FINANCIAL AID FOR COLLEGE

Presented by Elizabeth LeMaster

Student Financial Aid and Scholarships

Bowling Green State University

AgendaFree Application for Federal Student Aid (FAFSA)

Federal loan/grant programs

Campus Based Aid

Additional loan sources

Scholarship search

Where do I start?Different schools require different applications, check with the

Financial Aid Office and Admissions Office at each school.

Some standard applications are:

1. Admission Application

2. Free Application for Federal Student Aid (FAFSA)

3. Other Institutional Application forms (if required)

4. Applications for scholarships

Free Application for Federal Student Aid (FAFSA)

FAFSA is a FREE federal form

FAFSA.gov

Available October 1st

Apply early to meet priority deadlines

2019-20 FAFSA will use 2017 Federal tax information

Each student will file their ownapplication.

File a new application every year

To complete the FAFSA…Student and one parent will need to create their own FSA ID to electronically sign the FAFSA

Apply online at www.fsaid.ed.gov

Used to sign the FAFSA and Federal Loan Master Promissory note electronically and as the log in for any Department of Education websiteStudent and Parent will need separate FSA IDs One FSA ID per e-mail address per SSNYou cannot make an FSA ID for someone else

2017 Federal Income taxesCurrent household information and asset values as of filing date

FAFSA DeadlinesFAFSA can be filed at any time after October 1st , however, there are funding limitations on some aid programs.

Be aware of priority deadlines. These may vary from institution to institution.

Sections to the FAFSA

Sections to the FAFSA

Sections to the FAFSA

Sections to the FAFSA

Independent vs. Dependent Students Born before 1/1/1996

Married

Working on a Master’s or Doctorate

program

Serving active duty in US Armed Forces

(not for training)

Veteran of US Armed Forces

Provides over 50% support for child

Provides over 50% for other dependent

that lives with student

At age 13 or older, both parents were

deceased, were in foster care, or

dependent/ward of court

Emancipated minor as determined by

court (not same as emancipated minor in

divorce decree)

In legal guardianship as determined by

court

On or after 7/1/2018, determined to be an

unaccompanied youth who was homeless

or at risk of being homeless

If you can answer YES to at least one dependency question, you can be considered as an

Independent student.

If you answered NO to all the dependency questions, you are considered to be a Dependent

student and must provide parental information.

Sections to the FAFSA

“Parent” definitions

Student’s legal parents

Different sex and live in same house = both income info

Same sex and live in same house = both income info

Separated/Divorced

Parent student lived with most in last 12 months (if student lived equally with both, report info for parent who provided more financial support)

Include step-parent info if parent is remarried as of day FAFSA is completed and lives in the same house

“Parent” definitions

Sections to the FAFSA

Sections to the FAFSA

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Using IRS Data Retrieval

Data transferred will not be visible to the parent orstudent

Sections to the FAFSAFAFSA is electronicallysigned by both the studentand the parent using theirFSA ID

NEW for 2019-20 – myFAFSA Mobile App

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Download from the App Store on iPhone or Android

Available October 1

After the FAFSA is submittedThe student receives notification from FAFSA and is issued a summary of the FAFSA called a Student Aid Report (SAR)

The Student Aid Report includes the calculated Expected Family Contribution (EFC)

Student will receive an Award Letter

Compare offers:

Amount of aid vs. cost of attendance

Gift money vs. borrowed money

Types of loans

CollegeBoard Net Price Calculator Worksheet

Expected Family Contribution EFC is an index number used to determine “financial need” of the student

The EFC estimates a families ability to pay for college as determined by a formula created by Congress called the Federal Methodology

Assumes that the primary responsibility for paying for college falls to the student and parents

Factors include:

Family Income (including taxed and untaxed income)

Family Size

Number of students in college in family

Etc.

The lower your EFC, the more likely you are to qualify for need-based aid programs at any school

The EFC is not a specific amount the family is expected to pay at any one specific college

What is Verification?Random selection by the Federal Department of Education

Department of Education is requesting the school to “verify” the information listed on the FAFSA by collecting documentation

Schools may not award any aid until the verification process is completed

Documentation required may vary between schools

HOW A FINANCIAL AID PACKAGE IS CREATED BASED ON YOUR EFC

Understanding “Need”

Definition of “Financial Need”

Cost of attendance (COA)

– Expected family contribution (EFC)

= Financial need

Need Comparison

Higher Cost Mid Cost Lower CostInstitution Institution Institution

Cost of Attendance $30,000 $20,000 $13,000- EFC $10,000 $ 10,000 $10,000

=Need-based Eligibility $20,000 $ 10,000 $ 3,000

Need vs. Non-Need Based Aid

Need-based aid:Some forms of aid are only available to students that have demonstrated financial need:

Pell Grant, FSEOG (very high need only)

Direct Subsidized Loans

Federal Work Study

Some scholarships

Non-Need Based Aid:Other forms of aid are not dependent on a student’s financial need:

Most Scholarships

Unsubsidized Student Loans

Parent PLUS loans, alternative/private loans

STUDENT AID PROGRAMS:

Awards through the FAFSA

Types of aid

Scholarships – Free money awarded based on the student’s achievements

Grants – Free money awarded based on need

Loans – Borrowed monies repaid typically after graduation

Work – Money earned through employment

Federal Direct LoansFederal Direct Student Loans

Direct Subsidized Loan – No interest accrues on this need-based loan during undergraduate study.

Direct Unsubsidized Loan – Interest accrues on this non need-based loan while in school.

Interest rates are currently fixed at 5% for the 2018-19 academic year

Will change July 1st, based on Treasury Bill

Repayment occurs 6 months after the student:Graduates

Leaves school

Falls below ½ time enrollment

Federal Direct Loans LimitsDependent, Undergraduate Students

Class Year Base Amount

Additional

Unsubsidized

Amount

Total Available

to Borrow

Freshman $3,500 $2,000 $5,500

Sophomore $4,500 $2,000 $6,500

Junior $5,500 $2,000 $7,500

Senior $5,500 $2,000 $7,500

Grant ProgramsFederal Pell Grant - 2018-19 academic year

Need based

Award amount: up to $6,095

EFC: 0 – 5486

Ohio College Opportunity Grant - 2018-19 academic yearNeed based

$1,500 for students at most public university main campuses

Funding not available for students at community colleges & regional campuses

EFC: 0 - 2190

TEACH Grant

Up to $4,000 per year

(current amount is $3,736 for the 2018-19 academic year)

For students who agree to teach in a high-need

field at a school that serves low-income families

Must teach at least 4 years within 8 years of

graduation, otherwise it converts into a Direct

Unsubsidized Loan

Campus-Based Aid

To be considered for these awards students must file FAFSA by priority deadline and amounts may vary between institutions.

Supplemental Educational Opportunity Grant (SEOG)

Awarded to Pell eligible students with a very low EFC

Award ranges between $100-$4000

Campus-Based Aid, continuedFederal Work-Study (FWS)

Earnings are not automatically applied to your college bill

FWS funds will be provided to the student in the form of a paycheck for actual hours worked

When the student applies for financial aid for the next academic year, questions on the FAFSA will exclude Work-Study income so those earnings will not have a negative effect on the EFC

What if I’m not awarded enough money from FAFSA?

You have choices!Federal Parent Loan for Undergraduate Students (PLUS)

Parent loan program for parents of dependent undergraduate students

Loan in parent’s name

Credit check is required

Repayment begins while student is in school, but parent can defer payment as long as student continues to be enrolled at least half-time

Interest rate: 7.5% fixed for the 2018-19 academic year

Will change July 1st, based on Treasury Bill

If denied, student would be eligible for a $4,000 additional Unsubsidized Loan

Alternative/Private Loans

Credit based loan offered through private lenders

Student is borrower – will need a creditworthy

co-signer

Terms and conditions will vary based on

creditworthiness

Searching for Scholarships

Search locally:

High School Guidance Counselors

Places of Worship

Fraternal Organizations

Chamber of Commerce

Free, national searches:

www.fastweb.com

www.finaid.com

www.careerinfonet.org/scholarshipsearch

At every college you want to attend, check with:

Financial Aid Office

Admissions Office

Timing - start early and search often year round!

Complete each application carefully—check for specific criteria

Be aware of deadlines (postmarked, received by)

Submit all application requirements by deadline

Maintain a scholarship search folder

If an essay is required or even optional, do it!

Apply even if you think it’s a long-shot; who knows, you might be the only applicant!

Spend the time, not money. If it sounds too good to be true, it probably

is!

Applying for scholarships – general tips

Financial Aid TO DO:Complete the Admissions processComplete 2019-20 FAFSA at www.fafsa.govSearch and apply for scholarshipsRespond promptly to requests from college officesReview all financial aid award letters from each school

Compare institutional costs to financial aid offered at each school Determine your true out-of-pocket costsCollege Board Net Price Calculator Worksheet

CONTACT INFORMATION

Bowling Green State University

Student Financial Aid and Scholarships

419-372-2651

Elizabeth LeMaster

Email: elemast@bgsu.edu

Email AskSFA: https://sfa.bgsu.edu/asksfa

THANK YOU!