Transcript The Middle Class Family Paying for College

Financial Aid
Presentation 2012-2013
Grants

Federal Pell Grant

Federal Supplemental Educational
Opportunity Grant (FSEOG)

Texas Public Education Grant (TPEG)

TEXAS Grant
Federal Pell Grant

Max Pell Grant $5550

No Projected increase

Max Eligible EFC 5237
TEXAS Grant
 Up to $5000 per year
 High School Transcript MUST indicate if
completing the recommended or distinguished
high school curriculum
 EFC < 4000
 Renewable with GPA of 2.5+ & 24 credit
hrs/yr
Top 10% Scholarship

$2000/year scholarship

Must be in top 10% of high school class

Must submit FAFSA by March 1

Must have “financial need” (At least $1)

Renewable with 3.25 GPA
Student Employment
•
Federal College Work-study
•
State College Work-study
•
Community Service Jobs
Federal Direct Student Loans
Effective Fall 2010, all Universities
across the country and abroad that
offer Federal Student Loans will be
funded by the Federal Direct Student
Loan Program
Direct Student Loans
Rates for 2012-2013

Federal Direct Stafford Subsidized Loan Program


Federal Direct Stafford Unsubsidized Loan Program


Fixed 6.8% int. rate, no payments while in school.
Fixed 6.8% int. rate, no payments while in school.
Federal Parent Loan for Students (PLUS)

Fixed 7.9% int. rate, payment plan varies, 10 year repayment
plan
Tuition Exemptions
The state has programs for students who:
Were in foster care
 Were adopted
 Were the highest ranking scholar for their school
 Are blind or deaf
 Are Texas Veterans
 Are the spouse of deceased Texas public servants

Visit www.collegefortexans.com for fact sheets & links to
other higher education resources for students
How Do I Apply For All This?
Financial Aid Application Process
Beginning January 1stComplete the Free Application for
Federal Student Aid (FAFSA)
www.fafsa.gov
Changes on 2012-2013 FAFSA



Beginning January 2012, all applicants & parents of
dependents who have filed their taxes and are eligible,
will be directed to use the IRS Data Retrieval process to
complete their FAFSA.
Applicants who do not use IRS Data Retrieval or who
have used Data Retrieval but have changed their
information will need to explain to their institution the
why the changes made are more accurate.
Applicants who file but elect not to use the IRS Data
Retrieval & manually enter their information, will be
subject to verification.
Verification-What it Really Means

This does not always mean your answers are false or
incorrect; it is a random selection process

If you application is selected for verification, you
will be asked to provide:
- Signed Institutional Verification Worksheet
- Taxes will not be required if you use IRS Data
retrieval
What Happens if Verified?

1.
2.
If a student and/or parent are selected they will
need to:
Complete and submit Verification forms.
Submit Tax Transcript (not 1040,1040A or
1040EZ) which can be obtained from IRS.
NOTE: Transcripts may take 5-10 days to receive.
Options Available
 Have
completed Tax Return
 Will
file
 Will
not file
If selected Will File

If student or parent selected Will file, the
FAFSA application is not complete until the
completed Tax Return information is entered in
FAFSA.

If IRS data is not going to be used and entered
manually, the student or parent will be subject to
verification and forms and IRS Transcript will
need to be submitted.
IRS DATA RETRIVAL
DATA RETRIVAL CONT.
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 FAFSA data and a federal
formula
Financial Need Formula
Cost of Attendance
- Expected Family Contribution
____________________________
=Financial Need
Misconceptions about
Applying for Financial
Aid
My Parent’s Income is too High to
Apply for Aid
•
Financial aid is intended to make a college
education available to families in a number of
different financial situations; everyone
qualifies for something.
•
Income is only one of many factors
considered.
•
A growing number of institutional and
private scholarships require that students fill
out the FAFSA as part of their application
process.
My Grandparents/Guardian can provide their
income information on my FAFSA
•
If your parent(s) are still alive, federal guidelines
require that biological parent’s information be used
to fill out the Free Application for Federal Student
Aid (FAFSA) unless someone else is your legal
guardian.
•
Guardianship as determined by a Judge or Court of
law in your state of residence. Student may file as
an independent.
My parents are divorced (separated),
which parent should complete the
FAFSA
•
The parent whom the student resided with the
longest over the last 12 months provides their
information on the FAFSA; both parents are
not required.
•
If you lived with each parent for an equal
number of days, use the income information
from the parent who provided you with the
most support during the last 12 months.
•
"Support" means money for such things as
housing, food, clothing, transportation, medical
care and school.
My stepparent does not have to provide
income information on my FAFSA
•
Stepparent's information must be included on your
financial aid application if you lived in the stepparent's
household for 6 weeks (42 days) or more during the
previous or current year or if a stepparent contributed
more than $750 in "support" during the previous or
current year.
•
"Support" means money for such things as housing,
food, clothing, transportation, medical care and
school.
I’m Independent of My Parents
 Parents must provide information and signatures on
students FAFSA unless:
 Student is over 24
 Has children/dependents and provides at least 50% of
their support
 Married
 Foster Child (after age 13)
 Homeless/unaccompanied youth
 Veteran
 In legal Guardianship (proof needed)
Questions?