Overview of Financial Aid TeacherWeb by alicejenny


									High School Counselor

     OCTOBER 13, 2012
              Financing A Education

 What is financial aid?

 Where does it come from?

 What aid is available?

 Who is eligible?

 How do students apply?
                Goals of Financial Aid

 Primary goal is to assist students in paying for
 college and is achieved by:

      Evaluating a families’ ability to pay educational costs
      Distributing limited resources in an equitable manner
      Providing balance of gift aid and self-help aid
       Role of the Financial Aid Office

 Determine aid eligibility using federal formula
 Package aid depending on availability of funds
 Send award notifications including:
    Award amount for each program for which
     student is eligible
    Disbursement methods and time frames
    Terms and conditions of each award
   Financial Aid Basics

Gift Aid

   Grants             Work Study

 Scholarships           Loans
Sources of Financial Aid
                Federal Financial Aid

 Grants
   Pell Grant- $5,550 max

   Supplemental Education Opportunity Grant (SEOG)-

    $4000 max
   Teach Grant- agree to teach in low-income areas, $4000 max

 Work-Study
   Need based award provides funds earned through part-time
    employment on and off-campus
   Student receives paycheck to help with expenses

   Limited funding available
             Federal Financial Aid, cont.

Loan Programs
 Types
    Federal Direct Student Loan– student’s name
    Perkins Student Loan- student’s name
    Parent PLUS – parent’s name, fixed interest rate, credit check

 Consider
   Low Interest Rates
   No Payment In School
   Grace Period
     General Student Eligibility Criteria

 Must be enrolled or accepted for enrollment in
  eligible program of study
 Must be pursuing degree, certificate, or other
  recognized credential
 Must be U.S. citizen or eligible noncitizen
 Must be registered with Selective Service
  (if male)
 May not have been convicted of possession or
  sale of drugs while receiving federal aid
     General Student Eligibility Criteria

 Must have valid Social Security Number (SSN)
 May not be in default on a federal student loan
 Must not owe an overpayment of a federal grant
 or loan
 Must be making satisfactory academic progress
 (as defined by school)
             State Aid

Next Presentation!
                     Institutional Aid

 Need Based or Merit Based Aid awarded by HCC
   Endowment and Foundation Funds (i.e. HCC Educational
    Foundation, Inc. Scholarships)
   Institutional Operating Funds (i.e. HCC Grants)
 Criteria may differ for each scholarship and may or may not
  include the following:
   Financial Need
   Academic Merit
   Learning Program
   Special Skills or Talents
                      Private Sources

 Financial aid funding that comes from private organizations
     Civic Organizations
     Professional Associations
     Private Businesses
 Deadlines and application procedures can vary widely
 Use reliable scholarship search services
     http://www.fastweb.com
     http://www.collegeboard.com/student/pay
     http://www.finaid.org

 Awards are based on enrollment status

For most institutions:
 12+ credits = F/T
 9-11 credits= Quarter-Time
 6-8 credits= Half-Time
 1-5 credits= Less than Half-Time
Determining Financial Need
        The Cost of Attendance (COA)

Calculating your Cost Of Attendance (COA)

         Tuition and Fees (direct average cost)
         Room and Board (direct or indirect average cost)
         Books and Supplies (indirect average cost)
         Transportation (indirect average cost)
         Miscellaneous Expenses (indirect average cost)

                            Note: COA is determined by individual schools
     What happens with my financial aid?

 Students may receive FA up to their COA

 FA will pay for your direct costs (tuition and fees and
 room and board if living on-campus)

 If your FA is in excess of your T&F you will receive a
 refund check (to help pay for indirect expenses)

 Example= $5000 in FA, $3000 bill, $2000 rebate
               College Cost Comparison Chart

Full Time          Community   4-year Public        4-year Private
Students           College     Resident of Maryland Resident of Maryland
                   (HCC)       (UMCP)               (JHU)
Tuition/Fees       $2,708      $8,053               $39,150
Books & Supplies   $1,600      $1,025               $1,200

Room & Board       $7,906      $9,575               $12,040

Transportation     $750        $ 1,000              $1,000

Personal           $1,600      $ 1,400              $1,400

Total COA          $14,564     $21,053              $54,790
EFC                $7,000      $7,000               $7,000
Need               $7,564      $ 14,053             $47,790
          Principles of Need Analysis

 To extent they are able, parents have primary
  responsibility to pay for dependent child’s education
 Students have a responsibility to contribute to
  educational costs
 Families should be evaluated in their present financial
 Family’s estimated ability to pay educational costs
  must be evaluated in equitable and consistent manner,
  recognizing that special circumstances may affect
  family’s ability to pay
            Federal Methodology

Federal Methodology is
the formula created by
Congress to determine
       the EFC.

                The Free Application for Federal
                   Student Aid (FAFSA) takes into
                      Income (parent(s) and student)
EFC                

                       Assets (parent(s) and student)
                       Number in Household
                      Number in College
                      State of Residence
                      Marital Status
                      Dependency Status

                  Note: EFC remains the same regardless of college/university
                    FAFSA FACTS

 When to complete
 Schools to list
 Definition of a Parent
 Dependency Status
 Dependency Overrides
 Professional Judgments
 Tax Information
         Independent Student Definition

 At least 24 years old by December 31 of award year covered by the
 Graduate or professional student
 Married
 Has children or dependents (other than a spouse) for whom the
  student provides more than half support
 Orphan or ward/dependent of the court or in foster care since age 13
 Veteran of U.S. Armed Forces or currently serving on active duty (for
  other then training purposes) in the Armed Forces
 In legal guardianship as determined by state or emancipated minor
 Determined to be homeless or unaccompanied youth
           Frequent FAFSA Errors

 Parent and student Social Security Numbers
 Divorced/remarried parental information
 Income earned by parents/stepparents
 Untaxed income
 U.S. income taxes paid
 Household size
 Number of household members in college
 Real estate and investment net worth
                FAFSA on the Web

 www.fafsa.gov

 2011-2012 applications will be available starting
 January 1

 IRS data retrival after 1/30/11

 FAFSA Forecaster available
               PIN Registration

• Web site:
• Can request PIN
  before January 1, 2011
• Not required, but
  speeds up processing
• May be used by students and parents throughout
  aid process, including subsequent school years
                 Application Process

 Submit FAFSA prior to school/state deadline
 Most aid awarded on “first-come, first-
 served” basis
 To ensure maximum consideration for
 federal, state, and institutional aid, check
 information from each school to determine:
     Required application materials
     Application deadlines
    Reliable Sources of Financial Aid

 Financial Aid Offices at college/university

 Federal websites

 State websites
          Other Ways to Pay for College

 Cash, Check or Money Order

 Tuition Payment Plans (at college/university)

 529 Savings & Prepaid Tuition Programs

 Employer Tuition Reimbursement Plan

 Military Tuition Assistance

 Veterans Benefits and Veterans Deferred Payment Plan

 Tuition Waivers

 Alternative Loans
                Fraud and Scams

 Do NOT pay someone to complete your FAFSA –
  contact the guidance counselor or college financial
  aid office.
 No one can guarantee you a scholarship for a
  minimal fee
 Attempt to contact the Better Business Bureau if you
  are suspicious.
              Mark Your Calendars!

   HCC

    Saturday, February 12, 2011

   Various dates and sites


  Howard Community College - Financial Aid Services

 Phone: 443-518-1260
 E-Mail: finaid@howardcc.edu
 Webpage:
   Go to www.howardcc.edu

   Select “Admissions” tab

   Click on “Pay for College”

   Select “Financial Aid Services” on the left column

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