Welcome to Financial Aid Night

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Welcome to Financial Aid Night
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Tonights Topics

• What is Financial Aid
• Types of Financial Aid
• How is Financial Aid Awarded
• The Financial Aid Process

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What is Financial Aid?
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What is Financial Aid?

• Financial Aid is
• Money to help you pay for college
• From Federal Government
• State Government
• Colleges
• Local Organizations
• Private Organizations

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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

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Types of Financial Aid

• Three types of Financial Aid
• Gift Money
• Earned Money
• Borrowed Money

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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

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Types of Financial Aid

• Earned Money
• Federal Work-Study Program
• Students work part time, usually on campus
• Money earned helps pay for college

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Types of Financial Aid

• Borrowed Money
• Two types of loans
• Federal
• Personal
• Must be paid back

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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
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BANK LOAN

• 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
• Make no payments until six months after leaving
  school.
• Pay no application, origination, or early
  repayment fees.
• Select a competitive fixed or variable interest
  rate option.
• Reduce your loan cost with our interest rate
  discounts. 

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Types of Financial Aid

• Federal Loans Stafford

Borrower Student
Based on Need Subsidized Yes Unsubsidized No
Interest Rate Fixed 2014 2015 4.66
Repayment Begins 6 months after graduating or dropping below half-time
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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.
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How is Financial Aid Awarded?
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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?

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How is Financial Aid Awarded?

• Cost of Attendance
• Tuition
• Room and board
• Books
• Transportation
• Personal expenses

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How is Financial Aid Awarded?

• Expected Family Contribution (EFC)
• The EFC is the amount you may be expected to
  contribute
• You dont pay it up front
• Used to determine how much aid youre eligible
  for
• Calculated from information you provide

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The Financial Aid Process
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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 dont make too much or too
  little to apply

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• The new program is the latest step in Penns
  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.

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Penn's New FinancialAid 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.

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• 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.

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The Financial Aid Process

• The FAFSA
• Its 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 arent required
• Faster processing time
• Easier to check status
• Easier renewal process

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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.
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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.

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WHAT does the PROFILE cost?

• The fee for the initial application and one
  college or program report is 25. Additional
• reports are 16.

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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

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The Financial Aid Process

• FAFSA Tips
• Dont pay! Remember its Free at www.fafsa.ed.gov
• Interested in student loans?
• Interested in work-study?
• College possibilities

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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

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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

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SCHOLARSHIP
Washington-Lee High School Class of 2014
received more than 11.2 million in Grants and
Scholarships
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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

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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

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Comparing Award Offers
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
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Ivy League Institutions
Merit Scholarships No Merit Scholarships
Cornell University Columbia University
Dartmouth College Harvard University
Brown University Princeton University
Yale University University of Pennsylvania
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The Financial Aid Process

• Lets 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 package
• Look into PLUS Loan if necessary