CollegeFinancial Aid

Everyone CAN afford to go to college

Myths about Financial Aid

1. My parents can’t afford to send me to college

2. My parents make too much money, so I’ll never get help

3. Only people with perfect GPA’s get scholarships

4. You must pay someone to help you get financial aid

Categories of Financial Aid

•Gift AidGrants – free money not to paid back

Scholarships – based on talent, merit

•Self-Help AidLoans – to be paid back with interest

Work Study – part time job on/off campus

Truth about Financial Aid

• No one is going to knock on your door or call you on the phone and give you free money for college.

• YOU must act to seek out the money that is available to you.

Is it Worth the Trouble?

• Yes! More than $4,,000,000 was awarded to students attending college in Texas in 2003-2004.– 78.0% was from the federal government.– 22.0% was from the state or institutions or

private sources.– 58.33% was in the form of loans.

Select your school

• Two year community, junior or technical college average cost per year is approximately $5000 (without room and board) and then transfer to a university.

• Four year universities average cost range from $12,000 to $20,000+ per year including room and board.

Apply !

• You are guaranteed NOT to be admitted if you don’t apply.• DON”T wait for test scores, essay, etc.

APPLY NOW• All Texas 4 year universities use the

“Texas Common Application”. Go on line to complete the application.

• Two year colleges use separate applications

Financial Aid begins with

FAFSA

Free Application for Federal Student AidSubmit the FAFSA online as soon as you have your

parents’ tax information after January 1, 2007.

NOW!

Apply for the Federal PIN number at www.PIN.ed.gov

DO NOT lose the number!

After you submit the FAFSA

You will receive an email from the Department of Education with the results of the FAFSA called the

Student Aid Report (SAR). Review the Student Aid Report and

make any necessary corrections online at www.fafsa.ed.gov using your Federal PIN

The Student Aid Report (SAR):

Summarizes the information you provided

States the amount the federal government thinks your family can spend on college known as:

Expected Family Contribution, or EFC

Expected Family ContributionEFC

Federal Needs Analysis Formula

Student contribution from income

+ Student contribution from assets

+ Parent contribution from income

+ Parent contribution from assets

= EFC Expected Family Contribution

Principles of Needs Analysis

• To the extent they are able, parents have primary responsibility to pay for their dependent children’s education

• Students also have a responsibility to contribute to their educational costs

• Families should be evaluated in their present financial condition

• A family’s ability to pay for educational costs must be evaluated in an equitable and consistent manner, recognizing that special circumstances can and do affect a family’s ability to pay

Contact the Financial Aid Office

Get a contact person who knows your name.

Keep notes of who you talk to, what they said and the date.

Be friendly, courteous, patient and start early.

Remember – Money goes to the first in line.

Remember – No one is going to find you and GIVE you money. You must ask.

Role of the Financial Aid Office• Determines eligibility for financial aid• Packages aid• Sends an award notification which includes:

– Student’s cost of attendance– Student’s EFC– Amount of student’s financial need– Programs and amount from each program for which the

student is eligible– How and when aid will be disbursed– Terms and conditions of student’s award

• Monitor’s Satisfactory Academic Progress

Cost of Attendance

• Tuition and Fees• Books and Supplies• Room and Board• Transportation• Miscellaneous/Personal Expenses• Dependent Care• Study Abroad• Expenses Associated with a Disability

Definition of Need

Cost of Attendance

- Expected Family Contribution

= Financial Need

Federal Pell Grant

• Awarded to eligible undergraduates pursuing first bachelor’s degree

• Actual award amount based on– Expected Family Contribution (EFC)– Enrollment status

• Current maximum award = $4,050

Federal Supplemental Educational Opportunity Grant (FSEOG)

• Eligible students– Undergraduates pursuing first bachelor’s– Awarded first to students with exceptional

financial need (i.e., students with the lowest EFCs at that school)

– Priority to Federal Pell Grant recipients

• Annual award amounts– $100 minimum– $4,000 maximum

Texas Grant• Must be Texas Resident• Graduated from a Texas public or accredited

private high school• Submit your final semester transcript • Complete Recommended or Advanced curriculum• Must have financial need as determined by school• Must be enrolled at least 3/4 time (9 hours min)• Must maintain a 2.5 GPA to remain eligible

Scholarships

Institutional Scholarships – each college has scholarships that they award.

Departmental Scholarships – for students who have a declared major (engineering or choir).

Private Scholarships:

Private ScholarshipsContact student’s and parent’s employers

Contact community and civic groups

Beware of scholarship “application fees”

Counselors’ Office – outside in file cabinet & webpage

Internet:

College Board’s Scholarship Search www.collegeboard.com/paying

FastWeb Scholarship Search www.fastweb.com

Scholarship Resource Network Express www.srnexpress.com

Federal Work StudyEmployment may be on/off campus

Eligible employers

School

Federal, state, or local public agency

Private nonprofit organization

For-profit organization

Schools must use portion of FWS funds for community service activities

Work-Study allows students to gain valuable work experience and form relationships with faculty and staff.

Federal Perkins LoanEligible students

Undergraduate or graduate students

Priority to students who show exceptional need

Loan amount varies

Maximum annual loan$4,000 undergraduate students

$6,000 graduate and professional degree students

Interest rate: very competitive

Nine-month grace period

Repayment period may be up to 10 years

Federal Stafford LoanSubsidized Stafford: Must demonstrate “need”,

no interest until you stop schoolUnsubsidized Stafford: Need is not a considerationBase annual loan limits (combined subsidized

and unsubsidized)

$2,625 for Freshman Grade Level (0-29 credit hours)

$3,500 for Sophomore Grade Level (30-59 hours)

$5,500 Junior and Senior Grade Level (60 and above)

$8,500 for each year of graduate/professional study

Variable interest rate, capped at 8.25%

Federal Stafford Loan

• Additional unsubsidized loan eligibility for independent undergraduates, graduate students, and dependent students whose parents are denied by the lending institution under the Parent PLUS Loan program:– $4,000 per year for freshman and sophomore years

of undergraduate study– $5,000 per year for junior and senior years of

undergraduate study– $10,000 per year for graduate and professional

students

Federal Parent PLUS Loan• Borrowers are parents of dependent undergraduate

students• Annual loan limit: cost of attendance minus other aid• Variable interest rate, not to exceed 9%

– Interest rate for 7/1/2006 – 6/30/2007 is 8.50%• Loan fees based on principal amount of each loan:

– FFEL Program: 1% insurance premium and 3% origination fee

– Direct Loan Program: 4% loan fee• Repayment begins 60 days after loan is disbursed

Private Loans• Provide additional source of funds to meet cost

of education• FAFSA is not required• Privately guaranteed• Limited Deferment and Forbearance Options• Non-subsidized• Most require school certification

Financial Aid Tips for Students

Complete the 2006-2007 FAFSA as soon as possible after January 1, 2006

Keep copies of all formsKnow the deadlinesBe sure to respond to all requests from the

financial aid office ASAP!Requested financial aid forms are available

online Contact the Financial Aid Office EARLY

CollegeFinancial Aid

Everyone

CAN afford

to go to

college