkStateFinancialAidAdministrators Association Presented by NYSFAAA 2002

2. Introduction • What is Financial Aid? • Grants • Scholarships • Loans • Employment Opportunities Presented by NYSFAAA 2002

3. Two Categories of Aid • Merit-Based Aid • Need Based Aid Presented by NYSFAAA 2002

4. You May be Eligible for Financial Aid. First, you must apply. • If eligible, an award letter is sent to the student offering • Grants (gift aid) • Loans (must be repaid) • Work Programs Presented by NYSFAAA 2002

5. To receive aid, you first must . . . • Have a high school diploma or General Education Equivalent (GED) Certificate • Be enrolled or accepted for enrollment as a regular student working toward a degree or certificate in an eligible program • Be a U.S. Citizen or eligible non-citizen Presented by NYSFAAA 2002

6. You must also . . . • Have a valid Social Security number • Show a valid form of identification (Driver’s License Or State I.D.) • Register with Selective Service • Complete the Free Application for Federal Student Aid (FAFSA) Presented by NYSFAAA 2002

7. The Financial Aid System is a Partnership Between . . . • The funding source • The school • The student & family Presented by NYSFAAA 2002

8. What This Means • It is assumed that parents will help students pay for their college education expenses to the extent that they are able to • It is further assumed that students will contribute through savings and part-time job earnings Presented by NYSFAAA 2002

9. Eligibility for Aid • Based upon an analysis of the student (and parent) financial need from data supplied on the Free Application for Federal Student Aid (FAFSA) Presented by NYSFAAA 2002

10. Definition of “Need” Cost of Attendance (COA) - Expected Family Contribution (EFC) = Financial Need Presented by NYSFAAA 2002

11. Cost of Attendance Includes: • Tuition and fees • Books and supplies • Room and Board • Transportation • Miscellaneous personal expenses • Loan Fees • Expenses Associated with Disability • Dependent or Elder Care Expenses • Expenses for Study Abroad or Cooperative Education Programs Presented by NYSFAAA 2002

12. Other Resources • If you have other resources, they will reduce your need. Other resources include: • Private Scholarships • Employee Benefits • High School/Community Awards After your need is determined, the school tries to meet that need with financial aid. Presented by NYSFAAA 2002

13. Principles of Need Analysis • To the extent possible, parents have the primary responsibility to pay for their dependent child's education. • Students also have a responsibility to contribute to the educational costs from savings and employment. • Families should be evaluated in their current financial condition. Presented by NYSFAAA 2002

14. Principles of Need Analysis • A family’s ability to pay must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect the family’s ability to pay. Presented by NYSFAAA 2002

15. Types ofNeed-Based Aid • Gift Aid • Self-Help Presented by NYSFAAA 2002

16. Types of Gift Aid • Federal Grants • Pell Grant • FSEOG • New York State Grants • Tuition Assistance Program • NYS World Trade Center Relief Fund • Institutional Grants • Private Grants Presented by NYSFAAA 2002

17. Types of Gift Aid (continued) • Federal Scholarships • State Scholarships • Institutional Scholarships • Private Scholarships Presented by NYSFAAA 2002

18. Types of Self-Help Aid • Loans: • Federal Perkins Loan • Federal Family Education Loan Program (FFELP) • William D. Ford Direct Loan Program • Institutional Loans • Private Loans Presented by NYSFAAA 2002

19. Types of Self-Help Aid (continued) • Employment • Federal Work Study Program • Institutional Employment • Off Campus Employment Presented by NYSFAAA 2002

20. Federal Pell Grants • Used as the foundation of the financial aid package • Awarded to eligible undergraduates pursuing a 1st baccalaureate or professional degree • Aid officer determines actual award amount based on COA, enrollment status, and EFC Presented by NYSFAAA 2002

21. Federal CampusBased Programs • Federal Supplemental Educational Opportunity Grant (FSEOG) • Federal Work Study Program (FWS) • Federal Perkins Loan Presented by NYSFAAA 2002

22. Federal Supplemental Educational Opportunity Grant (FSEOG) • Eligibility • Undergraduate students pursuing a 1st baccalaureate or professional degree • Awarded first to students with exceptional need • Priority given to Federal Pell Grant recipients Presented by NYSFAAA 2002

23. Federal Supplemental Educational Opportunity Grant (FSEOG) • Annual Award Amounts • $100.00 minimum • $4000.00 maximum (actual maximum is determined by institution based funding policy) Presented by NYSFAAA 2002

24. Federal Work Study Program • Eligibility • Undergraduate and graduate students • Employment can be on or off campus • Eligible employers are: • School • Any public sector agency • Private non-profit organizations offering academically relevant jobs • For profit organizations offering academically relevant jobs • Community Service Activities Presented by NYSFAAA 2002

25. Federal Work Study Program (continued) • A Work-Study job may be offered to help meet financial need • Job assignments can provide valuable career experience • Earnings can be used to pay college costs or help with personal expenses Presented by NYSFAAA 2002

26. Loan Programs • Federal Family Education Loan Program • Stafford Subsidized • Stafford Unsubsidized • Parent Loan for Undergraduate Students (PLUS) • William D. Ford Federal Direct Loan Program • Subsidized and Unsubsidized • Parent Loan for Undergraduate Students (PLUS) Presented by NYSFAAA 2002

27. Federal Stafford Loans(Subsidized) • First determine Federal Pell Grant eligibility • Annual borrowing limits: • $2625 1st year undergrad • $3500 2nd year undergrad • $5500 remaining undergrad years • $8500 each grad or professional year Presented by NYSFAAA 2002

28. Federal Stafford Loans(Subsidized) • Need is considered for subsidized Stafford loans • Independent students may be eligible for additional funds through the unsubsidized Stafford program Presented by NYSFAAA 2002

29. Federal Stafford Loans(Unsubsidized) • Need is not a consideration for unsubsidized Stafford loans • Independent students or dependent students whose parents are not eligible for a PLUS loan may be eligible for additional funds through the unsubsidized Stafford program Presented by NYSFAAA 2002

30. Federal Stafford Loans(Unsubsidized) • Unsubsidized loan limits are: • $4000 per year for the first two years of undergrad study • $5000 per year for remaining years of undergraduate study • $10,000 per year for graduate and professional study Presented by NYSFAAA 2002

31. Federal Stafford Loans(Subsidized and Unsubsidized) • Undergrad Aggregate limits for Stafford loans: • Dependent undergrad students may borrow up to $23,000 of combined subsidized and unsubsidized • Independent undergrad students may borrow up to $23,000 (base) subsidized and unsubsidized & an additional $46,000 unsubsidized Presented by NYSFAAA 2002

32. Federal Stafford Loans(Subsidized and Unsubsidized) • Graduate and Professional Aggregate limits for Stafford loans: • $65,000 base subsidized • $138,000 additional unsubsidized less any subsidized amount Presented by NYSFAAA 2002

33. Federal Stafford Loans(Subsidized and Unsubsidized) • Even if you are determined to have “no need”, you may be eligible to borrow through the unsubsidized program • Repayment begins when the student falls below half-time, withdraws from school or graduates Presented by NYSFAAA 2002

34. Federal Stafford Loans(Subsidized and Unsubsidized) • Both subsidized and unsubsidized loans have a variable interest rate set by the government annually on July 1st. • Interest rate will not exceed 8.25% • Up to a 3% origination fee and up to a 1% insurance fee may apply Presented by NYSFAAA 2002

35. Federal Parent Loansfor Undergraduate Students (PLUS) • Borrowers are parents of undergraduate students • Annual limit is the cost of attendance minus other aid received. No aggregate limit is imposed • Repayment begins 60 days after final disbursement • Interest rate is capped at 9%, set annually on July 1st by government • Fees are the same as Stafford loans: up to 3% origination fee and up to 1% insurance fee Presented by NYSFAAA 2002

36. More Loan Programs • Perkins Loans • Health, Human Service, Special Circumstance Programs • Alternative or Private Loans • Institutional Loans Presented by NYSFAAA 2002

37. Perkins Loan • Part of campus-based program • 5% interest rate • Must demonstrate exceptional financial need • $3000 per year for undergrad (up to $15,000) • $5000 per year graduate studies (up to $30,000) • No fees • Repayment begins 9 months after graduate, drop below ½ -time or withdraw Presented by NYSFAAA 2002

38. Health, Human Service, & Special Circumstances • Check with your institution for additional information on loans and scholarships available for: • Health Professions • Exceptional Need • Disadvantaged Students • Disabled Students Presented by NYSFAAA 2002

39. Private Loans • Private loans are made available by private lending institutions to fill the gap between cost of attendance and aid received • Private/alternative loans are not regulated by the federal government • Rates and terms vary greatly by lender and program of study • Research loans before signing a promissory note to be sure the loan is right for your individual circumstance Presented by NYSFAAA 2002

40. Institutional Programs • Depends on the funding at each school • School determines eligibility • Varies from school to school. Not all schools offer this type of funding • Ask the financial aid office for details on their available programs Presented by NYSFAAA 2002

41. Other Resources • Robert C. Boyd Scholarship • Paul Douglas Teacher Scholarship • National Science Scholars Program • National Early Intervention Scholarship & Partnership • National & Community Service • Local Community Groups, organizations, churches, etc. Presented by NYSFAAA 2002

42. Other Resources • Veterans Benefits • G.I. Bill • Veterans Educational Assistance Program • Montgomery Bill Benefits • Military Service Scholarships • Bureau of Indian Affairs • Vocational Rehabilitation (VESID) Presented by NYSFAAA 2002

43. Scholarship Searches • Beware of claims: • “Guaranteed or your money back” • “You are a finalist” in a contest that you never entered • “Give me your credit card number or bank account number to hold this scholarship” • “You’ve been selected to receive a free . . . “ Presented by NYSFAAA 2002

44. Scholarship Searches • For a list of reputable sholarship searches, go to: www.nysfaaa.org Presented by NYSFAAA 2002

45. Scholarship Searches • Typical Scholarship questions include: • Contact information • Social characteristics • Demographics • Education and work history Presented by NYSFAAA 2002

46. Conclusion • Never borrow more than you need • Research all programs and options before you apply • Apply early • Ask questions of the school’s financial aid office, lender or government agencies Presented by NYSFAAA 2002

47. Conclusion • Make a budget of your income and expenses and stick to it • Be sure to consider allowances for recreation, travel, clothes, etc. • Avoid spontaneous purchases that are unrelated to your education • Seek part-time employment during the academic year if possible • Save money from a summer job Presented by NYSFAAA 2002

48. Conclusion • Keep in mind that you must re-apply for financial aid each year • Know what your school’s priority and deadline dates are • Apply in early Spring but not before January 1 Presented by NYSFAAA 2002

49. The New York State Financial Aid Administrators Association wishes you well in your education, personal, and career goals! We’re here to help you succeed! Presented by NYSFAAA 2002