Financial Aid Process
& Types of Aid
GOAL: Demystify
All Things Financial Aid
 Terminology
 Process
 Types
of Aid
A Funding Puzzle
 Savings
 Work
 Family
 Scholarships
 Merit
 Need
 Athletic
 Military
 Other
Assets
 Financial Aid
Terminology
 FAFSA



www.fafsa.gov
File by Feb 1st annually
Don’t wait - estimate!
 SAR
 EFC
 COA
 MPN
 Dependency
Dependency
 24
years old
 Married
 Child/Dependent
 (that
you provide more than 50% of
financial support for)
 Working
on Graduate degree
 Orphan/Ward of Court
 Military Veteran
 Emancipated Minor
 Homeless
 …Who
is my parent?
 …Special Circumstances
Eligibility






HB 1079
Scholarships
REAL HOPE ACT
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Filing criteria
Types of Aid
“Financial Aid” includes
grants, work-study,
scholarships, AND loans
WASFA
http://www.readysetgrad.org/wasfa
Apply by February 15th every year
DACA
Work/Savings
FAFSA
PROFILE
The Financial Aid Process
FAFSA
(FREE
APPLICATION
FOR FEDERAL
STUDENT AID)
START HERE
CSS
FEDERAL CENTRAL
PROCESSOR
FINANCIAL AID
REQUIRED
BY SOME
COLLEGES
COLLEGE
SCHOLARSHIP
SERVICE
PRIVATE SOURCES
Non FAFSA Filers
PRIVATE
SCHOLARSHIP
AND GRANT
APPLICATION
PRIVATE
SCHOLARSHIPS
& GRANTS
YOUR
FINANCIAL
AID PACKAGE
FEDERAL AND STATE
GRANTS & LOANS
TARGET COLLEGES
Types of Aid

Gift Aid :





Federal Grants
State Grants
Institutional Grants
Scholarships
Self-Help Aid:


Work-Study
Loans
Stafford Loans
Repayment Plan Options
•
•
• Not credit based
amount of debt up to 25 years
Annual Borrowing Limits
5. Income Based: Similar to Income Contingent
but at a lower plans
• 5 repayment
percentage
Dependent
Independent
Class
$5,500 • Cancellation
$9,500
Freshman
1.
2.
3.
4.
Standard: fixed monthly amount for 10 years
Subsidized
Extended: fixed monthly amount for 12-30 years
Unsubsidized
Graduated: Starts off lower, gradually increases
12-30 years
Income Contingent: Payments based on income & total
$6,500
$7,500
N/A
$10,500
$12,500
$20,500
Sophomore
Junior/Senior
Graduate
Lifetime Borrowing Limit
$31,000
Dependent
$57,500
Independent
$138,500
Graduate
Perkins Loans






Not credit based
Subsidized interest
Grace period
Repayment
Deferment/Forbearance
Cancellation
Other Loan Options

Parent PLUS





Interest bearing
Credit based
Repayment
Denial Provisions
Private Loans

Interest bearing – terms
vary by lender
Cost of Attendance
Capturing and comparing the costs
of college
What is Cost of Attendance (COA)?

Varies by school

The total estimated cost associated with attending that institution.

Includes both direct (tuition, fees, books) and indirect costs (transportation, childcare, personal
expenses).
 Room/Board component – IF a student is living on campus – then R/B a direct cost –
however, if living off campus then an indirect cost.

Typically full-time, full academic year.

Helps students and families budget for the year.

Establishes the limits for financial aid available to the student.
WASHINGTON FINANCIAL AID ASSOCIATION
How is COA used to determine aid?
Cost of Attendance (COA)
established and varies by school
- Expected Family Contribution (EFC)
determined by FAFSA and same for all schools
= Financial “Need”
WFAA
COA Examples
Two Year
Community
College
Four Year
Washington
University
Four Year
Private
University
Direct Cost
$
$
4,335 $
$
11,386
-
$
$
36,180
350
Books & Supplies $
1,030 $
960
$
1,030
1,602 $
2,108 $
1,820
1,647 $
3,222 $
11,836 $
1,434 $
10,868 $
26,756 $
648
10,230
50,258
Tuition & Fees
Wellness Plan
Indirect Costs
Personal
$
Expenses
Transportation $
Room & Board $
Total COA
$
(books - no supplies)
WFAA
Comparing & adjusting costs
for individual needs
WFAA
How is COA used to determine financial
aid award?
COA
- EFC
= “Need”
2 Year
College
4 Year –
Public
4 YearPrivate
$
11,836
$
26,756
$
50,258
$
6,500
$
6,500
$
6,500
$ 5,336
$ 20,256
$43,758
WFAA
Financial Aid
Award Letters
Getting to your bottom line
When Award Letters Start to
Arrive . . .




Schools will produce award letters at varying points in the
application process; Some require you to be admitted, others
require verification to be completed.
Award letters may come to you in the mail or as an email to
login to the school’s secure website.
Award letters are released between mid-to-late February
through May and into the summer, depending on the school.
Some schools will send scholarship letters in the fall, based on
your academic record.
Award Letter Essentials . . .
 How
much does it cost to attend?
 How much & what kind of aid will You receive?
 What is your “Net Cost”
Total Cost of Attendance
-Total Gift assistance
=Net Cost
 “Net Cost” should be reasonably close to the figure you
get from the school’s Net Price Calculator
It would also be nice to know:
 What
is my “bottom Line” – what do I owe the school?
 Where can I get additional information?
e.g. Washington Opportunity Pathways
 What other resources are available to help with my
owing balance or other educational costs?
Sample Award Letters
 Two
Year Community College
 Four Year WA University
 Four Year Private University
 $0
EFC Dependent Student, College Bound eligible, filing
on time at all institutions.
Contact Information
Sample
Award
Letters:
Additional Information
Washington
Community
Colleges
Type & amount of
aid
Cost of
Attendance
Sample
Award
Letter:
4 Year
Public
Universities
Type & amount
of aid
Additional & Contact Information
Cost of Attendance
Types & Amount
of Aid
Sample
Award
Letter:
4 Year
Private
Universities
Additional Resources & Contact
Information
Graduation Rate
Shopping
Sheet
Default Rate
Median
Loan
Debt
Provided by
schools who
have agreed to
comply with
Executive Order
13607, intended
to provide
consistent
information to
students with
V.A education
benefits.
Additional Information & Contact
Information
Scholarships
How, when and where to apply
Topics
“I wish it grew on
trees, but it takes
hard work to make
money.”
- Jim Cramer

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






What is a scholarship?
Who needs a scholarship EVERYONE
Where to find scholarships
Scholarship Tips
Make your essay stand out
Scholarship Scams
Submitting the Application
Who can use scholarship funds?
When your offered scholarship
Questions
WFAA
What is a scholarship?
Scholarships are usually monetary
awards given to students by an
organization or donor to help pay
for the students' education.
Students must meet the
organization's or donor’s criteria —
such as pursuing a certain
program of study, having financial
need, or being an exemplary
student.
WFAA
Everyone can use scholarship funds
Assume Cost of Attendance is
$20,000 a year
The Unmet
need can be
filled with a
Parent Plus
loan or a
private loan;
Unmet Need
43%
*Grants (Maximum
Pell) - $5730
29%
why not fill it with
SCHOLARSHIP
funds!
**Sub Loan - $3500
18%
*This slide would assume someone is getting a full Pell grant
**This is the assumption that the student is a freshman and
eligible for the full sub loan.
Unsub Loan (dep) $2000
10%
WFAA
Where to find scholarships
Local High School
Financial Aid Office
ONLINE
www.thewashboard.org
Community/Parent
organizations
WFAA
Scholarship Tips – Get
Organized
 Organization





Create a scholarship email – one that you
can check throughout the week.
Keep the scholarships that you are working
on separate from the ones not started
Track the scholarships you have already
applied for
Know the time frame to apply, allow plenty
of time to get any additional information
Check the deadline – Post mark or received
by that date.
WFAA
Scholarship Tips – Double Check your
Application
 Have
someone double check your application when
possible.
 Check spelling and grammar on ALL material being
submitted.
 Make sure EVERYTHING is answered and accounted for
 Make sure that your application is presented well

Type the essay, put content in order, etc..
WFAA
How to make your Essay stand out….
Don’t just answer the essay question, consider...
 How
have your achievements impacted you?
 How will obtaining a degree impact your future?
 How will a degree impact your community?
 How have others inspired you? How did they help shape
your life?
WFAA
Search Engines
 Building








a profile
Name
Academic standings – GPA, Test Scores
Interests – Athletics, Religious Organizations
Volunteer work - Clubs
Grade level
Career Goals
Special Circumstances
Military Affiliations
WFAA
Scholarship Scams

It likely is a scam if:

It is Guaranteed you will win
money

There is a fee

FREE money should NOT cost money

No valid contact information

They request personal account
information

Checks will be sent to the school –
not your personal account
WFAA
When you are offered a scholarship….
 Make
sure to inform the financial aid department
 Read the award letter and make sure to follow up with
any additional information requested

The organization may require that you show proof of
enrollment to college
WFAA
Final thoughts…

Resources

College Goal Washington



www.collegegoalsundaywa.org
State-wide Scholarship Search
 www.thewashboard.org
Paying for College Info
 www.readysetgrad.org

Social networking

Ask for help!

Never give up!!