Transcript Slide 1

Richard Stockton College
of New Jersey
Facts, Figures
and
Fundamentals of Financial Aid
2009-2010
What is Financial Aid?

Scholarships

Grants

Loans

Employment opportunities
Types of Aid

Gift aid: Grants and
scholarships (needbased or merit-based)

Self-help aid: Loans
and employment
(need-based or nonneed-based)
Goals of Financial Aid

Primary goal is to assist students in paying
for college and is achieved by:

Evaluating family’s ability to pay educational
costs

Distributing limited resources in an equitable
manner

Providing balance of gift aid and self-help aid
Definition of Need
Cost of attendance (COA)
Click here to access Stockton’s Cost of Attendance
– Expected family contribution (EFC)
= Need
Federal Methodology
Federal Methodology
is the formula created
by Congress to
determine the
Expected Family
Contribution (EFC).
Principles of Need Analysis

To extent they are able, parents have primary responsibility to
pay for dependent student’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 educational costs must be
evaluated in equitable and consistent manner, recognizing that
special circumstances may affect family’s ability to pay
Independent Student Definition












At least 24 years old by December 31 of award year covered by the FAFSA;
Graduate or professional student;
Married;
Has children or dependents (other than a spouse) for whom the student provides more than half
support;
Veteran of U.S. Armed Forces or currently serving on active duty (for other then training purposes) in the
Armed Forces; or
At any time since you turned age 13, were both your parents deceased, were you in foster care, or were
you a dependent/ward of the court?
Are you or were you an emancipated minor as determined by a court in your state of legal residence?
Are you or were you in a legal guardianship as determined by a court in your state of legal residence?
At any time on or after July 1, 2008 did your high school or school district homeless liaison determine
that you were an unaccompanied youth who was homeless?
At any time on or after July 1, 2008 did the director of an emergency shelter or transitional housing
program funded by the U.S. Department of Housing and Urban Development determine that you were an
unaccompanied youth who was homeless?
At any time on or after July 1, 2008, did the director of a runaway or homeless youth basic center or
transitional living program determine that you were an unaccompanied youth who was homeless or were
self-supporting and at risk of being homeless?
Determined to be “independent” by financial aid administrator based on documented unusual
circumstances
Federal Pell Grants

Awarded to eligible undergraduates pursuing
first baccalaureate degree

Portable

Actual award amount based on COA, EFC,
and enrollment status
Federal Supplemental Educational
Opportunity Grants (FSEOG)

Eligible students:




Undergraduates pursuing first baccalaureate
degree
Awarded first to students with “exceptional
financial need” (i.e., students with lowest EFCs at
that school)
Priority to Federal Pell Grant recipients
Annual award amounts:


$400 minimum
$4,000 maximum
Federal Work-Study (FWS)
Earnings

Eligible students: Undergraduate and graduate students

Employment may be on or off campus
Eligible employers:


Schools
Federal, state, or local public agencies

Certain private nonprofit and for-profit organizations


Schools must use portion of FWS funds for community
service employment activities
Federal Perkins Loans



Eligible students:
 Undergraduate and graduate students
 Priority to students who show
“exceptional need,” as defined by school
Loan amount varies
Maximum annual loan amounts:
 $5,500—undergraduate students
 $8,000—graduate students
Federal Perkins Loans

Interest rate: 5%

9-month grace period

Repayment period may be
up to 10 years

Deferment and cancellation
provisions available
Stafford Loans


Student loans available under:
 Federal Direct Education Loan Program
(funds are lent to student and parent
borrowers U.S. Department of Education.)
School determines loan eligibility and delivers
loan proceeds to students
Stafford Loans
Subsidized: Must demonstrate “need”
 Unsubsidized: Not based on “need”
 Base annual loan limits (combined
subsidized
and unsubsidized):


$3,500 for freshman (fewer than 32 credits)

$4,500 for sophomore (32-63 credits)

$5,500 for each remaining undergraduate year

$8,500 for each year of graduate/professional
study
Stafford Loans

Additional unsubsidized loan eligibility for
independent undergraduate, graduate, and
dependent students whose parents are
ineligible to borrow PLUS:



$4,000 per year for 1st and 2nd year
undergraduates
$5,000 per year for remaining years of
undergraduate study
$12,000 per year for graduate study
Stafford Loans

Repayment begins after 6-month grace
period

Maximum repayment period between 10
and 30 years depending on repayment
plan chosen

Deferment and cancellation provisions
available
PLUS

Parent loan program for parents of dependent
undergraduate students as well as graduate
students

Annual loan limit: COA minus other aid
PLUS

Loan fees based on principal amount of
each loan

Repayment begins 60 days after loan is
fully disbursed
General Student Eligibility
Criteria

Must be enrolled or accepted for enrollment in eligible
program of study

Must be pursuing degree, certificate, or other recognized
credential

Must be U.S. citizen or eligible noncitizen

Must be registered with Selective Service
(if male and required)

May not have eligibility suspended or terminated due to
drug-related conviction while receiving federal student aid.
General Student Eligibility Criteria

Must have valid Social Security Number (SSN)

May not be in default on a federal student loan

Must not owe an overpayment of federal grant or loan funds

Must be making satisfactory academic progress (as defined
by school)
Application Process





Request your pin number at www.pin.ed.gov
Apply after January 1
File online www.fafsa.ed.gov
Federal School Code: 009345 –Richard
Stockton College
Priority deadline March 1
FAFSA on the Web
Web site: www.fafsa.ed.gov
 2009-10 FAFSA on the Web available on or after
January 1
 Pre-Application Worksheet:
 Available prior to January 1st
 Questions follow order of FAFSA on the Web

FAFSA on the Web
 Good reasons to file electronically:
 Built-in edits to help prevent costly errors
 Skip-logic allows student and/or parent to skip
unnecessary questions
 More timely submission of original application and
any necessary corrections
 More detailed instructions and “help” for common
questions
 Ability to check application status on-line
 Simplified renewal application process
PIN Registration

Web site:
www.pin.ed.gov

Can get PIN before
January 1

May be used by students and parents
throughout aid process, including subsequent
school years
Frequent FAFSA Errors

Parent and student Social Security Numbers
Divorced/remarried parental information

Income earned by parents/stepparents

Untaxed income

U.S. income taxes paid

Household size

Number of household members in college

Real estate and investment net worth

FAFSA Processing Results

Central Processing System (CPS) notifies
student of FAFSA processing results by:

Paper Student Aid Report (SAR) if paper
FAFSA was filed and student’s e-mail
address was not provided

SAR Information Acknowledgement if filed
electronically via FAFSA on the Web and
student’s e-mail address was not provided
FAFSA Processing Results

CPS notifies student of FAFSA processing
results by:


E-mail notification containing a direct link
to student’s on-line SAR if student’s e-mail
was provided on paper or electronic FAFSA
Student with PIN can view SAR on-line at
www.fafsa.ed.gov
Making Corrections

If necessary, corrections to FAFSA data may be
made by:

Using FAFSA on the Web (www.fafsa.ed.gov)
if student has a PIN;

Submitting documentation to school’s
financial aid office
Other Sources of Funds

State grants, scholarships, loans, and work
programs

School need-based and non-need-based programs
(e.g., academic based scholarships and grants)

Private business scholarships (e.g., Wal-Mart, Gates
Foundation, etc.)

Civic organization scholarships (e.g., PTA, Elks
Club, etc.)
Avoid Being Scammed
To check legitimacy of scholarship search
services or individuals, for information about
financial aid scams, and tips to avoid being
scammed visit these Web sites:
 U.S. Department of Education:
www.studentaid.ed.gov

Federal Trade Commission:
www.ftc.gov/scholarshipscams

Better Business Bureau: www.bbb.com
Private Scholarship Search
Free Internet scholarship search engines:
 FinAid on the Web: www.finaid.org
 College Board: www.collegeboard.com
 FastWeb: www.fastweb.monster.com
 GoCollege: The Collegiate Websource:
www.gocollege.com
Private Scholarship Search

Local library
resources

Local businesses and
civic organizations

Parents’ employers
Good Luck!