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FINANCIAL AID NIGHT FOR STUDENTS AND PARENTS

Learn about financial aid options for college attendance and how to apply. Presented by Mr. Fricke, Saugus High School Counselor.

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FINANCIAL AID NIGHT FOR STUDENTS AND PARENTS

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  1. FINANCIAL AID NIGHT FORSTUDENTS AND PARENTS Presented by Mr. Fricke, Saugus High School Counselor September 25, 2018

  2. 6.5% Less than a high school diploma $27,040 • 4.6% High school graduate, no college $37, 024 • 4.0% Some college, no degree $40,248 • 3.6% Median Unemployment Rate • 3.4% Associate degree $43,472 • Median Annual Income $47,164 • 2.5% Bachelor’s degree $60,996 • 2.2% Master’s degree $72,852 • 1.5% Doctoral degree (Ph.D.) $90,636 • 1.5% Professional degree (M.D., J.D.) $95, 472 • Source: Bureau of Labor Statistics, 2017 Population Survey, United States Department of Labor. UNEMPLOYMENT RATES AND AVERAGE INCOMES IN 2017

  3. Assistance Provided to Students and Parents to help pay for college attendance • Cooperation between Federal and State governments, parents, students and the school of attendance WHAT IS FINANCIAL AID?

  4. Four year colleges and universities UC’s, CSU’s, out of state and private colleges • Community colleges COC • Many career and technical schools FIDM, Cordon Bleu, UTI, etc. WHO ACCEPTS FINANCIAL AID?

  5. HOW TO APPLY? ONE WAY ONLY…FAFSA Free Application for Federal Student Aid Available online at www.fafsa.gov START HERE

  6. FSA ID: FEDERAL STUDENT AID ID When you login, you have to create an account, which will then give you the FSA ID Returning users can log in with the FSA ID Students and parents each have to have their own unique FSA ID

  7. Reported income now comes from the “Prior-Prior” year. Families have all the financial information right now that they need to fill out and submit a FAFSA for next academic year. • For the 2019-20 academic year FAFSA is to be filed from October 1st, 2018 to March 2, 2019. Income reported for prior/prior year: 2016 CHANGES TO THE FEDERAL FINANCIAL AID PROGRAM

  8. Change of Federal Financial Aid Filing Dates

  9. Tuition & Fees Books & Supplies Food & Housing Transportation Personal Expenses WHAT DOES FINANCIAL AID PAY FOR? Cost of Attendance

  10. Parents and Students submit the FAFSA. • The Department of Education uses a complex formula to determine the EFC (Expected Family Contribution) • The Department of Education, the state governments, and the colleges create a financial aid package that should cover the difference between the COA (Cost of Attendance) and the EFC. HOW DOES THE FAFSA DETERMINE NEED?

  11. The EFC is a measure of your family’s financial strength and is calculated according to a formula established by law. Your family's taxed and untaxed income, assets, and benefits (such as unemployment or Social Security) are all considered in the formula. Also considered are your family size and the number of family members who will attend college or career school during the year. EXPECTED FAMILY CONTRIBUTION

  12. Cost of Attendance -EFC = Financial Need Financial need determines how much financial aid you are eligible to receive! WHAT IS FINANCIAL NEED?

  13. $22,830 – Cost of Attendance -$10,000 – Expected Family Contribution =$12,830 – Financial Aid Need • Note: All schools should meet the total financial aid need EXAMPLE OF EFC

  14. After you file the FAFSA, you will receive your SAR (Student Aid Report), which summarizes your FAFSA, and gives you basic information about your eligibility for financial aid • You will then receive a detailed financial aid package from each college you indicated on your FAFSA • Any financial aid you are eligible to receive will be paid to you through your college. Typically, your college will first use the aid to pay tuition, fees and room and board (if provided by the college) HOW WILL I RECEIVE THE AID INFORMATION?

  15. Loans Grants Federal Stafford, Federal PLUS & Private Loans Money borrowed that MUST be repaid Federal & State Up to more than $12,192 that does NOT have to be repaid Types of Funding Scholarships FWS WHAT ARE THE MAJOR TYPESOF FINANCIAL AID FUNDING? Lots of opportunities for every student ~ Look for FREE online searches Federal Work Study Student employment on-campus ~ Earn money and experience

  16. HOW DOES FINANCIAL AID PAY FOR COLLEGE? Need Based assistance includes: Subsidized Loans: Interest accrues starting after graduation Unsubsidized Loans: Interest starts accruing immediately Grants & Scholarships: Money you do not have to pay back Work Study: Students work and earn income while also earning money towards paying for their college costs.

  17. SUBSIDIZED STAFFORD LOANS Available to students with financial need. Each college determines the amount the student may borrow, but it may not exceed financial need. The Department of Education pays the interest on the loan until six months after completing college. Interest charged is currently 5.05% for loans disbursed between 7/1/18 and before 7/1/19 Rates subject to change yearly per Congress

  18. UNSUBSIDIZED STAFFORD LOANS Available to all students, and is independent of financial need. Each college determines the amount a student may borrow. Students are responsible for paying the interest on an unsubsidized loan during all periods of the loan. Interest charged is currently 5.05% for loans disbursed between 7/1/18 and 7/1/19 Rates subject to change yearly per Congress

  19. For parents of dependent undergraduate students • Parents have to go through a credit check to be eligible • After completing the FAFSA, parents must complete the PLUS Loan Master Promissory Note (MPN) • The MPN varies from school to school. Check with the financial aid office to determine how to complete the MPN • There are no set borrowing limits, but you may not borrow more than the cost of the student’s education minus any other financial aid received • Interests rates are determined yearly. The current interest rate on PLUS loans is 7.6 percent. PLUS LOANS: PARENT LOANS FOR UNDERGRADUATE STUDENTS

  20. GRANTS AND SCHOLARSHIPS: Often called “Gift Aid”, because it is money that does not need to be repaid. Grants are “Need Based”, and are usually awarded by the financial aid office of the college. Scholarships are “Merit Based”, and are usually awarded by the admissions office of the college.

  21. EXAMPLES OF FEDERAL GRANT PROGRAMS 1. Pell Grant: Awarded to students with exceptional financial need. Current award is up to $6.095 annually for the 2018-19 school year. 2. TEACH Grant: For students taking coursework to be elementary or secondary school teachers. Current award is up to $4,000 annually.

  22. CAL GRANT PROGRAM 1. Pays tuition at colleges and universities in California 2. Has income and asset ceilings, depending on the family size 3. To apply, students must list at least one California school on the FAFSA, preferably as the first entry 4. GPA eligibility is based upon the unweighted 10th and 11th grade years, and does not count PE or ROTC grades 5. Students can receive up to four years of Cal Grant money. The first year a student receives money, the “clock starts ticking” counting down the four years

  23. CAL GRANT ELECTRONIC SUBMISSION Saugus High School has the Cal Grant GPA’s submitted electronically to the California Student Aid Commission Once the GPA’s are sent to the state, they are matched to the student using the personal identification the student listed on the FAFSA The GPA information uses school demographic information, so it is important that the information be consistent. In consistent information has to be matched by hand, and could delay receiving the Cal Grant award Make sure your name, mailing address and other information on the FAFSA match school records For example, determine if your address in Infinite Campus is listed as Saugus or Santa Clarita

  24. While completing the FAFSA, you must list at least one college to receive your information. You should list your first choice college first, second choice second, and so on. • You can list up to ten colleges. If you want to apply to more than 10 colleges, you can submit the FAFSA and add more colleges later. • Be sure to list at least one college in California to be considered for a Cal Grant. HOW TO CHOOSE A COLLEGE TO RECEIVE YOUR FAFSA?

  25. WHAT HAPPENS AFTER FILING THE FAFSA? 1. Select each college on the FAFSA from which you wish to receive a Financial Aid Package 2. You will receive a Student Aid Report (SAR) which acknowledges your FAFSA submission, and allows for corrections. 3. You can initially list only 10 schools on the FAFSA. Once you receive confirmation your FAFSA has been processed, you can go back and list additional schools, and re-submit the FAFSA 3. Each college will then send you a Financial Aid Package, with the instructions on how to select some or all of the package.

  26. Choose Recipient Schools on FAFSA • Each school will send you a financial aid package or “award letter” • You can choose all or part of the package • You can also negotiate with the school REPORTING FAFSA TO SCHOOLS

  27. STUDENTS ELIGIBLE FOR THE CAL GRANT MUST CREATE A “WEBGRANTS” ACCOUNT WITH THE CALIFORNIA STUDENT AID COMMISSION THIS IS HOW STUDENTS REPORT THEIR COLLEGE OF ATTENDANCE TO CSAC, AND HOW THE MONEY IS DISBURSED TO THE COLLEGE IF THIS IS NOT ACCURATE, YOU COULD LOSE YOUR CAL GRANT MONEY FOR THE YEAR

  28. FEDERAL EDUCATION TAX CREDITS To the extent that students or their families pay for their tuition, certain required fees and/or qualified books and supplies, families may qualify for a federal education tax credit of up to $2,500 on the first $5,000 they pay. Tax credits reduce the amount of taxes owed. Ask your tax advisor for more information.

  29. WAYS TO REDUCE THE COST OF A COLLEGE EDUCATION Graduate in four years Work part-time Make cost-saving choices: Live with multiple roommates Rent textbooks, and do not buy them Choose meal plans wisely

  30. 529 PLANS For California, it is the Scholar Share College Savings Plan Can open an account at www.scholarshare.com It is counted as parental assets on the FAFSA, however only a maximum of 5.64% of parental assets are counted for the EFC.

  31. To avoid mistakes and delays in processing, it is crucial that students and parents carefully read and follow all directions on the FAFSA. • Help with the application is available via a live, one-on-one online “chat”with a customer service representative as the student completes FAFSA on the Web at www.fafsa.gov. FAFSA HELP

  32. Is a student’s parents are married, provide information about both parents. • If a student’s parent is widowed or single, provide information about that parent. • If a student’s parents are divorced or separated, provide information about the parent the student lived with the most during the last 12 months. If time spent living with both parents are equal, provide information about the parent who provided 51% of financial support. • If a student’s parent has remarried after being widowed or divorced, provide information about the parent and the step-parent. • If a student has a legal guardian, that guardian can not be used on the application. A legal guardian is not considered a parent in the financial aid process. WHO IS CONSIDERED A PARENT ON THE FAFSA?

  33. ASSETS INCLUDE: ASSETS DO NOT INCLUDE: • The home in which you live • Life insurance • Retirement plans • Money in cash, savings, and checking accounts • Businesses • Other investments such as real estate, stocks, bonds, CD’s, etc WHAT IS AND IS NOT CONSIDERED AN ASSET ON THE FAFSA?

  34. An online form additional to the FAFSA • Required by many private and out of state colleges Ex: USC, Cal Tech, Cal Arts • Can be submitted as of Oct. 1 for 2019-20 school year • Cost $25. $16 for each additional school • Only financial aid form that costs money www.css.collegeboard.org CSS PROFILE

  35. Most meet more or less of the EFC, but in different ways • Some offer more or less of loans, grants, work study, etc. • Pay attention to the amount of subsidized vs. unsubsidized loans • Compare offers before deciding • Can accept or decline different part of the financial aid package ARE ALL FINANCIAL AID OFFERS THE SAME?

  36. YOU CAN ESTIMATE YOUR FULL-TIME COSTS OF ATTENDANCE AND FINANCIAL AID BY USING EACH COLLEGE’S NET PRICE CALCULATOR

  37. When the college receives your financial aid request from the government, you become their client • Feel free to call the financial aid office for assistance, it is what they are there for! • You do not need to pay people to assist you with the financial aid process WHOM TO CONTACT?

  38. Most consider students as part of the application for admission • Some have additional application criteria • Used by schools to encourage students to enroll at their institution • Many have additional applications and deadlines: www.meritaid.com ACADEMIC SCHOLARSHIPS

  39. Offered by corporations, non-profit organizations, and other groups • Watch out for scholarships that require an application fee • Most are one-time awards www.fastweb.com PRIVATE SCHOLARSHIPS

  40. Santa Clarita Valley Scholarship Foundation • Local scholarships available only to local and/or SHS students • Applications online by December www.scvsf.org • Due to the counseling office: TBA • Awards given out at CAPR in May SCVSF SCHOLARSHIPS

  41. NAVIANCE All Saugus HS students have a Naviance account. Naviance has a great college and scholarship search engine. “SuperMatch” college search. Local and national User name is the 8 digit student ID, and the password is the 6 digit DOB.

  42. WESTERN UNDERGRADUATE EXCHANGE (WUE) Allows students to study at over 140 colleges throughout the American West at a reduction of normal out of state college costs (150% of in state tuition rates). For a list of all the colleges, along with the tuition discounts, go to www.wiche.edu/wue To apply, students have to complete the regular application for admission. Students are granted the WUE based upon academic merit

  43. All colleges award merit-based university scholarship money. This is determined by the admissions office, and awarded to students with academic merit. The universities use merit-based money to attract students to enroll at their institution, so the more competitive the university is for admission, the more competitive the student must be to receive merit-based scholarship money. This example, from La Sierra University in Riverside, shows how a student can earn up to $7,880 a year academic scholarship, just be having a high school GPA above 3.75, and another $10,000 for having an ACT or SAT score at or above 29 or 1900.

  44. Even non-WUE out of state public colleges offer generous amounts of merit based scholarships This example from the University of Kansas shows how out of state students can earn up to $10,859 per year based upon their high school GPA!

  45. The Blue and Gold Opportunity Plan is a financial aid program for families whose total family income is less than $80,000 a year. The Middle Class Scholarship provides funding to help families whose total family income and household assets are under $165,000 a year. To be considered for either of these scholarships, students and parents just need to apply for admission to the University of California, and submit the FAFSA. UC Blue and Gold Plan and Middle Class Scholarship

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