Transcript Document

Parts of this presentation come from the National Association of
Student Financial Aid Administrators (NASFAA)
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 Must be enrolled or accepted for enrollment in an eligible program of
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study, pursuing a degree, certificate or other recognized credential.
Must be a U.S. citizen or eligible non-citizen.
Must be registered with Selective Service – if male and required,
males can register on-line at: www.sss.gov.
Must not have had eligibility suspended or terminated due to a drugrelated conviction while receiving financial aid.
Must have a valid social security number .
May not be in default of a student loan or owe repayment of a federal
grant.
Must meet Satisfactory Academic Progress as defined by college
(Quantitatively-GPA Qualitatively-credit hours taken and completed.)
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TYPES:
 Grants and Scholarships
 Loans and Work – Self Help
SOURCES:
 Federal Government
 State Government
 College
 Private Donors
 Lenders
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Federal Title IV Programs
Grants/Scholarships
 Supplemental Educational Opportunity Grant
(FSEOG) (Campus-Based)
 Pell Grant
 T.E.A.C.H Grant
Self Help
 Work Study (FWS) (Campus-Based)
 Perkins Loan (Campus-Based)
 Direct Loan
 Parent Loan for Undergraduate Students (PLUS
Loans)
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Awarded to eligible undergraduates pursuing first
bachelor’s or professional degree and certain
students enrolled in post-baccalaureate teacher
certification or licensing programs. Considered an
“entitlement” program.
Actual award amount based on Cost of
Attendance, Expected Family Contribution (EFC),
and Enrollment Status. Unlike other financial aid,
other aid that the student qualifies for will not
affect the amount of the Pell Grant.
5,550 Maximum 2011-2012.
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 Prepares students to teach in high-need field.
 Must teach 4 years at Title I School.
 Reverts to loan if requirements of grant are not met.
 School determines additional eligibility requirements.
 Not all schools participate.
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 Supplemental Educational
Opportunity Grant, Work Study,
Perkins Loan
 Federal government provides a
defined amount of money to the
college, the college determines
the recipients and award
amount.
 Some colleges choose not to
participate in the campus-based
aid programs, so when
comparing award letters among
institutions this point should be
noted.
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 Students pursuing first bachelor’s or professional degree.
 Awarded first to students with exceptional “need”.
 Can be awarded to students attending less than full time.
 Annual award Maximums: $4,000.
Federal Work-Study
 Allows student to earn a set amount of dollars for their education.
 Eligible employers may be on/off campus (federal, state, or local public
agency.)
 Student usually awarded funding to work 15-20 hours per week. Studies
indicate workload does not negatively impact student’s grades.
 Schools must use a portion of funding offered for community service .
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 Priority to students who show exceptional need.
 Maximum annual loan
 $5,500 undergraduate students/$27,500 maximum
 Revolving loan fund – amount college has to lend depends
upon repayments received – very little capital contribution
from the feds each year.
 Interest rate: 5%
 Nine-month grace period.
 Repayment period may be up to 10 years.
 Deferment and cancellation provisions available.
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 William D. Ford Federal Direct Loan Program (Direct
Loan Program) with funds provided
federal government.
directly by the
 College determines loan eligibility and delivers loan
proceeds to the student.
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Federal Stafford Loans
(Subsidized and Unsubsidized)
 Subsidized Stafford: Must demonstrate need
 Cost of Attendance – EFC – other aid
 Unsubsidized Stafford: “Need” is not a consideration.
 Base annual loan limits (combined subsidized
and unsubsidized.)
 $3,500 for 1st year undergrad
 $4,500 for 2nd year undergrad
 $5,500 for each remaining undergraduate year
 Students have the option to apply for an additional unsub loan
of $2,000
 Undergraduate Aggregate Loan Limits
 $31,000 dependent student ($23,000 is subsidized)
 $57,500 independent student ($23,000 is subsidized)
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Additional Unsubsidized Stafford
Loan
 Additional unsubsidized loan eligibility for
independent undergraduates, graduate
students, and dependent students whose
parents are unable to borrow under the PLUS
Loan Program:
$4,000 per year for first and second years of
undergraduate study
$5,000 per year for remaining years of
undergraduate study
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Subsidized Loan – 6.8% fixed rate
Unsubsidized Loan – 6.8% fixed rate
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Repayment of
Federal Stafford Loans
 Six-month grace period.
 Maximum repayment period between 10 and
20 years depending on repayment plan
chosen.
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Federal PLUS Loans
 Borrowers are parents of dependent undergraduate
students or independent graduate students.
 Annual loan limit: cost of attendance minus other aid
 Interest rate for a Direct PLUS loan is 7.9% fixed rate
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Federal PLUS Loans
 Repayment begins 60 days after loan is fully
disbursed if a Parent PLUS loan- i.e. after
second semester disbursement
 Deferment provisions; only principal is
deferred, but interest may be capitalized
 Credit check required – if not passed,
undergraduate student may be able to borrow
additional unsubsidized Stafford loan funds, if
Parent PLUS loan.
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Other Government Resources
 Veterans benefits
 ROTC scholarships and/or stipends
 Bureau of Indian Affairs (BIA) grants
 Health and Human Services loan and
scholarship programs
 State Divisions of Vocational Rehabilitation
 State grants, scholarships, loans, and work
programs (i.e. SSACI)
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Other Misc. Sources of Funds
 College need-based and non-need based programs:
 Academic, athletic, merit, other talent-based scholarships,
and need-based grants.
 Private/Civic business grants and scholarships.
 Scholarships/awards which are not federal, state, or college
funded must be reported to the Financial Aid Office at the
college so that they may be included in the student’s
financial aid package.
 Alternative education loans
 IRS – federal tax income credits (tax credits offer dollar-for-
dollar reduction in tax liability for education expenses (Hope Tax
Credit – first and second year up to $1500 per stu; and Lifetime
Learning Tax Credit – tax benefit to 20% of tuition expenses up
to $10,000.) Students should check with their accountant for all
possible tax benefits available to them.
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FAFSA
2012 - 2013
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FAFSA Application Requirements
 Submit the Free Application for Federal
Student Aid (FAFSA) prior to the college or
state deadline, whichever is first (SSACI
receipt date deadline to the federal processor
on or before 3/10/2012.)
 To ensure maximum consideration for federal,
state, and college aid, check with each school
to determine:
+ Required application materials
+ Application deadlines
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Free Application for Federal
Student Aid (FAFSA)
 Provides a snapshot of the family’s personal and
financial information (number in household, number
in college, income and assets to determine financial
strength.)
 Federal Methodology is applied to calculate Expected
Family Contribution (EFC).
 EFC = Parent Contribution (PC) + Student
Contribution (SC)
 May file the FAFSA by:
 FAFSA on the Web (FOTW) at www.fafsa.gov Parents and
students must get a PIN at www.pin.ed.gov prior to
completing FAFSA on the Web. Helps to complete preapplication worksheet as well.
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FIRST REGISTER FOR A PIN at www.pin.ed.gov
The PIN number is available immediately. You
may self select a number. You use the PIN number
for all federal resources.
If the student is dependent for financial aid
purposes: BOTH student and parent must each
apply for their own pin number .
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Financial Aid Packaging
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Packaging Objectives
 Finding the best combination of aid to meet a
student’s financial need given limited
resources and constraints.
 Distribute resources fairly and equitably.
 Set realistic self-help expectations.
 Offer relevant work experience.
 Recruit students*
*Although some colleges may use a generous Financial Aid
Package to attract/recruit students, many colleges do not
package students who have not completed the admission
process. Some colleges will provide prospective students an
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estimate of aid if asked.
Considerations in Packaging
 Type and amount of funds available
 Institutional priorities
 Length of academic year
 Cost of attendance
 Community service
 Programs requirements
 Student’s year in school
 Academic major
 Availability of other resources
 Debt level of students
 Family financial strength
 Enrollment for multiple start dates
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Generally speaking, a college will construct a financial
aid package in this order:
 1st: gift aid from the federal and state programs for which a
student is eligible;
 2nd: college and/or private donor gift aid (can include nonneed based aid); and
 3rd: self-help programs (loan and work) are added last.
But, each college will have its own packaging
philosophy, subject to aid program regulations and
availability of funds
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If a “full-ride” package is presented to a student
for a college which is not a good personal fit or
does not offer the academic programs in which
the student is interested, the “economics” at play
may lead the student to accept that package and
enroll at the college anyway.
An unhappy student is not likely to complete the
term and that is time and money that can not be
recovered.
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 College Goal Sunday will be on Sunday,
February 12, 2012!
 Volunteer Call Out – CGS is an event held
throughout the U.S. to help college-bound students in the
financial aid process. Your valued expertise is needed!
 If you would like to volunteer: An announcement is
forthcoming in the form of an email through
CounselorTalk that will indicate where the 40 event sites
will be located throughout the state, and how to register to
volunteer or you may go directly to the Indiana website at:
http://www.collegegoalsunday.org
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
2012-2013 FAFSA on the Web Worksheet (Available in Spanish and in Braille) Order:
www.FSAPubs.org or call 1-800-394-7084. Shipping will begin in October

2012-2013 Free Application for Federal Student Aid (FAFSA) (Available in Spanish or
Braille). Order: www.FSAPubs.org or call 1-800-394-7084

Counselors and Mentors Handbook on Federal Student Aid: A Guide for those
advising students about Financial Aid for Postsecondary Education: Available to order
NOW! Order: www.FSAPubs.org or call 1-800-394-7084
College Goal Sunday (February 12, 2012): http://www.collegegoalsunday.org
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