Transcript Document 7353500

Financial Aid 101
Place Department
Logo Here
2009-2010
Academic Year
Kristen Isaksen
Associate Director
of Financial Aid
Goal of Financial Aid
• The primary goal is to assist
students in paying for college.
This achieved by:
– Evaluating a family’s ability to pay
for educational costs
– Distributing limited resources in
an equitable manner
– Providing a balance of gift aid and
self-help aid
Principles of Need Analysis
• To the extent they are able, parents have primary
responsibility to pay for their dependent children’s
education.
• Students also have a responsibility to contribute to
their educational costs.
• Families should be evaluated in their present financial
condition.
• A family’s ability to pay for educational costs must be
evaluated in an equitable and consistent manner,
recognizing that special circumstances can and do
affect a family’s ability to pay.
Federal Methodology
Federal Methodology
is the formula created
by Congress
to determine the
Federal Expected
Family Contribution
(EFC).
Total EFC for Dependent Students
• Parent’s
Contribution
– From Income
– From Assets
• Student’s
Contribution
– From Income
– From Assets
Cost of Attendance
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Tuition and Fees
Room and Board
Books and Supplies
Transportation
Miscellaneous Personal
Expenses
• Study Abroad
• Dependent Care
• Expenses related to a disability
Definition of Need
Cost of Attendance (COA)
- Expected Family Contribution (EFC)
= NEED
Financial Need Examples
Cost of Attendance
$10,000
- EFC
$5,000
= Need
$5,000
Cost of Attendance
$30,000
- EFC
$5,000
= Need
$25,000
General Eligibility
Requirements
• Must be enrolled or accepted for enrollment in an
eligible program of study leading to a degree,
certificate, or other recognized credential.
• Must be U.S. citizen or eligible non-citizen.
General Eligibility Requirements
• Must have a valid Social Security number
– www.ssa.gov
• Must be registered with Selective Service (if male
and required)
– www.sss.gov
Paper FAFSA
FAFSA on the Web: www.fafsa.ed.gov
To Register for a PIN: www.pin.ed.gov
FAFSA on the Web Worksheet
FAFSA4caster
www.fafsa4caster.ed.gov
Process
• Complete Federal Income Tax Return
• File Free Application for Federal Student
Aid (FAFSA)
– Paper FAFSA
– www.fafsa.ed.gov
• Complete Institutional forms (if required)
• Receive Student Aid Report (SAR)
• Receive/Return Award Letter
• Provide Additional Documentation
• Process Student Loans
Sources of Aid
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Institutional
Federal
State
Other
Types of Financial Aid
• Scholarship
– Does not have to be repaid
– Awarded on the basis of merit, skill or a unique
characteristic
• Grants
– Does not have to be repaid
– Usually awarded on the basis of financial need
• Loans
– Money that is borrowed and repaid with interest
• Employment
– Student earns money to help pay educational costs
– Paycheck or non-monetary compensation, such as
room and board
Grants and Scholarships
• Federal
– Federal Pell Grant
– Federal Supplemental Educational Opportunity Grant
(SEOG)
– Academic Competiveness Grant
– National Science and Mathematics Access to Retain
Talent (SMART) Grant
Teacher Education Assistance for College and
Higher Education(TEACH Grants)
• Eligibility:
– Enrolled student in an eligible
institution
– File an application and agreement
– Have a 3.25 GPA
• Award Amount:
– $4,000 for each academic year
– Up to $16,000 for undergraduate
study
Teacher Education Assistance for College and
Higher Education (TEACH Grants)
• Agreement to serve:
– Full-time teacher for 4 years within 8 years of
completing course of study
– Teach in high-need subject areas at high-need
schools
– Comply with the requirements for being a highly
qualified teacher
• Failure to complete service will result in the
grant being treated like an Unsubsidized
Stafford Loan. Interest will accrue from the
date of the grant award.
Grants and Scholarships
• STATE
– New Jersey Tuition Aid Grant
– Garden State Scholarships
• Distinguished Scholars
• Urban Scholars
– NJSTARS and NJSTARS II
– Educational Opportunity Fund
(EOF)
More Grants and Scholarships
• Institutional
– Merit Based
– Need Based
• Private Sources
– Think local and global
– Use the Guidance Office’s Resources
– Internet Resources
• www.brokescholar.com
Loans
• Federal Perkins Loan
• Federal Stafford Loans
– Subsidized
– Need based
– No interest accrual during
school/grace/deferment
periods
– Fixed rate of 5.6% for 0910
Loans
• Federal Stafford Loans
– Unsubsidized
– Not need based
– Accrues interest from
disbursement
– Fixed 6.8% interest rate
• Maximum award amount for
first year students:
– $5500 with no more than $3500
in Subsidized funds
Loans
• Federal Parent Loan for
Undergraduate Students
(PLUS)
• Institutional Loans
• New Jersey College Loans to
Assist State Students
(NJCLASS)
• Private/Alternative Loans
Employment
• Federal Work Study
• Institutional Work Programs
• Off-Campus Jobs
Tips
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BEWARE OF DEADLINES!!
Read All Mail Promptly
Read Instructions Carefully
Maintain Copies of All Documents
Involve Your Student
Do not sign your son or daughter’s name to
financial aid documents
• Consult a Financial Aid Officer
Using Financial Aid Consultants and Search
Services
• Before spending
money on a financial
aid consultant, keep
in mind that a
financial aid
administrator can
perform the same
services for free.
Using Financial Aid Consultants and Search
Services
• If you decide to use the services of a consultant, keep these
things in mind:
– Request a list of references from the consultant before hiring.
– Never agree to a fee based on the percentage of aid that is
received.
– Never sign a blank form.
– Always review the FAFSA after it has been prepared.
– Keep copies of all documents for your own files.
– The fee should be refundable if the FAFSA is completed
incorrectly.
– A financial aid consultant cannot guarantee financial aid.
Avoiding Scams
Questions to ask a Financial Aid
Administrator
• Are scholarship and grant awards renewable?
What criteria must be met?
• What are the policies for work-study positions?
Is a job guaranteed?
• Can a student borrow more than the amount on
the award letter?
• Are any figures on the award letter estimated?
What is needed to finalize the package?
• How are outside scholarships treated?
• What expenses are not reflected on a term bill?
Important Phone Numbers and
Internet Sites
• Department of Education
– www.studentaid.ed.gov
– (800) 4FED-AID/433-3243
• State of New Jersey
– www.hesaa.org
– (800) 792-8670
• National Association of Student Financial
Aid Administrators (NASFAA)
– www.nasfaa.org