Financial Aid Night!

Priscilla SalasFinancial Aid Counselor

Wharton County Junior College

www.fafsa.gov

Financial Aid. What is it?

Financial Aid is funds provided tostudents and families to help pay for postsecondary educational expenses and consists of:

Grants (Federal/State - Pell, SEOG, TPEG/TEG, Top 10%, Texas

Grant)Loans (Federal and Private)Scholarships (Merit and Need Based)Employment (Work Study Program)State Exemptions www.collegeforalltexans.comVeterans Benefits www.va.gov

General Eligibility

Not be enrolled simultaneously in high school

Have a high school diploma or equivalent Enroll as a regular student in a degree or

certificate programBe a citizen, national or permanent resident

of the U.S. or other eligible non-citizenProvide a valid social security numberUndocumented students are not eligible for

federal aid (may apply for state aid through TASFA)

Register with Selective Service if requiredMaintain satisfactory academic progress

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

Available January 1 at www.fafsa.gov. Apply annually. Turn in TASFA directly to institution of choice.

Requires prior year income (i.e. 2015-2016 based on 2014 income for student and parent). Use Data Retrieval Tool which saves time and reduces the chances of being selected for verification!

Available in English and Spanish

Used to determine eligibility for state and federal aid

FAFSA continued

Students are allowed to list up to 10 colleges/universities that will receive his/her student and parent information

Personal Identification Number is needed to electronically sign application (student and one parent) www.pin.ed.gov

FAFSA continued

Determining Dependency Born before January 1, 1992?

Is the student married (at the time of the FAFSA submission)?

Working on a degree beyond a bachelor’s degree?

Active duty in the U.S. Armed Forces?

Is the student a Veteran?

Children for whom you provide more than half the support?

Parents deceased? Foster Care? Ward of Court? Emancipated Minor? Legal Guardianship? Homeless?

Does the student have legal dependents (other than spouse and children) for whom they provide more than half the support?

FAFSA continued

DependencyUltimately determined by

institutionUse only Biological or

Adoptive Parent InformationNot based on who ‘claimed’

the student on the income tax return

Completing the process

School contacts student regarding missing/needed information (tax return, asset information)

School reviews student’s file to determine eligibility (based on federal guidelines)

School notifies student of eligibility/offer

Factors in determining eligibility

Parent and student incomeFamily SizeAge of older parentNumber of family

members attending collegeParent and student assets

What is Cost of Attendance (COA)?

Direct and indirect costs combined into cost of attendance (tuition, fees, room & board, books,

supplies, transportation)

Vary widely from college to college

What is Expected Family Contribution (EFC)?

Student and school receives Student Aid Report (SAR-response from FAFSA) with Expected Family Contribution (EFC)

Amount family can reasonably be expected to contribute

Stays the same regardless of college

Two components

Parent contribution

Student contribution

Calculated using FAFSA data and a federal formula

What is Financial Need?

Cost of Attendance

- Expected Family Contribution

______________________

= Financial Need

GrantsMoney that does not have to be

repaid

Awarded on the basis of financial need

Federal/State – Pell, SEOG, TPEG/TEG, Top 10%, Texas Grant

Loans

Money students and parents borrow to help pay educational expenses

Federal and PrivateRepayment usually begins after

education is finishedOnly borrow what is really neededLook at loans as an investment for

the future

Types of Loans

Federal Direct Loan Program (FDLP)

Stafford LoansSubsidizedUnsubsidized

PLUS Loans Consolidated Loans

Loans continued

Subsidized – based on need. Department of Education pays the interest while you’re in school half-time (6 hours), during grace period, during deferment period

Unsubsidized – not need based. You are responsible for the interest during periods of enrollment, grace, deferment, forbearance, and default. Can capitalize interest – added to original balance.

Loans continued Stafford Loan Interest Rates

4.66% Subsidized, undergraduate

4.66% Unsubsidized

7.21% PLUS

Loans continuedStafford Loan Limits 1415

Undergrad ___ sub/unsub _ addt’l unsub_

1st year $3,500 $2,000 $4,000

2nd year $4,500 $2,000 $4,000

3rd year $5,500 $2,000 $5,000

4th year $5,500 $2,000 $5,000

*undergraduate, independent – additional $4,000

Loans continuedRepayment

Grace Period – set period of time (6 months)

before you must begin repayment on a

Stafford Loan. Period begins after student

graduates, withdraws, or drops below

half-time (6 hours).

Repayment period of 10 to 25 years

Standard

Graduated

Extended

Income-sensitive

Loans continuedDeferment – period of time during which no

payments are required and interest does

not accrue (subsidized only). Half-time

enrollment, unable to find full-time

employment, economic hardship.

Forbearance – not eligible for a deferment but

are unable to meet repayment schedule.

Servicer agrees to reduce/postpone

payments for a period of time. Interest

continues to accrue (subsidized and

unsubsidized).

Contact servicer for more information about these options.

Texas B-On-Time Loan Program

www.hhloans.com Have completed a FAFSA and be eligible to receive

federal aid Be enrolled full time in an undergraduate degree or

certificate program at an eligible institution AND Be a Texas resident or be entitled to pay resident

tuition rates as a dependent child of a member of the U.S. Armed Forces AND

Graduated in 2002-2003 or later from a high school operated by U.S. Department of Defense or under the recommended high school program from a public or accredited private high school in Texas

Have earned an associate’s degree from an eligible institution no earlier than May 1, 2005

Can not have earned a bachelor’s degree

Scholarships Money that does not have to be paid

back Awarded on the basis of merit, skill, or

a unique characteristic Can be need based Small scholarships add up! Some colleges use the FAFSA to find

recipients Opportunities:

Community Organizations, Churches, Employers

Financial Aid OfficeHigh School Counselors

Free Scholarship Searchwww.fastweb.com

Adventures in Educationwww.aie.org

Employment

Work Study Program

Allows students to earn money to help pay educational costs

A paycheck

Veterans Benefits

Hazlewood Act Legacy Program www.collegeforalltexans.com Dependent 25 years or

younger

Armed Forces Education Plans

www.va.gov

www.collegeforalltexans.com

Financial Aid TV

Federal Student Guidestudentaid.ed.gov

www.fafsa4caster.ed.gov

Important!

Check deadlinesAdmissions, financial aid, &scholarships

Complete the FAFSA as soon after January 1 as possible

Submit all documents requested by the school as soon as possible

Questions?

Priscilla SalasFinancial Aid Counselor281/239-1539SalasP@wcjc.edu

Kristie SulakFinancial Aid Counselor281/239-1540SulakK@wcjc.edu