Finding money for college

1. Finding money for college Financial Aid High School Night At Eastwood High School Eric Bucks Student Financial Aid Bowling Green State University

2. Agenda Free Application for Federal Student Aid (FAFSA) Federal loan/grant programs Campus Based Aid Additional loan sources Scholarship search

3. Where do I start? Different schools require different applications, check with the Financial Aid Office and Admissions Office at each school. Some standard applications are: 1. Admission Application 2. Free Application for Federal Student Aid (FAFSA) 3. Other Institutional Application forms (if required) 4. Applications for scholarships

4. Free Application for Federal Student Aid (FAFSA) Application for federal, state, and some institutional aid www.fafsa.gov Becomes available January 1st File a new application every year If you have multiple college students in your family? Each student will file their own application.

5. To complete the FAFSA… • Student and one parent will need to create their own FSA ID to electronically sign the FAFSA • Apply online at www.fsaid.ed.gov • You cannot make an FSA ID for someone else • Complete your 2015 federal tax returns ASAP • If your taxes are not completed, you can file the FAFSA using estimated2015 income • Estimate based on 2014 taxes, or any 2015 earning statements • If you used estimated income – UPDATE the FAFSA once your taxes are completed

6. FAFSA Deadlines • FAFSA can be filed at any time after January 1st , however, there are funding limitations on some aid programs. • Be aware of priority deadlines. These may vary from institution to institution. • It is best to begin filing the FAFSA as soon after January 1stas possible

7. Sections to the FAFSA

8. Sections to the FAFSA

9. Sections to the FAFSA

10. Independent vs. Dependent Students 24 years of age Graduate student or seeking a professional degree Married Serving active duty in U.S. Armed Forces Veteran of U.S. Armed Forces Have a child you provide more than half of the support for Both parents were deceased since turning age of 13 Foster care since turning age 13 Dependent/Ward of Court since turning age of 13 Emancipated minor Legal Guardianship appointed Homeless/at risk of being homeless If you can answer yes to any of the following, you can file as an Independent student:

11. Sections to the FAFSA

12. Parental Information • Who are the parents on the FAFSA? • If your parents are divorced or separated, put information on the FAFSA about the parent you lived with more during the past 12 months (and their spouse, if remarried) • FAFSA will request information for “Parent 1” and “Parent 2”

13. Sections to the FAFSA

14. Sections to the FAFSA

15. FAFSA Filing Help • College Goal Sunday! • February 14, 2016 • Line by line instruction and hands-on help for completing FAFSA • www.ohiocollegegoalsunday.org • “Help and Hints” located within application • IRS Data Retrieval Tool

16. After the FAFSA is submitted The student receives notification from FAFSA and is issued a summary of the FAFSA called a Student Aid Report (SAR) The Student Aid Report includes the calculated Expected Family Contribution (EFC) Student will receive an Award Letter

17. Expected Family Contribution • EFCis an index number used to determine “financial need” of the student • The EFC estimates a families ability to pay for college as determined by a formula created by Congress called the Federal Methodology • Assumes that the primary responsibility for paying for college falls to the student and parents • Factors include: • Family Income (including taxed and untaxed income) • Family Size • Number of students in college in family • Etc. • The lower your EFC, the more likely you are to qualify for need-based aid programsat any school • The EFCis not a specific amount the family is expected to pay at any one specific college

18. How a financial aid package is created based on your EFC

19. Definition of “Financial Need” Cost of attendance (COA) –Expected family contribution(EFC) = Financial need

20. Need Comparison Higher Cost Mid Cost Lower CostInstitutionInstitutionInstitution Cost of Attendance $30,000 $20,000 $13,000- EFC $10,000 $ 10,000 $10,000 =Need-based Eligibility $20,000 $ 10,000 $ 3,000

21. Need vs. Non-Need Based Aid • Need-based aid: • Some forms of aid are only available to students that have demonstrated financial need: • Pell Grant, FSEOG (very high need only) • Direct Subsidized Loans • Federal Work Study • Some scholarships • Non-Need Based Aid: • Other forms of aid are not dependent on a student’s financial need: • Most Scholarships • Unsubsidized Student Loans • Parent PLUS loans, alternative/private loans

22. Student aid programs: Awards through the FAFSA

23. Federal Direct Stafford Loans • Federal Direct Stafford student loans • Direct Subsidized Loan – No interest accrues on this need-based loan during undergraduate study. • Direct Unsubsidized Loan – Interest accrues on this non need-based loan while in school. • Interest rates are currently fixed at 4.29% or lower • Repayment occurs 6 months after the student: • Graduates • Leaves school • Falls below ½ time enrollment

24. Federal Direct Loans Limits Dependent, Undergraduate Students

25. Grant Programs • Federal Pell Grant - 2015-16 academic year • Need based • Award amount: up to $5775 • EFC: 0 – 5198 • Ohio College Opportunity Grant 2015-16 academic year • Need based • $1296 for students at most public university main campuses • Funding not available for students at community colleges & regional campuses • EFC: 0 - 2190

26. Campus-Based Aid • To be considered for these awards students must file FAFSA by priority deadline and amounts may vary between institutions. • Supplemental Educational Opportunity Grant (SEOG) • Awarded to Pell eligible students with a very low EFC • Award ranges between $100-$4000

27. Campus-Based Aid, continued • Federal Work-Study • Earnings are not automatically applied to your college bill • FWS funds will be provided to the student in the form of a paycheck for actual hours worked • When the student applies for financial aid for the next academic year, questions on the FAFSA will exclude Work-Study income so those earnings will not have a negative effect on the EFC

28. What if I’m not awarded enough money from FAFSA?

29. You have choices! • Federal Parent Loan for Undergraduate Students (PLUS) • Loan in parent’s name • Repayment begins while student is in school, but parent can defer payment as long as student continues to be enrolled half-time • Interest rate: 6.84% fixed • Alternative/Private loan programs • Loan in student’s name • Repayment generally begins 6 months after graduation/leave school • Various terms, credit-worthy signer or co-signer • Search and apply for scholarships

30. Searching for Scholarships • Search locally: • High School Guidance Counselor • Library Listings • Places of Worship • Chamber of Commerce • Finally, consider free, national searches: • www.fastweb.com • www.finaid.com • www.careerinfonet.org/scholarshipsearch • At every college you want to attend, check with: • Financial Aid Office • Admissions Office

31. Financial Aid TO DO: • Complete the Admissions process • Complete 2016-17 FAFSA at www.fafsa.gov • Search and apply for scholarships • Respond promptly to requests from college offices • Review all financial aid award letters from each school • Compare institutional costs to financial aid offered at each school • Determine your true out-of-pocket costs • College Board Net Price Calculator Worksheet

32. Contact information Eric Bucks ebucks@bgsu.edu 419-372-0361