Financial Aid Cliffnotes

Making $ense

of the Financial Aid Process

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What is Financial Aid?

Financial Assistance to help families pay for the cost of attending college that exceeds their ability to pay. Includes:

Gift Aid (free monies)

-- Scholarships

-- Grants Self Help

-- Student Loans (to be repaid)

-- Student Employment (to be earned)2

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Who is Eligible?

All U.S. citizens or non-citizens with permanent resident status applying for federal student aid for the first time qualify for some forms of financial assistance.

Who Provides Financial Aid?

U.S. Department of Education (www.studentaid.ed.gov)

-- Pell Grant (Up to $5,550 per year, more if you attend summer as well)

-- Supplemental Education Opportunity Grant-SEOG (Up to $4,000 per year-generally less because of availability of funds at the school)

-- TEACH Grant (Up to $4,000 per year)

-- Perkins Loan (Up to $4,000 per year, but usually less because of availability of funds at the school)

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Federal Government

U.S. Department of Education (continued)

-- Direct Student Loans (Up to $5,500 for freshman, $6,500 for sophomores, and $7,500 for juniors & seniors, $20,500 for grad students)

-- Parent PLUS Loan (Up to full cost of attendance minus student’s financial aid. Requires credit worthy applicant.)

-- Work Study (Award amounts vary by hourly wage and number of hours worked, campus policy)

(Notice of eligibility and award amounts for U.S. Dept of Education programs are made by the financial aid offices at the schools to which you apply.)

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U.S. Department of Health & Human Services (http://www.hrsa.gov/loanscholarships/)

-- Federal Nursing Loan (awarded by school)

-- Nursing Scholarship Program-- Scholarship for Disadvantaged Students-- Health Professions Student Loans-- Loans for Disadvantaged Students-- Primary Care Loans-- National Health Service Corps-- National Health Service Corps Loan Repayment

(Application is generally made directly with Dept of HHS)

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-- The Post 9/11 GI Bill-- The Yellow Ribbon Program-- Montgomery GI Bill-- Reserve Education Assistance Program-- Veterans Education Assistance Program-- Educational Assistance Test Program-- Survivor’s and Dependent’s Educational Assistance Program-- National Call to Service Program

(Application is made with Dept of Veterans Affairs)

U.S. Department of Veterans Affairs (http://www.gibill.va.gov/post-911/)

Washington State (www.hecb.wa.gov)

-- Washington State Need Grant (awarded by school)

-- State Work Study Program (awarded by school)

-- Tuition & Fee Waivers (awarded by public colleges)

-- Washington Scholars

-- Washington Award for Vocational Excellence

-- Washington Health Professions Programs

-- College Bound Scholarship

-- Opportunity Grants

-- WICHE8

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Washington State (continued)

-- American Indian Endowed Scholarships-- Future Teachers Conditional Scholarship and Loan Repayment-- GET Ready for Math and Science Conditional Scholarship-- John R. Justice Loan Repayment Program-- Passport for Foster Youth Promise Program

Colleges/Universities

-- Academic Merit Scholarships

-- Talent Scholarships

-- Need Based Grants/Scholarships

-- Endowed or Restricted Scholarships

-- Institutional loan or work programs

(Availability of programs and funds, as well as definition of “merit” or “talent” varies by school)

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Community Awards

-- High School scholarships

-- Community scholarships (e.g. Sumner-Bonney Lake Educational Foundation/Dollars For Scholars, Rotary, etc.)

-- Foundation Scholarships

-- Business Scholarships

-- Employer Scholarships (employee tuition assistance, dependent scholarships)

-- Church Scholarships

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How Do I Apply?

1. Apply for admission to the schools you are interested in attending.

2. Apply for a Personal Identification Number (PIN), which will serve as your electronic signature on the on-line FAFSA (www.pin.ed.gov).

3. Complete the Free Application for Federal Student Aid (FAFSA) www.fafsa.gov).

4. Complete any supplemental application required by individual schools.

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How Do Schools Award Aid?

1. On Merit-- Academic (GPA, SAT/ACT)

-- Talent (music, athletic, drama, art, dance, forensics, etc.)

-- Leadership, community service

-- Typically not based on need, may require separate application and participation or minimum standards while enrolled.

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How Do Schools Award Aid? (continued)

2. ConditionalTypically awarded on the basis of a specific

condition or characteristic. e.g.

-- First generation college student

-- single parent

-- Plan to teach, be an accountant, etc.

-- Specific academic interest

(may require separate application)

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How Do Schools Award Aid? (continued)

3. On Financial NeedRequires filing the FAFSA to determine financial

need. Includes:

-- scholarships

-- grants

-- work

-- student loans

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How is Financial Need Determined?

“Financial Need” is the difference between the cost of the school and the amount the family is expected to contribute toward that cost.

Cost of Attendance (COA)

- Expected Family Contribution (EFC)

=Financial Need

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Cost of Attendance (Budget)

Includes:Tuition and fees

Room and meals

Books and supplies

Transportation

Day care costs

Personal and miscellaneous

(may also include uniforms and computer at school’s discretion/policy)

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Cost of Attendance will Vary

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But Expected Family Contribution (EFC) Does Not

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How is the EFC Calculated?

Federal Methodology of Need Analysis

1. Determines student’s dependency status

2. Total Income (taxed and some untaxed incomes) for 2010

3. Household size

4. Number of family members attending college (excludes parents)

5. Value of assets (Excludes home, retirement accounts, insurance policies)

6. Age of older parent20

Who is an Independent Student?

Student is 24 years old by Dec 31, 2010 Married at time of FAFSA filing Has dependent child(ren) they are supporting Is serving on active duty or a veteran of the

U.S. Armed forces Is enrolled in graduate school Both parents deceased Court documented emancipated minor

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So who’s the Parent?

Excludes grandparent If parents divorced, the parent the student

lives with the most over the last 12 months If equal, then the parent providing the most

support over the past 12 months Always includes step-parent if parent has

remarried

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So What Happens Next?

After your school(s) receive your FAFSA and you are admitted, you will receive an offer of financial aid from each school, outlining what aid programs and dollar amounts they are making available to you. You need to:•Decide on the school you will attend.•Accept the award and complete the paperwork to process your aid. (May include a tuition deposit)•Notify the schools that you will NOT attend.

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When Can We Expect This to Happen?

Assuming you’ve been admitted and filed the FAFSA, generally aid offers are sent:•Mid to late February from private colleges & universities.•March & April from public four year colleges & universities.•April, May and June from two year community colleges.

Things to Remember

Must re-apply (FAFSA) each year Only looks at previous year’s income Doesn’t take into consideration unusual

circumstances or changes. Contact the school if you have unusual circumstances

Better to file early than be accurate but late Don’t assume you can’t afford a school – get

their financial aid award offer before deciding Renewal requires making Satisfactory

Academic Progress 25

Finally . . .

Keep all your options open until they are closed.

Get an estimate of your EFC ahead of time (at www.fafsa4caster.ed.gov)

Don’t pay anyone or any website to do your scholarship search or help with the FAFSA.

Find Financial Aid deadlines for WA schools at www.wfaa.org.

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Find scholarship matches on the Washington only website: www.thewashboard.org

Questions?

Talk to the financial aid administrator at your local college or university, or at the school the student is interested in attending.

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