Transcript 2008 Fast Track - Eastern Michigan University
Financing Education Beyond High School
Applying for Financial Aid
• ALL colleges will require the
Free Application for Federal Student Aid
(FAFSA)
• Some schools may also request the “PROFILE” application from College Scholarship Service (CSS) to award institutional aid/scholarships
Application Process
• Submit the Free Application for Federal Student Aid
(FAFSA)
prior to school’s deadline • FAFSA must be submitted annually (January/February is best) • Most aid awarded on a
“first-come, first-served”
basis • To ensure maximum consideration for federal, state, and institutional aid, contact each school to ask about their: – Required application materials – Application deadlines
FAFSA
• Collects family’s personal & financial information in order to determine a student’s Expected Family Contribution (EFC) • May file FAFSA in one of two ways: –
Electronically via FAFSA on the Web (preferred method)
– Paper FAFSA
PIN Registration for Electronic Signature
PIN Registration for Electronic Signature
• Web site: www.pin.ed.gov
• • Sign FAFSA electronically Can request PIN before January 1, 2011 • Not required, but speeds processing • May be used by students and parents throughout aid process, including subsequent school years
FAFSA on the Web
• Web site: www.fafsa.ed.gov
– 2011-2012 FAFSA on the Web available on
January 1, 2011
– FAFSA on the Web Worksheet: • Used as “pre-application” worksheet • Questions follow order of FAFSA on the Web
General Student Eligibility Criteria • Must be U.S. citizen or eligible non-citizen • Must be pursuing degree, certificate, or other recognized credential • Must be registered with Selective Service (if male and required) • Eligibility may be suspended or terminated due to drug-related conviction • Must meet Satisfactory Academic Progress requirements
Satisfactory Academic Progress
(SAP) Schools are required to have a SAP policy which monitors successful progress towards graduation: • •
Qualitative
(GPA) requirement
Quantitative
(course completion) requirement • Maximum timeframe for each degree
FAFSA Questions – Six Steps •
Step One –
Student information: name, address, SSN, marital status, citizenship status, etc. •
Step Two –
results Colleges to receive the FAFSA •
Step Three –
Dependency Questions
FAFSA Questions – Six Steps •
Step Four –
Parent information: name, SSN, marital status, 2010 income, assets, # in household, # in college, etc.
•
Step Five –
information Student income and asset •
Step Six –
Signatures (PIN for student and PIN for parent) and application submission
FAFSA Questions: Dependency Status • At least 24 years old by December 31st of the award year covered by the FAFSA (born before January 1, 1988) • Married (at the time of application) • Will be in a Master’s or PhD program in 2011-2012 • On Active Duty in the U.S. Armed Forces for purposes other than training • Is a Veteran of the U.S. Armed Forces • Has children or legal dependents other than a spouse for whom the student provides more than half of their support in 2011-2012
FAFSA Questions: Dependency Status • Both parents are deceased • At age 13 or older, student was in foster care or was a dependent of the court (ward of the court) • Is an Emancipated Minor as determined by a court • Is in a Legal Guardianship (court approved) • Is an “Unaccompanied Youth” (homeless) • Determined to be “independent” by the financial aid administrator based on
unusual
circumstances
Frequent FAFSA Errors
• Parent and Student Social Security Numbers • Divorced/remarried parent information • Untaxed income (401k/403b & child support received
for all family members
) • U.S. income taxes paid (not withheld) • Missing signatures (PIN)
Special Circumstances
You may request a re-evaluation of a processed FAFSA due to: • Loss of employment • Loss of untaxed income or benefits (such as child support, unemployment, etc.) • Separation or divorce • Unusual uninsured medical or dental expenses
What Happens After I Submit the FAFSA?
• The FAFSA is processed by the Department of Education • The Expected Family Contribution (EFC) is determined • Results are sent to the student (via email) and the schools listed on the FAFSA
What is the Expected Family Contribution (EFC)?
• Calculated using the FAFSA data and a federal formula • EFC is a measure of the family’s financial strength and what they can
“reasonably be expected to contribute”
towards the educational expenses in 2011-12 • Stays the same regardless of college
Cost of Attendance
• Tuition and Fees • Room and Board (on campus or off) • Books and Supplies • Transportation • Personal Expenses
Definition of Need
Cost of Attendance (COA) (minus) Expected Family Contribution (EFC)
= Financial Need
Role of the Financial Aid Office
• Determines eligibility for financial aid • Packages (awards) financial aid • Sends an award notification* which includes: – Programs and amount from each program for which the student is eligible – How and when aid will be disbursed – Terms and conditions of student’s award(s) * May be sent by letter or E-mail notification
Types of Funding
•
Grants –
gift aid, generally based on need •
Scholarships –
gift aid, generally based on academic achievement or special talent •
Loans –
must be repaid •
Work Study –
employment, student earns money to help with educational expenses
The FAFSA is required for: Federal Grants •
Pell Grant
($5,550 max award 2010-11) •
Supplemental Educational Opportunity Grant (SEOG)
($4,000 max award) •
Teacher Education Assistance for College and Higher Education (TEACH) Grant
($4,000 max award)
FAFSA also required for: Work Study & most loans • College Work Study • Perkins Loan • Stafford Loans • Some scholarships depending on the school policy • State need-based aid
Subsidized and Unsubsidized Direct Stafford Loans
Student Borrower (no co-signer or credit history required)
•
Subsidized:
Must demonstrate “need” – No interest during in-school period, 3.4% in repayment •
Unsubsidized:
Need is not a consideration – Interest at 6.8% is paid by student or allowed to capitalize • Repayment begins 6 months after graduation
Parent PLUS Loan
Parent is Borrower
• Annual loan limit: cost of attendance minus student financial aid • Fixed interest rate of 7.9% • Repayment may begin 60 days after loan is fully disbursed or can be deferred if requested by parent
State of Michigan Programs
• Michigan Competitive Scholarship – Based on ACT score and financial need – FAFSA filing deadline March 1, 2011 – Maximum award in 2010-11 is $600 – Renewable with a 2.0 college GPA and continued financial need
www.michigan.gov/studentaid
State of Michigan Programs
• Michigan Educational Trust (MET) – Prepaid college tuition plan that locks in future tuition rates at in-state public colleges at current prices –
www.michigan.gov/studentaid
or 800-MET-4-KID • Michigan Educational Savings Program (MESP) – Investment program for college costs –
www.misaves.com
or 877-861-MESP
Institutional Scholarships
Contact schools to determine their application requirements – Sometimes an application is required – May want an essay from the student – May require a FAFSA to determine “need” – May require an audition or portfolio
Avoid Being Scammed
• The scholarship is guaranteed or your money back • You can’t get this information anywhere else • I just need your credit card or bank account number to hold this scholarship • We’ll do all the work • The scholarship will cost some money • You’ve been selected by a ‘national foundation’ to receive a scholarship or you’re a finalist in a contest you never entered
Next Steps - Summary
• Obtain and review admission and financial aid materials from each school being considered • Meet all application deadlines • Complete FAFSA and any additional application materials, such as the College Scholarship Service’s PROFILE application • Investigate other sources of aid
College Goal Sunday
Sunday, February 13, 2011 2:00 – 4:00 p.m.
Some of the Host Sites:
– Eastern Michigan University – Oakland Community College – U of M Dearborn – Baker College of Jackson – U of M Flint – Monroe Community College http://www.MICollegeGoal.org/ (Sign up for a reminder & entry for a laptop)
LAST ONE! Websites:
• www.FAFSA4caster.ed.gov
– FAFSA4caster for an early introduction to the FAFSA & estimated results • • • • • www.emich.edu/finaid - PowerPoint Presentation Financing Education Beyond High School www.fastweb.com
– scholarship search www.collegeboard.com
www.studentaid.ed.gov
– Search & Planning – U.S. DOE info www.finaid.org/calculators/ - EFC estimator, search and planning