Financial Aid:
Finding Money for College
Elizabeth LeMaster
Student Services Counselor
419-372-2651
Bowling Green State University
www.bgsu.edu
Agenda
PART I
Financial Aid Overview
PART II
Introduction to Filling out the Free Application
for Federal Student Aid (FAFSA)
How do I pay for college?
Financial Aid: FAFSA (loans/grants), Scholarships,
529 savings plan, etc.
Out of pocket: payment plan
Additional Loans: Alternative student and/or parent PLUS
Where Do I Start?
Different schools require different applications, check with the
financial aid office at each school.
Some standard applications are:
1. Admission Application
2. Free Application for Federal Student Aid (FAFSA)
3. Institutional Application
Free Application for Federal Student Aid
(FAFSA)
www.fafsa.ed.gov
To ensure maximum consideration for federal,
state, & institutional aid, students should
complete their FAFSA as soon after January
1st as possible.
You may estimate your 2008 tax information, but are
required to verify the information is accurate after
April 15th, when your taxes are due.
Request a Federal PIN
Both the Student and at least one Parent must
apply for a 4-digit PIN
www.pin.ed.gov
START
A FILE!
PIN USED TO:
• Sign the Free Application for Federal Student Aid (FAFSA)
•
Submit Electronic Signatures on Promissory Notes…and more!
FAFSA
Expected Family Contribution (EFC)

Collects family’s personal & financial information
used to calculate a student’s Expected Family
Contribution (EFC).

This number is used by the school to determine needbased aid eligibility.
EFC = A measure of the family’s
capacity over time to absorb
educational costs
Expected Family Contribution (EFC)
The EFC is determined by
a formula created by
Congress called the Federal
Methodology.
EFC = minimum amount a
family should be able to pay
out-of-pocket without
financial assistance.
You can finance your
EFC if this number is not
realistic for your family.
EXPECTED FAMILY
CONTRIBUTION
PARENT'S CONTRIBUTION
$10,000
STUDENT'S CONTRIBUTION
$500
If the parent has multiple children in
college at once, their contribution is split
between all eligible dependents, thus
reducing the EFC for each!
What happens after a FAFSA is submitted?

The Student Receives notification from FAFSA
and is issued a summary of the FAFSA in a
Student Aid Report (SAR), including the
calculated EFC.

The Financial Aid Office receives the information
and will process the application and award students
a financial aid package based on their EFC.
Financing Your Education
How a Financial Aid Package is created
based on your EFC
Definition of Need
Cost of attendance (COA)
– Expected family contribution (EFC)
= Financial need
Need Comparison
Higher Cost
Institution
Cost of Attendance
$30,000
- *EFC
$2,500
=Need-based Eligibility $27,500
Mid Cost
Institution
$20,000
$2,500
$17,500
Lower Cost
Institution
$13,000
$2,500
$10,500
Financial Aid Sources
What aid is available to cover my cost of
attendance if I file a FAFSA?
Federal Stafford LOANS
Primary source of aid offered to students upon filling out a FAFSA
1. Unsubsidized –Interest accrues on this NON need-based loan while in school.
2. Subsidized – No interest accrues on this need-based loan while in school.
Interest rates are currently fixed at 6.8%
Dependent Undergraduate (08/09 Annual Loan Limits)
Freshman - $5,500
Sophomore - $6,500
Junior - $7,500
Senior - $7,500
(Subsidized Maximum:$3,500)
(Subsidized Maximum:$4,500)
(Subsidized Maximum:$5,500)
(Subsidized Maximum:$5,500)
Repayment begins 6 months after the student:
1. Graduates
2. Leaves School
3. Falls below ½ time
Federal Perkins LOAN
Need-based loan issued by the institution.

Limited Funding*

Interest rate: 5% Fixed

9-month grace period

Deferment & cancellation provisions
available
*File FAFSA as soon after January 1, 2009 for maximum aid
consideration!
Federal GRANTS
PELL: $445-$4731, (
EFC: $0-$4041)
FSEOG: Must be Pell eligible, limited funds, award may vary
between schools
ACG: $750/freshman $1300/sophomore with min. 3.0 GPA, attend
a 2 or 4 year degree granting institution, attended rigorous High
School program & Pell eligible
SMART: $4000/junior & senior year with min. 3.0 GPA, attend a 4
year degree granting institution, Pell eligible & Major in: physical,
life, or computer science, engineering, mathematics, technology, or
a critical foreign language
-Based on 08/09 Guidelines-
State GRANTS
OCOG: Need based, Ohio Board of Regents, Must file FAFSA by
October 1st, $78-$2496 ( EFC: $0-$2190)
CHOICE: Private Schools ONLY, Ohio Board of Regents, $660
-Based on 08/09 Guidelines-
GRANTS-loan
*TEACH Grant-loan:
• Up to $4,000 per year to students who intend to teach in a public or
private elementary or secondary school that serves low-income families.
• Must serve for a min. of 4 years within an 8 year time frame.
IMPORTANT
• If you fail to complete this service obligation, all amounts of TEACH
Grants that you received will be converted to a Federal Direct
Unsubsidized Stafford Loan.
• You will be charged interest from the date the grant was disbursed.
For more information: studentaid.ed.gov
WORK STUDY
Federal Work Study (FWS) is a federally-funded program that provides work
opportunities to graduate and undergraduate students with financial need.
Eligibility is determined based on the submitted FAFSA information.
FACTS

FWS funds will be provided to the student in the form of a paycheck for the
hours they actually work. *Earnings are not automatically applied to your
Bursar billing account.

When the student applies for financial aid for the next academic year, through
FAFSA, the government will not include work study income in their calculations
to determine the Expected Family Contribution (EFC).
What if I am not awarded enough money through
the FAFSA?
Bowling Green State University: January 15th
Ohio State University: December 1st
University of Toledo: January 5th
SCHOLARSHIPS
Start your search now!

Institutional: To obtain specific institutional scholarship applications,
contact the office awarding them. TIP: Check to see if your institution
has an online, Searchable Scholarship Guide

Non-Institutional/Outside: Check locally for applications and begin a
national search online! (REMEMBER: check with any
organization/business the student or parent is affiliated with for
scholarships. i.e. Churches, places of employment, clubs/lodges like
The Elks, 4-H, etc.)
AVOID BEING SCAMMED!
Better Business Bureau: http://www.bbb.com
U.S. Department of Education:
http://studentaid.ed.gov/students/publications/lsa/index.html
Federal Trade Commission:
www.ftc.gov/bcp/conline/publs/alerts/ouchart.htm
Parent PLUS and Alternative Student

1. Federal Parent Loan for Undergraduate Students (PLUS)
 Loan in parent’s name
 2 Repayment choices




begins while student is in college (60 days after the full disbursement)
begins 6 mos. after the student graduates, leaves school or drops below ½ time
Interest Rate: currently 7.9-8.5% Fixed
2. Alternative loan programs
 Loan in student’s name
 Repayment typically begins 6 months after graduation/leave school
 Various terms, credit-worthy signer or co-signer
 Check for maximum/capped Interest Rate, Pre-Payment Penalties, etc.
 www.certifiedprivateloans.com
Satisfactory Academic Progress



Meet minimum cumulative grade point average
per grade level. (FRESHMAN: 1.50)
Successfully complete at least 67% of cumulative
credit hours attempted.
Complete the degree/certificate program within the
maximum attempted hours.
How Can I Be Considered Independent?
By answering “yes” to one of these questions.
1.
Were you born before Jan. 1, 1986?
2.
As of today, are you married?
3.
Will you be working on a master’s/doctorate program?
4.
Are you currently serving on active duty in the U.S. Armed Forces for purposes other than training?
5.
Are you a veteran of the U.S. Armed Forces?
6.
Do you have children who will receive more than half of their support from you between July 1, 2009, and June 30,
2010?
7.
Do you have dependants (other than your children/spouse) who live with you and receive more than half of their
support from you, now and through June 30. 2010?
8.
When you were age 13 or older, were both your parents deceased were you in foster care or were you a
dependent/ward of the court?
9.
Are you an emancipated minor?
10.
Are you in a legal guardianship?
11.
At any time on or after July 1, 2008, did your high school or school district homeless liaison determine that you were
an unaccompanied youth who was homeless?
12.
At any time on or after July1, 2008, did the director of an emergency shelter program funded by the U.S. Depart. Of
Housing and Urban Development determine that you were an unaccompanied youth who was homeless?
13.
At any time on or after July 1, 2008, did the director of a runaway or homeless youth basic center or transitional
living program determine that you were an unaccompanied youth who was homeless or were self-supporting and at
risk for being homeless?
What if my parents are divorced?

File your FAFSA with the parent that you live with
most.

If the parent you are required to file with is remarried, you
must also include your step-parent’s financial information.
The parent you file with does not have to be the
parent that claims you for tax purposes.
Unusual Circumstances?
 Discuss
with your college financial aid office
 Examples include:
 Change in family income - loss of job
 Death, illness of family member
 Unusual expenses—medical, catastrophic
event
Colleges view eligibility differently. The Financial Aid administrator’s decision is final
and cannot be appealed to the U.S. Department of Education.
Part II
Introduction to Filling out the Free
Application for Federal Student Aid
(FAFSA)
•Commonly Asked Questions
•Frequently Made Mistakes
Records You Will Need to File the FAFSA









Federal PIN www.pin.ed.gov
2008 US Income Tax Returns
W-2 Forms
Untaxed Income Information
Bank Statements
Driver’s License #
Investment Information
Business Records
Farm Records
FAFSA on the Web’s Homepage
www.fafsa.ed.gov
FAFSA ON THE WEB WORKSHEET
(Should be available by December)
Section 1 –Student Information
Section 3 –Parent Information
Section 5 – Colleges to Receive
Information
DO NOT MAIL
THE FAFSA ON THE WEB WORKSHEET!
CAUTION!
Avoid being charged a fee to file the FREE Application for
Federal Student Aid
Completing & Processing the FAFSA is FREE
www.fafsa.ed.gov
Questions?
FAFSA 1-800-433-3243
Financial Aid Office
HELP!!!!!!
COLLEGE GOAL SUNDAY
February 08, 2009
•Line by line instruction for completing the FAFSA
•Have an expert review a completed or nearly
completed FAFSA
40 sites in 33 Ohio Counties
Find locations and register online soon!
www.ohiocollegegoalsunday.org
www.studentaid.ed.gov
General Financial Aid CHECKLIST



Apply for Admission: Check for Freshman scholarship
Deadlines!
Search and Apply for SCHOLARSHIPS!
Complete 09/10 FAFSA www.fafsa.ed.gov
Beginning January 1, 2009

Review award letters sent from schools you applied to, to see
if you need to apply for additional loans
(Parent PLUS/Alternative)
Any Questions?
If you are considering BGSU, please fill out an
Information Request Card to be considered for a BGSU
Scholarship!
Please turn this card into me before you leave.