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© American Student Achievement Institute

Professional Development Series
For Adults Who
Advise Students

Financial Aid
© American Student Achievement Institute

College Costs
TYPICAL COLLEGE COSTS
• Tuition
• Room and Board
• Books
• Fees
• Personal costs (pizza, shampoo, etc.)
• Transportation to and from home
© American Student Achievement Institute

Indiana College Costs Estimator
• Compares the estimated net cost of Indiana colleges
• FREE!
www.indianacollegecosts.org
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Financial Aid
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College Choice 529 Direct Savings Plan
• Indiana taxpayers are eligible for a state income tax credit of up to 20% of contributions to a College-
Choice 529 account, up to
$1,000 credit per year.
https://collegechoicedirect.s.upromise.com/content/home.html
© American Student Achievement Institute

Financial Aid
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Types of Financial Aid
Need Based Aid
• Available to any student who meets the government’s definition of needy
Merit Based Aid
• Awarded, usually on a competitive basis, to students who meet certain criteria
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Types of Financial Aid
Grants and Scholarships
• Gifts
Student Loans
• Must be repaid to the lender
Work-Study
• Student paid for working
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Types of Loans
LOANS TO STUDENTS
Subsidized
• Government pays the interest
• Repayment begins after college
Unsubsidized
• Student pays the interest
• Repayment begins after college
LOANS TO PARENTS
Unsubsidized
• Parents pays the interest
• Repayment begins immediately
© American Student Achievement Institute

Sources of Aid
1. Federal Government
2. State Government
3. Institutions (colleges)
4. Private Business and Organizations
88%
3%
9%
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Financial Aid
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Almost every student qualifies for an unsubsidized student loan regardless of need.
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Eligibility for Federal Aid
Federal government uses an eligibility formula based on:
• Parent income
• Parent assets
• Parent age
• Student income
• Student assets
Note: The formula requires students to contribute a higher percentage of income and assets than their parents.
© American Student Achievement Institute

Applying for Fed Aid – Step 1
Submit the FAFSA
• Free Application for Federal Student Aid
• College Goal Sunday
Financial aid professionals available in communities to help families complete the
FAFSA.
• Submission Deadline: March 10
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Applying for Fed Aid - Step 2
STUDENT AID REPORT
1. Families receive the SAR report
• SAR = Student Aid Report
• Families check SAR for accuracy and send back corrections
2. Colleges identified by the student on the FAFSA also receive the SAR report
© American Student Achievement Institute

SAR
STUDENT AID REPORT
• Contains the EFC (Expected Family Contribution)
• Colleges will try to create a financial aid package that equals the difference between the EFC and the actual cost of attending the college.
• The financial aid pack will include: o Grants and/or scholarships (gifts) o Student Loans o Work Studies
© American Student Achievement Institute

Applying for Fed Aid - Step 3
FINANCIAL AID LETTER
Families will receive a Financial Aid Letter from each of the colleges that they identified on the FAFSA. The letter contains the:
• Financial Aid Package
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Which college costs more?
Total College Cost
Expected Family Contribution
Need
State College
24,000
8,300
15,700
Private College
41,000
8,300
32,700
Federal Grants
FINANCIAL AID PACKAGE
7,500
Loan
Work Study
College Scholarship (merit)
Total Financial Aid Package
4,200
2,500
0
14,200
9,200
3,500
2,500
17,500
32,700
Expected Family Contribution
Unmet Need (Need – Package)
Cost to the Family
8,300
1,500
9,800
8,300
0
8,300
© American Student Achievement Institute

Which package is best for the student?
Total College Cost
Expected Family Contribution
Need
College A College B
24,000
8,300
15,700
24,000
8,300
15,700
Federal Grants
FINANCIAL AID PACKAGE
7,500
Loan
Work Study
Total Financial Aid Package
Cost to the Family
4,200
2,500
14,200
9,800
9,200
3,500
2,500
14,200
9,800
© American Student Achievement Institute

Which package is best for the student?
Total College Cost
Expected Family Contribution
Need
College A College B
24,000
8,300
15,700
24,000
8,300
15,700
Financial Aid Package
Federal Grants
Loan
Work Study
Total Financial Aid Package
Cost to the Family
7,500
4,200
2,500
14,200
9,800
7,500
4,200
2,500
14,200
9,800
© American Student Achievement Institute

Which package is best for the student?
College A College B
Total College Cost 24,000
Expected Family Contribution
LOAN
8,300
College A College B
Need
Subsidized 2,000
15,700
3,200
41,000
8,300
15,700
Unsubsidized 2,200
Financial Aid Package
4,200
1,000
Loan
Work Study
Total Financial Aid Package
Cost to the Family
4,200
2,500
14,200
9,800
7,500
4,200
2,500
14,200
9,800
© American Student Achievement Institute

Applying for Fed Aid - Step 4
IF THE FINANCIAL AID PACKAGE IS NOT
SATISFACTORY:
• Contact the Financial Aid Office at the college
• Explain your circumstances
• Share what other colleges have offered
© American Student Achievement Institute

Applying for Fed Aid - Step 5
Let the colleges know if the student is going to accept or not accept their financial aid offer.
© American Student Achievement Institute

Financial Aid
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State Financial Aid Awards
Frank O’Bannon Grant
Hoosier Scholar Award
Twenty-first Century Scholars Program
Nursing Scholarship
Minority Teachers / Special Education Services Scholarship
Robert C. Byrd Honors Scholarship
Summer State Work Study Program
Indiana National Guard Supplemental Grant
Part-Time Grant Program
Child of Certain Veterans and Public Safety Officers
Supplemental Grant Program
© American Student Achievement Institute

To Apply for State Aid
1. Complete the FAFSA
2. Complete application for each award
Applications available at: www.in.gov/ssaci/2359.htm
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Twenty-first Century Scholars
Amount:
• 2 or 4 yr college = public college tuition
• At a private career college = cost of Ivy Tech
Eligibility: 6th, 7th, and 8th graders who:
• Enroll in the program
• Sign a promise of good citizenship
• Qualify in one of the following ways: o Receive free/reduced lunch o Live in a foster home o Meet family income requirements
Application:
• School counselor
• 1-888-528-4719
• Apply online: http://www.in.gov/ssaci/2429.htm
Deadline:
• June 30
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Financial Aid
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Award Amount:
• Varies
Institutional Aid
Eligibility:
• Varies
Application:
• College Financial Aid Office
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Financial Aid
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Private Aid
Amount:
• Varies
Eligibility:
• Varies
Application:
• High School Counselor
• Community Foundation
• Employers
• Service Clubs
• Local Media
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Private Aid
DOLLARS FOR SCHOLARS
• Community-based scholarship foundations
• Managed by a board of local volunteers who o Receive training from Indiana Dollars for Scholars o Receive resources form Indiana Dollars for Scholars
(e.g. scholarship application templates) o Manage local organizations’ scholarships o Raise funds o Awards scholarships to local students
• 104
Indiana communities currently have DFS chapters!
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Scholarship Scams
• 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
• You're a scholarship finalist for a scholarship you never sought
© American Student Achievement Institute

Financial Aid
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Cash For College Campaign
• Statewide campaign to encourage students to apply for financial aid www.learnmoreindiana.org/cashforcollege
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• Online webinars where students and parents can chat with a financial aid expert
• FREE!
FAFSA Friday http://www.learnmoreindiana.org/college/paying/ financialaid/fafsa/Pages/fafsafriday.aspx
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College Goal Sunday
• Community-based events where financial aid experts help students and parents complete the FAFSA
• 30+ locations in
Indiana
• FREE!
www.collegegoalsunday.org
© American Student Achievement Institute

Professional Development Series
For Adults Who
Advise Students