P1246990954RPAYs

1

Financial Aid Lowers the Price of College
A Presentation Prepared by the Ohio Board of
Regents Educational Linkages Access
2
Many high school graduates who can
succeed in college do not attend because --
their families believe that college is not
affordable,
and
they do not know about financial aid programs.
3
Most Families Dont Know the Price of
College
20,907
5,063
15,042
Source American Council on Education (One in
ten respondents gave an estimate in
excess of 100,000 a year.) Actual price figures
are for the 2002-2003 academic year.
4
Average Total Price of College 2002-2003
Academic Year
Tuition is lower at university branch campuses.
5
With Financial Aid, the Total Price is
Not the Price You Pay
Total Price of College minus Financial
Aid Received Net Price (The Amount
You Pay)
6
Financial Aid Lowers the Price of College
(Example A Ohio Community College )
Family Income 30,000 Federal Expected
Family Contribution 800
Total Price before Financial Aid
5,063

(Room and board costs not included)
Federal Pell Grant 3,200 Ohio
Instructional Grant 648 Federal
Supplemental Ed. Opportunity Grant 415
Total financial aid 4,263
Financial Aid Package
Net Price (price to the family after financial
aid) 800
This is an example only. Actual financial aid
eligibility may be different.
7
Financial Aid Lowers the Price of College
(Example B Ohio Technical College)
Family Income 30,000 Federal Expected
Family Contribution 800
Total Price before Financial Aid
6,551

(Room and board costs not included)
Federal Pell Grant 3,200 Ohio
Instructional Grant 648 Federal
Supplemental Ed. Opportunity Grant 1,903
Total financial aid
5,751
Financial Aid Package
Net Price (price to the family after financial
aid) 800
This is an example only. Actual financial aid
eligibility may be different.
8
Financial Aid Lowers the Price of College
(Example C Ohio Public University)
Family Income 30,000 Federal Expected
Family Contribution 800
Total Price before financial aid
15,042
(Includes Room Board on campus)

Federal Pell Grant 3,200

Ohio Instructional Grant
648 Federal Supplemental Ed. Opportunity Grant
2,100 Federal College Work Study
2,000 Student Loans (Stafford Perkins)
4,625
Total financial aid 12,573
Financial Aid Package
Net Price (price to the family after financial
aid) 2,469
This is an example only. Actual financial aid
eligibility may be different.
9
Financial Aid Lowers the Price of College
(Example D Ohio Private College)
Family Income 30,000 Federal Expected
Family Contribution 800
Total Price before financial aid
24,908
(Includes room board on campus)

Federal Pell Grant 3,200 Ohio
Instructional Grant 1,626

Ohio Student Choice Grant
1,038 Federal Supplemental Ed. Opportunity
Grant 1,000 Gift Assistance from the
College 9,000 Federal College Work
Study 2,000 Federal Perkins Stafford
Loan 4,625 Total financial aid
22,489
Financial Aid Package
Net Price (price to the family after financial
aid) 2,419
This is an example only. Actual financial aid
eligibility may be different.
10
Three Main Types of Financial Aid

• Grants - Not paid back
• Scholarships - Not paid back
• Student Loans - Must be paid back

11
Largest Federal Grant Programs

• Pell Grants
• Supplemental Educational Opportunity Grants
  (SEOG)

12
Pell Grants

• Maximum award up to 4,000 (may be higher in
  future years)
• Eligibility based on income and assets reported
  on the FAFSA (Free Application for Federal
  Student Aid)
• Can be used at any approved college or
  university in the U.S.
• You dont pay this money back

13
Supplemental Educational Opportunity Grants (SEOG)

• Maximum award up to 4,000 for students with
  financial need
  
• Eligibility based on income and assets reported
  on the FAFSA
• Amount awarded is determined by the college
  Financial Aid Administrator
• You dont pay this money back

SEOG
14
Federal College Work Study

• Available to students with financial need
• Pay is at least minimum wage
• Work on or off campus
• College Financial Aid Office decides who gets
  this aid

15
State of Ohio Grant Programs Not Need-Based

• Student Choice Grants
• For students enrolled in Ohio private non-profit
  colleges
• 2002-2003 award is 1032 for the year
• Student Workforce Development Grants
• For students enrolled in Ohio private career
  colleges
• 2002-2003 award is 372 for the year
• Safety Officers College Memorial Fund
• For the surviving children and spouses of Safety
  Officers killed in the line of duty
• Covers all tuition general fee charges at
  public colleges and a prorated amount at private
  and proprietary colleges

16
State of Ohio Grant Programs Need-Based

• Ohio Instructional Grants (OIG)
• Based on family/student income, family size and
  the type of college attended
• Part-Time Student Instructional Grants
• Must be enrolled for less than 12 credit hours
• College Financial Aid Office decides who receives
  this grant

17
Ohio Instructional Grants (OIG)

• Up to 5,466, depending on the college attended
  (may be higher in future years)
  
• Award based on family/student income, family size
  and college attended
• Requires full-time enrollment (at least 12
  credit hours)
• Student must be enrolled in an eligible Ohio or
  Pennsylvania college

OIG
18
OIG and Most Federal Financial Aid Programs
Are Need-Based
This means that, in most (but not all) cases
Family Income
Expected Family Contribution
Need-Based Financial Aid
19
Expected Family Contribution (EFC)

• Calculated by the U.S. Department of Education
• Based on information reported on the Free
  Application for Federal Student Aid (FAFSA)
• Required for Federal grants and loans
• Determines how much the students family must pay
  before need-based financial aid is considered
• Federal financial aid is considered only after
  the EFC is calculated

20
Sample Pell Grant OIG Awards
Family Size 4, College Choice A State
University

Expected Family Income Family Contribution
Pell Grant OIG 20,000
0 4,000
1,320 30,000
800 2,500
648 40,000 3,000
1,000 0
50,000 4,500
0 0
These are samples only. Actual Expected Family
Contribution and grant eligibility may be
different.
21
Scholarships

• Awarded for academic achievement or special
  circumstances
• Many colleges offer scholarships from their own
  funds
• Many community national organizations give
  scholarships
• Many scholarships require a separate application
• You dont pay this money back

22
State of Ohio Scholarship Programs

• Ohio Academic Scholarship
• Based on GPA ACT scores
• 2,205 per year for four years
• Ohio War Orphans Scholarship
• For the children of deceased or disabled war
  veterans
• Full tuition at Ohio public colleges and
  universities prorated amount at Ohio private
  colleges universities
• Ohio National Guard Scholarship
• Requires a six-year enlistment
• Full tuition at Ohio public colleges and
  universities prorated amount at Ohio private
  colleges universities

23
Student Loans

• Federal Perkins and Stafford Loans
• Up to 2,625 in the first year of college
• For students who qualify, Federal Government pays
  interest while student
  is in college
• Up to 10 years to repay on some loans
• Low interest rates upon repayment
• Federal Parent Loans for Undergraduate Students
  (PLUS)
• Repayment begins nine months after loan is
  received
• Low interest rates
• Ohio Nurse Education Assistance Loan Program
  (NEALP)
• Up to 3,500 per year for undergraduate study
• Loan forgiveness of 20 per year for working as a
  nurse in Ohio
• Private alternative loans are also available

24
Financial Aid Applications

• Free Application for Federal Student Aid (FAFSA)
  
• In some cases, a college/university application
  is required for college-based scholarships
• Separate applications are required for some
  special programs and private scholarships

25
Complete the FAFSA in Your Senior Year of High
School

• Complete the paper form or electronic form at
  www.fafsa.ed.gov
• Work with your parents.
• After the FAFSA is completed, the U.S. Department
  of Education will send a Student Aid Report (SAR)
  to the student to the schools listed on the
  FAFSA.
• The SAR should be reviewed and corrections
  submitted, if necessary.
• In most cases, a college will not offer a
  financial aid package until the FAFSA has been
  successfully completed.

FAFSA
26
Where to Get
Financial Aid Information

• Talk with a school guidance counselor, a GEAR UP
  counselor, an Ohio College Access Network (OCAN)
  member or a college financial aid administrator.
• Check reference materials in your local library.
• Contact the Ohio Board of Regents, State Grants
  Scholarships Department at 1-888-833-1133.
• Search the internet.

Get Your Parents Involved
27
Financial Aid Information on the
Internet

• Ohio College Access Network (OCAN)
  www.ohiocan.org
• Ohio Board of Regents www.regents.state.oh.us
• United States Department of Education www.ed.gov
• United States Department of Education
  www.studentaid.ed.gov
• Ohio Assoc. of Student Financial Aid
  Administrators www.oasfaa.org
• National Assoc. of Student Financial Aid
  Administrators www.finaid.edu
• Cleveland Scholarship Programs www.cspohio.org
• Ohio Tuition Trust Authority www.collegeadvantage
  .com
• National search for scholarships www.fastweb.com
• Ohio National Guard www.ohionationalguard.com/Sch
  olarship.asp

28
Important Words to Remember

• Grants Free money that is not paid back.
• Student Loans Money that must be paid back.
• Scholarships Financial aid based on academic
  achievement or
  special circumstances.
• Need-Based Financial Aid Financial aid benefits
  based
  on family/student income and other factors.
• Pell Grant Largest Federal grant program.
• OIG Ohio Instructional Grant.
• Federal Expected Family Contribution (EFC) The
  amount the family is expected to pay for one year
  of college.
• FAFSA (Free Application for Federal Student Aid)
  The application that must be completed for the
  OIG all Federal financial aid programs.
• Financial Aid Package Financial aid offered to
  the student by the college or university.

29

Remember
College is probably more affordable than you
think and there is financial aid for most
students.
30
Did You Know

• College graduates earn about ONE MILLION DOLLARS
  more.
• 70 of the 30 fastest growing jobs require
  education beyond high school.
• 40 of all new jobs will require at least an
  associates degree.
• College graduates have lower unemployment rates.
• College graduates are healthier.
• College graduates live longer.
• College graduates are better prepared to help
  others.