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Financial aid overview

Understand financial aid, scholarships, grants, loans, and work-study opportunities for college funding. Learn about FAFSA, CSS Profile, eligibility criteria, and application procedures. Discover aid categories, cost breakdowns, and how colleges award aid.

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Financial aid overview

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  1. Financial aid overview High School College Night Fall 2019

  2. Definition of financial aid • Applications: FAFSA and CSS Profile • How financial aid is awarded • Categories of financial aid • Useful resources

  3. Definition of financial aid

  4. Financial resources intended to help pay for college expenses. What is financial aid?

  5. Free money or “gift aid.”Scholarships can come from colleges and universities, individual departments, high schools, community organizations, retail companies, corporate or private donors and are often based on merit, talent, extracurricular activities, athletic ability, or artistic achievements. Pay close attention to deadlines for scholarships! Contact the donors with any questions. SCHOLARSHIPS

  6. Free money or “gift aid.” Grants are based on need and are awarded by colleges and universities; but sometimes the funds themselves come from federal or state sources. • grants

  7. Money that must be repaid. However, students may be able to wait until after they graduate to repay! loans

  8. Need-based award that provides an opportunity to work and earn money to help pay for educational expenses. • Work-study

  9. Must have a high school diploma (or equivalent) • Must be enrolled in an eligible program of study • Must be pursuing a degree or certificate • Must be a U.S. citizen or eligible non-citizen • Must have a valid Social Security number • Must be registered with Selective Service (if male and required to register) • Must be making Satisfactory Academic Progress (as defined by the school) • Who’s eligible?

  10. Financial Aid Applications: FAFSA and CSS Profile

  11. File the Free Application for Federal Student Aid (FAFSA) • fafsa.gov • If required, file the CSS Profile • profile.collegeboard.org • If required, file an Institutional Financial Aid Application • If required, submit tax documents and other forms requested by the school Every school is different. Check the school’s website to confirm requirements. • How do students apply?

  12. The css profile

  13. Fafsa on the web

  14. The FAFSA must be submitted each academic year a student would like to be considered for federal student aid. • The FAFSA is available on October 1 for the next aid year. • Report income information from two years prior to the academic year for which the student is applying. • If the student is dependent, then both the student and a parent must certify the information by signing the FAFSA. • Students and parents of dependent students access and certify their information by using the FSA ID and password. • Submitting the fafsa

  15. General student information • Dependency questions • Student financial data • General parent information • Household information • Parent financial data • What’s asked on the FAFSA?

  16. Number in the household • Number in college • Earnings from work • Adjusted Gross Income (AGI) • Income tax paid • Untaxed income such as child support • Value of cash, savings, and checking • Value of other assets and investments • For example

  17. FAFSA information is submitted to the Central Processing System (CPS). • CPS checks eligibility and calculates an Expected Family Contribution (EFC). • CPS produces 2 output documents: • The student receives a Student Aid Report (SAR), typically online. • Each school listed by the student receives an electronic version of the FAFSA (called an ISIR) and the calculated EFC. • What happens after submitting?

  18. How do colleges award financial aid?

  19. Direct or Billed Costs Tuition and Fees Room and Board Indirect or Non-billed Costs Books and Supplies Transportation costs Personal expenses Loan fees Computer expense Cost of attendance

  20. Cost of Attendance Comparison

  21. Schools use the Expected Family Contribution (EFC) to calculate financial need and award need-based financial aid. Financial Need = Cost of Attendance – EFC • Determining financial need

  22. Because Cost of Attendance varies by institution, financial need – and aid – can vary from one institution to another, even if they all use the same EFC (which they may not). Financial aid offices attempt to meet a student’s financial need with the various types of financial aid available to them. Financial aid packages

  23. Federal Pell Grant $1,870 University Grant $30,000 Federal Work-Study $2,000 Direct Subsidized Loan $3,500 TOTAL AID PACKAGE $37,370 Sample financial aid package

  24. Need Based Student must demonstrate financial need as determined by his or her application Examples: Pell Grant, Subsidized Loan, Federal Work-Study Non-need Based Not based on need but on other criteria Examples: Unsubsidized Loan, credit-based loans Merit Based Based on scholastic or talent achievement Examples: awards based on GPA, extracurricular activities, leadership potential Categories of financial aid

  25. Federal Grants (need based) Pell Grant SEOG (Supplemental Educational Opportunity Grant) Federal Work-Study (need based) Part-time employment for students through employers, such as their college or university Federal Direct Loans Subsidized Loans are need based Unsubsidized Loans are non-need based Federal financial aid

  26. Subsidized Loans Available to undergraduate students with financial need In the student’s name, guaranteed by the Federal government Federal government pays interest while the student is in school at least half-time Fixed interest rate for 2019-2020 is 4.53% Unsubsidized Loans Non-need based loan in the student’s name, guaranteed by the Federal government Interest accrues while the student is in school (not paid by the Federal government) Fixed interest rate for undergrads for 2019-2020 is 4.53% Subsidized vs. unsubsidized

  27. Direct PLUSLoans Credit-based loan in the parent’s name guaranteed by the Federal government Available only to parents of dependent students Fixed interest rate of 7.08% for 2019-2020 Maximum amount a parent can borrow is the COA minus all other financial aid Perkins Loans (need based) – some current college students may have these loans, but no new loans are being awarded No interest accrues while the student is in school at least half-time Fixed interest rate of 5.0% Schools were able to award undergraduate students through September 30, 2017 Other loans

  28. Alternative/Private Education Loans Available through banks or other financial institutions Loan in the student’s name Credit check required, student may need a credit-worthy cosigner Maximum amount a student can borrow is the COA minus all other financial aid Other loans

  29. Virginia Guaranteed Assistance Program (VGAP) Public colleges, primarily need based Virginia Commonwealth Award Public colleges, need based Virginia Tuition Assistance Grant Program (VTAG) Private colleges, non-need based Two-year College Transfer Grant Participating 4-year colleges in Virginia, need based Must have received an Associate’s Degree from a Virginia two-year public institution AND have a cumulative GPA of 3.0 on a scale of 4.0. State financial aid in va

  30. Some colleges and universities offer their own institutional scholarships, grants and loans. Check individual school websites for deadlines and requirements. Institutional aid

  31. resources

  32. Net price calculator

  33. Net Price calculator

  34. More than 40 private and public schools participate, including…

  35. www.studentaid.ed.gov/sa/resources

  36. http://www.schev.edu/index/tuition-aid/financialaid/state-student-aidhttp://www.schev.edu/index/tuition-aid/financialaid/state-student-aid

  37. Federal Student Aid https://studentaid.ed.gov/sa/resources College Navigator https://nces.ed.gov/collegenavigator/ State Council of Higher Education for Virginia (SCHEV) http://www.schev.edu/index/tuition-aid/financialaid FAFSA fafsa.ed.gov CSS Profile profile.collegeboard.org websites

  38. Our office is always happy to be a general resource. However, because colleges and universities can vary greatly in their policies, process, and resources, we do recommend that you touch base directly with the institutions in which your child has interest. That way you’re getting a sense not only of the specific financial aid program at that school, but also of the overall approach of the folks who work there! Phone Number: (434) 982-6000 Email: sfs@virginia.edu Thank you!

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