Financing Education Beyond High School

1. Financing Education Beyond High School

2. Agenda • Financial aid overview • Financial aid process • Financial aid packages • Helpful hints and websites

3. What is Financial Aid? • Financial resources intended to pay for college expenses that are not provided by the student or his/her family. • Scholarships • Grants • Loans • Employment Opportunities

4. Who is eligible? • Must be enrolled in or accepted for enrollment in an approved program of study • Must be pursuing degree, certificate or other recognized credential • Must be U.S. citizen or eligible non-citizen • Must be registered with Selective Service (if male and required)

5. Who is eligible? • May not have eligibility suspended or terminated due to drug-related conviction • Must have valid Social Security number • Must not be in default on a federal student loan • Must not owe an overpayment on federal grant or loan fund • Must be making Satisfactory Academic Progress (as defined by school)

6. How do I apply for financial aid? • Submit the Free Application for Federal Student Aid (FAFSA) prior to the school’s deadline • Paper FAFSA or • Electronic FAFSA (www.fafsa.ed.gov) • Some institutions require a completed CSS/Financial Aid Profile • Some institutions require a completed institutional financial aid application

7. Submitting your FAFSA • FAFSA must be submitted each year in which a student would like to be considered for financial aid • FAFSA may be submitted after January 1 of each year • Both the student and parent must sign the FAFSA • Register for a federal PIN at www.pin.ed.gov and sign electronically

8. Paper FAFSAfor 2007-2008 academic year

9. FAFSA on the Webwww.fafsa.ed.gov

10. Information requested on the FAFSA • General Student Information • Student Financial Data • Student Dependency Status • Dependent students must also submit parental information • Dependency determined by the Department of Education • General Parent Information • Parent Financial And Household Data

11. Determining Dependency Status • Were you born before January 1, 1984? • At the beginning of the 2007-2008 school year, will you be working on a master’s or doctorate program? • As of today, are you married? (answer “Yes” if you are separated but not divorced.) • Do you have children who receive more than half of their support from you? • Do you have dependents (other than your children or spouse) who live with you and who receive more than half of their support from you, now and through June 30, 2008? • Are (a) both of your parents deceased, or (b) are you (or were you until age 18) a ward/dependent of the court? • Are you currently serving on active duty in the U.S. Armed Forces for purposes other than training? • Are you a veteran of the U.S. Armed Forces?

12. Completing your FAFSA • List up to six schools which may receive FAFSA information (4 if completing paper FAFSA) • Be sure both the student and the parent signs the FAFSA before submitting the form • If filing electronically, may sign one of two ways: • Using Federal PIN (www.pin.ed.gov) • Printing signature page and sending through postal mail

13. Calculating the EFCfor a dependent student • STUDENT CONTRIBUTION Income + Assets (x 20%) • PARENT CONTRIBUTION Income + Assets (minus allowances x 12%) EFC = Student Contribution + Parent Contribution (Parent contribution adjusted for more than one child in college)

14. What happens to the FAFSA information? • Each school uses the EFC to determine financial need Cost of attendance EFC Financial Need

15. Cost of Attendance • tuition and fees • room and board • books, supplies, transportation costs, and personal costs • loan fees • study abroad costs • dependent care expenses • disability-related expenses • cooperative education program costs

16. Financial Aid Packages • Because cost of attendance varies by institution, so does financial need. • Financial Aid offices attempt to fill a student’s financial need with various types of financial aid available to them. • Gift Aid: Scholarships and grants (academic and athletic) • Self Help: Loans and Work Study

17. Types of FederalFinancial Aid for Undergraduate Students • Pell Grant • annual award amount between $400 and $4,310 (for 2007-2008) • Portable • Supplemental Educational Opportunity Grant (SEOG) • awarded first to students with exceptional financial need (those with lowest EFC’s) • annual award amount between $100 and $4,000

18. Types of FederalFinancial Aid for Undergraduate Students • Academic Competitiveness Grant • Eligibility Requirements • U.S. citizen, Federal Pell Grant recipient • First or Second academic year Full-time enrolled student • Merit Based Eligibility Requirements • 1st year students = $750/year • Not previously enrolled in program of undergraduate study • Graduated from rigorous secondary school program of study after 01/01/2006 • 2nd year students = $1,300/year • Graduated from rigorous secondary school program of study after 01/01/2006 • Have at least 3.0 GPA in eligible program

19. Types of FederalFinancial Aid for Undergraduate Students • National SMART Grant (Science and Mathematics Access to Retain Talent) Eligibility Requirements • U.S. Citizen, Federal Pell Grant recipient, enrolled full time as a Third or Fourth year student • Majoring in an eligible major • computer science • engineering • critical foreign language • life sciences • mathematics • physical sciences • technology • Cumulative GPA of 3.0 in eligible program • $4,000 per academic year

20. Types of Loans – in student’s name • Subsidized Stafford Loan • Student must demonstrate financial need • Federal government pays the interest while the student is in school • Amount between $3,500 - $5,500 • Unsubsidized Stafford Loan • Student does not need to demonstrate financial need • Student responsible for interest while in school (may make payments or let interest accrue) • Amount between $4,000 - $5,000

21. Types of FederalFinancial Aid • Perkins Loan • priority given to students who demonstrate exceptional need as defined by school • fixed interest rate of 5% • interest subsidized while student is in school • nine month grace period upon graduation • Undergraduates up to $4000

22. Types of FederalFinancial Aid • Federal Work Study • undergraduate, graduate and professional students are eligible • eligible employers • Schools • Federal, state or local public agencies • Certain private non-profit and for profit organizations • student must work to earn money • usually receive earnings in form of paycheck and may choose to apply to tuition bill

23. Other sources of financial aid • Leveraging Education Assistance Partnership (LEAP) program • Robert C. Byrd Honors Scholarship program • Americorp, ROTC, Veteran’s Benefits • State Divisions of Vocational Rehabilitation • U.S. Department of Health and Human Services (HHS) Bureau of Health Professions • Private and civic scholarship programs • Online scholarship search engines

24. What if financial aid does not pay the bill? • Installment Payment Plans • Parent Loan for Undergraduate Students (PLUS) • Alternative/Private loans

25. Federal Financial Aid • Parent Loan for Undergraduate Students (PLUS) • for parents of dependent students • approval based upon credit worthiness of borrower • fixed interest rate = 8.5% • annual loan limit = cost of attendance minus all other financial aid • may be charged loan fees up to 4% • repayment begins 60 days after loan is fully disbursed

26. Helpful Hints • Obtain and review admissions and financial aid information from each school to which you are applying. • Submit all applications and requested documentation by the deadlines. • Investigate other sources of aid every year. • Talk to financial aid offices if you have questions or special circumstances. • Keep copies of everything. • If you have not completed your tax returns and would like to submit the FAFSA, you may use estimated figures. Then update the FAFSA after completing your tax returns.

27. Helpful Websites • www.fafsa.ed.gov • www.pin.ed.gov • www.federalstudentaid.ed.gov • www.collegeboard.com • www.finaid.org -scholarship search • www.srnexpress.org - scholarship search • www.schev.edu - State Council of Higher Education for Virginia

28. Thank you!