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Financial Aid Workshop
Heritage High School
December 13, 2011
National Association of Student Financial Aid Administrators
© NASFAA 2010
What You Need to Know
About Financial Aid
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Admissions & Financial Aid Timeline
• August-November……………..College Search• November-February……....College Applications• December-March……….Admissions Decisions• January-February…..Financial Aid Applications• February-April…………Financial Aid Decisions• December-May 1st……………..College Choice
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Topics We Will Discuss Tonight
• What is financial aid• Cost of Attendance (COA)• Expected Family Contribution (EFC)• What is financial need• Categories, types, and sources of financial aid• Free Application for Federal Student Aid (FAFSA)• CSS Profile• Special circumstances
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Cost of College
Average college total cost, 2011-2012
Private 4 year: $38,590 (with grants/scholarships: $23,000)
Public 4 year: $17,030 (with grants/scholarships: $11,380)
Public 2 year: $6,600 - $10,370
NOVA: $137.75/credit ($4,959/36 hrs)
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Median Earnings by Educational Level -2010
• Dropout: $23,088• High School Graduate: $32,552• Some college but no degree: $37,024• Associate’s degree: $39,884• Bachelor’s Degree: $53,976• Master’s Degree: $66,144• Doctorate: $80,600• Professional degree: $83,720
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Myths About Paying for college
• College is too expensive• There is less aid available now• My family’s income is too high• My parents saved for college so we won’t qualify for aid• I’m not a straight “A” student• If I apply for a loan, I have to take it• Working will hurt my academic success• Millions of scholarship dollars go unused• My parents will have to sell their house• Private schools are out of reach
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Some Interesting Statistics courtesy of Mark Kantrowitz of FinAid and FastWeb
• 65.6% of bachelor degree students graduate with an average of $25,250 in educational debt
• In 2007-2008, 2.3 million Pell Grant eligible students did not apply for federal aid, and 1.1 million would have qualified for a
full Pell Grant ($5,500/free money).• 40% of undergraduates do not submit the FAFSA, and of these, about
27% would qualify for a Pell Grant (free money).• Of students who borrowed private student loans (at presumably higher
interest rates) but not federal loans, 60% did not submit the FAFSA.
• If you do not qualify one year, it does not mean you will not qualify the next. Apply every year.
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What is Financial Aid?
Financial aid is funds provided to students and families to help pay for postsecondary educational expenses
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What is Cost of Attendance (COA)
• Direct costs: Tuition, fees, room & board (Paid directly to college)
• Indirect costs: Books, computers, transportation (gas), off-campus housing, personal expenses (entertainment, clothing, laundry), other costs
(lab fees)
• Direct and indirect costs combine into cost of attendance
• Varies widely from college to college
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What is the Expected Family Contribution (EFC, figured by the
FAFSA)• Amount family can reasonably be expected
to contribute (but not what will actually pay due to possible added college aid)
• Stays the same regardless of college• Two components
– Parent contribution– Student contribution
• Calculated using data from a federal application form and a federal
formula
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What is Financial Need
Cost of Attendance
– Expected Family Contribution
= Demonstrated Financial Need
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Categories of Financial Aid
• Need-basedAwarded based on family’s ability to payMust file financial aid application(s)
Based on Expected Family Contribution (EFC)
• Non-need-based aid (merit based)Academic, athletic, talent, leadership scholarships
based strictly on student’s achievementsAllows schools to “shape” their student body
•
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Types of Financial Aid
• Scholarships
• Grants
• Loans
• Employment / Work Study
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Scholarships
• Money that does not have to be paid back
• Awarded on the basis of merit, skill, or unique characteristic
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Grants
• Money that does not have to be paid back
• Usually awarded on the basis of financial need (e.g. Pell Grants)
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Loans
• Money students and parents borrow to help pay college expenses
• Repayment usually begins after education is finished
• Only borrow what is really needed
• Look at loans as an investment in the future
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Employment / Work Study
Allows student to earn money to help pay educational costs
• A paycheck; or
• Non-monetary compensation, such as room and board
• Research says that students who enroll part-time and work full time are more likely to
drop out of college.
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Sources of Financial Aid
• Federal government
• States
• Private sources
• Civic organizations and churches
• Employers
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Federal Government
• Largest source of financial aid
• Aid awarded primarily on the basis of financial need
• Must apply every year using the Free Application for Federal Student Aid (FAFSA)
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Common Federal Aid Programs
• Federal Pell Grant: Can qualify for a second grant if in summer school and graduating early
• Teacher Education Assistance for College and Higher Education Grant
• Federal Supplemental Educational Opportunity Grant
• Federal Perkins Loan
• Federal Work-Study
• Stafford Loans
• PLUS Loans
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States
• Residency requirementsState residents often qualify for lower in-state tuition
rates and state education grantsThe average surcharge for full-time
out-of-state students at public 4-year institutions is $11,990 (www.collegeboard.com)
• Award aid on the basis of both merit and need
• Use information from the FAFSA
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Virginia State Aid
• Tuition Assistance Grant - $2650 in 2011-2012• College Scholarship Assistance Program - $400 - $5,000• Commonwealth Award – varies by school• Virginia Part-Time Assistance Program for community colleges –
amount varies • National Science and Math Access to Retain Talent Grant (SMART):
for years 3 and 4 for math & science talent• Virginia Guaranteed Assistance Program – Up to the cost of tuition,
fees, and books
• Additional information available at www.schev.edu
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Private Sources
• Foundations, businesses, charitable organizations
• Deadlines and application procedures vary widely
• Begin researching private aid sources early
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Heritage Career Center Webpage
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www.naviance.com
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Civic Organizations and Churches
• Research what is available in community
• To what organizations and churches do student and family belong?
• Application process usually spring of senior year
• Small scholarships add up!
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Local, Loudoun County Money
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Employers
• Companies may have scholarships available to the children of employees
• Companies may have educational benefits for their employees
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www.fastweb.com
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www.finaid.org
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Protect Yourself from Scholarship Scams
Rules of Thumb:
If you must pay money to get money, it might be a scam.
If it sounds too good to be true, it probably is.
Nobody can guarantee that you will win a scholarship
Make certain you are on the correct FAFSA website.
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Free Application for Federal Student Aid (FAFSA)
• A standard form that collects demographic and financial information about
the student and family
• May be filed electronically or using paper form
– Available in English and Spanish
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FAFSA
• Information used to calculate the Expected Family Contribution or EFC (EFC is a guess for the parent but
is specific for the financial aid administrator)
– The amount of money a student and his or her family may reasonably be expected to contribute
towards the cost of the student’s education for an academic year
• Colleges use EFC to award financial aid
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FAFSA
• May be filed at any time during an academic year, but no earlier than the January 1st prior to the
academic year for which the student requests aid
• For the 2012–13 academic year, the FAFSA may be filed beginning January 1, 2012
• Colleges may set FAFSA filing deadlines by which students must have filed the FAFSA if students wish to be
guaranteed consideration for financial aid.
– Examples: George Mason’s is March 1 Old Dominion’s is February 15
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FAFSA on the Web
• Website: www.fafsa.gov (Using another website can cost $80-$100; using private financial aid
advisors can cost $400-$500.)• 2012–13 FAFSA on the Web available on January 1, 2012• FAFSA on the Web Worksheet:
– Used as “pre-application” worksheet– Questions follow order of FAFSA on the Web
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FAFSA on the Web
Good reasons to file electronically:• Built-in edits to prevent costly errors• Skip logic allows student and/or parent to skip
unnecessary questions• More timely submission of original application and any
necessary corrections• More detailed instructions and “help” for common
questions• Ability to check application status on-line• Simplified application process in the future
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IRS Data Retrieval Tool
• While completing FOTW (FAFSA on the Web), applicant may submit real-time
request to IRS for tax data
• IRS will authenticate taxpayer’s identity
• If match found, IRS sends real-time results to applicant in new window
• Applicant chooses whether or not to transfer data to FOTW
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IRS Data Retrieval Tool
• Available late January 2011 for 2011–12 processing cycle
• Participation is voluntary
• Could reduce documents requested by financial aid office
• Cannot use if both parents have filed separately
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Federal Student Aid Personal Identification Number (FSA PIN)
• Website: www.pin.ed.gov
• Sign FAFSA electronically
• Not required, but speeds processing
• May be used by students and parents throughout aid process, including subsequent school years
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FAFSA Pin Numbers
Student needs a pin,
AND
One parent needs a pin
You should get these now!
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FAFSA on the Web Worksheet
• 2012-13 FAFSA on the Web
Worksheet: Four page bookletcontaining:– Instructions– 24 questions in 4
sections
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FOTW Worksheet: Section 1(This is not the actual FAFSA application.)
General Student Information:- Social Security Number- Citizenship Status- Marital Status- Selective Service
registration (males 18-25)- Drug convictions- Parent education
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FOTW Worksheet: Section 2
Student’s dependency status:
- If “No” to all responses, student is dependent
- If “Yes” to any question, student is independent
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Dependency Status
• Students are considered dependent unless they answer yes to any of the following:Born before January 1, 1989?
Married?Working on a master’s or doctorate program?
Serving on active duty in U.S. Armed Forces? Veteran of the U.S. Armed Forces?
Have children and provide more than half their support? Since I turned 13, both parents deceased? Since I turned 13, I have been In foster care? Have dependents (other than children or my spouse) who live with them and student provides more than half their support?Dependent or ward of the court since turning 13?
Emancipated minor?Currently are or were in legal guardianship after age 13?
Homeless or at risk of being homeless?
(If abused, abandoned, neglected, or cannot contact the parent, can tell college financial aid office and they will make the determination,)
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Undocumented Students
• Financial aid is generally not available for undocumented students. The majority of all student aid,
including Federal student aid, requires the recipient to be a US citizen or permanent resident (green card holder) or an eligible non-citizen.
• Undocumented students will pay out-of-state tuition rates.• There are several private scholarships available to
undocumented students.
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FOTW Worksheet: Section 3
Information about the parents of dependent students:
- Tax, income, & other financial information
- Dislocated worker status
- Assets (Note: FAFSA is more focused on income than assets.)
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Additional Information
• College and housing information
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Understanding Who They Mean When They Say Parents
• If parents are both living and married to each other, answer the question for both of them.
• If parents are separated, divorced, or were never married, answer the questions only about the parent with whom the
student lived with most during the past 12 months. If time was spent equally with both parents, give answers about the parent who provided the most financial support (not necessarily who claims the student on their tax return).
• If parents are remarried, you must also include information about the stepparent. (Pre-nuptial agreements between the
parent and a step-parent will not eliminate the step-parent.)
• If student has a legal guardian, answer the questions about the guardian.
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FOTW Worksheet: Section 4
Information about the student (and spouse)
- Tax, income, and other financial information
- Dislocated worker status- Assets (What they are worth at
the time you apply. Not expected to constantly readjust as the stock market goes up and down. Assets are a small part of the EFC. Not trying to take retirement funds. Will look at second home.)
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Dislocated Worker?
• You may be if:
- You have been terminated, laid off, or received a ‘notice of termination’ and are unlikely to return to your usual occupation or industry because of:
- A permanent plant closure
- A substantial layoff
- Foreign competition
- Lack of demand for you skills
- You are self-employed, but the economy or a natural disaster has put you out of work (probably ineligible for unemployment)
- You are a displaced homemaker who is either unemployed or working a job that does not support your household (probably ineligible for unemployment)
Source: WorkSource
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Additional Information for FAFSA
• College and housing information
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Signatures for FAFSA
• Required– Student
– One parent (dependent students)
• Format– Electronic using PIN
– Signature page
– Paper FAFSA
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Super Saturday
• Free assistance in completing the FAFSA online• Saturday, February 4, 2012• Devry University/Arlington - Lisa Branson 703 414-4029• Stonewall Jackson High School/Manassas – Nancy
Pomaranski 703 365-2992• Skyline High School – Joyce Jenkins-Wimmer
[email protected]• Lord Fairfax Community College/Middletown – Tracy
Shepherd 540 868-7131
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Frequent FAFSA Errors
• Name exactly as written on social security card• Date of Birth• Social Security Numbers (if do not submit, colleges cannot access
your information from FAFSA)• Divorced/remarried parental information• Income earned by parents/stepparents• Untaxed income• U.S. income taxes paid • Household size (For whom are you providing support?)• Number of household members in college (Mom cannot claim son
living with Dad in a divorced situation.)• Real estate and investment net worth• Both parents claim “Head of Household” on taxes when both live in
the same house.
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FAFSA Processing Results
Central Processing System (CPS) notifies student of FAFSA processing results by:
• Paper Student Aid Report (SAR) if paper FAFSA was filed and student’s e-mail address was
not provided
• SAR Acknowledgement if filed FAFSA on the Web and student’s e-mail address was not provided
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FAFSA Processing Results
• CPS notifies student of FAFSA processing results by:
– E-mail notification containing a direct link to student’s electronic SAR if student’s e-
mail was provided on paper or electronic FAFSA
• Student with PIN may view SAR on-line at www.fafsa.gov
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FAFSA Processing Results
• Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA submitted. Will take MUCH longer if submit the FAFSA by paper.
• College reviews ISIR– May request additional documentation, such
as copies of federal tax returns
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Student Aid Report
• Review data for accuracy: If you find you made a mistake after submitting your FAFSA, you will have to wait until after it has been processed to make corrections. Corrections can be made online through “Corrections on the Web” (Note: You must have a pin to correct your FAFSA
data online.)
• Update estimated information when actual figures are available
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Adding or Deleting a School Code
• If you want to add or remove any of the school codes that you listed on your FAFSA, you
will have to wait until it has been processed.
• If sending to more than 10 schools, will have to submit the first 10, then make certain
each of the first ten schools have downloaded the FAFSA, before deleting the old schools and putting in the new schools.
• Note: You must have a pin to add or delete schools.
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Making Corrections
If necessary, corrections to FAFSA data may be made by: • Using FAFSA on the Web (www.fafsa.gov) if
student has a PIN;• Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or• Submitting documentation to college’s financial aid office
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Help!
• FAFSA on the Web Customer ServiceFor assistance while using FAFSA on the Web, call
1-800-4FED-Aid (1-800-433-3243). If you are hearing impaired and have questions, contact the TTY line at 1-800-730-8913.
• From 8 am – midnight, you can also receive help live customer service help, online, by selecting the
“Live Help” button conveniently located within the pages of the application.
• Select the “Need Help?” button at the bottom of the lower part of each screen.
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Help!......Locally
Financial Aid Counselors at Shenandoah University:
- Nancy Bragg (Director) – 540-665-4621
- Brian De Young (Associate Director) – 540 665-4707
Financial Aid Counselor at NOVA:
- Jenna Griffin – 703-948-7784
- Renee McLaurin – 703-948-7784
Financial Aid Counselor at George Mason:
Super Saturday: February 4, 2012
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Special Circumstances
• Cannot report on FAFSA (e.g. medical expenses, parent laid off late in the calendar year affecting anticipated income for the next calendar year)
• Send written explanation to financial aid office at each college
• College will review special circumstancesMay request additional documentationDecisions are final and cannot be appealed to U.S.
Department of Education
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Special Circumstances
• Change in employment status
• Medical expenses not covered by insurance
• Change in parent marital status
• Unusual dependent care expenses
• Student cannot obtain parent information
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CSS Profile (Review)
• Complete Profile beginning Oct. 1, 2011, for 2012-2013 school year
• Watch for early deadlines• $25 ($9 + $16) for registration and first school
report, $16 for each additional college (fee waivers automatically considered)
• FAFSA must also be completed to be considered for federal student aid
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CSS Profile Review
• Complete Profile beginning Oct. 1, 2011, for the
2012- 2013 school year• Watch for early deadlines• $25 ($9 + $16) for registration
and first school report, $16 for each
additional college (fee waivers automatically considered)
• FAFSA must also be completed to be considered for
federal student aid
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CSS Profile
• https://profileonline.collegeboard.com
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CSS Profile: Sample of Participating Colleges
Check website for complete list….
American University
George Washington University
Georgetown University
Johns Hopkins University
Patrick Henry College
University of Richmond
University of Virginia
Washington and Lee University
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Calculate Financial Aid Possibilities
• www.finaid.org/calculators/finaidestimate.phtmlThis form is used to calculate the Expected Family
Contribution (EFC) and financial need and to estimate your student financial aid
• www.fafsa4caster.comFAFSA4caster will help you get an early start
on the financial aid process by providing you with an early estimate of your eligibility for federal student aid.
• https://www.vawizard.org/vccs/Main.action
The Virginia Wizard will give you a sense of the need-based aid you will receive from Virginia colleges
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Financial Aid Award Letters
• After you submit your application for financial aid, you will receive an award letter from the colleges to which you applied, typically by April 1 with your college acceptance letter. Must reply by May 1. Some students do not reply!!!! A financial aid package is a collection of different types of financial aid from multiple sources. It is intended to help you fill the gap between your ability to pay and college costs.
• After you receive the award letter, you may be asked to return a signed copy of the letter in which you accept or reject each source of financial aid.
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ReminderExpected Family Contribution (EFC)
• Expected Family Contribution(EFC)=
• Parent Contribution
+
Student Contribution
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ReminderDefinition of Financial Need
• Demonstrated Financial Need=
Cost of Attendance
-
Expected Family Contribution(EFC)
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• Community College
Cost $15,000
EFC-$2,000
_____________
Need $13,0000
4 Year Public University
Cost $19,000
EFC - $2,000
_________________
Need $17,0000
Private University
Cost $50,000
EFC-$2,000
________________
Need $48,0000
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• Community College
Cost $15,000
EFC-$2,000
_______________
Need $ 13,000
Fall Spring Total
Pell Grant $1180 $1180 $2360
SEOG $250 $250 $250
VA Grant $2000 $2000 $2000
FWS $1000 $1000 $1000
________________________________
Total Award $4430 $4430 $8860
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• 4 Year Public University
Cost $19,000
EFC-$2000
_________________
Need $17,000
Fall Spring Total
Pell Grant $1180 $1180 $2360
SEOG $200 $200 $400
VA Grant $2390 $2390 $4780
FWS $1000 $1000 $1000
Stafford Loan $1750 $1750 $3500
________________________________
Total Award $6520 $6520 $13,040
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• Private University
Cost $50,000
EFC-2,000
_____________
Need $48,0000
Fall Spring Total
Pell Grant $1180 $1180 $2360
SEOG $1000 $1000 $1000
Private Univ. Grant $12,500 $12,500 $12,500
FWS $1500 $1500 $3000
Stafford Loan $1750 $1750 $3500
Outside School $1000 $1000 $1000
PLUS Loan $5070 $5070 $10,140
________________________________
Total Award $24,000 $24,000 $48,000
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Unique Ways to Lower/Handle Costs
• Transfer from a community college to a 4-year college. Note: Honors Programs exist at community colleges as well.
• Academic Common MarketArrangement among southern states allowing students to pay in-state tuition rates at out-of-state schools while studying in select programs not available at Virginia public institutionshttp://www.schev.edu/Students/AcademicCommonMkt.asp Click on “Undergraduate Programs”
• Graduate in 3 years• Make good college decisions so do not have to transfer schools or spend extra time in
college if a student changes majors
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Unique ways to Lower/Handle costs
• Payment Plan• ROTC• Early repayment of loans• Pay more than the minimum on loans• Consolidate loans• Unusual payment plans: e.g. Berea College• Budgeting with your student to control their costs• Book rental agreement with Barnes & Noble for
some schools
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Remember!
• Fill out the FAFSA ASAP after 1/1/12• Do not wait until you file your taxes – you can estimate if
necessary• You must fill out the FAFSA every year• Apply directly to the financial aid office of the school you
are applying to for individual college scholarships
• Your financial aid officer is your ally• Watch college scholarship deadlines (may differ from
application deadlines)
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Financial Aid Terms
• For a comprehensive glossary of financial aid terms, please visit:
http://www.nasfaa.org/Redesign/FANight/PDFs/2009/FinancialAidGlossary.pdf
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