Financing College Education

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Financing College Education

• College of Notre Dame of Maryland

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Agenda
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What is Financial Aid?

• Financial aid is money available to help
  students and their parents pay for educational
  expenses

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Financial Aid Principles

• Paying for the students educational costs is the
  primary responsibility of the student and the
  parent(s)
• Families are evaluated on ability to pay for
  educational costs not willingness
• Families are reviewed and assessed in their
  present financial condition
• Families are evaluated in an equitable and
  consistent manner, recognizing that special
  circumstances may affect the families ability to
  pay

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Funding Sources
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Primary Sources of Aid (in billions)
Education Tax Benefits 5.1 Billion 5
Institutional and Private Aid 27.9 Billion 29
Federal Aid 56.6 Billion 58
State Aid 7.5 Billion 8

• The Primary Sources of Aid are estimated and
  based on data from the College Board for the
  2006-07 Academic Year.

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Types of Financial Aid

• Grants - Money given to students based on need
  that is not paid back
• Scholarships - Money given to students based on
  academic or athletic ability or talent that is
  not paid back
• Loans - Money borrowed by students and/or parents
  that must be paid back with interest
• Work-study - Money earned by students as payment
  for work

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Financial Aid Terminology

• Cost of Attendance (direct costs and indirect
  costs).
• Expected Family Contribution (EFC)
• Financial Need
• COA
• - EFC
• Financial Need

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Categories of Financial Aid

• Need-based aid (financial need gt0)
• Non need-based aid (financial need is not
  required)

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Comparing Need
28,065
Independent Colleges
18,247
27,065
Public 4 Year
Independent Colleges
10,161
17,247
Public 4 Year
Community Colleges
1,000
9,161
Community Colleges
Cost of
Need
EFC
Attendance
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Types of Federal Aid

• Federal Pell Grant
• Undergraduates pursuing first bachelors degree
• Amount determined by the EFC
• Award prorated base on enrollment status
• Portable
• Maximum in 2009-10 is 5,350
• Federal Supplemental Educational Opportunity
  Grant
• Undergraduates pursuing first bachelors degree
• Priority to Pell recipients
• Maximum is 4,000

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Types of Federal Aid

• Academic Competitiveness Grant (ACG)
• Complete a rigorous program of study in high
  school
• Eligible for a Federal Pell Grant
• Enroll full-time as 1st or 2nd year undergraduate
  student
• Maximum award 1st year - 750
• Maximum award 2nd year - 1,300
• Portable

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Types of Federal Aid

• National Science and Mathematics Access to Retain
  Talent (SMART) Grant
• - Eligible for Federal Pell Grant
• - Enroll full-time as a 3rd or 4th year
• undergraduate student
• - Achieve a grade point of at least a 3.0
• Pursue a four-year degree in physical, life, or
  computer science mathematics technology
  engineering or foreign languages critical to
  national security
• Maximum award for 3rd and 4th years is 4,000
• Portable

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Types of Federal Aid

• National Science and Mathematics Access to Retain
  Talent (SMART) Grant
• - Eligible for Federal Pell Grant
• - Enroll full-time as a 3rd or 4th year
• undergraduate student
• - Achieve a grade point of at least a 3.0
• Pursue a four-year degree in physical, life, or
  computer science mathematics technology
  engineering or foreign languages critical to
  national security
• Maximum award for 3rd and 4th years is 4,000
• Portable

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Types of Federal Aid

• Federal Work-Study
• Employment may be on or off campus
• Wages vary depending on type of work
• Federal Perkins Loan
• Maximum is 4,000 a year for undergraduate
  students
• Interest rate fixed at 5
• Nine (9) month grace period
• Deferment and cancellation provisions available

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Types of Federal Aid

• Federal Stafford Loan
• Federal Family Education Loan Program (FFELP)
• funds provided by lenders (e.g., banks or credit
  unions)
• Federal Direct Loan Program (Direct Loan)
• funds provided directly by federal government via
  participating schools
• School determines loan eligibility and delivers
  loan proceeds to student

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Types of Federal Aid

• Stafford Loan (cont.)
• Subsidized Stafford Loan Must demonstrate
  need
• Unsubsidized Stafford Loan Need is not
  considered
• Annual loan limits
• 5,500 for 1st year undergraduates
• 6,500 for 2nd year undergraduates
• 7,500 for each remaining undergraduate year

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Federal Programs

• Non need-based
• - Unsubsidized Stafford Loan
• - Parent Loan (PLUS)
• - Grad PLUS Loans
• - Robert C. Byrd Honors Scholarship
• - Teacher Education Assistance for College and
  Higher Education (TEACH) Grant

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Types of Federal Aid

• PLUS Loan
• Parent loan program for parents of dependent
  undergraduate students with good credit history
• Annual loan limit cost of attendance (COA)
  minus other aid
• Fixed interest rate is (on or after July 1,
  2006)
• 8.5 for FFELP PLUS Loan
• 7.9 for Direct PLUS Loan

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State Funding

• Money from Maryland Higher Education Commission
  (www.mhec.state.md.us)
• Deadline-March 1, 2010
• Need-based and non-need-based
• May require additional applications

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Private Funding

• Scholarships from your high school
• Scholarships from your church, parents work,
  community
• Scholarships from private companies (Verizon,
  Long and Foster, Target)

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Searching for Resourcesthe Traditional Way

• Check your high school bulletin board(s) or ask
  your Guidance Counselor
• Check with local businesses, civic, and social
  organizations
• Review library reference books
• Inquire with employer or parents employer

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Scholarship Scams

• Victims of scholarship scams lose more than 100
  million annually
• Paying money to get money is a scam
• Duplicates what you can find out for free
• Watch for
• Scholarships with application fee
• Scholarship services who guarantee success
• Sales pitches disguised as financial aid
  seminars
• Refer to www.finaid.org/scholarships/scams.phtml

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College Savings Plans

• Current IRAs
• Education IRAs
• 529 College Savings Plans
• Coverdell Education Savings Account
• UGMA/UTMA Accounts
• Parents Investment Account

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Key Form 2010-11 FAFSAFree Application for
Federal Student Aid

• Biographical Information
• Household Size
• Students and Parents Incomes
• Assets
• College Choices (Do not forget to list
• Notre Dame-002065!)

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Filing the Application

• Get a Federal PIN at www.pin.ed.gov
• Parent
• Student
• File Online at www.fafsa.ed.gov by 2/15/2010
• Our Title IV Code 002065

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FAFSA-4-Caster

• Early Tool to Estimate Federal Aid
• www.fafsa4caster.ed.gov
• Data will be saved for 10-11 FAFSA
• Simplified Questions

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Notre Dames Scholarships

• Academic Scholarships
• range from 11,000-to a full tuition
• Achievement Awards
• range from 2,500 to 8,000
• Endowed Awards (various amounts)
• Transfer Scholarships (8,000-full tuition)

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Notre Dame Grants/Discounts

• Notre Dame Grant-must demonstrate financial need
  (up to 15,000/year)
• Residence Grant-must demonstrate financial need
  and reside on-campus (up to 3,000/year)
• Catholic School Discount-for first-year students
  (1000/year)
• Family Discount-1000-2000/year

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Helpful Hints

• Apply Early!
• Make and Maintain a Financial Aid File
• Communicate Unusual or Changes in Family Income
  and/or size.
• If you have questions please ask for assistance
  from a financial aid professional.
• Check with your college/university for other
  applications and/or deadlines.
• Keep copies of information and/or documents you
  submit to the financial aid office.

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Questions