Ca$h Course: A Study Guide on how to pay for college.

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Welcome to

Financial Aid Night

Tonight

s Topics

What is Financial Aid

Types of Financial Aid

How is Financial Aid Awarded

The Financial Aid Process

What is Financial Aid?

What is Financial Aid?

Financial Aid is:

Money to help you pay for college

From: Federal Government

State Government

Colleges

Local Organizations

Private Organizations

What is Financial Aid?

To be eligible, you must:

Be a citizen or eligible non-citizen of the

U.S.

Have a high school diploma or GED

Be enrolled at least half-time at an eligible institution

Register with the Selective Service (men only)

Not be in default on any federal education loans or owe a refund on any grants

Types of Financial Aid

Three types of Financial Aid:

Gift Money

Earned Money

Borrowed Money

Types of Financial Aid

Gift Money

Grants

Based on financial need

From government and colleges

Two federal grants: Pell and Supplemental

Educational Opportunity Grant (SEOG)

Scholarships

Based on various criteria

From colleges and other organizations

Types of Financial Aid

Earned Money

Federal Work-Study Program

Students work part time, usually on campus

Money earned helps pay for college

Types of Financial Aid

Borrowed Money

Two types of loans

Federal

Personal

Must be paid back

CUNA Mutual Group

Types of Financial Aid

Federal Loans

– Perkins

Borrower:

Student

Based on Need:

Yes

Interest Rate:

Fixed

– 6.22%

Repayment

Begins:

9 months after graduating or dropping below half-time

CUNA Mutual Group

BANK LOAN

Wells Fargo Collegiate ® Loan

A Wells Fargo Collegiate ® loan is a low-cost option for undergraduate students attending traditional four-year schools.

Cover the cost of education, including tuition, books, computers, housing, or even a study abroad program.

Benefits:

1. Make no payments until six months after leaving school.

2. Pay no application, origination, or early repayment fees.

3. Select a competitive fixed or variable interest rate option.

4. Reduce your loan cost with our interest rate discounts

.

Types of Financial Aid

Federal Loans

– Stafford

Borrower:

Student

Based on

Need:

Subsidized = Yes

Unsubsidized = No

Interest Rate:

Fixed

– 2014 2015 4.66%*

Repayment

Begins:

6 months after graduating or dropping below half-time

Types of Financial Aid

Federal Loans

– PLUS

Borrower:

Parent

Based on Need:

No

Interest Rate:

Fixed

– 7.21%*

Repayment Begins:

After the final disbursement

*Fixed interest rate applies to loans with first disbursement on or after 09/30/2015.

How is Financial Aid

Awarded?

How is Financial Aid Awarded?

Financial Need

Many (but not all) types of aid are based on financial need

Grants

Perkins loans

Subsidized Stafford loans

Federal Work-Study Program

How much aid do you need to pay for college?

How is Financial Aid Awarded?

Cost of Attendance

Tuition

Room and board

Books

Transportation

Personal expenses

How is Financial Aid Awarded?

Expected Family Contribution (EFC)

The EFC is the amount you may be expected to contribute

You don

’ t pay it up front

Used to determine how much aid you

’ re eligible for

Calculated from information you provide

The Financial Aid

Process

The Financial Aid Process

Applying for Financial Aid

To get aid, you have to apply

The

F

ree

A

pplication for

F

ederal

S

tudent

A

id

(FAFSA)

Additional forms

Scholarships

Apply regardless of family income

You and your family don

’ t make too much or too little to apply

The new program is the latest step in

Penn

’ s effort to widen access for students from all economic backgrounds, expanding its no-loan program beyond low- and lowermiddle-income families to include middleand upper-middle-income families.

Penn's New Financial

–Aid Program

In the fall of 2011, students from families with annual incomes of less than $100,000 who qualify for need-based aid will no longer receive loans as part of their financial aid package.

By fall 214, all undergraduate students eligible for financial aid will receive loan-free aid packages, regardless of family income level.

Tuition Charges Covered for Parents with Income

Below $150,000

For parents with total annual income below

$150,000 and typical assets for this income range, Stanford will ensure that all tuition charges are covered with need-based scholarship, federal and state grants, and/or outside scholarship funds.

In most cases, the parent contribution will be no higher than the standard cost of room and board

(around $11,000). Many parents in this group will see contribution amounts far lower than $11,000.

The Financial Aid Process

The FAFSA

It

’ s free!

Complete as soon as possible after

January 1st

Online (www.fafsa.ed.gov) or on paper

Online benefits

Instant access to help

Built-in error checking

Skip questions that aren

’ t required

Faster processing time

Easier to check status

Easier renewal process

CSS / Financial Aid Profile

WHAT is the PROFILE?

The PROFILE is an online application that collects information used by certain colleges and scholarship programs to award institutional aid funds.

WHEN Do I File the PROFILE?

You may file the

PROFILE

as early as Oct.

1, 2014. However, you should file no later than two weeks before the EARLIEST priority filing date specified by your colleges or programs.

WHAT does the PROFILE cost?

The fee for the initial application and one college or program report is

$25

. Additional reports are

$16

.

The Financial Aid Process

Preparing for the FAFSA

Apply for a Department of Education PIN

(www.pin.ed.gov)

Can be used each year applying for aid

You and your parents need separate PINs

Complete the FAFSA on the Web

Available before January 1st

Organized like the FAFSA on the Web

Collect information and prepare answers

The Financial Aid Process

FAFSA Tips

Don

’ t pay! Remember it

’ s

Free at www.fafsa.ed.gov

Interested in student loans?

Interested in work-study?

College possibilities

The Financial Aid Process

Information for the FAFSA

Have financial information and records available for both you and your parents

Bank statements

Income amounts (Forms W-2 or tax returns)

Investment records

Other

CUNA Mutual Group

The Financial Aid Process

Additional Forms and Scholarships

Are additional forms needed?

Check with individual colleges

Apply for scholarships!

Use free scholarship searches

• www.collegeboard.com

• www.fastweb.monster.com

www.finaid.org

www.gocollege.com

www.srnexpress.com

SCHOLARSHIP

Washington-Lee High School Class of

2014 received more than 11.2 million in

Grants and Scholarships

The Financial Aid Process

Student Aid Report (SAR)

Sent to you after FAFSA is processed

If you provided an email address, you get a notification containing a link to it online

Contains your Expected Family

Contribution (EFC)

Info sent automatically to colleges you listed

Verify information is correct and make necessary corrections

The Financial Aid Process

Award Letters and Offers

Received from the financial aid office

Compare offers

Amount of aid vs. cost of attendance

Gift money vs. borrowed money

Types of loans

Accept an offer from the college you will attend

Comparing Award Offers

Type of Aid

Federal Grant

Institution Based Grant

Perkins Loan Un-Sub

Stafford Loan Sub

Work-Study

Parent Plus Loan

Total Aid

Brown University

$5,000

$35,000

$1,000

$3,000

$3,000

$9,000

$53,500

University of Penn

$5,000

$38,658

$3,000

$4,000

$50,658

Ivy League Institutions

Merit Scholarships

Cornell University

Dartmouth College

Brown University

Yale University

No Merit Scholarships

Columbia University

Harvard University

Princeton University

University of Pennsylvania

The Financial Aid Process

Let

s Review:

Apply for a Department of Education PIN

Submit the FAFSA

Ask colleges if other forms are required

Apply for scholarships

Review your SAR

Compare award packages

Accept an award package

Look into PLUS Loan if necessary

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