Transcript Slide 1

2010-11
Financial Aid Workshop
Presented by
Lake Superior State University
www.lssu.edu
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What you will learn tonight:
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What is financial aid?
Where does the money come from?
What is need-based aid?
What happens after you file?
TIPS for getting the most aid!
Time for your questions & answers
www.lssu.edu
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What is Financial Aid?
• Scholarships
• Grants
• Loans
• Employment opportunities
• Any funds for college
www.lssu.edu
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Basic Categories of Aid
Gift Aid
Grants & scholarships Can be merit, talent or need-based.
Never have to be repaid!
Self-Help Aid
Student & Parent Loans Loans must be repaid eventually!
Campus Employment
www.lssu.edu
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Sources of Scholarships & Grants
Federal
Federal Pell Grant
Federal Supplemental Opportunity Grant
Academic Competitiveness Grant
National Smart Grant & new Teach Grant/Loan
State
Michigan Competitive Scholarship
Michigan Tuition Incentive Program (TIP)
Institutional
Academic Awards
Athletic Grants & Need-based Grants
Private
High school, community, other agencies
www.lssu.edu
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National Aid Distribution – 2008-09
www.lssu.edu
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Federal Need-Based Aid
Federal Pell Grant Program
– Qualifying undergraduates receive from
$400 to $5,350 per year (2009-10 limits)
– Must file the FAFSA each year
You are automatically reviewed for Pell Grant eligibility first!
www.lssu.edu
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Federal Need-Based Aid:
Academic Competitiveness Grant (ACG)
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For Pell eligible US Citizens
Freshmen get $750; sophomores $1,300
A 3.0 GPA required beyond freshman level
ACG is for freshmen and sophomores who
completed a rigorous HS curriculum
www.lssu.edu
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Rigorous Program in High School?
• Must meet one of 5 categories of rigorous
curricula, such as State Scholars Initiative
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4 Years of English
3 Years of Math
3 Years of Science
3 Years of Social Studies
1 Year of Foreign Language
Students self-identify on the FAFSA!
www.lssu.edu
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State Need-Based Grant:
Michigan Competitive Scholarship
Both merit-based and need-based:
• Qualifying ACT Score (23 or higher)
• Financial Need - per FAFSA
• ACT by December of H.S. senior year
• File FAFSA by March 1st
• Up to $1300 per year for up to 5 years!
www.lssu.edu
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State Grants:
Tuition Incentive Program (TIP)
FREE COLLEGE TUITION PROGRAM!
To Qualify:
• Student must have had Medicaid coverage for 24
months within a 3 year period
• Be a Michigan resident
• High school grad or earn GED by age 20
• Apply with the State TIP Office by Aug 31 of year of
high school graduation
www.lssu.edu
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State Grants:
Tuition Incentive Program (TIP)
Phase I
• Pays full tuition and fees for associate
degree or up to 80 credits
LSSU offers several associate programs!
Phase II
• Pays $1,000 per year for next two years
while student completes BA/BS degree
www.lssu.edu
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Other Types of Aid:
Institutional Funds
- Scholarships & Grants
• Talent-based Aid
- Athletic award or Music award
• Native American Tuition Waiver
- Certification from Inter-Tribal Council
• Michigan Works or Voc .Rehabilitation
- Full tuition, fees & books possible
www.lssu.edu
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Federal Student Loans:
Federal Perkins Loan
• Priority to those with exceptional need
• Loan is currently interest free while in school
• Maximum loan $4,000 per year
- 5% fixed interest rate
- Student begins repayment nine months
after leaving school
• Deferment, cancellation, and forgiveness
provisions available
www.lssu.edu
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Federal Student Loans:
Federal Direct (Stafford) Loan
Subsidized – interest-free while in school
and/or
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Unsubsidized – interest charged after disbursed
Maximum annual loan limits:
$ 5,500 year for freshmen
$ 6,500 year for sophomores
$ 7,500 year for juniors/seniors
Fixed interest rate – (2009-10 interest rate 6.8%)
• Student begins repayment 6 months after leaving
school or attending less than half time
www.lssu.edu
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Federal Parent PLUS Loan:
• Maximum loan varies
(must fit within cost of attendance budget of the student)
• One parent must pass credit check
• Repayment can be deferred until 6 months after
student graduates
• If parent fails credit check, some loan eligibility
reverts to the student
• Fixed interest rate - new loan rates annually
2009-10 interest rate 7.9%
www.lssu.edu
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Alternative Loans
• Maximum loan varies
- Must fit within cost of attendance budget
• Students generally need a co-signer
• Has interest charged once disbursed
- May be deferred while in school
• Through outside lender
– No cap on interest rate or loan fees unless stated
• Must apply and pass credit check and debt/income
ratio or minimum credit score
www.lssu.edu
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Student Employment
Federal Work Study
• Employment during school
• Non-profit jobs only (on or off campus)
• Student receives a paycheck
only for hours worked
Michigan Minimum Wage
($7.40 or higher)
• Students can participate in America Reads
Program – reading to elementary age children
www.lssu.edu
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Do You Qualify for Need-Based Aid?
• File the free application for aid (FAFSA)?
• Know your Expected Family Contribution
(EFC) – find out if you are Pell-eligible
• What is your Cost of Attendance (COA)?
• Do you have Special Circumstances?
www.lssu.edu
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First Step: File the FAFSA by March 1st
• File early – estimate income if necessary
• Report information from only one household
• If estimating income, make corrections early
• List all of the schools you are considering
• Send additional information directly to the
schools if it is requested
30% of all FAFSA filers are “verified”
www.lssu.edu
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The
FAFSA is
filed once
per year
for each
student
attending
school
who
wants to
receive
federal
financial
aid
WWW.FAFSA.GOV
www.lssu.edu
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Be prepared to supply information
Parents & Students:
• E-mail address (optional)
• Social Security Numbers
• NAMES as shown on SS cards
• Dates of birth
www.lssu.edu
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Be prepared to supply information
Parents & Students:
• Adjusted Gross Income from Fed. Taxes
• Earnings from Work
• Amount of Taxes PAID
• Number in family, number in college
www.lssu.edu
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Be prepared to supply information
UNTAXED INCOME such as:
Child support received
Payments to a tax-deferred pension (W-2)
IRA deductions & payments to qualified plans
(SEP, SIMPLE, Keogh)
www.lssu.edu
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Be prepared to supply information
ASSET INFORMATION, if required:
Cash on hand – as of the day you file the FAFSA
Investments (trust funds, money market & mutual
funds, CDs, stocks, bonds, 529 college savings plans,
refund value of prepaid tuition plans, land contract
sales)
Report NET WORTH (value minus debt) of property
other than primary home, family farm or business
that has 100+ employees
www.lssu.edu
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Free Application for Federal Student
Aid (FAFSA)
No fees – it’s FREE!
Available beginning
January 1, 2010
File by MARCH 1st for
Priority Aid in
Michigan
www.fafsa.gov
www.lssu.edu
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Completing FAFSA on the Web
• More than 95% of
FAFSAs are now
filed online.
• Parents with more
than 1 college
student can transfer
data from original
application to
others.
www.fafsa.gov
www.lssu.edu
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Answer questions carefully!
• Who is the Parent?
(for Dependent Students)
• Parents’ marital status
• Date of parents’ marital status
www.lssu.edu
Sounds simple,
but what happens
if…..
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If the Parents Have Divorced or Separated
• Answer the questions about the parent the student lived with
most in the last 12 months. If the student did not live with
one parent more than with the other, answer about the
parent who provided the most financial support during the
last 12 months or during the most recent year that the
student was supported by a parent. If this parent has
remarried as of today, answer the questions about both that
parent and the person to whom the parent is married.
• If the parent is widowed or divorced and has remarried,
answer the questions about both that parent and his or her
current spouse. The marital status of the student's parents
in this case is "married/remarried."
www.lssu.edu
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Your Eligibility for Need-Based Aid
• is based upon an
analysis of your
information supplied
on the FAFSA that is
expressed by a
number called an
EFC (Expected Family
Contribution)
www.lssu.edu
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What is the EFC ?
• Your “Expected Family Contribution”
(EFC) is the amount the federal formula
calculated that your family should be able
to contribute toward your education
• This number will be subtracted from
your Cost of Attendance to determine
your eligibility for need-based aid
www.lssu.edu
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Major EFC Components
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Number of family household members
Income of parents
Income of student
Number in college (parents excluded initially)
Net assets of parents & student
There is no “magic” income number for aid - as
information changes each year, so does the
student’s EFC & eligibility for aid.
www.lssu.edu
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How your Eligibility for NeedBased Financial Aid is Determined
Cost of Attendance (COA)
– Expected Family Contribution
(EFC)
= Financial Need
www.lssu.edu
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Cost of Attendance
(Budget that varies from school to school)
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Tuition and fees
Room and board
Books and supplies
Transportation
Miscellaneous personal expenses
Loan fees, study abroad costs, dependent or elder
care expenses, expenses associated with a disability,
or expenses for cooperative education program
www.lssu.edu
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Cost of Attendance
(Example of costs for on-campus student & in-state tuition)
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Tuition and fees
Room and board
Books & supplies
Transportation
Miscellaneous
$8,000
$8,000
$1,200
$ 500
$1,300
Maximum Financial Aid (COA) $19,000
www.lssu.edu
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Basic Financial Aid Formula
Cost of Attendance (COA)
(includes $8,000 tuition)
$19,000
- Expected Family Contribution
for example
$ 3,000
= Financial Need
www.lssu.edu
$16,000
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Whether or not you have financial
need, the very least you should
qualify for is a low interest (6.8% in
2009-10) unsubsidized Federal
Student Loan
www.lssu.edu
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When Parental Information is Not Needed:
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If student was born before January 1, 1987
Enrolled in a graduate program
Is married
Has child(ren)/dependents for whom he/she
provides more than half support
• Veteran of the U.S. Armed Forces or currently
serving on Active duty in the U.S. Armed Forces
for purposes other than training
• Is an emancipated minor or in legal guardianship
(determined by the court)
www.lssu.edu
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When Parental Information is Not Needed:
• At age 13 or later:
both parents (biol. or adoptive) were deceased
was in foster care
was a ward of the court
EVEN if no longer in foster care or a ward of the court, or
if currently adopted
• From July 1, 2009 to now, are an unaccompanied, homeless
youth or at risk of being homeless
– Most high school students will not be independent but,
in extraordinary circumstances, the college aid
administrator can override dependency.
www.lssu.edu
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If parent refuses to file the FAFSA…
• Question states “I am UNABLE to provide
parental information”
• Parent must sign a statement indicating that
they will not provide ANY support of ANY
NATURE, to the student
• Aid will be limited to $5,500 in unsubsidized
loan – no eligibility for grants!
• Very limited - not good for student
www.lssu.edu
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Some Important FAFSA Questions that
Could Affect Your Aid:
• Did anyone in the household receive benefits from
any of these federal programs?
(Supplemental Security Income, Food Stamps, Free
or Reduced Price Lunch, TANF or WIC)
• If parents filed or will file a 1040, were they eligible
to file a 1040A or 1040EZ?
• If one of the parents is a dislocated worker.
www.lssu.edu
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Who is a Dislocated Worker?
• Has lost their job
• Has been laid off or received a lay-off notice
• Receiving unemployment due to lay-off and
are unlikely to return to a previous
occupation
• Are self-employed but unemployed due to
economic conditions
• Are a displaced homemaker
• NOT Seasonal Employees
www.lssu.edu
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Information not asked for on the FAFSA
– you should ask the school directly:
If your family has extra expenses • Younger sibling(s) in private school
• Parent(s) in college (Other siblings in college
are reported on the FAFSA)
• High medical expenses paid out of pocket
without reimbursement
www.lssu.edu
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Special Circumstances
• Cannot be reported on the FAFSA
• Send explanation to financial aid office at
each college
• College will review your special
circumstances & adjust FAFSA info.
– Request additional documentation
– Decisions are final and cannot be appealed to
U.S. Department of Education
www.lssu.edu
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Don’t forget to sign the FAFSA!
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Sign up for PIN
to file both
electronically!
Not required,
but speeds up
processing
• PIN signature is used throughout aid process
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Parent(s) need PIN also - uses same PIN for all
siblings
www.lssu.edu
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If You Make a Mistake or Have to File
Estimated Information:
Corrections on the Web
• Student’s PIN required to access
• Parents must have PIN to correct parent
information (student can’t do it!)
Use this to correct “estimated” info that you
reported before your taxes were complete!
www.lssu.edu
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What Happens Once the FAFSA is
Processed?
• You will be able to check your information online and make corrections/updates.
• You’ll know your Expected Family
Contribution for federal eligibility.
• Schools listed on FAFSA will receive
information from the processor electronically.
• If you have admitted to the school,
you will receive an award letter shortly.
www.lssu.edu
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Review your Award Letters
Provides Important Information
Award
Letter
Types and amounts of aid offered
Specific program information
Student responsibilities
Conditions governing awards
Opportunity to accept or decline awards
www.lssu.edu
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SAMPLE Award Letter
COA Budget
Less EFC
Financial Need
$ 19,000
- 3,000
$ 16,000
Federal Pell Grant
LSSU Grant
LSSU Scholarship
Perkins Loan
Federal Work Study
Federal Sub. Loan
Total Need-Based Aid
www.lssu.edu
Award
Letter
Award
Letter
$ 2,400
500
2,000
2,000
2,000
3,500
$ 12,400
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Figuring Out the Best Deal
Award
Letter
Develop an Award Comparison Chart
Award
Letter
 Consider direct, non-direct and total costs at
each institution
 Review types, amounts and renewability of
gift aid (free money)
 Compare types and amounts of self-help aid
(work-study and/or loans)
 Determine any amount you’ll need to pay in
addition to awards being offered
www.lssu.edu
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Financial Aid Timeline
• Apply for Aid (January-February 2010)
• Comply with Information Requests and make
corrections on the web (Feb-May)
• Receive Award Letter (February-May)
• Accept aid & apply for loans (summer)
• Financial Aid disburses when school starts
• Re-apply for aid (January-February 2011)
www.lssu.edu
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How to Maximize Your Aid:
Apply for admission before school deadlines
(At LSSU: March 1, 2010 for 2010-11 students)
1. Find out about any institutional
applications that may be required at each
school. (Private schools & UofM require the College Board
Profile to award their need-based aid)
3. File your Free Application for Federal
Student Aid (FAFSA) by March 1st
4. Apply for outside scholarships!
www.lssu.edu
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Look NOW for other SCHOLARSHIPS!
BEWARE OF SCAMS! Don’t pay for help!
Most SCHOLARSHIP SEARCHES ARE FREE!
www.finaid.org - good scholarship search site
www.thomsonpeterson.com
www.mappingyourfuture.org
www.michigan.gov/mistudentaid
- links to Michigan aid such as Competitive, MET and TIP
www.lssu.edu
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Check Out Schools and Compare
nces.ed.gov/collegenavigator
www.lssu.edu
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Want help filing on-line?
College Goal Sunday
Feb. 14, 2010
www.lssu.edu
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Any questions?
Contact the Financial Aid Office at 906-635-2678
www.lssu.edu
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