Tonight ’ s Topics
 What is Financial Aid
 Types of Financial Aid
 How is Financial Aid Awarded
 The Financial Aid Process

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:
–
–
–

Types of Financial Aid
– 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
– Federal Work-Study Program
• Students work part time, usually on campus
• Money earned helps pay for college

Types of Financial Aid
– 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?
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
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

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

Type of Aid
Federal Grant
Brown University
$5,000
Institution Based Grant $35,000
Perkins Loan Un-Sub $1,000
Stafford Loan Sub
Work-Study
Parent Plus Loan
Total Aid
$3,000
$3,000
$9,000
$53,500
University of Penn
$5,000
$38,658
$3,000
$4,000
$50,658

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
– 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