What You Need To Know About Financial Aid

What You Need To Know About Financial Aid

Financial Aid 101

What is Financial Aid? Grants Loans Student Employment Scholarships

Where do I start? How is Financial Aid

awarded? Estimated Family

Contribution (EFC) Cost of Attendance (COA) Financial Need

Tips and Tools

FINANCIAL AID101 Pop Quiz

Throughout this presentation there will be opportunities to test your knowledge about financial aid and win

some prizes. Good luck!

All information in this presentation is general and although we would strongly encourage

you to consider UMUC-Europe,

the information should be applicable at any school you are considering.

Grants, Loans, Student Employment, & Scholarships

Federal Pell Grant Maximum award $5550 (for 2011-2012) Award amounts may be reduced for 2012-2013

Federal Supplemental Opportunity Grant Educational Grant (FSEOG)

Institutional funds Other State and Institutional Grants

Grants are need-based financial awards that do not have to be repaid. Award amounts

vary depending on the student’s enrollment status and need level. 

Federal Stafford Loans Subsidized Loans

Need-Based Not available for Graduate

Students starting school year 2012-2013

Unsubsidized Loans Fixed 6.8% Interest Rate

Both are due to be paid back 6 months after Graduation, stop attending, drop to less than half time attendance

Federal Stafford Loans

Federal Stafford Loans

1. Standard Plan - fixed payment, fixed time not to exceed 10 years.

2. Graduated Plan – payments gradually increase, fixed time not to exceed 10 years.

3. Extended Plan – must owe over $30, 000, not to exceed 25 years

4. Income Based Plan – terms vary.

Federal Stafford Loans

Federal Parent PLUS and Graduate PLUS Loans Fixed 7.9% Interest Rate Credit-Based Parents and Graduate Students can borrow up to cost

of attendance minus any other financial aid award amounts.

Pay back 60 days after disbursement (while still in school)

Apply through www.studentloans.gov

Other Types of Student Loans

Federal Perkins Loans Fixed 5% Interest Rate Pay back 9 months after Graduation

Types of jobs available: Work -Study (on and off

campus) Non-Work-Study (on

campus) Off-campus regular

employment

Studies have shown that students who work part time while attending courses actually

perform better academically.

Places to look: High School

Counselor Booster Club, PTA,

etc. Surrounding

Community Local Businesses,

Spouses Clubs, Community Clubs, etc.

The College/University you plan on attending

On the internet

Private money awarded on either merit or need.

Your High School

Your Local Community

Your College/University

This graph depicts the expanding

competition as you apply for

scholarships on different levels.

National/Worldwide scholarship

competitions would be outside of these circles.

Pop QuizName one type of

federal student loan.

Stafford Subsidized and Unsubsidized, Perkins, and Graduate

and Parent PLUS Loans.

Filling out the FAFSA

www.fafsa.gov FAFSA has built-in-help to guide you through the

application process.

W-2’s and other records of money earned

Federal Tax Return(s) Current bank statements Current business and

investment mortgage information, business and farm records, stock, bond and other investment records

Untaxed Income Records BAS AmountsYou will need the above for

yourself and your spouse or parents (if applicable).

You may be selected for the process of Verification.

This means your school will be required to verify the information you put on your FAFSA by collecting additional documentation from you.

NEW FOR 2012-2013: Institutions will only be able to accept Tax Return Transcripts directly from the IRS, in the event a student is selected for verification.

If selected for verifi

cation

your school w

ill be unable

to disburse

funds to you

until you have completed

this process.

Complete this worksheet before filing your FAFSA to assist you when filling out your

FAFSA!

Do not submit this worksheet!!!

To be completed with applicant information only

General information such as name, SSN, state of legal residence

Marital status (of student) Selective Service Registration for under

25’s (male) Drug Convictions High School Information

A student is considered independent ONLY if they can answer YES to ONE of 13 questions (samples below):

Born before 1 January 1989 (2012-2013)

Married Have children or dependents other than children that you provide more than 50% support.

Active duty Veteran of the U.S. Armed Forces

If student answered NO to all questions in section 2, then parents must complete section 3

This section must still be completed even if the applicant does not live with their parents

Tax, income, and other financial information

Dislocated worker status

Assets

Information about the student (and spouse):

Tax, income, and other financial information

Dislocated worker status

Assets

On the IRS Web site, enter the requested information.

Once the IRS has validated your identification, your IRS tax information will display. You can either transfer your information from the IRS, or choose to return to FAFSA on the Web from the IRS Web site.

If you transfer your IRS tax information, questions that are populated with tax information will be marked with “Transferred from the IRS”

Successful IRS Retrieval on your FAFSA could help to avoid lengthy processing times if you are selected for the process of verification.

Each school has a Federal School Code You will have a chance online to search

for school codes Write the name of the school if you do not

know the school code Up to 10 school codes can be listed

Results sent to all schools listed on your FAFSA.

Applicant will receive results via e-mail within 3-5 days.

Student Aid Report (SAR): View and print the SAR SAR will have Estimated Family

Contribution(EFC) and Data Release Number (DRN)

Pop QuizWhat does FAFSA stand

for?

The Free Application for Federal Student Aid

Determining your award package

The estimated cost, including direct and indirect costs, of a particular institution. Direct: Tuition, fees, books, and room and board (if living on

campus) Indirect: Travel, miscellaneous, and room and board (if not living

on campus)

This value varies from college to college.

Federal Student Aid uses the data on your FAFSA to calculate an Expected Family

Contribution (EFC)

The EFC is the number that’s used to determine your eligibility for federal

financial aid.

Calculation takes into account the following:

Adjusted Gross Income (AGI) Untaxed Income (Do not include

BAH) Assets and Benefits Number in Household Number in Household Attending

College

Cost of Attendance

– Expected Family Contribution

= Financial Need

COA= $55,850

- MinusEFC= 2000

Need= $53,850

COA= $28,406

- MinusEFC= 2000

Need= $26,406

Examples of Need:

Somewhere Special UniversityPop Quiz

Fill in the blank: NEVER pay for

completion!!!!! FAFSA

•Providing you with an early estimate of your eligibility for federal student aid.

•Giving you an experience similar to FAFSA on the Web

• Allowing you to transfer all of your FAFSA4caster data to FAFSA on the Web once you are ready to apply for aid.

•Increasing your knowledge of the financial aid process, and providing information about other sources of aid.

www.fafsa4caster.ed.gov

If you will be receiving tuition assistance (including military TA) or veteran’s educational benefits you

may still be eligible for financial aid funds!

Make sure to apply for all of your funding options!

APPLY, APPLY, APPLY! Make sure to meet any deadlines or priority dates your school may have by applying early!Apply for Scholarships!Make sure to complete your financial aid file!Maintain log-in information.Keep in close contact with your school Financial Aid Office.Ask questions!

Pop QuizTrue or False:

Your school may have a deadline for FAFSA or

file completion.

True.

For further assistance with the FAFSA application call 1-800-4-FED-AID or

1-800-433-3243 toll free or access www.fafsa.ed.gov

You may also access the Departments federal student aid Web site at

www.studentaid.ed.govFor scholarship searches check out

www.fastweb.org and/or www.finaid.org