Welcome to

Financial Aid Night

Welcome to

Financial Aid Night

Tonight’s Topics

What is Financial Aid

Types of Financial Aid

How is Financial Aid Awarded

The Financial Aid Process

What is Financial Aid?What is Financial Aid?

What is Financial Aid?

Financial Aid is:

– Money to help you pay for college

– From: Federal Government State Government

CollegesLocal Organizations

Private Organizations

What is Financial Aid?

To be eligible, you must:

– Be a citizen or eligible non-citizen of the U.S.

– Have a high school diploma or GED– Be enrolled at least half-time at an

eligible institution– Register with the Selective Service (men

only)– Not be in default on any federal education

loans or owe a refund on any grants

Types of Financial Aid

Three types of Financial Aid:

– Gift Money

– Earned Money

– Borrowed Money

Types of Financial Aid

Gift Money– Grants

• Based on financial need• From government and colleges• Two federal grants: Pell and Supplemental

Educational Opportunity Grant (SEOG)

– Scholarships• Based on various criteria• From colleges and other

organizations

Types of Financial Aid

Earned Money– Federal Work-Study Program

• Students work part time, usually on campus• Money earned helps pay for college

CUNA Mutual Group

Types of Financial Aid

Borrowed Money– Two types of loans

• Federal• Personal

– Must be paid back

CUNA Mutual Group

Types of Financial Aid

Federal Loans – Perkins

Borrower: Student

Based on Need: Yes

Interest Rate: Fixed – 6.22%

Repayment Begins:

9 months after graduating or dropping below half-time

Wells Fargo Collegiate® Loan

A Wells Fargo Collegiate® loan is a low-cost option for undergraduate students attending traditional four-year schools.

Cover the cost of education, including tuition, books, computers, housing, or even a study abroad program.

Benefits:1.Make no payments until six months after leaving school. 2.Pay no application, origination, or early repayment fees.3.Select a competitive fixed or variable interest rate option.

4.Reduce your loan cost with our interest rate discounts. 

BANK LOAN

Types of Financial Aid

Federal Loans – Stafford

Borrower: Student

Based on Need:

Subsidized = YesUnsubsidized = No

Interest Rate: Fixed – 2014 2015 4.66%*

Repayment Begins:

6 months after graduating or dropping below half-time

Types of Financial Aid

Federal Loans – PLUS

Borrower: Parent

Based on Need: No

Interest Rate: Fixed – 7.21%*

Repayment Begins: After the final disbursement

*Fixed interest rate applies to loans with first disbursement on or after 09/30/2015.

How is Financial Aid Awarded?How is Financial Aid Awarded?

How is Financial Aid Awarded?

Financial Need– Many (but not all) types of aid are based

on financial need• Grants• Perkins loans• Subsidized Stafford loans• Federal Work-Study Program

– How much aid do you need to pay for college?

How is Financial Aid Awarded?

Cost of Attendance

– Tuition– Room and board– Books– Transportation– Personal expenses

How is Financial Aid Awarded?

Expected Family Contribution (EFC)

– The EFC is the amount you may be expected to contribute

– You don’t pay it up front– Used to determine how much aid

you’re eligible for– Calculated from information you provide

The Financial Aid ProcessThe Financial Aid Process

The Financial Aid Process

Applying for Financial Aid– To get aid, you have to apply

• The Free Application for Federal Student Aid (FAFSA)

• Additional forms• Scholarships

– Apply regardless of family income• You and your family don’t make too much or

too little to apply

The new program is the latest step in Penn’s effort to widen access for students from all economic backgrounds, expanding its no-loan program beyond low- and lower-middle-income families to include middle- and upper-middle-income families.

Penn's New Financial–Aid Program

• In the fall of 2011, students from families with annual incomes of less than $100,000 who qualify for need-based aid will no longer receive loans as part of their financial aid package.

• By fall 214, all undergraduate students eligible for financial aid will receive loan-free aid packages, regardless of family income level.

• Tuition Charges Covered for Parents with Income Below $150,000

• • For parents with total annual income below

$150,000 and typical assets for this income range, Stanford will ensure that all tuition charges are covered with need-based scholarship, federal and state grants, and/or outside scholarship funds. In most cases, the parent contribution will be no higher than the standard cost of room and board (around $11,000). Many parents in this group will see contribution amounts far lower than $11,000.

The Financial Aid Process

The FAFSA– It’s free!– Complete as soon as possible after

January 1st– Online (www.fafsa.ed.gov) or on paper– Online benefits

• Instant access to help• Built-in error checking• Skip questions that aren’t required• Faster processing time• Easier to check status• Easier renewal process

CSS / Financial Aid Profile

• WHAT is the PROFILE?

The PROFILE is an online application that collects information used by certain colleges and scholarship programs to award institutional aid funds.

WHEN Do I File the PROFILE?

• You may file the PROFILE as early as Oct. 1, 2014. However, you should file no later than two weeks before the EARLIEST priority filing date specified by your colleges or programs.

WHAT does the PROFILE cost?

• The fee for the initial application and one college or program report is $25. Additional

reports are $16.

The Financial Aid Process

Preparing for the FAFSA– Apply for a Department of Education PIN

(www.pin.ed.gov) • Can be used each year applying for aid• You and your parents need separate PINs

– Complete the FAFSA on the Web Available before January 1st

• Organized like the FAFSA on the Web• Collect information and prepare answers

The Financial Aid Process

FAFSA Tips

– Don’t pay! Remember it’s Free at www.fafsa.ed.gov

– Interested in student loans?

– Interested in work-study?

– College possibilities

CUNA Mutual Group

The Financial Aid Process

Information for the FAFSA

– Have financial information and records available for both you and your parents

• Bank statements

• Income amounts (Forms W-2 or tax returns)

• Investment records

• Other

The Financial Aid Process

Additional Forms and Scholarships– Are additional forms needed?

• Check with individual colleges

– Apply for scholarships!

– Use free scholarship searches• www.collegeboard.com• www.fastweb.monster.com• www.finaid.org• www.gocollege.com• www.srnexpress.com

SCHOLARSHIP

Washington-Lee High School Class of

2014 received more than 11.2 million in

Grants and Scholarships

The Financial Aid Process

Student Aid Report (SAR)– Sent to you after FAFSA is processed

• If you provided an email address, you get a notification containing a link to it online

– Contains your Expected Family Contribution (EFC)

– Info sent automatically to colleges you listed

– Verify information is correct and make necessary corrections

The Financial Aid Process

Award Letters and Offers

– Received from the financial aid office

– Compare offers

• Amount of aid vs. cost of attendance

• Gift money vs. borrowed money

• Types of loans

– Accept an offer from the college you will attend

Type of Aid Brown University University of Penn

Federal Grant $5,000 $5,000

Institution Based Grant $35,000 $38,658

Perkins Loan Un-Sub $1,000

Stafford Loan Sub $3,000

Work-Study $3,000 $3,000

Parent Plus Loan $9,000 $4,000

Total Aid $53,500 $50,658

Comparing Award Offers

Merit Scholarships No Merit Scholarships

Cornell University Columbia University

Dartmouth College Harvard University

Brown University Princeton University

Yale University University of Pennsylvania

Ivy League Institutions

The Financial Aid Process

Let’s Review:– Apply for a Department of Education PIN– Submit the FAFSA– Ask colleges if other forms are required– Apply for scholarships– Review your SAR– Compare award packages– Accept an award packageLook into PLUS Loan if necessary