Transcript Financial Aid in Cliffnotes

1
FINANCIAL AID CLIFFNOTES
Making $ense
of the Financial Aid Process
WHAT IS FINANCIAL AID?



Financial Assistance to help families pay for
the cost of attending college that exceeds their
ability to pay. Includes:
Gift Aid (free monies)
-- Scholarships
-- Grants
Self Help
-- Student Loans (to be repaid)
-- Student Employment (to be earned)
2
WHO IS ELIGIBLE?
All U.S. citizens or non-citizens with permanent
resident status applying for federal student aid for
the first time qualify for some forms of financial
assistance.
(Males required to register for selective service
must do so in order to receive federal student aid.)
3
WHO PROVIDES FINANCIAL AID?
FEDERAL GOVERNMENT
U.S. DEPARTMENT OF EDUCATION
(www.studentaid.ed.gov)
-- Pell Grant (Up to $5,550 per year)
-- Supplemental Education Opportunity GrantSEOG (Up to $4,000 per year-generally less because of
availability of funds at the school)
-- TEACH Grant (Up to $4,000 per year)
-- Perkins Loan (Up to $4,000 per year, but usually less
because of availability of funds at the school)
4
U.S. DEPARTMENT
OF
EDUCATION (CONTINUED)
-- Direct Student Loans (Up to $5,500 for
freshman, $6,500 for sophomores, and $7,500 for
juniors & seniors, $20,500 for grad students)
-- Parent PLUS Loan (Up to full cost of
attendance minus student’s financial aid.
Requires credit worthy applicant.)
-- Work Study (Award amounts vary by hourly
wage and number of hours worked, campus
policy)
(Notice of eligibility and award amounts for U.S. Dept of Education
programs are made by the financial aid offices at the schools to
which you apply.)
5
U.S. DEPARTMENT OF HEALTH & HUMAN
SERVICES ( HHS) (http://www.hrsa.gov/loanscholarships/)
-- Federal Nursing Loan (awarded by school)
-- Nursing Scholarship Program
-- Scholarship for Disadvantaged Students
-- Health Professions Student Loans
-- Loans for Disadvantaged Students
-- Primary Care Loans
-- National Health Service Corps
-- National Health Service Corps Loan Repayment
(Application is generally made directly with Dept of HHS)
6
U.S. DEPARTMENT OF VETERAN AFFAIRS
(http://www.gibill.va.gov/post-911/)
-- The Post 9/11 GI Bill
-- The Yellow Ribbon Program
-- Montgomery GI Bill
-- Reserve Education Assistance Program
-- Veterans Education Assistance Program
-- Educational Assistance Test Program
-- Survivor’s and Dependent’s Educational
Assistance Program
-- National Call to Service Program
(Application is made with Dept of Veterans Affairs)
7
WASHINGTON STATE
(WWW.WSAC.WA.GOV)
-- Washington State Need Grant (awarded by school)
-- State Work Study Program (awarded by school)
-- Tuition & Fee Waivers (awarded by WA public colleges)
-- Washington Scholars
-- Washington Award for Vocational Excellence
-- Washington Health Professions Programs
-- College Bound Scholarship
-- Opportunity Grants
-- WICHE
8
WASHINGTON STATE (continued)
-- American Indian Endowed Scholarships
-- Future Teachers Conditional Scholarship and
Loan Repayment
-- GET Ready for Math and Science Conditional
Scholarship
-- John R. Justice Loan Repayment Program
-- Passport for Foster Youth Promise Program
*Many state programs have been suspended due to the budget deficit.
9
COLLEGES/UNIVERSITIES
-- Academic Merit Scholarships
-- Talent Scholarships
-- Need Based Grants/Scholarships
-- Endowed or Restricted Scholarships
-- Institutional loan or work programs
(Availability of programs and funds, as well as definition of “merit”
or “talent” varies by school)
10
COMMUNITY AWARDS
-- High School scholarships
-- Community scholarships (e.g. Sumner-Bonney
Lake Educational Foundation/Dollars For
Scholars, Rotary, Elks, etc.)
-- Foundation Scholarships
-- Business Scholarships
-- Employer Scholarships (employee tuition
assistance, dependent scholarships)
-- Church Scholarships
11
HOW DO I APPLY?
1.
2.
3.
4.
Apply for admission to the schools you are
interested in attending.
Apply for a Personal Identification Number
(PIN), which will serve as your electronic
signature on the on-line FAFSA (www.pin.ed.gov).
Complete the Free Application for Federal
Student Aid (FAFSA) www.fafsa.gov). Application
can be made beginning Jan. 1, 2013. Apply as
early as you can, using estimated 2012 income
information, if necessary.
Complete any supplemental application
required by individual schools.
12
HOW DO SCHOOLS AWARD AID?
1. On Merit
-- Academic (GPA, SAT/ACT)
-- Talent (music, athletic, drama, art,
dance, forensics, etc.)
-- Leadership, community service
-- Typically not based on need, may require
separate application and participation or
minimum standards while enrolled.
13
HOW DO SCHOOLS AWARD AID?
(CONTINUED)
2. Conditional
Typically awarded on the basis of a specific
condition or characteristic. e.g.
-- First generation college student
-- single parent
-- Plan to teach, be an accountant, etc.
-- Specific academic interest
(may require separate application)
14
HOW DO SCHOOLS AWARD AID?
(CONTINUED)
3. On Financial Need
Requires filing the FAFSA to determine financial
need. Includes:
-- scholarships
-- grants
-- work
-- student loans
15
HOW IS FINANCIAL NEED
DETERMINED?
“Financial Need” is the difference between the cost
of the school and the amount the family is
expected to contribute toward that cost.
Cost of Attendance (COA)
- Expected Family Contribution (EFC)
=Financial Need
16
COST OF ATTENDANCE (BUDGET)
Includes:
Tuition and fees
Room and meals
Books and supplies
Transportation
Day care costs
Personal and miscellaneous
(may also include uniforms and computer at school’s discretion/policy)
17
COST OF ATTENDANCE WILL VARY
$40,000
$40,000
$35,000
$30,000
$21,000
$25,000
$20,000
$17,000
Average Cost of Attendance
$15,000
$10,000
$5,000
$Two year
Community College
Four year Public
University
Four year non-profit
University
18
BUT EXPECTED FAMILY CONTRIBUTION
(EFC), REMAINS THE SAME
$40,000 Ave. COA
$17,000 Ave. COA
$21,000 Ave. COA
$30,000 Financial
Aid
$11,000 Financial
Aid
$7,000 Financial
Aid
$10,000
$10,000
$10,000
1
Two year Community College
Four year public university
EFC
four year non-profit university
Financial Aid Eligibility
Financial Aid Eligibility Increases with Cost of Attendance (COA)
19
HOW IS THE EFC CALCULATED?
Federal Methodology of Need Analysis
1.
Determines student’s dependency status
2.
Total Income (taxed and some untaxed
incomes) for 2012
3.
Household size
4.
Number of family members attending college
(excludes parents)
5.
Value of assets (Excludes home, retirement
accounts, insurance policies)
6.
Age of older parent
20
IRS TO FAFSA DATA TRANSFER
You have the option to authorize the IRS to
transfer your income tax information directly to
your FAFSA, beginning Feb. 3, 2013.
 Must electronically file your tax return at least
two weeks before filing your FAFSA or
 Must mail in your hard-copy tax return at least
six weeks before filing your FAFSA.
 If you file your FAFSA before completing your
tax return, you must return to the FAFSA and
re-authorize the data transfer.

21
WHO IS AN INDEPENDENT STUDENT?
Student is 24 years old by Dec 31, 2013
 Married at time of FAFSA filing
 Has dependent child(ren) they are supporting
 Is serving on active duty or a veteran of the U.S.
Armed forces
 Is enrolled in graduate school
 Both parents deceased
 Documented homeless or emancipated minor

22
SO WHO’S THE PARENT?
Excludes grandparent (unless legally adopted)
 If parents divorced, the parent the student lives
with the most over the last 12 months
 If equal, then the parent providing the most
support over the past 12 months
 Always includes step-parent if parent has
remarried

23
SO WHAT HAPPENS NEXT?
After your school(s) receive your FAFSA and you
are admitted, you will receive an offer of financial
aid from each school, outlining what aid programs
and dollar amounts they are making available to
you. You need to:
• Decide on the school you will attend, accept
their award and complete the “paperwork” to
process your aid. (May include a tuition deposit)
• Notify the other schools of your decision.
24
WHEN CAN WE EXPECT THIS
TO HAPPEN?
Assuming you’ve been admitted and filed the
FAFSA, generally aid offers are sent beginning:
•Mid to late February from private colleges &
universities.
•March & April from public four year colleges &
universities.
•April, May and June from two year community
colleges.
25
THINGS TO REMEMBER
Must re-apply (FAFSA) each year
 Only looks at previous year’s income
 Doesn’t take into consideration unusual
circumstances or changes. Contact the school if you
have unusual circumstances
 Better to file early with estimated information than
be accurate but late
 Don’t assume you can’t afford a school – get their
financial aid award offer before deciding
 Renewal requires making Satisfactory Academic
Progress
26

FAFSA4CASTER
Get an estimate of what the FAFSA might
generate as your Expected Family Contribution
(EFC) by completing the FAFSA4caster at:
 www.fafsa.ed.gov and click on the link under
“Thinking About College?”
 A shortened version of the FAFSA that can be
used anytime prior to actually applying for aid.

27
NET PRICE CALCULATOR
All schools offering federal student aid MUST
have a “net price calculator” (NPC) on their
website.
 The school’s NPC provides:
1.
Their cost of attendance
2.
Dollar amount of scholarship and grants
student could expect to receive
3.
Net price – the difference between the two.
4.
Some schools will also prove an estimate of the
student’s total financial aid award

28
FINALLY . . .
Keep all your school options open until your
financial aid award confirms its affordability.
 Don’t pay anyone or any website to do your
scholarship search or help with the FAFSA.
 Find Financial Aid deadlines for WA schools at
www.wfaa.org under “COUNSELORS”.
 Find answers to frequently asked financial aid
questions at www.wfaa.org under “STUDENTS”
or “COUNSELORS”.
 Check out the video clips on financial aid at the
www.wfaa.org website.

29
Find scholarship matches on the Washington
only website: www.thewashboard.org
30
QUESTIONS?
If the FAQ’s on the WFAA.org website don’t answer
all your questions, talk to the financial aid
administrator at your local college or university,
or at the school the student is interested in
attending.
31