Determining the Cost of College
Smart Student Guide to Financial Aid
www.finaid.org
Includes calculators to help you with the math on loan payments, college cost
projections, financial aid estimation forms, reference book resources, videotape
resources, information on free booklets by mail, periodicals, lobbying and
advocacy groups, and discussion groups.
Smart Money for College Planning
www.smartmoney.com/college
Fast Web
www.fastweb.com
College Board
www.collegeboard.com
Cost of Attendance
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Tuition and fees
Room and board
Books and supplies
Transportation
Personal Expenses
Goals of Financial Aid Process
• To assist students in paying for their
educational investment
• To evaluate the family’s financial ability
to pay for educational costs
• To distribute limited resources in an
equitable manner
• To attempt to provide a balance of gift
aid and self-help aid
Basic Eligibility Requirements for Aid
• Demonstrate a financial need
• Be a US citizen or eligible non-citizen with a valid
Social Security number
• Be working toward a degree or certificate in an
eligible program
• Be qualified to obtain postsecondary education, i.e. be
a High School Graduate
Sources of Aid
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Institutional
Private
State
Federal
Types of Financial Aid
Gift Aid
• Scholarships
• Grants
Self-help
• Loans
• Employment Opportunities
Gift Aid
Grants
• Federal
– Pell Grant
– FSEOG
– ACG
– SMART
• State
• Institutional
• Private
Scholarships
• Federal
• State (SC)
– Palmetto
– Life
Institutional
Private
Self-Help Aid
Loans
Employment
• Federal WorkStudy
• State Work-Study
Programs
• Institutional WorkStudy Programs
• Federal Perkins Loan
• Federal Stafford Loans
– Federal Family Education
Loan (FFEL) Program
– William D. Ford Federal
Direct Loan Program
• Federal PLUS Loan
– GRAD PLUS Loan
• State Loans
• Institutional and Private
Loans
Loans vs. Grants
Determining Financial Need
Cost of Attendance (COA)
–
Expected Family Contribution (EFC)
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=
Financial Need
Expected Family Contribution
(EFC)
• The measure of your family’s financial strength
• Indicates how much of your and your family’s
financial resources should be available to help pay
for your education
• Calculated according to an established formula
EFC Formula
The formula takes into account
• Your own & your family’s income
• Your own & your family’s assets
• Your family size
• The number of family members
who will be attending college
Need Varies Based on Cost
1
X
2
Y
3
Cost of
Attendance
(Variable)
Z
EFC
EFC
Expected Family
Contribution
Need
(Constant)
(Variable)
Examples of Financial Need
Institution
Private
State
Technical
*COA
$30,124
$14,640
$11,350
*EFC
$10,000
$10,000
$10,000
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Need
$20,124
$4,640
$1,350
*COA - Cost of Attendance
*EFC - Estimated Family Contribution
Free Application for Federal
Student Aid (FAFSA)
• Family’s personal and financial information
required to perform need analysis is collected on
FAFSA
• Paper versions of FAFSA
– “Regular” Paper FAFSA
– Renewal FAFSA
• Electronic version of FAFSA
– FAFSA on the Web at
www.fafsa.ed.gov
– Obtain PIN at www.pin.ed.gov
Avoid ERRORS!
Any accidental errors made in
completing the FAFSA
and/or supplemental forms
may cause delays in the aid
process and result in the
loss of financial aid funds.
Please complete all forms
carefully!
FAFSA
• Apply on-line, rather than by paper
– Speeds up processing
– Catches potential errors
• Apply for your PIN before
completing FAFSA
• Parents Must apply for a PIN also
Frequent FAFSA Errors
• Enter in Whole Numbers only,
– Use 50 vs 50.00
• Do not leave any field blank
• Count yourself as one of the people in your family
attending college
• “You” or “Your” in questions refers to the student’s
income or assets, not parents
• Pick up the amount from the correct line on the tax return
– www.finaid.org provides a map from tax line to FAFSA
Frequent FAFSA Errors (cont.)
• Use your name exactly as it appears on your Social
Security card
• Dependent Student Status question is confusing – read it
carefully and answer accurately
• Make sure worksheets A, B, & C are completed and
submitted, if they apply
• Self- Employed individuals must complete and additional
worksheet
• When completing the Form on-line make sure both parent
and student input PIN for e-signature
Maximizing your Aid Eligibility
• Save money in the parent’s name,
not the child’s name
• Pay off consumer debt, such as
credit cards and auto loans
• Spend down the student’s income
and assets first
Maximizing your Aid Eligibility
(cont.)
• If you feel you have unusual circumstances make
an appt with the financial aid administrator to
review your case
• If absolutely necessary borrow money from
retirement funds, rather than withdrawing funds –
as the withdrawal is considered income next year
• 529 plans should be in the parent or grandparents
name, not the students
Federal Programs
Grants
• Four Types Of Federal Student Aid
Grants
– Federal Pell Grant
– Federal Supplemental Educational
Opportunity Grant (FSEOG)
– Academic Competitiveness Grant (ACG)
– National Science & Mathematics Access to
Retain Talent Grant (National Smart Grant)
Federal Pell Grant Program
• Awarded to eligible undergraduates
• Portable
• Award range: $400 - $4,050
Federal Supplemental Educational
Opportunity Grant (FSEOG)
• Eligible students
– Undergraduates
– Awarded first to students with exceptional
financial need
– Priority to Federal Pell Grant recipients
• Annual award amounts
– $100 - $4,000
Academic Competitiveness (AC) Grant
• In addition to the Federal Pell Grant,
first-year AC Grant students may
receive up to $750
• Second-year AC Grant students may
receive up to $1,300
AC Grant Eligibility
• Submit FAFSA and been determined eligible for a
Federal Pell Grant;
• Be a U.S. citizen;
• All AC Grant students must have completed a
rigorous high school program of study as
designated by their state
• For a second-year AC Grant, students must have a
cumulative grade point average (GPA) from their
first year of at least 3.0
National SMART Grant
• National Science and Mathematics
Access to Retain Talent (SMART)
Grant recipients may receive up to
$4,000 each year in addition to the Pell
Grant funds
SMART Grant Eligibility
• Submit FAFSA and been determined eligible for
a Federal Pell Grant;
• Be a U.S. citizen;
• Be enrolled fulltime in their third or fourth year
of a four-year degree program;
• Pursuing a major in mathematics, science
(including physical, life, and computer sciences),
technology, engineering, or a critical foreign
language, such as Arabic, Chinese, Korean,
Japanese and Russian; and
• Have a grade point average (GPA) of at least 3.0
Federal Work-Study
• Undergraduate or graduate students are
eligible
• Employment can be on or off campus
• Typical award amount is $1,500
• Eligible employers
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School
Federal, state, or local public agency
Private non-profit organization
For-profit organization
Community service activities
Federal Perkins Loan
• Student is the borrower
• Eligible students
– Undergraduate or graduate students
– Priority to exceptional need
– Interest subsidized while student is in school
• Interest rate: 5%
• Repayment begins 9 months after graduation
• Deferment and cancellation provisions available
• Undergrads can borrow up to $4,000 per year;
typical award amount $1,000 - $1,500
Federal Stafford Loan
(Subsidized and Unsubsidized)
• Student is the borrower
• Interest Rate is 6.8%
• Repayment begins 6 months after graduation
• Annual loan limits
– $3,500 (1st year undergraduates)
– $4,500 (2nd year undergraduates)
– $5,500 (each remaining undergraduate year)
– $8,500 (each year of graduate/professional study)
• Subsidized Stafford: Must demonstrate “need”
• Unsubsidized Stafford: Need is not a consideration
Additional Eligibility for
Unsubsidized Federal Stafford
Additional eligibility for independent
undergraduates and for graduate students
– $4,000 per year for first and second years of
undergraduate study
– $5,000 per year for remaining years of
undergraduate study
– $10,000 per year for graduate and
professional students
Federal PLUS Loan
• Borrowers are parents of dependent undergraduate
students
• Annual loan limit; cost of attendance minus other
aid
• Adverse credit history check
• Fixed interest rate of 9.0%
• Up to 4% origination fee
• Repayment begins 60 days after disbursement;
• Deferment provisions; only principal is deferred,
but interest may be capitalized
Who Should Borrow?
• Even if parents intend to repay the
loans – students should borrow as
much as they are eligible for, as the
student can borrow at a lower rate
and better deferment options
Repayment
If using a private lender inquire about:
• Repayment rewards
– ie, lower interest rate or origination fee if you repay
through automatic withdrawal
– Sallie Mae Upromise offers discount on purchases
at major retailers
– Credits for paying loan on time
• Consolidation plans
• Graduated payment options
South Carolina Programs
SC Commission on Higher Education:
www.che.sc.gov
Palmetto Fellows
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South Carolina residents only (Guidance office at SJCS will
notify you if you qualify)
Students must attend a four-year private or public institution
within South Carolina
Eligibility based on high school performance and academic
promise
Students qualify in one of two ways:
1. Score on SAT of 1200 or higher or a 27 composite score or
higher on the ACT at the end of junior year in high school,
top 6 percent of the class at the end of either the sophomore
or junior year, and a 3.5 GPA.
2. Score at least a 1400 on the SAT or 32 on the ACT through
the November test administration and earn a cumulative 4.0
GPA at the end of the junior year without regard to class
rank.
Palmetto Fellows (cont.)
• Renewable first year award of $6700, second, third and fourth year
award of $7500 with a 3.0 GPA and 30 hours (cannot count AP/IB
hours towards 30 hour requirement)
• Two application deadlines:
December 14, 2007
June 13, 2008
• Verify that he or she has never been convicted of any felonies and has
not been convicted of any alcohol or other drug –related misdemeanor
convictions within the past academic year
• Must certify that he/she has not defaulted and does not owe refunds on
any Federal or State financial aid
South Carolina
LIFE Scholarship
• South Carolina residents only, or a high school graduate of
South Carolina resident parents
• Students must attend an eligible institution, including fouryear private or public institutions, two year public and
private institutions and technical colleges within South
Carolina
• Eligibility based on high school performance and academic
promise (colleges will notify you if you are eligible)
SC LIFE Scholarship (cont.)
• Must meet 2 of 3 criteria:
– A 3.0 cumulative grade point average (GPA) on a 4.0 scale
– A score of 1100 (not including the writing subsection) on the SAT
or an equivalent ACT score of 24
– Rank in the top 30% of the graduating class
• Verify that he or she has never been convicted of any felonies and has
not been convicted of any alcohol or other drug –related misdemeanor
convictions within the past academic year
• Must certify that he/she has not defaulted and does not owe refunds on
any Federal or State financial aid
SC LIFE Scholarship (cont.)
LIFE award amounts:
– 4 year Public and Private Institutions
• Cost of tuition plus a $300 book allowance not to exceed $4,700
– Technical Schools
• Cost of tuition plus a $300 book allowance
– 2 year Public/Private Institutions
• up to cost of tuition at USC Regional campus plus a $300 book
allowance
– Renewable if student earns 30 credit hours and maintains a 3.00
cumulative LIFE GPA (can count AP/IB hours towards 30 hour
requirement)
– Half disbursed for Fall and half disbursed for Spring
– No application required.
“LIFE GPA” Formula
Grade Points × Attempted Credit Hours = LIFE GPA
Total Attempted Credit Hours
All college level work during any term from an accredited
college/university is used to determine the cumulative
LIFE GPA at the end of each academic year.
Life Scholarship Enhancement
• Must meet all of the requirements of a Life
Scholar, plus be enrolled as a math or science
major
• Awarded for second, third and fourth years of
school
• Minimum credit hour requirements in math and
science courses
• Additional $2500 in aid awarded
South Carolina
HOPE Scholarship
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Must be a U.S. citizen or permanent resident
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South Carolina residents only, or a high school graduate of South Carolina
resident parents
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Must have earned a 3.0 cumulative grade point average (GPA) on a 4.0 scale
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Must be enrolled full-time as a degree-seeking undergraduate student in an
eligible four-year public institution or four-year independent institution
• Verify that he or she has never been convicted of any felonies and has
not been convicted of any alcohol or other drug –related misdemeanor
convictions within the past academic year
• Must certify that he/she has not defaulted and does not owe refunds on
any Federal or State financial aid
SC HOPE Scholarship (cont.)
• Students receiving a SC Hope Scholarship are not eligible for a
LIFE or Palmetto Fellows Scholarship
• Only eligible to receive scholarship funds during the first year of
attendance
• Documents required for determining SC Hope Scholarship
eligibility must be submitted to the institution by their established
deadlines
• Award amount is $2,800 (includes a $300 book allowance)
South Carolina Need-based Grant
• Must be a needy student as determined through
completion of the FAFSA
• Must be a legal resident of South Carolina
• Must be enrolled for at least part time
• Must certify that he or she has not been convicted
of any felonies and has not been convicted of any
alcohol or drug-related misdemeanor offenses
within the past academic year
South Carolina Need-based Grant
cont.
• Must certify that he or she does not owe a refund
or repayment on a State Grant, Pell Grant, or a
SEOG Grant and is not in default on a loan
(Perkins or Stafford)
• Student may receive up to $2,500 annually if
enrolled full-time and up to $1,250 annually if
enrolled part-time
• The Office of Financial Aid will determine the
exact amount of the award
• The grant must be directly applied towards the
cost of attendance
South Carolina
Tuition Grants
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South Carolina residents only
Students must attend a private college within South Carolina
Award varies dependent upon the private school you attend
Eligibility based on parent’s prior year income and assets
Estimated maximum award for the 2007-2008 academic year is
$3100.
• To apply the student and parent must complete the FAFSA prior to
June 30
• Upperclassmen must complete a minimum of 24 semester hours
per academic year for renewal
• Freshmen must rank in the top 75% of graduating class or score at
least a 900 on the SAT.
South Carolina
Teacher Fellows
• South Carolina Center for Teacher Recruitment
awards $5,700 renewable scholarships with a $300
summer stipend
• Recipients agree to teach in South Carolina one year
for every year they receive the fellowship
• Awards are renewed provided the recipient maintains
a 2.75 cumulative GPA and completes 30 academic
hours per year while completing a degree leading to
teacher certification
• Toll free in SC 1-800-476-2387