High School Counselor Workshop

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High School Counselor Workshop
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Schedule for Today
Morning??????
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Schedule for Today
Afternoon??????
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Philosophy of Financial Aid
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History of Financial Aid

• U.S. Congress passes laws that promote national
  prosperity

Economic
1.
2.
Social
National defense
3.
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Philosophy of Financial Aid
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Philosophy of Financial Aid
The parents responsibility may extend after the
student has left the household.
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Philosophy of Financial Aid
Federal calculations strive to provide consistent
and equitable evaluations of the familys
circumstances.
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General Application Process
Federal Application Processing System
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Student Eligibility

• High school diploma or equivalent
• Be a U.S. citizen or eligible non-citizen
• Have a valid Social Security number
• Be enrolled in an eligible degree or certificate
  program

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Student Eligibility

• Not be in default or owe an overpayment on a
  grant
• Maintain Satisfactory Academic Progress (SAP)
• Registered for Selective Service (males)
• Sign a statement of educational purpose
• No drug convictions based on Department of
  Education standards

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Calculating Financial Aid Eligibility
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Expected Family Contribution (EFC)

• Need analysis is the consistent formula used in
  determining a familys EFC
• EFC is the measure of a familys financial
  strength
• EFC is used to determine the student and parent
  ability to contribute

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EFC The Counselors Role

• You cannot promise eligibility
• You will not assess eligibility

You may be under a lot of stress with questions,
but always remember to encourage all income
levels to apply for aid.
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Cost of Attendance (COA)

• Standard allowable costs
• Tuition and fees
• Room and board
• Books and supplies
• Transportation
• Misc. personal expenses

• Additional allowable costs
• Dependent care
• Study-abroad
• Disability-related
• Employment expenses for co-op study
• Student loan fees

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Calculating Eligibility - Basic Equation of Need

• Cost of Attendance (COA)
• Expected Family Contribution (EFC)
• Eligibility for Need-Based Aid

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Calculating Eligibility- Need-based Aid

• Federal Grants

• State Grants

• PELL
• FSEOG
• ACG
• SMART
• Chafee
• Administered by the State

• Cal Grants
• UC and CSU Grants
• Community College Fee Waivers

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Calculating Eligibility - Need-based Aid

• Subsidized Stafford loan
• Perkins loan
• Work-study
• Some institutional scholarships and work-study
  programs

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Calculating Eligibility - Non Need-based Aid

• Even students who do not have need eligibility
  may still quality for,
• Federal unsubsidized Stafford loan
• Federal PLUS loan
• Some private sector scholarships
• Some institutional scholarships
• Some institutional work-study programs

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Types of Financial Aid
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Types of Financial Aid
The FAFSA application is the foundation for any
financial aid money given, paid or loaned to help
pay for education.
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Types of Financial Aid
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Gift Aid
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Calculating Eligibility- Need-based Aid

• Federal Grants

• State Grants

• PELL
• FSEOG
• ACG
• SMART
• Chafee
• Administered by the State

• Cal Grants
• UC Grants
• CSU Grants
• BOG Fee Waiver

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Self-help Aid
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Federal Work-Study

• Must be earned through work
• Job may be on or off campus
• Undergraduate and graduate students
• No annual maximum
• Funding levels vary at each institution

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Federal Loan Programs

• School determines program participation
• Federal Family Education Loan (FFEL) Program
• William D. Ford Federal Direct Loan Program
• Both offer same or similar programs

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Federal Loan Programs

• Subsidized Stafford loan
• Interest paid by government
• Unsubsidized Stafford loan
• Interest accrues
• PLUS loan
• For parents (details on next slide)
• Perkins loan
• Low income families

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Parent PLUS Loan

• Parent must be students biological or adoptive
  parent
• Both parents may borrow a PLUS loan
• Stepparent is eligible only if income and assets
  are listed on the FAFSA
• Legal guardian not eligible to borrow

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Parent PLUS Loan (cont.)

• Must meet same citizenship requirements as
  student
• Cannot owe an overpayment or be in a default on
  any federal loans
• Be credit-worthy
• Loan is non-need-based

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Review
TRUE OR FALSE
Subsidized loans means that the interest is paid
for the student while student is in school.
T
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Annual Loan Limits
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Annual Loan Limits
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Review
TRUE OR FALSE
Non-need based aid includes the Federal
unsubsidized loan, Federal PLUS loan and
alternative loans
T
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Federal Perkins Loan

• Funding levels vary at each institution
• College serves as lender and servicer
• Undergraduate
• Annual limit 5,500
• Aggregate limit 27,500
• Complete two years of study

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Special Circumstances
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Special Circumstance

• If your student and family has unusual
  circumstances, advise them to contact the
  financial aid office at the college they plan to
  attend the office will advise them of how to
  proceed.

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Special Circumstance

• Send students to Financial Aid Offices in
  situations like these
• Dislocated workers/Loss of employment
• Homeless individuals
• Nursing home expenses
• Medical-related expenses
• Dependent care expenses

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PJ and Dependency Status

• The Financial Aid Office has authority to make a
  dependent student independent
• Unusual circumstances exist
• Unusual circumstances might include
• An abusive family environment
• Abandonment by parents
• Inability to locate parents

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PJ and Dependency Status

• Do not qualify as unusual circumstances
• Parents refuse contribution to education
• Parents unwilling to provide information on the
  application or for verification
• Parents not claiming the students as a dependent
  for income tax purposes
• Student demonstrating total self-sufficiency

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Remember
If your student and family has unusual
circumstances, advise them to contact the
financial aid office at the college they plan to
attend the office will advise them of how to
proceed.
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Questions?