THE FINANCIAL AID PROCESS

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THE FINANCIAL AID PROCESS

• BOB REDMAN
• THE COLLEGE PLANNING CENTER

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OVERVIEW

• HOW THE FINANCIAL AID PROCESS WORKS
• TYPES AND RESOURCES FOR FINANCIAL AID
• PLACES FOR HELP

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FREE MONTHLY REMINDERS!
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TYPES OF FINANCIAL AID

• Gift-Aid
• Scholarships and Grants
• Merit-based or Need-based
• Self-Help Aid
• Loans
• Work-Study

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SOURCES OF FIANCIAL AID

• FEDERAL GOVERNMENT
• STATE GOVERNMENT
• INSTITUTIONALLY FUNDED
• PRIVATELY FUNDED

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(FAFSA)

• FREE APPLICATION for
• FEDERAL STUDENT AID

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• FAFSA on the Web
• (www.fafsa.ed.gov)
• Paper Form

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FAFSA FACTS HINTS

• Snapshot of the family financial situation
• Cant be mailed or entered online before January
  1st
• Have Fed. Tax forms and W2s on hand
• Accuracy of information
• (name, SS, date of birth)
• Read directions carefully --- ask questions
• Dont leave blanks unless instructed to do so
• Always keep a copy
• Must be completed each year

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FAFSAs SEVEN STEPS

• Step 4 - Parental income assets
• Step 5 - Students household size
• Step 6 - Schools to receive FAFSA data
• Step 7 - Signatures

• Step 1 - Student general information
• Step 2 - Student income assets
• Step 3 - Dependent or Independent status

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PRINCIPLES of NEED ANALYSIS

• To extent they are able, parents have primary
  responsibility to pay for dependent childs
  education
• Students also have responsibility to contribute
  to educational costs
• Families should be evaluated in their present
  financial condition
• Familys estimated ability to pay for educational
  costs must be evaluated in equitable consistent
  manner, recognizing that special circumstances
  may affect familys ability to pay

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YOUR FEDERALPIN NUMBER

• A PIN serves as an electronic signature
• Students parents may request a
  PIN www.pin.ed.gov
• Parents One PIN for multiple dependent students
• PIN has many uses

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STUDENT AID REPORT (SAR)
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SAR

• A summary information collected from the FAFSA
• Provide e-mail address receive link to SAR (14
  day limit)
• No e-mail receive paper SAR
• Compare FAFSA and SAR
• Make corrections or changes
• on-line

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• EXPECTED FAMILY
• CONTRIBUTION
• (EFC)

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EFC

• Amount of money student and parents are expected
  to contribute toward students education.
• Used to determine the amount of financial aid a
  student may receive.
• Remains the same--regardless of school you choose
  to attend

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EFC

• Used to determine the amount of financial aid a
  student is eligible to receive
• Remains the same regardless of school student
  chooses to attend

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EXPECTED FAMILYCONTRIBUTIONFOR A DEPENDENT
STUDENT

• Parent Contribution
• Students Contribution
• EFC

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PARENT CONTRIBUTION

• Income (taxed untaxed) less any exclusions,
  taxes, income protection and employment
  allowances
• 12 of parental assets (value of cash, savings,
  checking, investment equity, investment farm or
  business net worth less an asset protection
  allowance)
• Other factors Age of older parent, number of
  people in the family and number of students in
  college (excluding parents)

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DEPENDENT STUDENT CONTRIBUTION

• 50 of students income (taxed untaxed) less
  taxes and an income protection allowance of 3000
  (07-08)
• 20 of student assets

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• COST OF EDUCATION
• HOW MUCH?

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COST OF ATTENDANCE

• DIRECT COSTS
• Tuition Fees
• Room Board
• INDIRECT COSTS
• Books/Supplies
• Transportation
• Misc./Personal expenses

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WHAT IS FINANCIAL NEED?

• COST OF ATTENDANCE
• - EFC
• FINANCIAL NEED

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NEED WILL VARY

• Each schools cost of attendance is different,
  so your financial need will be different for each
  school.
• School A B
• Cost of Attendance 25,000 10,000
• EFC -
  5,000 - 5,000
• Financial Need 20,000
  5,000

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FINANCIAL NEED-ANOTHER SCENARIO

• College A College B
• Cost of Attendance 25,000 10,000
• Minus EFC 15,000 15,000
• Financial Need 10,000 - 0 -

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WHERE DO I START?

• The student and parents fill out the FAFSA
• Student receives SAR
• Schools receive the FAFSA results electronically
• School does any follow-up required, such as
  verification

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AWARD LETTER

• Your Financial Aid Package
• Lists of Awards
• You Should
• Review Items
• Sign and Return

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FINANCIAL AIDSOURCESPROGRAMS
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SOURCES OFFINANCIAL AID

• FEDERAL GOVERNMENT
• STATE GOVERNMENT
• INSTITUTIONALLY FUNDED
• PRIVATELY FUNDED

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FEDERAL STUDENT AID

• Academic Competitiveness Grants (ACG)
• SMART Grants
• Pell Grant Program
• FSEOG
• Work-Study
• Perkins Loans

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FEDERAL STUDENT AID

• Academic Competitiveness Grant (ACG)
• Enrolled full time in a degree program at a two
  or four year institution
• Qualify for PELL Grant
• Completed a rigorous secondary school program
  after 1-1-06
• 1st year 750
• 2nd year 1300

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FEDERAL STUDENT AID

• SMART Grant
• 4000
• 3rd 4th academic years only
• Specific degree programs only
• PELL Grant recipient
• Enrolled full-time
• Have a 3.0 cumulative GPA

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FEDERAL STUDENT AID

• Pell Grant
• Directly from FAFSA
• Undergraduates with exceptional need
• Transfers from school to school
• FSEOG
• Awarded by Financial Aid officers
• Does NOT transfer from school to school
• Award determined by the college

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FEDERAL STUDENT AID

• Federal Work-study
• No more than 20 hours per week
• Paid federal minimum wage or more
• Federal Perkins Loan
• Campus-based loan program
• Maximum of 4000 may be awarded
• 5 interest rate
• 9 month grace period

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STATE OF IOWA

• Iowa College Student Aid Commission
• 800-383-4222
• Iowa Tuition Grant
• Iowa Grant
• Iowa Vocational-Technical Tuition Grant
• Loan Forgiveness Programs
• www.iowacollegeaid.org

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INSTITUTIONAL AID

• May be based on Merit or Need
• Depends upon funding at school
• School sets eligibility criteria
• Will vary from school to school
• May require an additional application

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INSTITUTIONAL AID

• Talk With Financial Aid Office
• Check Schools Web Site
• Explore Payment Options with the School

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PRIVATE SCHOLARSHIPS

• Check with your Guidance Office
• Parents Work
• Place of Worship
• Professional Organizations
• Use the Internet

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FEDERAL LOAN PROGRAMS

• STAFFORD LOANS
• Federal Family Education Loans
• Ford Direct Loan Program
• FEDERAL PLUS LOANS
• Parent Borrower
• Credit Check
• PRIVATE LOANS
• Various Terms
• Various Sources

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STAFFORD LOANS

• Subsidized
• Need-based
• Government pays the interest while in school
• Unsubsidized
• Not need-based
• Government does not pay the interest

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FEDERAL STAFFORD LOANS(Subsidized Unsubsidized)

• Subsidized Stafford Must show need
• Unsubsidized Stafford Need not a factor
• Annual Loan Limits 35001st Year
  Undergraduates 45002nd Year
  Undergraduates 5500Remaining Years of
  Undergraduate
  8500Graduate/Professional
• Fixed Interest Rate of 6.80
• 6 Month Grace Period
• 1.5 Origination Fee 1 Insurance Fee

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STAFFORD LOAN LIMITS

• Annual Loan Limits
• 3500 1st year undergraduate
• 4500 2nd year undergraduate
• 5,500 Each remaining year of
  undergraduate work
• 8,500 Graduate

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STAFFORD LOANSGENERAL INFORMATION

• Subsidized or Unsubsidized
• Six month grace period
• Fixed interest rate
• Current Interest Rate 6.80
• Directly to school
• Origination Fee (1.5)
• Guarantee Fee (1)
• If at a FFELP school Keep same lender

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PLUS LOAN PROGRAM

• PLUS Loan
• Parent loan
• No Government subsidy
• Fixed interest rate
• Current Interest Rate 8.50
• Loan limit cost of attendance minus other aid
  received
• Proceeds directly to school

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PRIVATE LOANS

• Variety of sources, terms, conditions
• Generally borrower is responsible for the
  interest
• May be subject to credit check be asked to
  provide a financial statement

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BEWARE!!!

• Dont pay for scholarship searches
• Dont pay for FAFSA help
• Dont give out account numbers
• Beware
• www.fafsa.com
• www.fafsa.ed.gov

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PLACES FOR HELP

• Your School Counselor
• College Admission Financial Aid Offices
• Iowa College Student Aid Commission
• 800-383-4222
• College Planning Center
• 877-272-4692
• www.collegeplanning.org
• all assistance is free

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PLEASE COMPLETE OUR SURVEY
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GOOD NIGHT HAVE A GREAT YEAR!!!
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