PAYING FOR COLLEGE Scholarships and Federal/State Financial Aid Processes

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PAYING FOR COLLEGEScholarships and
Federal/State Financial Aid Processes
Dr. Deborah Below

Director of
Enrollment Management Admissions Southeast
Missouri State University
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Aid Awards in Missouri (FY05)
2,105,376,640 All Aid 877,873,770
Need-Based Aid (42) SOURCES 1,233,86
5,395 Federal (59) 702,427,941 Institutions
(33) 66,751,215 State of Missouri (3)
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Determining Financial Need

• COA
• EFC
• NEED

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Need Example One

• 15,000 (COA)
• 18,000 (EFC)
• -3,000 (NEED)

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Need Example Two

• 25,000 (COA)
• 18,000 (EFC)
• 7,000 (NEED)

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Financial Aid

• TYPES
• Grants
• Scholarships
• Loans
• Work
• Tax Benefits

• SOURCES
• Federal
• State
• Institution
• Private

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Possible Awards in Your Financial Aid Package

• FEDERAL
• Pell Grant
• Academic Competitiveness Grant
• SMART Grant
• SEOG
• Perkins Loan
• Subsidized and/or Unsubsidized Loan
• Parent (PLUS) Loan
• Federal Work-Study

• STATE
• Missouri Bright Flight
• Missouri College Guarantee
• Charles Gallagher Grant
• INSTITUTION
• Need-Based Grant
• Scholarship(s)
• College Work-Study
• Institutional Loan

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Maximizing Affordability

• Know ALL costsfor a four-year degree
• Take advantage of tax breaks
• Avoid paying by credit card
• Select a lender w/low interest rates during
  repayment
• Apply early you may qualify you for more
• Take advantage of dual credit in high school

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INSTITUTIONAL SCHOLARSHIPS

• Merit (GPA/Rank/Test Scores)
• Involvement/Leadership
• Endowments
• Need/Merit-Based Programs
• Special Interest
• Transfer
• Departmental

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Application ProcessFor Federal, State, and
Need-Based Aid

• Step 1 Get a contact at each college you are
  considering
• Step 2 Apply for Admission and Scholarships
• Step 3 FAFSA
• Step 4 Review Student Aid Report (e-mailed to
  you)
• Step 5 Institution(s) determine your eligibility
  and sends an award letter or request
  for additional information
• Step 6 Read and respond to all mail
  accept/decline offers

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FAFSAwww.fafsa.ed.gov

• Free Application for Federal Student Aid
• The process
• Register for a PIN for Parent and Student
• Apply on/after January 1, 2007
• Choose to apply with estimated or actual 2006
  income. If using actual, have taxes completed.
• When submitting FAFSA, print results and keep a
  copy for your records.

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When to do What

• By December 1 Apply for Admission Scholarships
  
• By February 15 Mail FAFSA or apply on-line
• By March 1 Have FAFSA processed
• In April Review and evaluate financial aid
  offers
• By May 1 Accept/Decline scholarship offer and
  finalize college selection
• some schools may require an earlier FAFSA
  processed date and/or additional
• financial information.

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A tax benefit you wont see in your financial
aid package

• HOPE Tax Credit
• 1500 per year for first two years of college
• A direct tax credit (not a tax deduction)
• Eligibility is phased out at certain income
  limits
• Additional tax benefits exist for the remainder
  of a
• students college education and during loan
  repayment.

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MOHELA Rate Relief Reward Programs

• Reward Programs
• Reduces interest rate to 3.25
• MO Peace Officer
• MO Teacher
• MO Social Worker
• MO National Guard
• MO Nurse

• Rate Relief
• Borrowing 15,000 at
• 6 and participating in
• Rate Relief will reduce
• the interest rate by 2.5
• and save you 2556
• during repayment.

Reward Program Recipients are also eligible for
the Rate Relief - Direct Payment Program
reduction of 2.0.
Note These programs may or may not be available
at the time of your loan repayment.
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Cost Cutters

1. Limit eating out to once a week/choose
   inexpensive restaurants.
2. Avoid the pressure of using credit cards for the
   things you want vs. the things you need.
3. Choose your course load wisely and avoid dropping
   classes unless you really arent doing well the
   cost of a 3 hour class is 500-1000 or more.
   Dropping classes can affect financial aid
   eligibility.
4. If you want to graduate in four years, plan
   accordingly with your academic advisor. It is
   possible!
5. Know your monthly expenses for cell phone, gas,
   insurance, socializing, clothing, etc. Assess
   what you need and what you can live without.

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Something to Think About
Choose to live like a college student nowor plan
to live like one the rest of your life. The
average student now borrows more than 20,000.
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INTERNET RESOURCES

• www.students.gov U.S. Government
• www.dhe.mo.gov Missouri Programs
• www.fafsa.ed.gov FAFSA Application
• www.fastweb.com Scholarship Search
• www.finaid.org Financial Aid Info