FINANCIAL AID AWARENESS Investing in your Success

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FINANCIAL AID AWARENESSInvesting in your
Success

• Presented by
• Gail Braswell
• www.austincc.edu/finaid

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Why go to College ?Which College?

• What do I want to get out of college?
• Do I have know what I want to study or the type
  of job I am preparing for?
• Do I want to live at home or go away to school?
• Would I be more successful in a small college or
  at a large university?

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Cost of Attendance

• Private vs. Public
• Technical vs. Community College
• In-State vs. Out-of-State
• On-campus vs. Off-campus?
• Tuition fees
• Room board
• Books, supplies, transportation, miscellaneous
  personal expenses
• What is the true cost to you?

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Four Year Public School Costs
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Two Year School Costs
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Financing Your Education

• What is financial aid?
• Where does it come from?
• Who is eligible?
• What aid is available?
• How do I apply?

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What is Financial Aid and Where Does It Come From?

• Money from federal or state governments,
  colleges, universities, and private sources used
  to help pay for college
• Two types - Gift aid / Self help

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Types of gift aid

• Grants
• Federal Pell Grant
• Federal SEOG
• Other grants
• Scholarships
• Private
• Institutional
• State

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Self help

• Subsidized Stafford Loan
• Need based
• Government pays interest while in school
• Repayment begins 6 months after graduation or
  dropping below half time enrollment
• Unsubsidized Stafford Loan
• Non-need based
• Responsible for interest that accrues while in
  school
• Repayment begins 6 months after graduation or
  dropping below half time enrollment

• Federal Parent Plus Loan
• Loan is to the parents
• Based on parents credit rating
• If denied, the student may be eligible for
  additional unsubsidized funds

(more..)
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Self help continued...

• Federal Work Study
• On Campus
• Off Campus
• America Reads
• America Counts

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Who is Eligible for Financial Aid?

• High School Graduates
• GED completers
• Those that pass ability to benefit test
• You must submit an official copy of your High
  School transcript or GED to the admissions office
• How do I keep my financial aid
• Meet schools satisfactory academic progress
  criteria
• If not met, contact financial aid to see if you
  can appeal

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Complete the Free Application for Federal Student
Aidwww.fafsa.ed.gov
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Dont forget

• In filling out the FAFSA, youre going to need
  your tax information, as well as your parent(s)
• Why? The Federal Government believes the first
  investment should come from the family.

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What if my financial situation has changed?

• Contact your schools financial aid office to see
  if you qualify for a special condition request
  and provide required documentation of change

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How do I apply?

• Apply for a pin number which serves as your
  electronic signature
• PIN Registration
• Web site www.pin.ed.gov
• Create a 4 digit number to be used throughout
  financial aid process each year
• Keep in a secure location
• If you lose it, you can retrieve it from FAFSA
  web site

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To Register for a PIN www.pin.ed.gov
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Important tips when completing the FAFSA

• Apply Early
• Beginning January 1st of every year
• Check with your school for school deadlines as
  they may vary
• Apply Online
• www.fafsa.ed.gov
• Remember to complete school application

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Advantages of submitting the FAFSA early

• Many funds are limited.
• Once a school starts to award aid, funding can
  become quickly exhausted. You want to be at the
  beginning of the line to be considered as soon as
  awarding starts.
• Secure processing - no mail delays
• Easy record keeping and renewal - access from any
  online location

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Advantages to completing the FAFSA online

• Faster processing - Data reaches the school
  within 7 to 10 days (maybe sooner) of submission
  versus 3 to 6 weeks for the paper application.
• More accurate - Less data is missed so there are
  fewer rejects

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www.fafsa.ed.gov
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Paper FAFSA

• 2009-2010 FAFSA is a 10-page booklet containing
• Instructions for completing the form
• The actual form (not recommended to do on paper)
  which needs to be requested from FAFSA
• Worksheet is available to prepare for online
  application

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FAFSA Step One

• Step One asks for general information
• about the student
• Name, Address
• SSN, DOB
• Telephone number
• Drivers license and state
• E-mail address

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FAFSA Step Two

• Step two collects the students (and spouses, if
  married) income and asset information

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FAFSA Step Three - Remember!

• Step three asks questions which determine
  dependency status
• If all no responses, student is dependent
• If yes to any question, student is independent

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Independent Student Definition

• At least 24 years old by December 31st of the
  award year covered by the FAFSA
• Graduate or professional student
• Married
• Has legal dependents other than a spouse
• Both parents deceased or ward of the court
• Veteran or active member of the United States
  Military

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FAFSA Step FourQuestions 61 through 95

• Step four requests parental information
• If widowed, divorced, separated and/or remarried,
  refer to page seven of the FAFSA.
• Taxes, income, etc.

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FAFSA Step Five

• Completed only if Yes is entered on any Step
  three question.

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FAFSA Step Six

• School code for sending FAFSA data
• ACC school code 012015

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FAFSA Step Seven

• Signatures
• PIN (online)
• Student
• Parent

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FAFSA Summary

• Complete and submit FAFSA at www.fafsa.ed.gov
• Complete any required school applications
• Student receives student aid report (SAR) from
  FAFSA by email or mail

• Provide verification data to the school if
  required (30 federally selected)
• School sends notification of estimated financial
  aid (award letter)

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Avoid ERRORS!

• Errors on the FAFSA or supplemental forms may
  DELAY application processing result in the LOSS
  of financial aid funds.
• Please read the instructions complete all forms
  carefully!

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Scholarship resources

• Where to find them
• High School Counselors
• Community Organizations
• Library Resources
• College or University
• Check Deadlines

(more..)
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Scholarship Internet Resources

• Scholarship Searches
• www.fastweb.com
• www.fastaid.com
• www.finaid.org
• www.srnexpress.com
• www.saafdn.org
• www.collegeboard.com
• www.military.com
• General Financial aid _at_ College information
• www.students.gov
• www.back2college.com
• www.collegexpress.com
• www.collegeaid.com
• www.college.com

• Special Sites
• www.free-4u.com/minorities
• www.hsf.net
• www.blackexcel.org
• www.aihec.org
• www.ncaa.org
• Military and Federal Organizations
• www.legion.org
• www.seabee.org
• www.nmcrs.org
• www.aerhq.org
• www.gocoastguard.com

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Is it worth the trouble?

• YES! More than 5.35 billion was awarded to
  students attending college
• in Texas in 2006-2007.
• 80-85 was from the federal government.
• 20-25 was from the state or institutions or
  private sources.
• 65-70 was in the form of loans.

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Federal Stafford Loans

• Loans are a reality with tuition increases
  nationwide!
• A student loan must be paid back with interest,
  starting 6-months after you graduate or reduce
  your enrollment below half-time (6 hours).
• Loans have a low interest rate
• No credit history is required
• Repayment options are flexible
• Its worth the Investment YOU!!!!

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Interesting facts

• In 2007, the unemployment rate for persons 25 to
  64 years old without a high school diploma was
  7.1 percent
• The jobless rate for college graduates was 2.2
  percent.
• This compares with unemployment rates of 4.6 and
  1.3 percent, respectively, in 1970.

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Your investment
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Debt management

• Set a realistic budget and stick to it.
• Exhaust all other alternatives before borrowing.
• Only borrow what you need.

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Tips on using your credit wisely

• Avoid credit cards (high interest rates)
• Avoid greedy friends!
• Look at what you NEED versus what you WANT.

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Benefits of having good credit?

• Buying a home
• Buying a car
• Getting future credit
• Getting a job

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Budget Worksheet
In-School Budget Tuition and Fees Books
Transportation Rent Utilities Groceries
Credit Cards Entertainment Miscellaneous
Out of School Budget Tuition and Fees Books
Transportation Rent/Mortgage Household Items
Utilities Groceries Credit Cards
Entertainment Miscellaneous Student Loans
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Scam Alert
http//www.ftc.gov/bcp/edu/pubs/consumer/credit/cr
e43.pdf
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Avoid scams

• While some companies may offer legitimate
  financial aid finding services, be aware that
  rip-offs are common.
• Do not allow yourself to be pressured into a
  hasty decision.
• Always research the company.
• Ask a guidance counselor or inquire at the school
  you are considering attending.
• Check with the Better Business Bureau

(more..)
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Avoid scams continued

• Remember that legitimate companies never
  guarantee or promise scholarships or grants.
• You should never have to pay for financial aid
  services. Its FREE through many colleges and
  universities.

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Now What?

• Consider your options
• Plan for your next steps
• Form good habits
• Remember
• You can afford college!

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Questions ? www.austincc.edu/finaid
512-223-4HELP512-223-4243Gail
BraswellPinnacle Campus Financial Aid
Supervisorgbraswel_at_austincc.edu512-223-8168