Transcript U.S. Department of Education

U.S. Representative Mike Thompson’s
COLLEGE AFFORDABILITY FORUM
February 9, 2015
Renée Gullotto
Federal Student Aid
San Francisco School Participation Division
Joe Barison
San Francisco Region
Office of Communications and Outreach
Why Is The Federal
Government Involved?
College education matters. . .
 On a human level
 On an economic level
 On a national-security level
How Does the
U.S. Department of Education Help?
 Focus the nation on “pockets of success”
 Recognize success (E.g., Race to the Top,
Blue Ribbon School Awards)
 Federal financial-aid programs – Through
U.S. Dept of Education Federal Student Aid
(FSA)
Federal Financial-Aid Programs
 Federal Grants
 Federal Student Loans
 Federal Work-Study
There is over $150 billion available in federal aid
to help you pay for college!
Federal Grants
PELL
SMART
TEACH
Federal
Grants
FSEOG
Iraq
Afghanistan
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Federal Pell Grant
 Available exclusively to undergraduate students (grad students
sometimes with teacher certification programs)
 DOES NOT have to be repaid
 Enrollment status (full or part-time)
 Cost of Attendance (full academic year or less)
 Pell Grant maximum award:
2014-15 Award Year up to $5,730
per year
2015-16 Award Year up to $5,774 per year
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Federal Supplemental Educational
Opportunity Grant (FSEOG)
 Awarded to undergraduate students with exceptional financial
need
 Primarily geared towards students with a low Expected Family
Contribution Number (EFC)
 PELL Grant recipients with the lowest EFC number receive
priority for FSEOG Grants
 FSEOG Award:
$100 minimum per year
$ Up to $4,000 maximum per year
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Iraq and Afghanistan Service Grant
 For students who are NOT Pell eligible but whose
parent or guardian was a member of the U.S. Armed
Forces and died as a result of service performed in
Iraq or Afghanistan after September 11, 2001
 The grant is equal to the amount of a maximum Pell
Grant for the award year – not to exceed the COA for
that award year
 Additional Student Eligibility Requirements:
- Be under 24 years old or
- Enrolled in college at least part-time at the time
of the parent’s or guardian’s death
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Teacher Education Assistance for College
and Higher Education (TEACH) Grant
 Awarded to undergraduate, post baccalaureate and students who intend to
teach in a public or private elementary or secondary school that serves
students from low-income families.
 Teach at least four years (not consecutive) in a public or private
elementary school
 Enrolled in coursework geared towards elementary or secondary school
 Recipients MUST sign an AGREEMENT TO SERVE
 If the teaching obligation is not completed, the TEACH Grant must be
repaid as a Direct Unsubsidized Stafford Loan
 TEACH Award:
Up to $4000 a year (undergrad, grad)
Total amount may not exceed $16,000 (undergrad) &
$8000 (grad)
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Perkins Loans
 Your college is the lender
 Payment is owed to the college that made the loan
 Funds depend on financial need and availability at
the college
 Not all colleges participate in the Federal Perkins
Loan program
 Perkins Loan Amount:
Up to $5,500 a year - Undergraduate students
Up to $8,000 a year - Graduate and professional
degree students
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Federal Work-Study
Provides part-time jobs for undergraduate and
graduate students with financial need, allowing
them to earn money to help pay education
expenses.
 Eligible employers (On-campus or off-campus employment)
 Schools
 Federal, state or local public agency
 Private nonprofit organization
 Community service activities
 Students are paid at least federal minimum wage
 Not all colleges participate in the Federal Work-Study
program
 Funds depend on availability at the college
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Direct Stafford Loans
Subsidized Loans
 Government PAYS the borrowers
accrued interest while you are
attending college and other eligible
periods
 Based on Financial Need
 Fixed Rate
 Undergraduate students (not grad
students) qualify
 Amount: $3,500-$8,000 per
Unsubsidized Loans
 The borrowers is responsible for
the interest for the life of the loan
 NOT Based on Financial Need
 Fixed Rate
 Undergraduate and graduate
students qualify
 Amount: $5,500-$20,500 per
year
year
Note: All New Federal Student Loans come directly from the U.S. Department of Education
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Parent PLUS Loans
 Originate through the William D. Ford Federal Direct Loan
Program (Direct Loans).
 For PARENTS of dependent students
 Borrowers may receive loan amounts up to, but not exceeding the
college’s ‘Cost of Attendance’
 Borrower is responsible for all the interest
 Credit check will occur
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Deferments and Forbearance
allow you to temporarily postpone payments…
 In School Deferment- ability to defer payments while
in school at least half-time.
 Unemployment Deferment- student can defer
payments while actively seeking work.
 Economic Hardship Deferment- when you are
experiencing economic hardship.
 Forbearance- when a student doesn’t meet any of the
criteria for the above deferments, a forbearance may be
used to defer payments.
STAY IN TOUCH WITH YOUR SERVICER 
Repayment Plan Options
 Standard Plan- Level repayment
 Extended Plan- Longer repayment, lower payments
(up to 25 years)
 Graduated Plan- Payment starts lower and increase
every two years (10 year repayment/10-30 years for
consolidated loans)
 Income-Driven Plans Income Based Repayment Plan
 Pay As You Earn Repayment Plan
 Income-Contingent Repayment Plan
CONTACT YOUR SERVICER FOR ASSISTANCE 
Myths About Financial Aid
 The Myth: “…only students with high grades get
financial aid.”
 The Reality: Maintain at least a “C” average, complete
enough of your courses in a timely manner, and you can
get financial aid.
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Myths About Financial Aid
 The Myth: “…my parents make too much money, so I
won’t qualify for aid.”
 The Reality:There is no income cutoff to qualify for
federal student aid.
 Oh, and by the way…Even super investor Warren
Buffett or the Giants’ Madison Bumgarner, financially
speaking, could have kids who could still qualify for
student loans.
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Myths About Financial Aid
 The Myth: “...the form is too hard to fill out.”
 The Reality: The FAFSA is easier than ever, especially if
you fill it out online at www.fafsa.gov
 The average FAFSA submission time in the 2014-2015
school year: Only 25 minutes
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Basic Eligibility Requirements
Students must have:
 High school diploma, GED
 A Social Security Number (with limited exceptions)
 U.S. citizenship or be an eligible noncitizen
 Registered with the Selective Service (Males)
Students also need to:
 Be enrolled or accepted for enrollment in an eligible
program
 Be pursuing a degree, certificate or credential
 Maintain satisfactory academic progress
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How to Apply for
Federal Financial Aid
•
By completing the FAFSA
(Free Application for Federal Student Aid)
www.fafsa.gov
•
Be wary of other FAFSA websites. U.S. Dept of Education’s
is FREE!
•
Your eligibility is determined by information you
provide on the FAFSA
•
Individuals must complete the FAFSA to receive
federal financial aid – Must complete annually.
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How College Financial Need
is Figured
Cost of Education






Tuition & Fees
Room & Board
Books & Supplies
Equipment & Transportation
Miscellaneous Personal Expenses
Child Care
Expected Family
Contribution
 Parent Contribution
 Student Contribution
COST OF EDUCATION
- EXPECTED FAMILY CONTRIBUTION
FINANCIAL NEED
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Key Dates
 January 1ST – File the FAFSA immediately after
Jan. 1ST of your high-school senior year.
 Returning and non-traditional students should file
the FAFSA after Jan. 1ST of the year enrolling in
college.
 March 2nd – Many state grants have a March 2nd
deadline for applications. Check with your school.
What To Expect After Applying
Student
completes
the FAFSA
– signs
with FSA
PIN
FAFSA is
processed by
FSA; Student
receives a
SAR; College
receives
information
(if college is
listed on the
FAFSA)
College
reviews
info,
assembles
award
package for
the student
Student
reviews the
award
package;
compares to
other award
letters;
student
determines
which
college to
attend
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The College Scorecard
 Brand-new on the White House website
 Whitehouse.gov/scorecard
 Compares colleges side by side
 Compares colleges in five areas:
 Costs
 Graduation rate
 Students’ loan-default rate
 Average amount borrowed per student
 Employment outlook for graduates
Example of Scorecard
Info Beyond This Workshop
The Federal Student Aid Information Center operates a toll-free
hotline to provide:
o Information about federal student aid programs;
o Help completing the FAFSA
o Information about the process of determining financial need
and awarding aid
o Remember: For those not eligible, State and/or Institutional
Aid may be available
1-800-4-FED-AID (1-800-433-3243)
Monday - Friday:
8:00am – Midnight ET
Saturday:
9:00am – 6:00pm ET
Sunday:
Closed
Key websites:
►federalstudentaid.gov
►studentaid.gov
►fafsa.gov
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U.S. Representative Mike Thompson’s
COLLEGE AFFORDABILITY FORUM
February 9, 2015
[email protected]
(415) 486-5367
[email protected]
(415) 486-5700