Transcript 1998 - 99 Financial Aid Night

KILGORE COLLEGE
FINANCIAL AID WORKSHOP
The “A, B, C’s” of
Financial Aid
Presented By:
Annette Morgan
Financial Aid Officer
Main Financial Aid Sources

Federal Government

State of Texas

Institution or College

Civic or Private Groups
STUDENT AID CATEGORIES
 GRANTS
o Department of Education
o State of Texas
 LOANS
o Department of Education (Federal)
 EMPLOYMENT
o College Work Study (Federal)
o Institutional Position
 SCHOLARSHIPS
GRANTS

Funds for Education

Do not have to be repaid

Awarded on financial
“need” basis

MAIN SOURCES
• Dept. of Education
• State of Texas
Loans
 Funds
students & parents borrow to
help with educational expenses
 Repayment begins after graduation
 Minimum Enrollment: 6 hours
 May be “need or non-need” based
 An investment in a student’s future
 Caution: Only borrow funds that are
actually needed – (not just desired)!!!
Employment
 Allows
student to earn money to help
pay educational costs
Usually need-based
 May
be funded by the U.S. Dept. of
Education or the State of Texas
May open the door to future
employment, as references will be
given on student’s performance
Scholarships
Money that does not have to be paid back to
the institution or donor
 Sources may include the institution, or
“outside agencies” (service clubs, church)
 Awarded on the basis of merit, skill or other
unique characteristics
 Usually require full-time enrollment and a
higher academic standard (2.5 to 3.0 gpa)
 May be need or non-need based

General Eligibility Requirements
Be enrolled as a regular student in a degree or
certificate program


Be registered with Selective Service, if required

Not be simultaneously enrolled in high school

Provide valid Social Security Number
Have high school diploma or equivalent, or
demonstrate ability to benefit

Be a citizen, national, or permanent resident of
U.S., or other eligible non-citizen.

FAFSA
Free Application for Federal Student Aid
 First Step in the Financial Aid Process
 Students may qualify for Federal aid
such as
- Work Study, Grants, and Loans
 States and Schools use information
from the FAFSA to award non-Federal
aid such as
- Scholarships, State Grants, and credit based Private Loans
FAFSA Priority Deadlines

Deadlines are usually determined
by each State

In Texas, each school sets its own
priority deadline
- Apply in January to make
most deadlines for Texas
colleges and universities.
Institutional Verification

Confirms accuracy of FAFSA information

Application selected at random by CPS

Often occurs if information is incomplete or
questionable

School may request any document necessary to
complete the verification process

Prepare copies for the school, as your originals
will not be returned

School is required to verify if selected
Common Documents

BE PREPARED TO FURNISH:
•
•
•
•
•
Tax Return(s) and W-2(s) – Prior year
Child Support Received or Paid
Social Security Benefits
Welfare Benefits-excluding food stamps
Housing, Food or other Living allowances
paid to military, clergy,etc
• Worker’s Compensation
• Current Checking/Savings Balance
• Investment, Business and/or Investment
Farm Value
WHAT DOES THE COLLEGE DO
WITH THE FAFSA DATA ?

Uses the data to create
financial “need” and set up the
cost of attendance
From this, the student’s aid
package is created for the
academic year

Need Analysis
Income
Asset
equity
Family
size
Number
in college
• Not to include parents
Definition of Need
Cost of Attendance (COA)
– Expected Family
Contribution (EFC)
= Financial Need
Cost of Attendance
Tuition
and fees
Room and board
(at home with
parents, in dorm or off campus)
Books
and supplies
Transportation
Personal expenses
Miscellaneous expenses
5
Expected Family Contribution
 (EFC)
calculated using Fafsa data and a
federal formula
 The amount a family can reasonably be
expected to contribute
 Stays the same regardless of college
of choice
 Considers
household income & size,
assets, & number of family in college
 Two components:
 Parent Contribution
 Student Contribution
Need Varies Based on Cost
1
1
2
2
3
Cost of
Attendance
(Variable)
EFC
-
Expected
Family
Contribution
(Constant)
3
EFC
=
Need
(Variable)
Need Based Aid
SCHOOL A
Cost of Attendance
- Exp. Family Contribution
Financial Need
$12,000
$ 1,000
$11,000
SCHOOL B
Cost of Attendance
- Exp. Family Contribution
Financial Need
$20,000
$ 1,000
$19,000
Community College Package
Budget (COA)
$12,000
- Expected Family Contribution (EFC)
1,000
Need
$ 11,000
Federal Pell Grant
Texas Grant
Scholarship
Stafford Loan
$
$
$
$
4,400
1,780
1,000
3,500
Subtotal
$ 10,680
Unmet Need
$
320
Public University Package
Budget (COA)
$22,000
- Expected Family Contributions (EFC) 1,000
Need
$21,000
Federal Pell Grant
Texas Grant
Federal Sub Stafford Loan
Federal Unsub Stafford Loan
Institutional Scholarship
Subtotal
$4,400
$2,960
$3,500
$2,000
$4,000
$16,860
Unmet Need
$ 4,140
Private College Package
Budget (COA)
$40,000
- Expected Family Contribution (EFC)
1,000
Need
$39,000
Federal Pell Grant
TEG
Federal Stafford Loan
Federal Unsub Loan
Federal PLUS Loan
Institutional Scholarship
$4,400
$2,500
$3,500
$2,000
$10,000
$10,000
Subtotal
$32,400
Unmet Need
$ 6,600
Evaluating Aid Packages

Biggest is not always the best

Are cost estimates realistic?

Renewable vs. non-renewable scholarships



What are terms and conditions of offered
loan(s)
Grant/loan balance
Balance of aid offered
• What percentage is offered of grant aid?
• Loan aid?
• Institutional scholarships?
Common Errors

INCOMPLETE APPLICATIONS - Most errors are
caused by the student providing inaccurate or
incomplete data on FAFSA (make a copy)

Not meeting required deadlines

Not submitting all required documents


No Admission Application and Official
Transcripts on file in Registrar’s Office
Not returning Signed Award Letter by stated
deadline
Federal Financial Aid Programs
• Federal Pell Grant -
Largest Grant Program
Not repaid unless student withdraws (09-10 - $5350)
• Fed. Academic Competitiveness Grant
Awarded to Honors Graduates
( 09-10 - $750)
Must be Pell Eligible, and Maintain 3.0 gpa
• Federal SEOG Grant - Supplements Pell for
Students with exceptional Need
(Max 1000)
• Federal Work Study – Work Program for
eligible students to work on campus and earn
federal funds
(Amounts Vary)
Federal Stafford Loan Program
(Requirement: Min. of 6 hrs. enrolled per Loan)
 Subsidized
(DOE pays interest)
 Max: $3,500/yr - 1st yr (Freshman
Student)
 Max: $4,500 /yr - 2nd yr (Sophomore
Student)
 Unsubsidized


(interest accrues)
Same amounts as shown above, if not
qualified for the Subsidized Loan
Dependent: $2000/yr - 1st/2nd yr (if
needed)
 PLUS
(Parent Loan for U. Student)
Facts about Stafford Loans
 On
Sub & UnSubsidized, there is a 6month “Grace Period” after
Graduation
 On PLUS, no “Grace Period”
 After “Grace” repayment begins
 Interest Rates:
o Subsidized = 5.6% over 10 yrs repayment
o Un-Subsidized = 6.8% over 10 yrs. repayment
o PLUS = 8.5% over the life of the loan
 Reenrollment
will stop repayment,
however, interest will still accrue
State of Texas Funds
Texas Grant – (Toward Excellence,
Access and Success)
 Texas Public Education Grant –
(TPEG)
 Texas Educ. Opportunity Grant –
(TEOG)
 Tuition Exemptions
 Professional Nursing Scholships
 Vocational Nursing Scholarships

Satisfactory Academic Progress
 All
Financial Aid categories will have a
minimum SAP standard
 Academic Progress evaluated by school on a
semester or annual basis
 Students must make a minimum GPA &
complete a % of enrollment to continue to
receive all forms of financial aid
 Scholarships will carry higher minimum
requirements, depending on the award
 Check with your school’s financial aid office
and pay attention to grades and attendance!
Numbers to Remember
 Department
• (800) 433-3243

of Education
TX Higher Education
Coordinating Board
• (800) 242-3062
 TX
Financial Aid Information
Center
• (888) 311-8881
 Kilgore
Office
College Financial Aid
• (903) 983-8211
World Wide Web
ed.gov/studentaid
 fastaid.org
 AIE.org
 fafsa.ed.gov
 collegeforalltexans.com
 finaid.org
 applytexas.org

Pay Attention!

Review each school’s catalogs/website for
information and application procedures

Accurately complete and submit correct
forms and respond promptly to requests

Know each school’s deadlines and
most importantly……MEET THEM

Keep copies of all forms you
submit for your records - and
Good Luck in 2010-11!!