PAYING FOR COLLEGE

Financial Aid Overview FAFSAAward LetterAlternate Payment OptionsAG

ENDA

Q&A

30 minutes

15minutes

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What is Financial

Aid?

Financial aid makes college

more affordable for

you.

Financial aid refers to specific borrowed, given, or earned money that can be obtained from various sources to help pay for postsecondary educational expenses.

It is intended to make up the difference between what your family can afford to pay and what college costs.

Type

s of

Fina

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l Aid

Gift Aid$$ that does not need to be repaid

Self-Help Aid$$ earned or must be repaid

Grants  &  Scholarships Work-­‐Study  &  Loans

• Need Based: Aid that is awarded based on a family’s financial situation.

• Merit Based: Awarded for purposes outside of a family’s financial situation, such as academics or talent.

Sour

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idfederal government

Pell Grant

Work-Study

Stafford Loans

Perkins Loans

IL state government

Monetary Award Program- MAP

Illinois Veteran Grant –IVG

Illinois National Guard Grant - ING

UIC [institutional aid]

UIC Access to Excellence Grant

UIC Housing Award

Chicago Grant

Outside/private sources

Scholarships:Local organizations

ChurchesCivic Groups

*Check with your high school guidance office

FAFSAFree Application for Federal Student Aid

WHEN• January 1 (First date to submit FAFSA) and as close to this date as possible• UIC Priority FAFSA Deadline: February 15th

• Must be renewed every year

WHO

HOW • Available on-line (preferred way) www.fafsa.gov• Paper and pdf form

WHY • Determines eligibility for federal & state financial aid programs• Used by UIC to award institutional aid

• Available to HS seniors, college students, returning adults• U.S. citizens and eligible non-citizens

FAFSA

Completingthe FAFSA

o Social Security Number. Be sure that it is correct!

o Records of income (from the previous year), such as income earned from work and business, child support paid or received, and any other untaxed income. If available, refer to the W-2 Forms and the Federal Income Tax Return IRS 1040, 1040A, or 1040EZ.

o Information about assets, such as savings, certificates of deposit, stock options, bonds, 529 plans and other college savings programs, and investment real estate, business, and farm.

o Driver’s license number, if the student has one.

o Alien Registration Number, if not a U.S. citizen.

What informationis needed?

Is a measure of your family’s financial strength and is calculated according to a formula established by Congress.

Your EFC is not the amount of money your family will have to pay for college nor is it the amount of federal student aid you will

receive.

EFCExpected Family Contribution

What? Why? Where?A comparative measure of how much a family can be expected to contribute over the course of an academic year

Used to determine a student’s eligibility for most federal and state assistance

Shown on the Student Aid Report (SAR), the output document sent to a student after the FAFSA is processed

Tuition & Fees

Room & Board

TransportationBooks & SuppliesMiscellaneous Living Expenses+

Cost of Attendance (COA)

What are the Costs?Direct Expenses

Direct Expenses

IndirectExpenses

Direct Expenses – Billed by UIC and normally payable before the start of classes each semester.*Note: UIC does not require students to live on campus, even for the first year.

Indirect Expenses – Not billed automatically to a student’s account, but are associated with the cost of attending college. UIC will give an average for indirect expenses, but the actual amount students spend may vary.

Cost of Attendance

TUITION + FEES2015-2016 2015-2016

HOUSING

ILLINOIS RESIDENTS $14,588-$18,745NON-RESIDENTS $26,978-$31,144

RATES LOCKED FOUR YEARS

$7,840-$12,180

$15,000 $26,000 $38,000

In StateCommuting

In StateCampus Housing

Out of StateCampus Housing

AWARD LETTERExample

These are the direct costs that are due normally at the beginning of each semester.

These are estimated/indirect costs that vary from student to student.

The student can now determine what offered aid programs they would like to accept.

AWARD LETTERIndirect vs. Direct costs

Notice  in  the  ‘Status’  column  above,  Gift  Aid  is  accepted  automatically.  The  student  has  not  accepted  any  Self-­‐Help  Aid  (Grants/Loans).  Students  can  accept  or  reject  self-­‐help  aid  based  off  of  their  specific  needs.  

Award  SummaryFundGift  Aid  (does  not  require  repayment)Federal  Pell  GrantFederal  Supplemental  GrantState  of  Illinois  MAP  GrantUniversity  Tuition  GrantPrivate  Scholarship  #  1Reported  Private  ScholarshipsTotal  Gift  Aid

Net  Costs  (COA  minus  Gift  Aid)

Status

AcceptedAcceptedAcceptedAcceptedAcceptedAccepted

Fall  2013

2,823.00125.00

2,360.002,830.002,000.00

0.00

Spring  2014

2,823.00125.00

2,360.002,830.00

0.002,000.00

Summer  2014 Total

5,646.00250.00

4,720.005,660.002,000.002,000.0020,276.00

9,318.00

Work  Options  (wages  earned)Federal  Work  Study

Total  Work  Options

Loans  (must  be  repaid)Federal  Perkins  LoanFederal  Direct  Loan  – Subsidized

Total  Loan  Options

Status

Offered

OfferedOffered

Fall  2013

1,500.00

1,409.001,750.00

Spring  2014

1,500.00

1,409.001,750.00

Summer  2014 Total

3,000.00

3,000.00

2,818.003,500.00

6,318.00

Total  Cost  if  using  all  aid  offered: 0.00

AWARD LETTERBreaking down costs

This  student’s  award  letter  shows  that  after  all  Gift  Aid  (no  repayment!),  the  estimated COA  would  drastically  drop  from  $29,594  for  the  academic  year  to  $9,318.

TIM

ELIN

E

Complete

FAFSAASAP After January 1st

Receive and reviewStudent Aid

Report - SAR

Receive and review Award  Offer

Respond to UIC

Note: Intent-to-Enroll Deadline: May 1st

Renew FAFSAevery year

VISIT OUR WEBSITE

admissions.uic.edu

CONTACT US:

Ask Questions. Question answers.

BY PHONE:312.996.4350 312-355-0379

(for the hearing impaired)

Follow us!Apply2UIC

BY EMAIL:admissions@uic.edu

#AskUIC

AlternatePayment Options.

Not all families qualify for financial aid

Understanding the Funding Gap

TOTAL FINANCIAL AID** FUNDING GAP***

$18,000 $10,000

COST OF ATTENDANCE*

$28,000

*COST  OF  ATTENDANCE  can  vary  drastically  depending  on  lifestyle  choices  and  individual  course  of  study.  **TOTAL  FINANCIAL  AID  in  this  example  consists  of  grants,  scholarships,  and  federal  loans.

***FUNDING  GAP  means  the  amount  that  the  student  has  to  pay  out  of  pocket  or  through  third-­‐party  loans.

Resources for Closing the GapSavings

Money set aside.

LoansMoney that is borrowed.

EmploymentIncome and/or benefits.

529 Savings Plans Third-Party

Rewards Programs

Part-Time Employee

Education Benefits

Payment Plans*

Credit-Based

Co-signer often neededNever too late to start

• Studies show working part-time, on-campus while in school increasesretention and academic success.

NOTERewards programs can be tricky. The idea is to earn additional rewards toward

education costs through normal, everyday spending. One example is

Upromise.

Supporting Your Student’s Success

DoRecognize your student is financially responsible according to the law.

Develop a financial plan together, and regularly discuss any changes that need to be made.

Encourage positive financial behaviors. Share stories about your financial successes & failures.

Don’tKeep information about the cost of education from your student.

Try to take care of everything by yourself. Your student will appreciate it more in the end if they are involved in the process.

Forget to breathe…

College students often list their parents as a primary source for financial advice and education.

57% of parents do not talk to their children about their expectations

about how college will be funded.*

*Source:  “College  Savings  Indicator  Study”.  http://www.fidelity.com/inside-­‐fidelity/individual-­‐investing/time-­‐to-­‐break-­‐open  

FERPA & Authorized Payer

Students must set up their parents as Authorized Payers in order to allow the parentto discuss his or her student account at the University.

FERPA, or the Family Educational Rights & Privacy Act, is a federal law that gives eligible students certain rights with respect to their education records. FERPA gives students the following rights:• The right to inspect & review their education records;• The right to control disclosure of personally identifiable information contained in their

education records;• The right to request amendments to their education records when those records are

inaccurate, misleading or otherwise in violation of the student’s privacy or other rights;• The right to file a complaint with the U.S. Department of Education if the University violates

FERPA regulations.

*To  learn  more  about  the  Family  Educational  Rights  and  Privacy  Act  (FERPA),  visit  https://paymybill.uillinois.edu/FERPA.  

Major: What It’s Worth

NET ROI FOR DEGREES VARY

“the benefits of both a bachelor’s degree and an associate’s degree still tend to outweigh the costs, with both degrees earning a return of about 15

percent over the past decade”

– Jaison R. Abel & Richard Deitz (2014), “Do the Benefits of College Still Outweigh the Costs?”

http://www.payscale.com/college-roi/

(Earnings) – (Total Cost of Education) = NET ROI

How to Have the Money Talk

o Discuss early. Talk early and often about responsibilities and expectations related to the cost of education and living expenses while in school.

o Be mindful. Don’t discuss money when either of you are hungry, lonely, tired or sleepy. Your brain just doesn’t function as well if you feel this way.

o Develop a plan. Set S.M.A.R.T. financial goals & talk about how to achieve them together. Your financial goals will dictate your budget. Don’t forget to write it down.

o Stay accountable. Track all spending and regularly evaluate how to cut costs or make adjustments to your financial plan/budget with your student.

o Encourage increasing degree ROI. UIC has many services available for students to help make them more marketable & develop advanced skills outside the classroom. Support your student’s interest in extracurricular activities and making the most of resources on campus to reduce costs and increase potential.

Stay Connected

USFSCO’s Student Money Management Centerprovides financial education to students at all threeUniversity of Illinois campuses.

Subscribe to our monthly parent e-newsletter at http://go.uillinois.edu/smmcparentenews

studentmoney.uillinois.edu

VISIT OUR WEBSITE

admissions.uic.edu

CONTACT US:

Ask Questions. Question answers.

BY PHONE:312.996.4350 312-355-0379

(for the hearing impaired)

Follow us!Apply2UIC

BY EMAIL:admissions@uic.edu

#AskUIC