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Texas Association of StudentFinancial Aid Administrators

andNational Association of Student

Financial Aid Administrators

Financing Education Financing Education BeyondBeyond

High SchoolHigh School2006-20072006-2007

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Objectives for TonightObjectives for Tonight

Give general information about how to apply for financial assistance

Describe what type of financial assistance is available

Promote financial aid awareness to students as early as middle school

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PurposePurpose of Financial Aidof Financial Aid

The primary purpose of student financial aid is to provide resources to students who would otherwise be unable to pursue a post-secondary education.

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To the extent they are able, parents have primary responsibility to pay for their dependent children’s education

Students also have a responsibility to contribute to their educational costs

Families should be evaluated in their present financial condition

A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect its ability to pay

Philosophy of Financial AidPhilosophy of Financial Aid

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Applying for Higher EducationApplying for Higher Education

Select schools to attend, contact them– admissions applications

– housing applications

– financial aid and scholarship applications

– SAT/ACT scores

– TAKS test

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Types of AidTypes of Aid

Gift Aid– Grants– Scholarships

Self Help – Loans– Employment

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Gift AidGift Aid

Grants Federal

– Federal Pell Grant– FSEOG

Federal/State (LEAP) State Institutional Private

Scholarships Federal

Robert C. Byrd Honors Scholarship

State Institutional Private

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Gift Aid - ScholarshipsGift Aid - Scholarships(Where do I look?)(Where do I look?)

HIGH SCHOOL GUIDANCE COUNSELOR

LIBRARIES

CIVIC/RELIGIOUS ORGANIZATIONS

PROFESSIONAL ORGANIZATIONS

ACADEMIC DEPARTMENTS

FINANCIAL AID OFFICE

Internet (www.finaid.org)

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BEWARE!

Don’t be Scammed!

I do not recommend the use of scholarship searches that charge a fee.

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TTowardoward EX EXcellencecellence, A, Accessccess && S Successuccess (TEXAS) Grant(TEXAS) Grant Texas resident graduated from accredited high in Texas within

16 months of first semester completed Advanced or Recommended high

school curriculum have financial need enroll at least full time portable grant

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Self-Help AidSelf-Help Aid

Loans Federal Perkins Loan

Federal Stafford Loans– Federal Family Education Loan

(FFEL) Program

– William D. Ford Federal Direct Loan Program

State Loans

Institutional and Private Loans

Employment

Federal Work-Study

State Work-Study Programs

Institutional Work-Study Programs

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Two Categories of AidTwo Categories of Aid

Merit-based

Need-based

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Definition of NeedDefinition of Need

Cost of Attendance (COA)

– Expected Family Contribution (EFC)

= Financial Need

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Need Varies Based on CostNeed Varies Based on Cost

X

Y

Z

Cost of Expected Family NeedAttendance Contribution (Variable) (Variable) (Constant)

1

2

3

EFC EFC

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Cost of AttendanceCost 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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Definition of NeedDefinition of Need

Cost of Attendance (COA)

– Expected Family Contribution (EFC)

= Financial Need

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Federal MethodologyFederal Methodology

Federal Methodology is the formula created by Congress to determine the Federal Expected Family Contribution

(EFC).

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Needs AnalysisNeeds Analysis

Family completes FAFSA Information is placed in Federal

Methodology Formula Expected Family Contribution (EFC) is

calculated

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Expected Family Contribution Expected Family Contribution for Dependent Studentfor Dependent Student

1. Determine available parent income: Total income (taxable and untaxed); less

exclusions (e.g., child support paid)

2. Determine available parental assets

3. Determine portion of available parental income and assets for education

4. Determine student contribution

1 + 2 + 3 + 4 = EFC

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Definition of NeedDefinition of Need

Cost of Attendance (COA)

– Expected Family Contribution (EFC)

= Financial Need

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Role of the Financial Aid OfficeRole of the Financial Aid Office

Determines eligibility for financial aidPackages aidSends an award notification which details:

– Student’s cost of attendance– Amount of student’s financial “need”– Types and amounts of aid offered– How and when aid will be disbursed– Student employment conditions– Terms and conditions of aid offer

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Free Application for Federal Free Application for Federal Student Aid (FAFSA)Student Aid (FAFSA)

Family’s personal and financial information required to perform need analysis is collected on FAFSA

Paper versions of FAFSA– “Regular” FAFSA– Renewal FAFSA

Electronic versions of FAFSA– EDE– FAFSA on the Web

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Student Aid Report (SAR)Student Aid Report (SAR)

Replays all information (part 1) Allows for corrections (part 2) Indicates if there are problems with:

– Social Security Administration – INS– Selective Service– Default/Refund

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PackagingPackaging

School combines various types of aid to meet financial need

Each school has a different “Packaging Philosophy”

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Award LetterAward Letter

COA, EFC and student’s financial need

Types and amounts of financial aid Deadlines for responding Other documents to complete;

counseling sessions to attend

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Where Do I Go From Here?Where Do I Go From Here? Review school’s materials for aid

application and deadline information

Complete FAFSA – Get Your PIN first

Complete school application (if necessary)

Investigate other sources of aid Conduct private scholarship

search

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WHAT TO EXPECTWHAT TO EXPECT

OBTAIN A PIN NUMBER FROM:– WWW.PIN.ED.GOV

MAIL/TRANSMIT THE FAFSA RECEIVE THE SAR REVIEW THE SAR COMMENTS/DATA MAKE ANY CORRECTIONS NECESSARY SCHOOL REVIEWS

ADDITIONAL INFO REQUESTED VERIFY ACCURACY OF ALL INFO

RECEIVE AWARD NOTIFICATION RESPONSE MUST BE RECD BEFORE AID CAN BE

CREDITED TO THE ACCOUNT

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Helpful Hints and TipsHelpful Hints and Tips

Read instructions carefully Make copies of everything you mail Promptly respond to all

correspondence

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Helpful Hints and Tips (cont’d)Helpful Hints and Tips (cont’d)

Report funds from other sources

Apply for financial aid every year

Maintain Satisfactory Academic Progress (SAP)

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Questions & AnswerQuestions & Answer