Transcript Financing A College Education Beyond High School 2015-2016 Presented by: Ana Marcela Moros Lead Financial Aid.

Financing A College
Education Beyond
High School
2015-2016
Presented by:
Ana Marcela Moros
Lead Financial Aid
Lone Star College-North Harris
Today’s Key Points
1. What is Financial Aid?
 What you need to know about financial aid?
2. Applying for Need Based Aid
 Free Application for Federal Student Aid (FAFSA)
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Topics to discuss today
 What is financial aid?
Cost of attendance (COA)
Expected Family Contribution (EFC)
What is financial need
Categories, types, and sources of financial aid
Free Application for Federal Student Aid (FAFSA)
Special circumstances
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What is Financial Aid?
Financial aid consists of funds provided
to students to help pay for their
postsecondary educational expenses
4 Types of Financial Aid
1. Grants (need)
2. Scholarships (merit)
3. Work Programs (self)
4. Loans (self)
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Federal Eligibility Requirements
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Have a high school diploma or GED
Have a valid SSN
Be a U.S. citizen or permanent resident
Be pursuing a degree/certificate
program
• Maintain satisfactory academic progress
• Males – register with selective service at
www.sss.gov or thru the FAFSA
What is the Cost of Attendance
(COA)?
Direct costs
Indirect costs
Direct and indirect costs combine into
cost of attendance
Varies widely from college to college
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What is the Expected Family
Contribution (EFC)?
Amount the family can reasonably be
expected to contribute
Stays the same regardless of college
Two components
Parent Contribution
Student Contribution
Calculated using date from a federal application
form and a federal formula
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What is Financial Need?
Cost of Attendance
Expected Family Contribution
__________________________
= Financial Need
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Categories & Sources of Financial Aid
Categories
Need-based
Non-need based
Types
Scholarships
Grants
Loans
Employment
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GRANTS
Gift Aid - “Free Money” –
No Repayment!!! Sometimes!!
• Based On “Need”
– Requiring the completion of a
common certified “need
analysis” (FAFSA)
– Importance of Meeting
Deadlines!
– Starting in 2000 Grants May
Have to Be Repaid If Student
Withdraws from classes
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The “TEXAS Grants”
• Texas Educational Opportunity Grant (TEOG)
To provide grant aid to financially needy students
enrolled in Texas public two-year colleges
Texas Public Educational Grant (TPEG)
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Must Be A TEXAS Resident For Tuition Purposes
Public College or University in TEXAS
Can Include Residents who are Texas Residents Only
Can qualify without a Social Security Number
Must Have Financial Need
First Come - First Serve
• Our state aid: www.CollegeForAllTexans.com
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SCHOLARSHIPS
• Gift Aid - “Free Money” - No
Repayment!!!
• Usually Based On “Merit”
– Sometimes Requires the Completion of a
Certified “Need Analysis” (FAFSA)
– “Inside” Vs. “Outside” Scholarships
– Importance of Meeting Deadlines
– Scholarship “Scams”
– Free Sources Vs. Paid Sources
– Free scholarship search:
www.FederalStudentAid.ed.gov/scholarship
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Work-Study
• Off Campus Job Vs. On Campus Job
– Pros of Student Worker on campus:
• Flexible times
• Transportation/Gas
• Lower stress levels
• 19.5 hours a week
• On the job experience
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Types of LOANS: MUST BE
PAID BACK
• Subsidized - “Need
Based” Loans
– Must have a “Financial Need”
as Determined by the College
or University
– Perkins, Stafford and Direct
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Federal Family Educational
Loan Programs (FFELP)
William D. Ford Direct Loan
Programs (Direct)
Perkins Loan Program
(Perkins)
• Unsubsidized - “No
Need” Loans
– Interest Begins to Accrue
Immediately!
– CAUTION! - “Capitalization
of Interest”
– P.L.U.S.- Parent is Borrower
• Credit Check is conducted
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RECAP: 4 Types of Financial Aid
1. Grants (need)
2. Scholarships (merit)
3. Work Programs (self)
4. Loans (self)
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Sources of Financial Aid
Federal Government
 Largest source of financial aid
 Awarded primarily on the basis
of financial need
 Complete FAFSA application
States
 Residency requirements
 Award aid on the basis of both
merit and need
 Use information from FAFSA
 Priority filing dates varies
Private Sources
 Foundations, businesses,
charitable organizations
Civic Organizations
 Research what is available in
the community
 To what organizations and
churches do student and family
belong?
 Small scholarships add up!
 Employers
 Companies may have
scholarships available
STEP 1: Get PIN Number
Pin Number: Electronic Signature
Obtain one for both YOU and a PARENT/Guardian
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Step 2: FAFSA for 2015-2016
www.fafsa.gov
STEP 3: Financial Aid Request Form
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Print (SAR) Student Aid
Report and review for
accuracy. Maybe selected for
VERIFICATION
If selected for
VERIFICATION, must
present your’s and your
parents’ Federal Income
Tax Return, Verification
Worksheet.
•
Your college or university
will contact you ONLY thru
your institution’s email
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The “Need Analysis” = FAFSA
Free Application for Federal Student Aid
(F.A.F.S.A)
– Determines “Expected Family Contribution”
(EFC) Based Upon Last Federal Tax Year’s Income
and Assets.
– One Half of Need Formula.
– Other Half is “Cost of Attendance”
1
X
2
Y
3
Z
EFC
Cost of
Attendance
(Variable)
Expected Family
Contribution
(Constant)
EFC
Need
(Variable)
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The “Simple” Process
US Department of Ed
(Calculates EFC)
Submit FAFSA
SAR To Student
College
Award Student
Notify Student
Loan Process
School Determines Need
School Releases Funds
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Also Paper Application
FAFSA
Application
Request a paper
application
*Add Lone Star College
System code:
011145
Allow 3 to 5 business days after
application submission to return to
website.
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STEP 4: Eligibility Notification
• Lone Star College System, or the
institution of your choice, will determine
if you qualify for federal, state, or
institutional aid.
• You will be notified via EMAIL
ONLY!
• Process takes 4-6 weeks from the date
Financial Aid receives your SAR &
required documents
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Frequent FAFSA Errors
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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
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Texas Application for State Financial Aid
TASFA
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Financial Aid for Students
qualifying for state
residency under House
Bill 1403/Senate Bill 1528
are eligible to apply for
state financial aid.
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Students who are not
US Citizens and/or
Permanent resident
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“Need” Priority Dates
 In Texas, each school sets its own
priority dates
 Apply by March to make most priority
dates in Texas.
 Lone Star College System has a
priority date of April 1st.
 Apply EVERY YEAR!
 Apply for Admissions to all the
schools you intend to receive
Financial Aid from
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Things to remember
• Apply for admissions to
each college or
university
• Complete the FAFSA or
TASFA early each year
• Complete Tax Returns
early each year
Site for Parents:
www.StudentAid.ed.gov/parent
• Check your email
constantly
• Respond to college’s
request as soon as
possible
• Register for classes
early
Site for Students:
www.StudentAid.gov
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Special Circumstances
Exceptions that apply
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Change in employment status
Medical expenses not covered
by insurance
Change in parent marital
status
Student cannot obtain parent
information
Parents are incarcerated
You have left home due to an
abusive family environment
Exceptions that do not apply
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Your parents do not want to
provide their information on
your FAFSA
Your parents refuse to
contribute to your college
expenses
Your parents do not claim you
as a dependent on their
income taxes
You do not live with your
parents
Education
“Education is not the filling
of a bucket but the lighting
of a fire.”
-
William Butler Yeats