COLLEGE FINANCIAL AID

1
COLLEGE FINANCIAL AID

• Educational Talent Search
• Polk Community College

2
Ice Breaker

• Student Introductions
• Name
• Grade/School
• Discuss Scholarships Applied for
• Any specifics on what you want to get out of this
  class

3
Workshop Objectives

• Provide overview of College Financial Aid
• Discuss the benefits of applying early
• Instruct students on the process of applying for
  Financial Aid
• FAFSA
• Grants
• Scholarships
• Loans
• Provide resources/information to students

4
Why Should you Apply for Financial Aid?

• Most Colleges and Technical schools require
  completed Financial Aid Applications before
  granting any scholarships
• Many scholarship programs require proof of a
  completed/submitted FAFSA to qualify for
  consideration
• Simply put, if you dont apply,
• YOU WONT GET ANY AID

5
Important Definitions

• Independent
• Dependent
• Loan
• Grant
• Scholarship
• Subsidized Loan
• Unsubsidized Loan

• FAFSA
• EFC
• PIN
• FACTS
• FASTweb

6
College Costs It Pays to Plan

• Tuition
• Room Board
• Meal Plan
• Books
• Transportation
• Communication
• Entertainment
• Lab Fees
• Activity Fees
• Program Fees
• Sorority/Fraternity dues

• Travel
• Laundry
• Room/Apt Set up Costs
• Moving/Storage
• Parking
• Phone

7
Benefits of Applying Early

• Deadlines
• Early Bird Gets the Worm!
• Opportunity to make corrections/changes
• Getting things done early takes the pressure off
  and helps you make good decisions

8
FAFSA

• Free Application for
• Federal Student Aid
• www.fafsa.ed.gov
• Beware of imposters, which charge money for
  helping you file. FAFSA is free.
• FAFSA should not be confused with the Florida
  Department of Education site where seniors
  register for Bright Futures

9
FAFSA Step 1

• Apply for PIN for both student and parent
• Complete your Tax Return
• Read the instructions
• Complete FAFSA
• worksheet for
• proper year

10
FAFSA Step 2

• Get information together
• Social Security Number and be sure it is correct!
• Students Drivers License
• Student and Parents W-2 Forms and
• other records of money earned
• Student and Parents 2007 Federal Income Tax
  Return
• (if you are a dependent)
• Your 2007 untaxed income records
• (SSI, TANF, Welfare, Veterans Benefits)
• Current Bank statements for student and parent
• Current Business Investment mortgage info
• Alien registration or permanent
• resident card (if you are not a US citizen)

11
FAFSA Step 3

• Go online to www.fafsa.ed.gov
• File your 2008-09 forms online
• You will need your FAFSA PIN and will set up
  your password
• Go through the line items and when you are
  finished, check your work carefully
• If you want to stop, press save before you exit
• If you submit, print a copy of your confirmation
  information

12
Grants

• Grants are gift aid
• No repayment required
• Check out local, state, and federal grants
• When applying for Federal finanical aid
  (i.e.FAFSA) the student is automatically
  considered for pell and other educational grants.
• Remember the early bird gets the worm!

13
Scholarships

• START EARLY ! Some scholarships are for
• Gift aid no repayment necessary
• Check out local community organizations and
  businesses and places you and your parents do
  business with like banks, credit cards, stores
• Awards for academic merit, athletics, or field of
  study, ethnicity, religious affiliation, special
  interest, community service
• Most require completion of an application, FAFSA,
  volunteer hours and recommendation letters
• Submit ALL REQUESTED INFORMATION or application
  will not be considered by judges

14
Loans 101

• If you're considering a student loan, before
  you make any decisions, it pays to understand the
  basic principles behind borrowing.
• All loans consist of three components The
  interest rate, security component and term.

15
Loans 101 Interest Rates

• There are two different types of interest rates
  fixed or
• variable (aka adjustable).
• Fixed rates are just that fixed and unchanging.
  If your fixed interest rate is 7 percent, it will
  be 7 percent for the life of the loan.
• Variable rates can change over time and are
  usually based on a standard market rate, such as
  the prime interest rate (which is the lowest rate
  of interest a bank can provide at a given time
  and place, offered to preferred borrowers). For
  instance, you may take out a loan with a variable
  rate at prime 2. This means that you'll pay two
  percent more than the prime rate, regardless of
  what it is.
• Interest rates for popular student loan programs
  like Stafford and
• Perkins Loans have low interest rates. Plus, the
  government pays
• the interest on subsidized Stafford Loans and
  Perkins Loans while
• you're in school.

16
Loans 101 Security Component

• All loans are either secured or unsecured. This
  refers to whether you are putting up assets,
  often referred to as collateral, to guarantee
  your loan.
• If you have a secured loan, it means you have
  guaranteed your lender will be repaid one way or
  another by giving them a claim on something you
  own. If the loan goes unpaid, the lender can
  seize the collateral to recoup their investment.
  This guarantee gives lenders a great deal of
  security and allows them to charge low interest
  rates.

17
Loans 101 Security Component

• Unsecured loans do not require any collateral
  from the borrower. The bank therefore has no
  protection if the loan goes unpaid. Unsecured
  loans almost always have higher interest rates
  than secured loans. Lending institutions
  sometimes require that an additional person
  co-sign for unsecured loans, or vow to repay the
  loan if the borrower fails to do so.
• Student loans have an advantage
• in that no collateral is required but
• they still have low interest rates.

18
Loans 101 Term

• The term of a loan is the length of time that
• the borrower has to pay back the loan. Most
• personal loans have terms of one to five years.
• Many student loans have 10-year repayment
• periods. Typically, the longer the term, the
  higher
• the interest rate. The term is the maximum length
• of time the borrower has to repay their loan
  loans
• can always be paid off before the term is up.

19
Financial Aid Resources

• Your schools College Career Specialist
• College Financial Aid Offices
• State Department of Education
• www.FACTs.org
• www.FASTweb.com
• www.Collegeboard.com
• www.nextstep.com
• College and Educational Foundations

20
Questions
Matina Wagner 863/292-3699 mwagner_at_polk.edu
Mistie Parsons 863/292-3697 mparsons_at_polk.edu
Daisy Rivera 863/292-3698 drivera_at_polk.edu