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Financial Aid 101 What You Need To Know About Financial Aid SYLLABUS What is Financial Aid? Pop Quiz FINANCIAL AID 101 Grants Loans Student Employment presentation Scholarships Throughout this there will beopportunities to Where do I start? How is Financial test your knowledge about Aid awarded? Estimated Family Contribution financial aid and win some (EFC) prizes. Good luck! Cost of Attendance (COA) Financial Need Tips and Tools All information in this presentation is general and although we would strongly encourage you to consider UMUC-Europe, the information should be applicable at any school you are considering. WHAT IS FINANCIAL AID? Grants, Loans, Student Employment, & Scholarships GRANTS Grants are need-based financial awards that do not have to be repaid. Award amounts vary depending on the student’s enrollment status and need level. Federal Pell Grant Maximum award $5550 (for 2011-2012) Award amounts may be reduced for 2012-2013 Federal Supplemental Opportunity Grant Educational Grant (FSEOG) Institutional Other funds State and Institutional Grants LOANS Federal Stafford Loans Federal Stafford Loans Subsidized Loans Need-Based Not available for Graduate Students starting school year 2012-2013 Unsubsidized Loans Fixed 6.8% Interest Rate Both are due to be paid back 6 months after Graduation, stop attending, drop to less than half time attendance LOANS (CONT.) Federal Stafford Loans Yearly Loan Limits Dependent Independent 1st Year Undergraduate $3,500 sub $2,000 unsub $3,500 sub $6,000 unsub 2nd Year Undergraduate $4,500 sub $2,000 unsub $4,500 sub $6,000 unsub 3rd Year and Beyond Undergraduates $5,500 sub $2,000 unsub $5,500 sub $7,000 unsub n/a $20,500 unsub Graduate Students Lifetime Limits Dependent Undergraduates $31,000 ($23,000 sub) Independent Undergraduates $57,500 ($23,000 sub) Graduate Students $138,500 ($65,500 sub) REPAYMENT OPTIONS 1. 2. 3. 4. Federal Stafford Loans Standard Plan - fixed payment, fixed time not to exceed 10 years. Graduated Plan – payments gradually increase, fixed time not to exceed 10 years. Extended Plan – must owe over $30, 000, not to exceed 25 years Income Based Plan – terms vary. LOANS (CONT.) Other Types of Student Loans Federal Perkins Loans Fixed 5% Interest Rate Pay back 9 months after Graduation Federal Parent PLUS and Graduate PLUS Loans Fixed 7.9% Interest Rate Credit-Based Parents and Graduate Students can borrow up to cost of attendance minus any other financial aid award amounts. Pay back 60 days after disbursement (while still in school) Apply through www.studentloans.gov STUDENT EMPLOYMENT Studies have shown that students who work part time while attending courses actually perform better academically. Types of jobs available: Work -Study (on and off campus) Non-Work-Study (on campus) Off-campus regular employment SCHOLARSHIPS Private money awarded on either merit or need. Places to look: High School Counselor Booster Club, PTA, etc. Surrounding Community Local Businesses, Spouses Clubs, Community Clubs, etc. The College/University you plan on attending On the internet SCHOLARSHIPS (CONT.) This graph depicts the expanding competition as you apply for scholarships onName one type of federal different levels. Pop Quiz National/Worldwide scholarship competitions would be outside of these Stafford circles. student loan. Subsidized and Unsubsidized, Perkins, and Graduate and Parent PLUS Loans. Your High School Your Local Community Your College/University WHERE DO I START? Filling out the FAFSA FAFSA FREE APPLICATION FOR FEDERAL STUDENT AID www.fafsa.gov FAFSA has built-in-help to guide you through the application process. GETTING STARTED… 1. Apply for your PIN before you begin the application process. 2. Use the Federal Student Aid’s secure Web site at www.pin.ed.gov 3. Use your PIN to electronically sign your FAFSA on the web 4. If you’re a dependent student, both you AND parent will need to apply for a PIN DOCUMENTS NEEDED: W-2’s and other records of money earned Federal Tax Return(s) Current bank statements Current business and investment mortgage information, business and farm records, stock, bond and other investment records Untaxed Income Records BAS Amounts You will need the above for yourself and your spouse or parents (if applicable). VERIFICATION You may be selected for the process of Verification. This means your school will be required to verify the information you put on your FAFSA by collecting additional documentation from you. NEW FOR 2012-2013: Institutions will only be able to accept Tax Return Transcripts directly from the IRS, in the event a student is selected for verification. FAFSA ON THE WEB WORKSHEET Complete this worksheet before filing your FAFSA to assist you when filling out your FAFSA! Do not submit this worksheet!!! SECTION 1 – STUDENT INFORMATION To be completed with applicant information only General information such as name, SSN, state of legal residence Marital status (of student) Selective Service Registration for under 25’s (male) Drug Convictions High School Information SECTION 2 – STUDENT DEPENDENCY STATUS A student is considered independent ONLY if they can answer YES to ONE of 13 questions (samples below): Born before 1 January 1989 (2012-2013) Married Have children or dependents other than children that you provide more than 50% support. Active duty Veteran of the U.S. Armed Forces SECTION 3 – PARENTAL INFORMATION If student answered NO to all questions in section 2, then parents must complete section 3 This section must still be completed even if the applicant does not live with their parents Tax, income, and other financial information Dislocated Assets worker status SECTION 4 – STUDENT FINANCES Information about the student (and spouse): Tax, income, and other financial information Dislocated Assets worker status IRS DATA RETRIEVAL On the IRS Web site, enter the requested information. Once the IRS has validated your identification, your IRS tax information will display. You can either transfer your information from the IRS, or choose to return to FAFSA on the Web from the IRS Web site. If you transfer your IRS tax information, questions that are populated with tax information will be marked with “Transferred from the IRS” Successful IRS Retrieval on your FAFSA could help to avoid lengthy processing times if you are selected for the process of verification. SCHOOL CODES Each school has a Federal School Code You will have a chance online to search for school codes Write the name of the school if you do not know the school code Up to 10 school codes can be listed WHAT HAPPENS AFTER YOU APPLY Results sent to all schools listed on your FAFSA. Applicant will receive results via e-mail within 3-5 days. Student Aid Report (SAR):stand for? What does FAFSA Pop Quiz View and print the SAR SAR will have Estimated Family Contribution(EFC) The Free Application for Federal Student Aid and Data Release Number (DRN) HOW IS FINANCIAL AID AWARDED? Determining your award package COA COST OF ATTENDANCE The estimated cost, including direct and indirect costs, of a particular institution. Direct: Tuition, fees, books, and room and board (if living on campus) Indirect: Travel, miscellaneous, and room and board (if not living on campus) This value varies from college to college. EFC ESTIMATED FAMILY CONTRIBUTION Federal Student Aid uses the data on your FAFSA to calculate an Expected Family Contribution (EFC) The EFC is the number that’s used to determine your eligibility for federal financial aid. EFC ESTIMATED FAMILY CONTRIBUTION Calculation takes into account the following: Adjusted Gross Income (AGI) Untaxed Income (Do not include BAH) Assets and Benefits Number in Household Number in Household Attending College NEED Cost of Attendance – Expected Family Contribution = Financial Need NEED Examples of Need: Pop Quiz Somewhere Special University Fill in the blank: NEVER pay for COA= $28,406 COA= $55,850 completion!!!!! - Minus EFC= 2000 Need= $26,406 FAFSA - Minus EFC= 2000 Need= $53,850 TIPS & TOOLS FAFSA4CASTER www.fafsa4caster.ed.gov •Providing you with an early estimate of your eligibility for federal student aid. •Giving you an experience similar to FAFSA on the Web • Allowing you to transfer all of your FAFSA4caster data to FAFSA on the Web once you are ready to apply for aid. •Increasing your knowledge of the financial aid process, and providing information about other sources of aid. FA, TA, VA…. If you will be receiving tuition assistance (including military TA) or veteran’s educational benefits you may still be eligible for financial aid funds! Make sure to apply for all of your funding options! THINGS TO REMEMBER APPLY, APPLY, APPLY! Make sure to meet any deadlines or priority dates your school may have by applying early! Apply for Scholarships! True or False: Make sure to complete your financial aid file! Your school may have a Maintain log-in information. deadline for FAFSA or file Keep in close contact with your school Financial Aid Office. completion. Ask questions! Pop Quiz True. QUESTIONS NEED MORE HELP ? For further assistance with the FAFSA application call 1-800-4-FED-AID or 1-800-433-3243 toll free or access www.fafsa.ed.gov You may also access the Departments federal student aid Web site at www.studentaid.ed.gov For scholarship searches check out www.fastweb.org and/or www.finaid.org CONGRATULATIONS YOU JUST COMPLETED FINANCIAL AID 101