Federal Student Aid
Financial Aid Basics
Myths About Financial Aid
“…only students with good grades get
financial aid.”
Reality: High school diploma, GED and
home schooling certificate...
… more scholarship opportunities
available…
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Myths About Financial Aid
“ We make too much money, therefore we’re
not getting anything”
Reality: Your income is only one item that
is looked at regarding your eligibility for
aid.
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Where Does Aid Come From?
•
Federal Government
•
State Government
•
Schools
•
Private
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Federal Financial Aid Programs
•
Federal Grants
•
Federal Work-Study
•
Federal Student Loans
There is more than $150 billion available
in federal aid to help students pay for postsecondary
education
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Gift Aid - Federal Grant Programs
• Federal Pell Grant
Program – $5,815
• Iraq and Afghanistan
Service Grant - $5,382
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• Teacher Education
Assistance for College
and Higher Education
(TEACH) Grant - $3,728
• Federal Supplemental
Educational Opportunity
(FSEOG) Grant - $4000
Federal Loan Programs
Considerations:
•
•
•
•
Subsidized vs. Unsubsidized
Interest rate
Grace period
Death or Permanent Disability
Know:
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•
•
•
•
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Default – 1st Borrowers REQUIRED to Entrance Counseling
Deferment & Forbearance
Loan Repayment Plans
Public Service Loan Forgiveness (PSLF) Program
Teacher Loan Forgiveness
Federal Loan Programs
Interest Rate
Federal Perkins
Loan
Federal Stafford/
Direct Loan
5% Fixed
Subsidized
4.29% Fixed
Repayment
9 months after
school
6 months after
school
Unsubsidized
4.29% Fixed
Direct PLUS
Loans
Parents & Graduate
or Professional
Student
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5.84% Fixed
6.84% Fixed
May be deferred
until 6 months
student drop ½
time or 60 days
after loan is fully
disbursed
Additional Info
Ends Sept. 30, 2015. Some
students may be able to
receive loans if
grandfathered through Sept.
30, 2020.
Subsidized: no
interest charged
while in school
Unsubsidized:
interest accrues
while in school
Interest accrues
while student is
in school
FAFSA.GOV
•
Must file every year
Can file Jan. 1st of senior year
• 2017-18 can file starting October 1st
•
•
FSA ID (Parent/Student)
•
Check with college to determine if
additional applications need to be
completed. I.E. CSS Profile application
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FSAID.ED.GOV
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FSA ID – Things to Remember
•
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FSA ID used to:
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Electronically sign Federal Student Aid documents
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Access your personal records
•
Make legal binding obligations
•
If you do not have an SSN, cannot create an FSA ID
•
Parent needs to have their own FSA ID
•
Don’t use high school email address
FSA ID – Things to Remember
•
•
It is important to include an e-mail address with your FSA ID
because:
•
•
•
•
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Linking your PIN gives you full access to your information
online immediately.
We use e-mail to communicate important information about your account to you,
You can use your e-mail to get your username or password if you forget them, and
You can use your verified e-mail address instead of your username when logging in
to FSA systems.
Access the new How to Create an FSA ID YouTube video
FAFSA.GOV Homepage
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IRS Data Retrieval Tool
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Detailed College Info and Comparison
• College’s website
• School type
• Tuition and fees
• Net price average
• Graduation rates
• Retention rates
• Transfer rates
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Basic Eligibility Requirements
Students must be:
•
U.S. citizen or eligible non-citizen
•
Registered with Selective Service (Males) (18-25)
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Social Security Number (with limited exceptions)
•
High school diploma, home schooling certificate, GED or
•
New Ability to Benefit Alternative
•
No drug related convictions while receiving Aid
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Matriculated – enrolled in an eligible program
•
Maintain ‘Satisfactory Academic Progress’
•
Not in Default or Overpayment Status
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Dependency Status
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If any of the following criteria applies, the student is considered independent:

24 years or older

Married

Master’s or Doctorate Program

Children and you provide more than ½ support

In foster care since turning 13, or ward of the court

Emancipated minor or was in legal guardianship

Homeless

Serving Active Duty in U.S. Armed Force
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Legal Parent – Who fills out the FAFSA?
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Separated
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Deferred Action for Childhood Arrivals (DACA)
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Cost of Attendance - (COA)
• COA includes:
• Tuition and fees
• Room and board (Meals)
• Books and supplies, equipment, transportation &
personal expenses
• Dependent or elder care expenses
• Expenses associated with a disability
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Expected Family Contribution - EFC
• Calculation that uses a federal form and
formula
• Indicates the family’s financial strength
• EFC the same regardless of college the
student attends
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Expected Family Contribution - EFC
•Factors:
• # of Family Members going to college
• Household size
• Current Earnings & Family Savings
• Information provided on FAFSA
• Age of your oldest parent
•The lower your EFC, more financial aid
eligible to receive
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College Costs & Financial Need
Cost of Attendance (COA)
- Expected Family Contribution (EFC)
= Financial Need
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How Much Aid will I Receive?
Financial Need = $13,000
Federal Grants
State Grants
Scholarships
Institutional Grant
Loans
TOTAL =
$5,000
$2,000
$2,000
$2,000
$2,000 - Unmet need
$13,000
Expected Family Contribution (EFC)
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What To Expect After Applying
High Level Overview
Student
completes
the
FAFSA
and signs
with FSA
FSAID
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FAFSA is
processed
by FSA;
Student
receives a
SAR;
College
receives
information
if listed on
the FAFSA
College
reviews
info and
assembles
award
package
for the
student
Student
reviews
award
package;
compares to
other award
letters;
student
determines
which
college to
attend
7 Best FAFSA Practices:
• Use the Official website – FAFSA.GOV
• Have SSN Card when filing FAFSA
• Use SSN Card name, not Nickname
• Select Correct Award Year
• Complete FAFSA early using Estimates
• After making corrections, Resubmit
• Don’t Forget State Deadlines - link
StudentAid.gov
FinancialAidToolkit.ed.gov
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Federal Student Aid Information Center
Contact Us
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QUESTIONS?
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