Financial Aid Basics

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• Financial Aid Basics
• A presentation provided by Education Assistance
  Corporation. EAC, a private nonprofit
  corporation is a guarantor in the Federal Family
  Education Loan Program and provides financial aid
  information to students and their families.

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Dont Pay for Financial Aid Information

• Get financial aid information from
• EACs FAS Team
• 1-800-874-9033
• FAS_at_eac-easci.org
• Your high school counselor
• College financial aid office

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Tips Applying for Financial Aid

• Complete forms accurately
• School financial aid deadlines
• Save forms for your records

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FAFSA January 1

• The Free Application for Federal Student Aid
  (FAFSA) is required for most aid
• Complete and submit your FAFSA as soon after
  January 1 as possible but NOT before
• Have tax information available

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Get a PIN

• Go to www.pin.ed.gov
• Click on Apply for a PIN.
• Enter your personal information (Have your Social
  Security Number with you!)
• Submit your PIN application information.

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Get a PIN (cont.)

• If you provide your e-mail address, youll
  receive an e-mail within three days with
  instructions on retrieving your PIN otherwise it
  will arrive in the mail within seven days.
• Write down your PIN (or better yet, memorize it)
  and keep it in a very safe place.

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FAFSA Completion Options

• Complete the FAFSA online at www.fafsa.ed.gov
• Have your PIN ready
• Have your college submit your FAFSA
  electronically
• Mail in your paper FAFSA

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Documents Needed When Completing the FAFSA

• Department of Education PIN for student and
  parent (for electronic completion)
• Social Security Number
• Drivers license
• W-2 forms
• Federal Income Tax Returns
• Other financial information (bank statements,
  mortgage information, records of other income and
  investments, etc.)

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What is the Student Aid Report (SAR)?

• Report of FAFSA information
• View online or get paper
• Check for errors
• Save for records

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Verification

• Colleges accuracy check
• Provide documentation
• One in three applicants

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Federal Philosophy of Student Aid

• Parents responsibility
• Student responsibility
• Special circumstances

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What is the role of the Financial Aid Office?

• Determines your financial aid eligibility
• Valuable source of help and information

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Financial Aid Eligibility

• Cost of Attendance
• - Expected Family Contribution
• Financial Aid Eligibility

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What is included in the Cost of Attendance (COA)?

• Tuition and fees
• Books and supplies
• Room and board
• Transportation
• Personal/miscellaneous
• Allowance for documented rental or purchase of a
  personal computer

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How is my Expected Family Contribution (EFC)
Determined?

• Your Expected Family Contribution
• factors in
• parents income and assets
• your income
• parents ages and need for retirement income
• number of dependents
• number of family members attending college

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What is the Student Portion of the Expected
Family Contribution?

• 50 of income
• 35 of assets

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You Are a Dependent Student, Unless. . .

• At least 24 by December 31 of award year
• Graduate or professional student
• Married
• Have legal dependents other than a spouse
• Veteran of U.S. Armed Forces
• Orphan or ward of the court
• Determined independent by financial aid
  administrator

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Types of Financial Aid

• Title IV Programs
• Pell Grant
• Campus-Based Programs
• FFEL Program
• FFEL Loans
• Other Sources
• Scholarships
• Supplemental Loans

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Federal Pell Grant

• Foundation of award package
• Need based
• Do not need to be repaid
• For undergraduates
• Not limited by school
• 400 - 4,050 for 2006-2007

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Campus-Based Programs

• Federal Supplemental Educational Education
  Opportunity Grant (FSEOG)
• Federal Work Study (FWS)
• Federal Perkins Loans

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Federal Work Study

• Offered as part of award package
• Gives you eligibility to seek employment on
  campus or off
• Helps you pay for your education
• Average ten hours/week

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Federal Perkins Loan

• Low-interest (5) loan for students with
  financial need
• Borrowed from the federal government through
  college
• Up to 4,000
• Repayment begins 9 months after you graduate or
  drop to less than half-time attendance.

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Federal Family Education Loan Program (FFELP)

• Low-interest loans for students and parents
• Made by lenders
• Guaranteed by a guarantor
• Guarantee and origination fees apply
• Require a Master Promissory Note (MPN)

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FFELP Loans

• Subsidized Federal Stafford Loan
• Unsubsidized Federal Stafford Loan
• PLUS

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Stafford Loans

• College determines eligibility
• Made by participating lenders
• Guaranteed by guarantor (such as EAC)
• Repayment begins six months after you graduate or
  drops to less than half-time attendance.

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Subsidized Federal Stafford Loan
Federal government will pay interest on loan
while you

• Attend college at least half-time
• Are in your six-month grace period
• Are in an authorized deferment

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Unsubsidized Federal Stafford Loan

• Same terms as subsidized Stafford loan
• Borrower responsible for interest at all times
• Government DOES NOT pay any interest

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Federal PLUS Loan

• Borrowed by parent
• Parent must meet credit guidelines
• Government does not pay any interest
• Repayment begins 60 days after final disbursement

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What other sources of aid are available?

• Scholarships
• Supplemental loans
• Others

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ScholarshipsCheck with the following for
information on scholarships

• www.eac-easci.org
• Your high school counselor
• College financial aid office
• Community groups

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Still Have Questions?
EACs Financial Aid Services Team is here to
help. Give them a call at 1-800-874-9033 or
e-mail them at FAS_at_eac-easci.org Or check these
Internet sources www.eac-easci.org http//mapping
-your-future.org www.finaid.org