What You Need to Know About Financial Aid

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Financing Education Beyond High School
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What You Need to Know

• What is financial aid
• Expected Family Contribution (EFC)
• Cost of attendance (COA)
• What is financial need
• Categories, types, and sources of financial aid
• Free Application for Federal Student Aid (FAFSA)
• Special circumstances

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What is Financial Aid?

• Financial aid is funds provided to students and
  families to help pay for postsecondary
  educational expenses

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General Eligibility Requirements

• Must be enrolled and pursuing an eligible degree
  or certificate at your college (check with FA
  Advisor)
• Must be a U.S. citizen or eligible noncitizen
• Must be registered with Selective Service (if
  male and required to be)
• May not have a recent drug-related conviction

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General Eligibility Requirements, cont.

• Must have a valid Social Security Number
• May not be in default on a federal student loan
• May not owe repayment of a federal grant
• Must be making satisfactory academic progress as
  defined by the school

Some funds available for SB 1528 students
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Dependent Student

• A student who is under 24 years of age
• Unmarried
• Not an orphan or ward of the state
• Has no legal dependent (s)
• Not a veteran of the U.S. Armed forces
• Is not working on a graduate degree

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Independent Student

• 24 years of age or older
• Married
• A veteran
• An orphan or a ward of the court
• Has a legal dependent other than a spouse
• Is working on a graduate degree or higher

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What is the Expected Family Contribution (EFC)

• Amount family can reasonably be expected to
  contribute
• Stays the same regardless of college
• Two components
• Parent contribution
• Student contribution
• Calculated using data from a federal application
  form and a federal formula

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EFC for Dependent Student

• Parent contribution calculated from income
• and assets
• Student contribution calculated from available
  income and assets

EFC (Expected Family Contribution)
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EFC for Independent Student

• Student contribution calculated from available
  income and assets
• EFC

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What is Cost of Attendance (COA)

• Direct costs (such as tuition and fees)
• Indirect costs (such as transportation, room and
  board, etc.)
• Direct and indirect costs combine into cost of
  attendance
• Varies widely from college to college

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What is Financial Need

• Cost of Attendance
• Expected Family Contribution
• Financial Need

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Categories of Financial Aid

• Need-based
• Non need-based

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Principles of Need Analysis

• Parents have primary responsibility to pay for
  their dependent childrens education
• Students also have a responsibility to contribute
  to their educational costs
• Special circumstances can and do affect a
  familys ability to pay. In these instances,
  families should be evaluated in their present
  financial conditions.
• Based on federal guidelines through the
  Department of Education

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Types of Financial Aid

• Grants
• Loans
• Employment
• Scholarships

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Financial Aid Grants

• Pell Grant
• Need based.
• Given to those students determined to have the
  highest need (i.e., lowest EFCs)
• Supplemental Grants
• Federal grants (i.e., ACG/Smart/Teach)
• State grants (i.e., TPEG/TXG/TEOG/LEAP/SLEAP)
• Typically need based
• Often linked to priority deadlines

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Financial Aid Loans

• Subsidized Stafford loans
• Must demonstrate need
• Government pays interest while in school
• Unsubsidized Stafford loans
• Need is not a consideration
• Interest capitalizes and accrues while the
  student is in school
• Parent PLUS loan
• For dependent students only

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Employment Federal Work Study

• Allows student to earn money to help pay
  educational costs
• On campus, need-based employment
• Some schools may provide non-monetary
  compensation, such as room and board

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Scholarships

• A scholarship is money given by individuals,
  companies or organizations based either on need,
  merit, or both. It is the students
  responsibility to research and apply for
  scholarships.
• At Collin, Financial Aid Advisors do not award
  private scholarships. Scholarships are awarded
  through the Foundation Office.
• Some limited information available at the
  Financial Aid office and on the Collin website.
• http//foundation.ccccd.org/

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Sources of Financial Aid

• Federal government
• States
• Private sources
• Civic organizations and churches
• Employers

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Federal Government

• Largest source of financial aid
• Aid awarded primarily on the basis of financial
  need
• Must apply every year using the Free Application
  for Federal Student Aid (FAFSA)

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State Aid

• Residency requirements
• Award aid on the basis of both merit and need
• Use information from the FAFSA
• Deadlines vary by state check paper FAFSA or
  FAFSA on the Web site

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Private Sources

• Foundations, businesses, charitable organizations
• Deadlines and application procedures vary widely
• Begin researching private aid sources early

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Civic Organizations and Churches

• Research what is available in community
• To what organizations and churches does student
  and family belong?
• Application process usually spring of senior year
• Small scholarships add up!

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Additional Resources

• http//www
• Brokescholar.com collegeboard.com
• Fastweb.com finaid.org
• Scholarships.com collegetoolkit.com
• Nextstudent.com collegenet.com
• Studentaid.org freschinfo.com
• Be cautious about entering scholarship contests
  that require a fee.
• DONT MISS DEADLINES!!

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Employers

• Companies may have scholarships available to the
  children of employees
• Companies may have educational benefits for their
  employees

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How do I apply? Filling out the FAFSA.

• Quick and easy application on the web
• - Apply for PIN Parents of dependent
  students also apply for PIN
• - Gather information/Fill out application
• - Include school code(s) (Collin 016792)
• - Sign application (Either electronically or
  physically mail.)
• - Submit
• Follow up with school!!!

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Free Application for Federal Student Aid (FAFSA)

• A standard form that collects demographic and
  financial information about the student and
  family
• Must be filed electronically except in certain
  instances
• Available in English and Spanish

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FAFSA (cont.)

• Information used to calculate the Expected Family
  Contribution or EFC
• The amount of money a student and his or her
  family may reasonably be expected to contribute
  towards the cost of the students education for
  an academic year
• Colleges use EFC to award financial aid

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FAFSA (cont.)

• May be filed at any time during an academic year,
  but no earlier than the January 1st prior to the
  academic year for which the student requests aid
• For the 2009-10 academic year, the FAFSA may be
  filed beginning January 1, 2009
• Colleges may (and usually do!) set FAFSA filing
  deadlines

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FAFSA on the Web

• Web site www.fafsa.ed.gov
• 2009-10 FAFSA on the Web available on January 1,
  2009
• FAFSA on the Web Worksheet
• Used as pre-application worksheet
• Questions follow order of FAFSA on the Web

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Student Financial Aid Personal Identification
Number (SFA PIN)

• Web site www.pin.ed.gov
• Sign FAFSA electronically
• Can request PIN before January 1, 2009
• Not required, but speeds processing
• May be used by students and parents throughout
  aid process, including subsequent school years

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Signatures

• Required
• Student
• One parent (dependent students)
• Format
• Electronic using PIN (much faster!)
• Signature page
• Paper FAFSA

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FAFSA on the Web Worksheet

• 2009-10 FAFSA on the Web Worksheet8-page booklet
  contains
• Instructions
• 93 questions in 5 sections
• Can help reduce stress and confusion, especially
  for first time filers

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Frequent FAFSA Errors

• Social Security Numbers
• Divorced/remarried parental information
• Income earned by parents/stepparents
• Untaxed income
• U.S. income taxes paid
• Household size
• Number of household members in college
• Real estate and investment net worth

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FAFSA Processing Results

• Central Processing System (CPS) notifies student
  of FAFSA processing results by
• Paper Student Aid Report (SAR) if paper FAFSA
  was filed and students e-mail address was
  not provided
• SAR Acknowledgement if filed FAFSA on the Web
  and students e-mail address was not provided
• E-mail notification containing a direct link
  to students on-line SAR if students e-mail
  was provided on paper or via electronic
  FAFSA
• Student with PIN may view SAR on-line at
  www.fafsa.ed.gov

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Student Aid Report

• Review data for accuracy
• Update estimated information once actual figures
  are available

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FAFSA Processing Results cont.

• Institutional Student Information Record (ISIR)
  sent to colleges listed on FAFSA approximately 10
  to 14 days after FAFSA submitted
• College reviews ISIR
• May request additional documentation, such as
  copies of federal tax returns

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Making Corrections

• If necessary, corrections to FAFSA data may be
  made by
• Using FAFSA on the Web (www.fafsa.ed.gov) if
  student has a PIN
• Updating paper SAR (SAR Information
  Acknowledgement cannot be used to make
  corrections) or
• Submitting documentation to colleges financial
  aid office

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Special Circumstances

• Cannot report on FAFSA
• Send explanation to financial aid office at each
  college
• College will review special circumstances
• May request additional documentation
• Decisions are final and cannot be appealed to
  U.S. Department of Education

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Special Circumstances

• Change in employment status
• Medical expenses not covered by insurance
• Change in parent marital status
• Unusual dependent care expenses
• Other catastrophic events

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CAUTION!

• Avoid being charged a fee to complete the FAFSA!
• Completing and processing the FAFSA application
  is FREE. (FAFSA means
  Free Application for Federal Student Aid)
• FAFSA is located at www.fafsa.ed.gov
• Contact the financial aid office if you have
  questions

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If It Sounds Too Good To Be True.

• If you are considering hiring a scholarship or
  financial aid consultant, do your research first!
• The Department of Educations finaid website has
  a lot of great information on scholarship scams
  and questionable consultant tactics. Before you
  hire anyone, go to
• www.finaid.org/scholarships/scams/phtml

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Follow up with school

• FAFSA information takes 10 to 14 days to
  electronically arrive at the school.
• Each school may have their own in-house paperwork
  you have to complete.
• Processing takes 4 to 6 weeks under normal
  circumstances (longer during peak times).
• You do not have financial aid until you receive
  an award letter from the school and accept it
  online.

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Review

• Complete your tax return early and gather other
  necessary information
• Complete the FAFSA online sign electronically
  with PIN
• Follow up with your school and complete any
  required paperwork. Be sure to check priority
  deadlines!
• Once awarded, review and accept awards online
• Research and contact other sources of financial
  aid (i.e., scholarships, private sources, etc.)

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Good Luck!