Financing Your Financing Your EducationEducation

Paul CalmePaul CalmeDirector of Financial AidDirector of Financial Aid

Xavier UniversityXavier University

513.745.3142513.745.3142www.xavier.edu/financial-aidwww.xavier.edu/financial-aid

Topics of Discussion

• Philosophy of financial aid• Definition of financial aid • Types of financial aid • How to apply for financial aid• Resources

• 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 Assistance

The Determination OfFinancial Need

Cost of attendance (Tuition, Room, Board, Books, Transportation, Miscellaneous)

- Expected family contribution (EFC) The Results of Filing the FAFSA

= Financial need

Philosophy Of Financial Aid

COLLEGE A B C

COST OF ATTENDANCE

$35,000 $20,000 $12,000

EFC $10,000 $10,000 $10,000

FINANCIAL NEED

$25,000 $10,000 $2,000

What is Financial Aid?

• Scholarships - do not need to be repaid

• Grants - do not need to be repaid

• Loans - must be repaid

• Employment opportunities - wages must be earned

Grants

• Federal– Pell Grant

• Based on financial need• 2008-09 award amounts ranged from $400 - $4,731

– Federal Supplemental Educational Opportunity Grant• Based on financial need• Award amounts vary by college (maximum is $4,000 per year)

FederalAcademic Competitiveness Grant

(ACG)• First and second year undergraduate students • Federal Pell Grant recipient• U.S. citizen• Full time• Completed rigorous secondary school program• Award amounts:

– $750 first year students– $1300 second year students

Federal TEACH Grant

• Teacher Education Assistance for College and Higher Education (TEACH) Grant: A federal grant program awarding up to $4,000 per year to students who intend to teach in a public or private elementary or secondary school that serves students from low-income families.

Grants • Ohio

– Ohio College Opportunity Grant• Based on financial need• Family Income <$75,000• EFC maximum $2,190

– Ohio Student Choice Grant• Need is not a criteria• Awarded to Ohio residents enrolled fulltime, at private

Ohio colleges, in bachelor degree programs• 2008-09 award amount is $660

• Institutional• Private

Loans

• Federal Perkins loan• Available to undergraduates and graduates• Priority is given to high need students• Award amounts vary by college ($4,000 per year maximum for

undergraduates)• Repayment begins 9 months after the student leaves school• Interest rate is fixed at 5%

Loans (Continued)

• Stafford loan program• Subsidized (based on need)• Unsubsidized (need is not a consideration)

• Repayment begins 6 months after the student leaves school

• Interest rate is fixed at 6.8% for unsubsidized• Interest rate is fixed at 6.0% for subsidized

Stafford Loan LimitsAnnual

Dependent Students

Independent Students

Freshman $3,500 $7,500

Sophomore $4,500 $8,500

Junior $5,500 $10,500

Senior $5,500 $10,500

Graduate --- $20,500

Students may now borrow an additional $2,000 Unsubsidized Stafford Loan each year

Loans (Continued)

• Federal PLUS loan program– Parents of dependent students may borrow this

loan on behalf of their children– Interest rate is fixed at 8.5%– Repayment of principal and interest typically

begins 60 days after the final disbursement of the loan

• Alternative loans– Loans borrowed from private lenders

Employment

• Work Study – Federal

• Available to students based on financial need• Employment can be on or off campus

– Institutional• Employment offered by the college without regard to

financial need

General Student Eligibility Criteria• Must be enrolled or accepted for enrollment in

eligible program of study• Must be pursuing degree, certificate, or other

recognized credential• Must be U.S. citizen or eligible noncitizen• Must be registered with Selective Service

(if male and required)• May not have eligibility suspended or terminated

due to being convicted of a drug-related offense

Application Process• Register for a PIN: www.pin.ed.gov (to file on-

line)– Both student and parent must file for a PIN

• File the Free Application for Federal Student Aid (FAFSA) as soon as possible after January 1 of the year of enrollment at www.fafsa.ed.gov

• The FAFSA is the federal applicationwhich collects personal informationin order to determine financial need

Other Forms You May Need

• College Scholarship Service Profile– Required by some private colleges to collect

additional financial data

• Institutional Application

Tips for Completing the FAFSA

• Know the federal school code(s) of the school(s) to which the student is applying

• Do not leave any item blank• Be sure to use the student’s legal name as it

appears on his/her social security card• Keep a copy of the FAFSA for your records

Frequently Asked Questions

• How much can we earn and still qualify for financial aid?

• In cases of divorce, which parent should complete the FAFSA?

• We won’t have our taxes completed by February 15th. Should we wait tofile the FAFSA?

Frequently Asked Questions

• The FAFSA says if we have special circumstances we should check with the financial aid office. What are special circumstances?– The situations that are considered special circumstances can vary from

school to school– Each school will have its own policy for how it deals with special

circumstances requests– Requesting a special circumstance almost always entails the completion

of another form in addition to the FAFSA– Examples of special circumstances could include:

• Paying private school tuition• Unusual medical or dental expenses• Loss or reduction of income

Summary• Important points

– Apply for admission– Know which forms your college requires– Keep copies of your applications and tax returns– File the FAFSA for each student– File the FAFSA every year– Apply early– Beware of scholarship scams

Resources• Federal Department of Education

– 800.4.Fed.Aid– www.ed.gov/finaid.html– www.fafsa.ed.gov (FAFSA application)

• Ohio Board of Regents (Ohio grants and scholarships)– 888.833.1133– http://regents.ohio.gov/

• Cincinnati Scholarship Foundation– www.cincinnatischolarshipfoundation.org

• EFC Calculators– www.finaid.org/calculators/finaidestimate.phtml

Private Scholarship SearchFree Internet scholarship search engines:

• FinAid on the Web: www.finaid.org• College Board: www.collegeboard.com• FastWeb: www.fastweb.com• GoCollege: The Collegiate Websource:

www.gocollege.com