Transcript Slide 1

Financial Aid For College
Rossford Guidance Dept.
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Financing Your Education
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Who is eligible?
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What is financial aid?
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When do I apply?
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Where does it come from?
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Why apply?
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How do I apply?
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FAFSA on the Web
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Web site: www.fafsa.ed.gov
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2009-10 FAFSA available on or after January 1,
2009
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FAFSA On the Web Worksheet & built-in edits
to help prevent costly errors
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Paper FAFSA only available as a download
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PIN Registration
 Web
site:
www.pin.ed.gov
 Can
get PIN before January 1, 2009
 Both
pin
student and one parent will need a
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CAUTION!
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Avoid being charged a fee to file the Free Application for Federal
Student Aid
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Processes of completing & processing FAFSA are FREE
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If filing via FAFSA on the Web, be sure to go directly to
www.fafsa.ed.gov
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Contact financial aid office for help completing FAFSA
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Do not go to www.fafsa.com
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New www.FAFSA4caster.ed.gov
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Estimate of cost, comparison between public/private, uploads to your FAFSA form
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Who are the Parents?
Don’t mix and match families!
Choose the primary custodian family.
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College Goal Sunday
2nd Sunday in February annually
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Owens Community College – Toledo and
Findlay
BGSU Firelands
Terra Community College
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Principles of Need Analysis
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To extent they are able, parents have primary
responsibility to pay for dependent child’s education
Students also have responsibility to contribute to
educational costs
Families should be evaluated in their present financial
condition
Family’s estimated ability to pay for educational costs
must be evaluated in equitable & consistent manner,
recognizing that special circumstances may affect
family’s ability to pay
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What is Financial Aid?
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Grants
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Loans
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Employment opportunities
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Scholarships
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Types of Need-Based Aid
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Gift aid: Grants &
scholarships (needbased or meritbased)
Self-help aid: Loans
& employment
(need- or non-needbased)
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Definition of Need
Cost of attendance (COA)
– Expected family contribution (EFC)
=
Financial Aid need
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Cost of Attendance
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Tuition & fees
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Room & board
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Books, supplies, transportation, & miscellaneous
personal expenses, including documented costs for
personal computer
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Loan fees
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Study abroad costs
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Dependent care expenses
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Disability-related expenses
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Cooperative education program costs
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EFC – Expected Family
Contribution
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Federally determined formula
The EFC does not measure willingness
to pay!
The EFC is a measure of your family’s
financial strength
The EFC is not the amount of money that
your family must provide. Rather, you should
think of the EFC as an index that colleges use
to determine how much financial aid you
would receive if you were to attend their
school FAFSA4Caster
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Need Varies Based on Cost
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X
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Y
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Cost of
Attendance
(Variable)
Z
EFC
EFC
Expected Family
Contribution
Need
(Variable)
(Constant)
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Grants
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Federal Pell Grant
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Academic Competitiveness Grant
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National Science and Math Access to Retain Talent
Grant
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TEACH Grants
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Federal Supplemental Educational Opportunity Grant
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Ohio College Opportunity Grant
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Ohio Choice Grant (subject to cancellation annually)
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Federal Pell Grant
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Awarded to eligible undergraduates
pursuing first bachelor’s or professional
degree & certain students enrolled in
post-baccalaureate teacher certification
or licensing programs
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Portable
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Maximum award for 2008-09 = $4,800?
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Still being determined by Congress
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Academic Competitiveness
Grant (ACG)
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First and second year undergraduate students
Federal Pell Grant recipient
U.S. citizen
Full time
Completed rigorous secondary school
program
Award amounts:
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$750 first year students
$1300 second year students
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National Science and Mathematics
Access to Retain Talent (SMART)
Grant
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Third and fourth year undergraduate students
Federal Pell Grant recipient
U.S. citizen
Full time
Eligible major
3.0 GPA
Award amount:
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$4,000 for third and fourth year of study
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Federal Supplemental
Educational Opportunity
Grant (FSEOG)
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Eligible students
Undergraduates pursuing first baccalaureate
or professional degree
 Awarded first to students with exceptional
financial need (Federal Pell Grant recipients)
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Each school own priority deadline
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Annual award amounts
$100 minimum
 $4,000 maximum
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Ohio College Opportunity
Grant
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Ohio resident
Based max EFC of $2,190 with a total
family income of $75,000.
Application deadline October 1, 2009
Students qualify for OCOG by
completing FAFSA
Max. award Public - $2,496, Private $4,992 and Proprietary - $3,996
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Ohio Choice Grant
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Ohio resident
Attend private Ohio college
Eligibility not based on need or
academic merit
Contact Financial Aid Office
Currently around $700, but this may be
eliminated by State legislature
Not approved for 2009-10 so far
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Loans
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Student is the borrower
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Federal Perkins Loan
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Federal Stafford Loan
Parent is the borrower
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Federal PLUS Loan
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Federal Perkins Loan
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Eligible students
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Loan amount varies (max. $5500/yr)
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Undergraduate and graduate students
Priority to students who show “exceptional
need,” as defined by school
Depends on need, other aid, available funds
Each school has their own priority deadline
5% fixed interest rate
9 month grace period after graduation
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Stafford Loans
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Available under:
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Federal Family Education Loan (FFEL)
Program with funds provided by lenders
(e.g., banks or credit unions)
Federal Direct Student Loan (Direct Loan)
Program with funds provided directly by
federal government via participating schools
Fixed 6.8% rate (Subsidized may be less)
6 month grace period after graduation
Between 10 to 25 years to repay
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Stafford Loans
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Subsidized: For students with financial
need
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EFC < COA
Interest free when in school and grace period
Unsubsidized: Eligible regardless of need
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EFC > COA
Student pays interest while in school or allows
it to accrue
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Stafford Loans
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Base annual loan limits (combined subsidized
& unsubsidized):
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$5,500 for 1st year undergraduates
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$6,500 for 2nd year undergraduates
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$7,500 for each remaining undergraduate year
Loan Fees
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Perkins – No
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Stafford – Yes, up to 3%, taken at disbursement
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PLUS
Parent loan program for parents of
dependent undergraduate students
 Repayment begins 60 days after loan is
fully disbursed for parent borrowers
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Fixed interest rate
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FFEL or Direct: 8.5%
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Alternative Loans
Signature Student Loans, Private Student Loans
 Credit check required
 Interest rates vary
 Repayment different
 “Branded”
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Universities may have agreements with loan
providers to offer private loans to students
These may look like university-approved loans or
even like federal loans
Read the fine print – rates may be variable and
there may be no limit to how much you borrow!
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Federal Work-Study (FWS)
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Employment may be on or off campus
Receive paycheck, does not reduce bill owed to
college
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Not counted as income on FAFSA following year
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Each school own priority deadline
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Scholarships
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Federal and State
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Personal Affiliations
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Ohio Academic Scholarship
Robert C. Byrd
Churches, Fraternal Organizations
Scholarship Searches
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Public Library
www.fastweb.com
Guidance Counselors
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College Specific Scholarships
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Websites
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Almost every college has a webpage
dedicated to scholarships
Go to Financial Aid page
Only some will apply to you
Scholarships go to students who apply!
Deadlines
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Avoid Being Scammed
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Do not pay to complete FAFSA
Spend the time, not money
If it sounds too good to be true, it probably
is!
Never invest more than a postage stamp
No guarantees
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Keep in Contact
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The college Financial Aid Office
may be your greatest resource!
Complete school financial aid
application if required
Respond to any requests for
information from a financial aid
office
Return award letter if required
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Cost Comparison
Don’t ASSUME you can’t afford it!
Compare Financial Aid Packages.
Apples are NOT oranges!!
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Thank you for your time!
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Questions
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Guidance website
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