1 / 13

Financing Higher Education

Financing Higher Education. Name Title. Types of Financial Aid. Scholarships & Grants funds do not have to be repaid Loans funds have to be repaid with interest Work-Study funds are earned on an hourly basis and the paycheck goes to the student. 2. Need-based Financial Aid.

oona
Download Presentation

Financing Higher Education

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Financing Higher Education Name Title

  2. Types of Financial Aid • Scholarships & Grants • funds do not have to be repaid • Loans • funds have to be repaid with interest • Work-Study • funds are earned on an hourly basis and the paycheck goes to the student 2

  3. Need-based Financial Aid • Responsibility • Parents and students • Financing from Savings, Current Income, Borrowing • Determines Expected Family Contribution (EFC) as determined by the • Free Application for Federal Student Aid (FAFSA) • CSS PROFILE (for institutional grant aid at selective colleges) • Cost of attending college less the EFC = eligibility for grants, loan, work study 3

  4. Steps to applying for need-based financial aid • CSS Profile • Register for and complete the CSS Profile online at • https://profileonline.collegeboard.com • Not every college or university will require CSS Profile • Northwestern, Vanderbilt, Emory, Wash. U., etc. • Check with each college or university to learn deadlines • Some schools will require information from non-custodial parent, via the CSS Profile 4

  5. Steps to applying for need-based financial aid • Free Application for Federal Student Aid (FAFSA) • Apply between January 1 and March 1 • Check deadlines for states and colleges • Preferably after taxes are completed • Apply online at www.fafsa.ed.gov • Get a PIN number (students and parents) from FAFSA web site 5

  6. Eligibility Formula • Cost of Attendance (COA) • Tuition, fees, room, board, books, living, and transportation • Less Expected Family Contribution (EFC) • The minimum amount the family is expected to contribute toward the student’s education for that year • Results in the maximum eligibility for aid or “demonstrated need.” 6

  7. Eligibility Formula Example COA: $46,000 - EFC: $16,000 Max. Aid Eligibility: $30,000 (demonstrated need) 7

  8. Sample Financial Aid Package COA: $46,000 EFC: $16,000 Max. Aid Eligibility: $30,000 (demonstrated need) Scholarships & Grants: $22,500 Work-study: $ 1,600 Perkins Loan: $ 2,000 Subsidized Stafford Loan: $ 3,500 TOTAL: $29,600 8

  9. Helpful Websites • www.collegeboard.com/student/pay/index.html • www.finaid.org 9

  10. Common Misconceptions • We make too much money to get financial aid: • There is no income cut-off to qualify for federal student aid. Many factors besides income—from the size of your family to the age of your older parent—are taken into account. Your eligibility is determined by a complicated mathematical formula, not by your parents’ income alone. • And remember: when you fill out the Free Application forFederal Student Aid (FAFSA), you’re also automatically applying for funds from your state, and possibly from your school as well. Don’t make assumptions about what you’ll get—fill out the application and find out.

  11. Common Misconceptions • The FAFSA is too hard to complete, I just don’t understand it: • The FAFSA is easier than ever, especially if you fill it out online at www.fafsa.ed.gov. There are detailed instructions for every question, and the form walks you through step by step, asking only the questions that apply to you. If you need help, there are many options. There are worksheets available so that you can prepare your documents ahead of time and then it is as simple as filling in the blanks on the electronic form. You may also call the Central Processor’s office toll-free at:1-800-4-FED-AID. And remember, the FAFSA and all these sources of advice are FREE.

  12. Common Misconceptions • We can afford our state school, but we know that private education is out of reach for us: • Although the sticker price on a private school might be higher, don’t rule it out just yet. Private colleges often offer more financial aid to attract students from every income level. Higher college expenses also mean a better chance of demonstrating financial need. You may find that you qualify for more financial aid putting public and private schools on a more equal playing field.

  13. Common Misconceptions • You want me to sell everything I own in order to pay for my child’s education: • A family's share of college costs is calculated based mostly on income, not assets such as savings or home equity. Although some colleges will consider home equity in calculating for institutional grants, no financial aid office expects parents to sell their home and clean out their retirement for their child’s education.

More Related