Financial Aid

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Financial Aid
for A College Education
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Financial aid is available through many sources.
Two of those sources are the

• U.S. Department of Education(ED)a federal
  agency which provides college funding in the form
  of grants, scholarships and educational loans
• Illinois Student Assistance Commission (ISAC)the
  state agency that administers state and federal
  scholarships and grants, college savings and
  prepaid tuition programs, and educational loans

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The four types of financial assistance are

• Scholarships
• Grants
• Work-Study
• Loans
• These funds may be merit-based, need-based,
  or non need-based.

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Gift Aid

• Grants
• Federal
• State
• Institutional
• Private

• Scholarships
• Federal
• State
• Institutional
• Private

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Self-Help Aid

• Loans
• Federal Perkins Loan
• Federal Family Education Loan Program (FFELP)
• William D. Ford Federal Direct Loan Program
• Alternative Loans (Institutional and Private
  Loans)

• Employment
• Federal Work-Study
• Institutional

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• Students apply for federal and some state aid
  by completing the

• Free Application for Federal Student
  Aid(FAFSA)
• The information requested on the FAFSA is used to
  determine the students eligibility for most
  federal and state assistance and to calculate
  theExpected Family Contribution (EFC).

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Principles of Need Analysis

• To the extent they are able, parents have primary
  responsibility to pay for their dependent
  childrens education.
• Students also have a responsibility to contribute
  to their educational costs.
• Families should be evaluated in their present
  financial condition.
• A familys ability to pay for educational costs
  must be evaluated in an equitable and consistent
  manner, recognizing that special circumstances
  can and do affect their ability to pay.

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Step 1

• Complete and mail(or electronically
  transmit)the FAFSA on or after January
  1stFAFSA on the Webwww.fafsa.ed.gov

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Step 2

• Receivethe Student Aid Report(SAR)in 4 to 6
  weeks(SAR Acknowledgement Form received in 1 to
  2 weeks if using an electronic transmission)

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Step 3

• Review the SAR for necessary corrections
• Contact the Financial Aid Office for correction
  procedures

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Step 4

• College prepares award packageScholarshipsGrant
  sWork-StudyLoansand then sends an award letter

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Definition of Need

• Cost of Attendance (COA)
• Expected Family Contribution (EFC)
• Financial Need

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Cost of Attendance

• Tuition and fees
• Room and board
• Books and supplies, transportation, and
  miscellaneous personal expenses
• Loan fees
• Study abroad costs
• Dependent or elder care expenses
• Expenses associated with a disability
• Expenses for cooperative education program

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Step 5

• Student signs award letter and
• returns to college if required

Keep a copy! Meet the deadline!
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Step 6

• Notify other colleges where you applied of your
  admission decision

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Step 7

• Notify your collegeof any private
  scholarshipsyou receive

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Deadlines...2000-2001 Academic Year

• January 1, 2000
• First date students can submit FAFSA for
  processing
• No later than June 30, 2000
• MAP Grant - continuing student applicants
• No later than September 30, 2000
• MAP Grant - first-time student applicants
• June 30, 2001
• Federal Pell Grant

Check deadlines for institutional and private
sources of financial aid
These dates are subject to change and are
based on funding by the Illinois General Assembly.
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Federal Programs
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Federal Pell Grant...

• Need-based grant
• Uses Tuition, fees, room, board, living expenses
• Amount of award is calculated by the college
  based on information from the SAR
• Maximum full-time award for 1999-2000 is 3,125

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Federal Supplemental Educational Opportunity
Grant (FSEOG)...

• Need-based grant
• Maximum award 4,000 based on availability of
  funds at the college

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Federal Work-Study (FWS)...

• Need-based employment program
• Provides jobs on and off campus
• Students earn at least current minimum wage
• Students can work a maximum of 20 hours per week

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Federal Perkins Loan...

• Need-based student loan that must be repaid
• 5 fixed interest rate
• Eligible undergraduates may borrow up to 4,000
  annually
• Repayment begins 9 months after graduation or if
  student drops below half-time enrollment
• Eligibility determined by college

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Robert C. Byrd Honors Scholarship Program...

• Academic scholarship
• Student must enroll full time during the academic
  year immediately following high school graduation
• Student must have demonstrated outstanding
  academic achievement
• Students may receive 1,500 (depending on
  funding) per academic year for up to 4 years of
  undergraduate study and is not limited to tuition
  and fees

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State of Illinois Programs
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Monetary Award Program (MAP)...

• Need-based grant
• Pays tuition and mandatory fees up to 4,530 for
  1999-2000
• Must attend a MAP-approved Illinois school at
  least half time

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Illinois Incentive for Access (IIA) Program...

• 500 grant
• Awarded to freshmen who have a 0 Expected
  Family Contribution (EFC)
• Must attend a MAP-approved Illinois school at
  least half time

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Merit Recognition Scholarship (MRS)...

• Scholarship based on academic achievement
• One-time 1,000 scholarship
• Student must rank in top 5 of graduating class
  based on their seventh semester
• Uses tuition, fees and/or other expenses
• Funding and number of awards are subject to
  annual appropriations from the Illinois General
  Assembly
• Due to legislative action, eligibility for this
  scholarship has been extended to students
  attending non-recognized high schools.

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State Scholar Program...

• Academic recognition, no monetary assistance
• Recognition presented to approximately top 10 of
  all Illinois high school graduates

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Other State of IllinoisPrograms...
Interested in becoming a teacher?

• David A. DeBolt Teacher Shortage Scholarship
  Program
• Minority Teachers of Illinois (MTI) Scholarship
  Program
• Illinois Special Education Teacher Tuition Waiver
  Program

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Specialized Grant Programs...

• Illinois Veteran Grant (IVG) Program
• Grants for Dependents of Police/
  Fire/Correctional Officers Program
• Bonus Incentive Grant (BIG) Program

For more information about these and other
specialized grant programs, please review The
Means to the Dream brochure from ISAC.
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Federal Loan Programs
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Subsidized and UnsubsidizedFederal Stafford
Loans...

• Low-interest loan which students borrow on their
  own
• Variable interest rate is 6.32 for 7/1/1999
  through 6/30/2000 (rate cannot exceed 8.25)
• Repayment begins 6 months after the student
  graduates or falls below half-time enrollment
  status

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Federal Stafford Annual Loan Limits...
The 1 guarantee fee has been eliminated for
ISAC-guaranteed FFELP loans with first
disbursements on or after July 1, 1999 through
June 30, 2000, which lowers the fees charged to
3. For Federal Direct Loans originated with a
first disbursement on or after August 15, 1999,
the U.S. Department of Education (ED) has
announced the origination fee will be reduced to
3.
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Federal Stafford Loan...Differences(Subsidized
vs. Unsubsidized)

• Financial Need
• Subsidized need-based
• Unsubsidized not based on need
• Payment of Interest
• Subsidized - federal government pays while
  student is in college and during grace/deferment
  periods
• Unsubsidized - payment is always the students
  responsibility

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Federal PLUS Loan...

• Parent is the borrower
• Variable interest rate (cannot exceed 9) is
  7.72 for 7/1/1999 through 6/30/2000
• Maximum loan amount is the cost of attendance
  minus all financial aid received for the student
• Approval subject to parent credit check
• Repayment begins 30-60 days after loan is
  disbursed

The 1 guarantee fee has been eliminated for
ISAC-guaranteed FFELP loans with first
disbursements on or after July 1, 1999 through
June 30, 2000, which lowers the fees charged to
3. For Federal Direct Loans originated with a
first disbursement on or after August 15, 1999,
the U.S. Department of Education (ED) has
announced the origination fee will be reduced to
3.
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Higher-EdNet

• ISACs
• Financial Aid
• Location Service

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Higher-EdNet Overview...

• National comprehensiveelectronic database
  (CASHE)
• Federal, state, private and institutional
  sources
• Available in paper and Internet
  formats.www.isac-online.org

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Higher-EdNet Overview...

• Student Profile Form allows students to customize
  search
• identify achievements
• areas of interest
• preferred colleges and majors
• Student receives information to follow-up with
  sources

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Other Financial Aid Resources
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PrivateFinancial Aid Sources...

• Parents and/or students employer
• Private foundations
• Civic organizations

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What to do...
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• Plan ahead
• Apply early
• Read CAREFULLY
• Meet deadlines
• Keep copies

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Where to look...
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Role of the Financial Aid Office

• Determines eligibility for financial aid
• Packages aid
• Sends an award notification which details
• Students cost of attendance
• How the students need was determined
• Amount of students financial need
• Types and amounts of aid offered
• How and when aid will be disbursed
• Student employment conditions
• Terms and conditions of offer
• Subject to availability of funds

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• Public Libraries
• College Libraries
• ISACs SuccessVision ? CD-ROM
• The Internet
• ISAC OnLine
• www.isac-online.org
• Mapping Your Future
• www.mapping-your-future.org
• U.S. Department of Education
• www.ed.gov
• FAFSA on the Web
• www.fafsa.ed.gov
• College Web Site

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www.isac-online.org

• Youll find the latest informationon financial
  aid

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• At The ISAC INFO Café
• sample our financial aid estimator
• use a clickable map of Illinois colleges
• find the latest information on College Illinois!
  ISACs prepaid tuition program and
• a wealth of information tailored for youwhether
  youre a high school student, a college student
  or a parent.

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Questions???

• CALL
• Illinois Student Assistance Commission800-899-ISA
  C
• U.S. Department of Education800-4 FED AID

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If more help is needed, our counseling office is
here to assist you.