Transcript INTRODUCTION TO FINANCIAL AID

Monticello High School
January 2015
PAYING FOR COLLEGE
Welcome!
Andrew Lashua
Undergraduate Financial Aid Administrator
Student Financial Services
University of Virginia
TONIGHT’S AGENDA
 What is Financial Aid?
 The Application Process
 Helpful Resources
 Questions
WHAT IS FINANCIAL AID?
FINANCIAL AID
Funds made available to
students & families to help
pay for postsecondary
educational expenses.
These include:
Scholarships
Loans
Grants
• Scholarships/Grants – Money
that does not need to be repaid
• Work Study – The student must
work to earn funds
• Loans – The student or parent
must pay back what was
borrowed, and possibly
additional interest
Work Study
SCHOLARSHIPS
College/University
Scholarships
Some schools use the application
for admission to determine
scholarship eligibility.
Some schools have a
separate application.
Some schools may require you to
have a completed application for
financial aid on file.
Private and Community
Scholarships
Some may require you to file an
application for financial aid along
with an additional application.
You may find them in
unexpected places.
They may be based on need,
merit, talent, athletic ability,
artistic skills, or other criteria.
GRANTS
 Need-based
money
awarded by
colleges and
universities.
federal
state
institutional
LOANS
federal
student loans
Subsidized or
unsubsidized
Annual maximum for
first year student is
$5,500
federal
parent loans
private
student loans
Parent borrows on
behalf of student
The student is the
borrower
A credit check is
usually required
A credit check is
usually required
Money that has to be repaid – repayment may
be deferred until after the student graduates
WORK STUDY
get
hired
get to
work
get
paid
NEED-BASED AWARD THAT PROVIDES AN
OPPORTUNIT Y
TO WORK AND EARN MONEY TO HELP PAY FOR
EDUCATIONAL EXPENSES.
THE APPLICATION
PROCESS
HOW DO STUDENTS GET
FINANCIAL AID?
1
•File the
FAFSA,
available
now
2
•If required,
file the CSS
PROFILE,
available
now
3
•If required,
file an
institutional
financial aid
application
4
•If required,
submit tax
documents
FAFSA ON THE WEB
WWW.FAFSA.GOV
FAFSA STUDENT SECTION
StudentAid.gov
CSS PROFILE
WWW.COLLEGEBOARD.ORG
SUBMITTING YOUR FAFSA
 The FAFSA must be submitted each academic
year a student would like to be considered for
financial aid.
 The FAFSA is available on January 1 of each
year.
 FAFSA on the web (faster processing, error checks,
skip logic) at www.fafsa.ed.gov
 If the student is dependent, then both the
student and parent must sign the FAFSA.
 Federal PIN to sign electronically;
register at www.pin.ed.gov
WHO IS ELIGIBLE TO RECEIVE
FINANCIAL AID?
• Must be enrolled in (or accepted for enrollment in) an
approved program of study
• Must be pursuing a degree or certificate
• Must be a U.S. citizen or eligible non -citizen
• Must have a valid Social Security number
• Must be registered with Selective Ser vice (if male and
required)
• Must be making Satisfactor y Academic Progress (as defined by
the school)
WHAT INFORMATION IS ASKED ON THE
FAFSA?
General student information
Student dependency questions
Student financial data
General parent information
Household information
Parent financial data
EXAMPLES OF QUESTIONS IN THE
FAFSA
Number in the household
Number in college
Earnings from work
Adjusted Gross Income
Income tax paid
Value of cash, savings and checking
Value of other assets and investments
Untaxed income such as child support
received for all children
WHAT HAPPENS TO THE FAFSA
INFORMATION?
1) FAFSA information is
submitted to the Department of
Education for processing.
2) The Department of Education
calculates an Expected Family
Contribution (EFC).
3) Each school selected by the
student will receive the
information submitted as well
as the calculated EFC.
VERIFICATION
Your file may be selected by the US
Department of Education for federal
verification
 Financial Aid offices are required to verify
income information using either:

IRS Tax Return Transcript
www.irs.gov/Individuals/Get-Transcript

The IRS Data Retrieval Tool (DRT), which is
integrated into the online FAFSA.
ARE THERE OTHER APPLICATION
REQUIREMENTS?
• Some application requirements and
deadlines will vary from school to school.
• KNOW YOUR SCHOOL’S
REQUIREMENTS AND
DEADLINES!
HOW DO COLLEGES GIVE
FINANCIAL AID?
DETERMINING FINANCIAL NEED
The FAFSA and other documents are used to
determine the Expected Family Contribution
(EFC).
Schools use the EFC to determine eligibility for
need-based financial aid and to prepare an
award package
Cost of Attendance – EFC = Financial Need
COST OF ATTENDANCE
• Direct Costs
• Tuition and Fees
• Room and Board
• Indirect Costs
•
•
•
•
•
Books and Supplies
Transportation Costs
Personal Expenses
Loan Fees
Computer Expense
Direct + Indirect Costs = Cost of Attendance
FINANCIAL AID PACKAGES
Because Cost of Attendance varies by
institution, so does financial need.
Financial aid offices attempt to meet a
student’s financial need with various types
of financial aid available to them.
SAMPLE FINANCIAL AID PACKAGE
Cost of Attendance
EFC
Financial Need
$26,000
- $3,200
$22,800
Federal Pell Grant
Perkins Loan
University Grant
Federal Subsidized Loan
Federal Work Study
TOTAL AID PACKAGE
$2,580
$3,000
$11,720
$3,500
$2,000
$22,800
TYPES OF FINANCIAL AID
TYPES OF FINANCIAL AID
 Need Based
 Aid given to a student based on the amount of demonstrated
need, as determined by information within the application.
 Examples include the Pell Grant, Subsidized Loans and
Federal Work Study.
 Non-need Based
 Aid given to a student not based on need.
 Examples include credit-based loans or regional
scholarships.
 Merit Based
 Aid given to a student based on scholastic or talent
achievement.
 Examples include awards based on GPA, extracurricular
activities, unique talents, and/or leadership potential.
FEDERAL FINANCIAL AID
 Federal Grants (need-based)
 Pell Grant
 SEOG (Supplemental Educational Opportunity Grant)
 Federal Work Study (need-based)
 Part-time jobs for students through eligible employers,
such as their school, or even federal, state or local public
agencies
 Even though this is a federal program, schools set
eligibility criteria
 Federal Direct Loans
 Subsidized Loans are need-based
 Unsubsidized Loans are non-need-based
SUBSIDIZED VS. UNSUBSIDIZED
 Subsidized Loans
 Available to undergraduate students with financial need
 Loan is in the student’s name, guaranteed by the Federal
government through the Department of Education
 The government pays the interest while the student is in school
 Fixed interest rate for 2014-2015 is 4.66%
 Unsubsidized Loans
 Non-need based loan in the student’s name, guaranteed by the
Federal government through the DOE
 Federal Government does not pay the interest while the student
is in school
 Fixed interest rate for 2014-2015 is 4.66%
AWARD AMOUNTS FOR DIRECT
LOANS
Year
Dependent Undergraduate
First Year
$5,500 – No more than $3,500 of this
amount may be in subsidized loans.
Second Year
$6,500 – No more than $4,500 of this
amount may be in subsidized loans.
Third Year and Beyond
$7,500 – No more than $5,500 of this
amount may be in subsidized loans.
Maximum Total Debt
$31,000 – No more than $23,000 of this
amount may be in subsidized loans.
OTHER LOANS
 Perkins Loans (need based)
 Federal government pays the interest while the student is in
school
 Fixed interest rate of 5.0%
 Direct Parent Loan for Undergraduate Students (PLUS)
 Credit-based educational loan in the parent’s name guaranteed
by the Federal government
 Fixed interest rate of 7.21%
 The government does not subsidize this loan
 Maximum amount a student can borrow is the cost of
attendance minus all other financial aid
OTHER LOANS
Alternative/Private Loans for Students
available through banks or other
financial institutions
Loan in the student’s name
Credit check required, student may need a
credit-worthy cosigner
May borrow up to the Cost of Attendance
minus other financial aid
TYPES OF VA STATE FINANCIAL AID
 College Scholarship Assistance Program
 Public & private colleges, need-based
 Virginia Commonwealth Award
 Public colleges, need-based
 Virginia Guaranteed Assistance Program
 Public colleges, need-based
 Virginia Tuition Assistance Grant Program
 Private colleges, non-need-based, separate application
required. Estimated amount for 2014-2015: $3,100.
OTHER TYPES OF FINANCIAL AID
 Some colleges and universities offer their own
institutional scholarships, grants, and loans.
 Check out their individual school websites for deadlines
and required applications.
 Outside Scholarships
 Know what kinds of scholarships students can apply for
locally. Encourage them to pay close attention to
deadlines, and to contact donors with any questions.
HELPFUL RESOURCES
HELPFUL TIPS FOR STUDENTS
 Obtain and review admissions and financial aid
information from each school.
 Submit all applications and requested
documentation by the deadlines.
 Investigate other sources of aid every year.
 Talk to financial aid offices if you or the student
has questions or special circumstances.
NET PRICE CALCULATOR
Federally mandated
• All schools required to have a net price calculator
Must represent factual data
• Information is for current academic year
• If you used a net price calculator today, it would reflect 20142015 costs and awards.
Reflects cost of attendance minus
grant aid
NET PRICE CALCULATOR
WEBSITES
FAFSA: www.fafsa.gov (not .com)
Federal Student Aid:
www.studentaid.ed.gov
CSS Profile: www.collegeboard.org
Net Price Calculator: See college’s
website
OTHER RESOURCES
VPEP
Virginia Prepaid Education Program
VEST
Virginia Education Savings Trust
Other state college savings plans
PAYMENT PLANS
work study
family
contribution
paying
for
college
grants
scholarships
loans
USEFUL TIPS
• Pay close attention to
College/University financial aid
deadlines.
• Use the IRS Data Retrieval Tool!
• Take advantage of the school’s Net
Price Calculator.
• Continue to look and apply for
scholarship opportunities.
QUESTIONS?
THANK YOU!
Phone: (434-982-6000)
Email: [email protected]
www.sfs.virginia.edu
www.facebook.com/UVaSFS
www.twitter.com/UVaSFS