High School Counselor Workshop 1 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 5 Self-Help Gift Aid Aid Grants Work Study Scholarships Loans Sources of Financial Aid 6 Federal Financial Aid 7 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. 8 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 required 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 11 Next Presentation! Institutional Aid 12 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 13 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 14 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 15 The Cost of Attendance (COA) 16 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? 17 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 condition 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. 21 The Free Application for Federal Student Aid (FAFSA) takes into account: Income (parent(s) and student) EFC Assets (parent(s) and student) Number in Household Number in College Expected State of Residence Family Marital Status Contribution Dependency Status Note: EFC remains the same regardless of college/university FAFSA FACTS 22 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 FAFSA 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 26 PIN Registration • Web site: www.pin.ed.gov • 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 29 Financial Aid Offices at college/university Federal websites State websites Other Ways to Pay for College 30 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! YOU CAN AFFORD COLLEGE HCC Saturday, February 12, 2011 COLLEGE GOAL SUNDAY Various dates and sites http://collegegoalsundaymd.org/ HELP COMPLETING THE FAFSA! Howard Community College - Financial Aid Services 33 Phone: 443-518-1260 E-Mail: email@example.com Webpage: Go to www.howardcc.edu Select “Admissions” tab Click on “Pay for College” Select “Financial Aid Services” on the left column Questions??
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