Understanding Financial Aid

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Understanding Financial Aid
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To Receive Federal Financial Aid I Must

• Submit the FAFSA
• Be U.S. citizen or eligible non-citizen
• Have a high school diploma or its equivalent
• Not be in default status for a Federal Student
  Loan
• Register with the U.S. Selective Service (males
  18-25)

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Getting Started

• Free Application for Federal Student Aid (FAFSA)
• Must file every year
• May be completed online at www.fafsa.ed.gov
• To apply for a pin http//www.pin.ed.gov
• Should be completed prior to attending a
  postsecondary school
• FAFSA is available on January 1st each year
• File as early as possible

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What Do I Need to Complete the FAFSA?

• Social Security Number
• PIN
• Financial Information (tax returns, most recent
  bank statement, investment information)
• Parental Information (If you are a dependent)
• Names of Schools of Interest

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Whose Information is Needed?

• Students
• Parents (for dependents)
• Please note if parents reside in separate
  households Use the information of the custodial
  parent.
• Step-parent (if parent has remarried)

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Dependency

• Students are dependent unless
• 24 years old
• Married (on the day the FAFSA is filed)
• Have dependent/s for which you provide 51
  percent support
• Orphan
• Veteran
• Active-duty military
• Graduate student
• Foster youth/ Ward of the state at the age of 13
• Documented unaccompanied homeless youth at the
  Age of 13

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Common Financial Aid Terms

• Estimated Family Contribution (EFC)- The number
  derived by the Federal Processor based on the
  information provided on the FAFSA
• Cost of Attendance (COA) The budget given to a
  student by the Post Secondary Institution of
  choice based on the average cost to attend that
  institution
• Need COA - EFC

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Types of Financial Aid

• Gift Aid Any FREE money given to a student for
  assistance with educational expenses (Grants)
• Scholarships Monies a student earns based on
  specific criteria to use toward educational
  expenses
• Student Loans Funding loaned to students to
  assist with paying for education expenses which
  must be repaid
• Student Employment Money the student earns as a
  part of the financial aid package

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Grants

• Understanding Pell

• Other Available Grants

• Grants are given to students based on need and
  other criteria
• The Federal Pell Grant is given to students based
  on the information inputted on the FAFSA
• Student must have an EFC of 4041 or less to be
  considered for Pell Grant
• Pell Grant eligibility is often a criterion to
  receive other grants

• Academic Competiveness Grant
• SMART Grant
• Federal Supplemental Education Opportunity Grant
• TEACH Grant
• Florida Student Assistance Grant
• First Generation Matching Grant

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Bright Futures Scholarship

• Students meeting GPA and test score criteria and
  attend either a Florida Community College or
  State University
• Students must complete the Florida Financial Aid
  Application prior to graduation
• Florida Academic Scholars 100 tuition plus book
  stipend
• Florida Merit Scholars 75 tuition (State
  University) or 100 (Community College)
• Florida Goal Seal 75
• http//www.floridastudentfinancialaid.org/ssfad/bf
  /

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Bright Futures RequirementsFlorida Academic
Scholars

• 3.5 Weighted GPA
• 1270 SAT or
• 28 ACT
• 75 Hours of Certified Community Service

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Bright Future RequirementsFlorida Medallion
Scholars

• 3.0 weighted GPA
• 970 SAT
• 20 ACT

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Bright Future Requirements Gold Seal Vocational
Scholars

• 3.0 weighted GPA
• CPT
• Reading83Sentence Skills83
• Algebra    72
• SAT
• Critical Reading 440
• Math 440
• ACT
• English17
• Reading18
• Math     19

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Bright Futures Renewal

• While in college, to meet renewal criteria a
  student must
• Successfully complete 6 credit hours per term
• Maintain a 2.75 GPA for Florida Medallion and
  Gold Seal Vocational Scholars
• Maintain a 3.0 GPA for Florida Academic Scholars

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Other Scholarship Resources

• National Merit Scholars
• University / Community College Scholarships
• Fast Web
• http//www.fastweb.com/
• College Board
• http//apps.collegeboard.com/cbsearch_ss/welcome.
  jsp
• Scholarship Resource Network Express
• http//www.curesearch.org/resources/resource.aspx
  ?ResourceID374

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Workstudy

• Allows students to earn a biweekly paycheck as a
  part of their financial aid package
• Students must have need
• Students must file the FAFSA early
• Limited resource program

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Student Loans

• Perkins Loan

• Stafford Loans

• The Perkins Loan is need based
• Limited funding program
• Schools Determine Additional Criteria
• 5 Interest Rate
• Repayment begins 6 months after graduation

• There are two types of Stafford Loans Subsidized
  and Unsubsidized
• Subsidized Stafford Loans are need based and
  interest does not accrue will students are
  enrolled at least half-time
• Unsubsidized Stafford Loans are not need based
  and interest begins accrue after loan is
  disbursed
• 6.8 Interest Rate
• Repayment begins 6 months after graduation

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Stafford Annual Loan Limits

• Dependent Students

• Independent Students

• Freshman 5500 (3500 max sub)
• Sophomore 6500 (4500 max sub)
• Junior/Senior 7500 (5500 max sub)

• Freshman 9500 (3500 max sub)
• Sophomore 10,500 (4500 max sub)
• Junior/Senior 12,500 (5500 max sub)
• Graduate 20500 (8500 max sub)

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Aggregate Loan Limits

• Dependent Students can borrow up 31,000 (of that
  23,000 may be sub)
• Independent Undergraduate Students may borrow up
  to 57,500 (max of that 23,000 may be sub)
• Graduate Students may borrow 138,500 (max of
  65,500 in sub) this included any undergraduate
  amounts

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Private Educational Loans

• There is a lot of marketing for private loans.
  Private Loans often have higher interest rates
  and less benefits for students. These loans are
  a last resort and should only be borrowed if a
  student has absolutely no other means!

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Verification

• Some students will be selected by the Federal
  Processor to ensure the FAFSA was filed
  accurately
• Students who are selected for verification must
  submit the required documents to the Financial
  Aid Office at the school they wish to attend
• Financial aid will not disburse until
  verification is complete
• If mistakes were made on the FAFSA, a students
  eligibility may change

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Satisfactory Academic Progress

• All schools must verify a student is meeting
  standards of Satisfactory Academic Progress (SAP)
  for a student to continue to receive federally
  funded aid. Students should become familiar with
  their schools SAP policies.

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FERPA

• Family Education Rights Privacy Act
• Protects students
• Prohibits disclosure of certain information to
  anyone other than the student

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Financial Aid Tips

• File the FAFSA early
• Know you schools processes
• Read your email
• Borrow only what you need.. .Loans must be repaid
  
• Apply for scholarships
• Get help if you need it
• Never Pay Someone to Assist You With Getting Aid
• Your education is an investment