Financial Aid Power Point
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Transcript Financial Aid Power Point
Financial Aid 101
Claudia Wenzel
Director of Financial Assistance
John Carroll University
What is financial aid?
Where does it come from?
What aid is available?
Who is eligible?
How do I apply?
Types of Aid
Gift aid: Grants and
scholarships (needbased or meritbased)
Self-help aid: Loans
and employment
(need-based or nonneed-based)
Goals of Financial Aid
Primary goal is to assist students in
paying for college and is achieved by:
Evaluating family’s ability to pay educational
costs
Distributing limited resources in an equitable
manner
Providing balance of gift aid and self-help aid
***PAST, PRESENT, FUTURE**
Definition of Need
Cost of attendance (COA)
– Expected family contribution(EFC)
=
Need
COST OF ATTENDANCE
FIXED
TUITION & FEES
ROOM
BOARD
VARIABLES
BOOKS & SUPPLIES
TRANSPORTATION
PERSONAL
EXPENSES
Federal Methodology
Federal Methodology is
the formula created by
Congress to determine
the EFC
***EFC determines eligibility
for state/federal programs not
necessarily what a family will
pay out of pocket
Calculating the EFC for a Dependant
Student
Student & Parent Income
Taxes Paid/Income Protection Allowance
Family Asset Equity (excludes home)
Family Size
Number of family members in college
Age of older parent
Start now with Net Price Calculators
***EFC determines eligibility for state/federal
programs not necessarily what a family will pay out
of pocket
Need Varies Based on Cost
1
X
2
Y
3
Cost of
Attendance
(Variable)
Z
EFC
EFC
Expected Family
Contribution
Need
(Constant)
(Variable)
Application Process
Submit FAFSA prior to school’s deadline
Most aid awarded on “first-come, first-served”
basis
To ensure maximum consideration for federal, state,
and institutional aid, check information from each
school to determine:
Required application materials
CSS Profile
Institutional Applications
Application deadlines
Collects family’s personal and financial
information used to calculate student’s
EFC
Available in English and Spanish
FAFSA
filed electronically at
www.fafsa.gov
PIN Registration
Web site:
www.pin.ed.gov
Can request PIN before
January 1
Not required, but
speeds processing
Will be used by students and parents throughout
aid process, including subsequent school years
Sources andTypes of Financial Aid
Federal
Pell Grant
Supplemental Educational Opportunity Grant (SEOG)
TEACH Grant
Perkins Loan
Stafford Loan (Subsidized and Unsubsidized)
Federal College Work-Study
State
Ohio College Opportunity Grant
Institutional Aid
Merit and Gift Awards
Outside Scholarships
Loan Programs
Student Loans
Perkins Loan- 5%interest rate/9 month Grace
Federal Direct Stafford Loan
Subsidized vs. Unsubsidized- 4.6% interest
Parent/Co-signer Required
Federal Direct PLUS Loan-7.21% interest
Private Loans
Home Equity
Private Scholarship Search
Free Internet scholarship search engines:
FinAid on the Web: www.finaid.org
College Board: www.collegeboard.com
FastWeb: www.fastweb.monster.com
Scholarship Resource Network Express:
www.srnexpress.com
GoCollege: The Collegiate Websource:
www.gocollege.com
Common Errors and Myths
Families need to hire a financial aid consultant to navigate
the process
FAFSA.com
Independent status
You will be responsible for whatever is calculated
as your family contribution
Reporting assets
Parental data in situations of divorce and
remarriage
You can “negotiate” a financial aid award
by pitting colleges against each other
TIPS FOR SUCCESS
Start early and ask questions
Know the importance of deadlines
Read everything
Don’t assume you don’t qualify
Net Price Calculator (NPC)
Don’t rule out any college because of cost
Involve the student
Good Luck!