Making College Affordable:
Applying For Financial Aid
Moderator
Richard Steele (WBEZ)
Panelists
Gloria Purifoy (Chicago Public Schools)
Tim Opgenorth (UIC)
10 Myths
of Financial
CLICK
TO EDIT
MASTERAid
STYLE
1. Myth: My child is 18 and of legal age.
He/she can and should file for financial aid
on his/her own.
Reality: Students are usually considered
a dependent until the age of 24.
World-Class Education. World-Class City.
10 Myths
of Financial
CLICK
TO EDIT
MASTERAid
STYLE
2. Myth: I cannot apply for financial aid if I
have a valid social security number but one
or both my parents do not.
Reality: Only students need a valid SSN.
World-Class Education. World-Class City.
10 Myths
of Financial
CLICK
TO EDIT
MASTERAid
STYLE
3. Myth: Parents who are not U.S. Citizens
or legal residents will be reported if they
provide their personal and financial
information.
Reality: Parent data is never reported.
World-Class Education. World-Class City.
10 Myths
of Financial
CLICK
TO EDIT
MASTERAid
STYLE
4. Myth: If I have no contact with my
parents and cannot provide their
information. I will be unable to apply for
financial aid.
Reality: You can still apply without
parent information.
World-Class Education. World-Class City.
10 Myths
of Financial
CLICK
TO EDIT
MASTERAid
STYLE
5. Myth: If my parent(s) refuse to provide
their information, I can still apply for financial
aid without parental information.
Reality: The application will be
considered "rejected," and you might not
receive any federal student aid except for a
loan.
World-Class Education. World-Class City.
10 Myths
of Financial
CLICK
TO EDIT
MASTERAid
STYLE
6. Myth: It is unsafe to provide private
information to people I do not know,
especially on the Internet.
Reality: FAFSA on the Web is highly
secured.
World-Class Education. World-Class City.
10 Myths
of Financial
CLICK
TO EDIT
MASTERAid
STYLE
7. Myth: I (we) make too much to qualify for
financial aid.
Reality: There is no income cut-off to
qualify for financial aid.
World-Class Education. World-Class City.
10 Myths
of Financial
CLICK
TO EDIT
MASTERAid
STYLE
8. Myth: My bad credit or default loans will
hurt my child’s chances for financial aid.
Reality: A parent’s debt or default loans
are not considered on FAFSA and is not
required.
World-Class Education. World-Class City.
10 Myths
of Financial
CLICK
TO EDIT
MASTERAid
STYLE
9. Myth: If I am eligible for the full amount
of financial aid, I should be able to meet all
educational costs.
Reality: Financial aid rarely covers the
total cost of education.
World-Class Education. World-Class City.
10 Myths
of Financial
CLICK
TO EDIT
MASTERAid
STYLE
10. Myth: I cannot file a FAFSA for my child
because I do not claim him/her on my tax
return.
Reality: Tax dependency is
independent of FAFSA eligibility.
World-Class Education. World-Class City.
Conduct
A Financial
NeedsSTYLE
Analysis
CLICK TO
EDIT MASTER
A snapshot assessment of …
• Cost of education for the school of
choice
• Estimate of the expected family
contribution (EFC)
• Financial need and aid eligibility
• Estimate net price or “gap” in aid
• Need some student and parent
financial information
World-Class Education. World-Class City.
Why
Get An
Assessment?
CLICK
TOEarly
EDITNeed
MASTER
STYLE
Families need…
• To become familiar with college costs, available
aid, and potential family costs.
• An early EFC estimate to prepare a financial
plan to meet the cost of education.
• To know their federal and state funding
eligibility.
• To be proactive in their college selection based
on both an academic and financial fit.
World-Class Education. World-Class City.
College
Cost
and
Aid Calculators
CLICK
TO
EDIT
MASTER
STYLE
•
Financial Aid Needs Estimator:
http://webapps01.act.org/fane/docs/
•
EFC Calculator: www.whatsnextillinois.org
•
UIC website:
http://www.uic.edu/depts/financialaid/
•
FAFSA4Caster:
https://fafsa.ed.gov/FAFSA/app/f4cForm?execution=e1s1
World-Class Education. World-Class City.
Be An
Consumer
CLICK
TO Educated
EDIT MASTER
STYLE
Investigate options. Ask each school:
• The percent of need they meet with financial
aid
• Their ratio of grants and scholarships awarded
versus work study and loans
• Do they offer an early financial aid award
estimate
World-Class Education. World-Class City.
Be An
Consumer
CLICK
TO Educated
EDIT MASTER
STYLE
Choose optimal postsecondary fit based on:
•
Academic admissibility match
•
Career accessibility and personal fit
•
Financial affordability
World-Class Education. World-Class City.
Be An
Consumer
CLICK
TO Educated
EDIT MASTER
STYLE
Be sure your choice is a wise investment:
•
Can you meet your gap in aid annually?
•
Choose a major that makes sense for your
potential debt to income outlook.
World-Class Education. World-Class City.
of Financial
AidSTYLE
CLICKTypes
TO EDIT
MASTER
• Scholarships
• Grants
• Loans
• Employment
World-Class Education. World-Class City.
Scholarships
and Grants
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TO EDIT MASTER
STYLE
• Money that does not need to be repaid
• Scholarships are awarded on the basis
of merit, talent, skill, or a unique
characteristic
• Grants are usually awarded on the
basis of financial need
World-Class Education. World-Class City.
Loans
CLICK TO EDIT
MASTER STYLE
• Money students and parents borrow to
help pay for educational expenses
• Repayment usually begins after
education is finished
• Look at loans as an investment in the
future
World-Class Education. World-Class City.
CLICK TOEmployment
EDIT MASTER STYLE
• Allows student to earn money to help
pay educational costs
• A paycheck; or
• Non-monetary compensation, such as
room and board
World-Class Education. World-Class City.
Free Application for Federal Student
CLICK TOAid
EDIT
MASTER STYLE
(FAFSA)
• A standard form that collects
demographic and financial information
about the student and family
• Information is used to calculate the
Expected Family Contribution (EFC)
• Colleges use EFC to award financial aid
World-Class Education. World-Class City.
Completing
the FAFSA
CLICK
TO EDIT MASTER
STYLE
• The FAFSA was available as of
January 1, 2011 for the 2011-12
academic year
• Most colleges set a FAFSA priority filing
deadline, with March 1st being the most
common
World-Class Education. World-Class City.
onMASTER
The Web STYLE
CLICKFAFSA
TO EDIT
• Available in English or Spanish
• FAFSA Website: www.fafsa.gov
World-Class Education. World-Class City.
Federal
Student
Aid PIN
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TO EDIT
MASTER
STYLE
• Need PIN to sign the form electronically
• PIN Website: www.pin.ed.gov
World-Class Education. World-Class City.
Frequent
FAFSA
Errors
CLICK
TO EDIT
MASTER
STYLE
•
•
•
•
•
•
•
•
•
Social Security Numbers
Divorced/remarried parental information
Income earned by parents/step-parents
Untaxed income
U.S. income tax paid
Household size
Number of household members in college
Real estate and investment net worth
Lack of proper signatures
World-Class Education. World-Class City.
Financial
Need STYLE
CLICK TO
EDIT MASTER
Cost of Attendance (COA)
- Estimated Family Contribution (EFC)
= Financial Need
Examples:
COA
20,000
15,000
EFC
5,000
5,000
Need
$15,000
$10,000
World-Class Education. World-Class City.
of Attendance
CLICK Cost
TO EDIT
MASTER STYLE
• Includes direct and indirect costs
• Is the total ESTIMATE of students
expenses at the particular institution
• Varies widely from college to college
World-Class Education. World-Class City.
Cost
of Attendance
Example
- UIC
CLICK
TO EDIT MASTER
STYLE
• Direct Costs
– Tuition
– Fees
$9,134
$3,730
• Indirect Costs
–
–
–
–
Books and Supplies
Transportation
Misc./Personal
Room and Board
$1,200
$1,452
$2,176
$10,882
World-Class Education. World-Class City.
Financial
AidEDIT
Award
Example
- UIC
CLICK TO
MASTER
STYLE
FALL
SPRING TOTAL
Offered Awards:
Presidents Award
Private Scholarship
Federal Pell Grant
State of IL MAP Grant (Est).
UIC Access to Excellence Grant
Federal Direct Loan–Subsidized
Federal Direct Loan–Unsubsidized
Federal Parent Loan
Federal Work Study
$1,500
$1,000
$1,300
$2,484
$2,500
$1,750
$1,000
$1,000
$1,500
Total Aid Awarded
$14,034 $14,034 $28,068
Note:
$1,500
$1,000
$1,300
$2,484
$2,500
$1,750
$1,000
$1,000
$1,500
$3,000
$2,000
$2,600
$4,968
$5,000
$3,500
$2,000
$2,000
$3,000
Student can choose to accept/decline any aid type offered.
World-Class Education. World-Class City.
Helpful
CLICK TO
EDITWebsites
MASTER STYLE
• FinAid - An easy-to-use guide to financial aid programs
and terms
http://www.finaid.org
• Illinois Student Assistance Commission – The State of
Illinois site for financial aid information
http://www.collegezone.com
• Student Aid on the Web – The U.S. Department of
Education’s site for financial aid information
http://studentaid.ed.gov/PORTALSWebApp/students/en
glish/index.jsp
World-Class Education. World-Class City.
Questions
CLICK TO EDIT
MASTER STYLE
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