UNDERSTANDING FINANCIAL AID

Isabelle Mora

Director of Financial Aid

Saint Martin’s University

Tracy Hall

Director of Financial Aid

The Evergreen State College

Kerri ChaputDirector of Student Grants & ScholarshipsSouth Puget Sound Community College

What you will learn today…

Applying for Financial Aid

Types of Financial Aid

Understanding College Costs

Additional Resources

APPLYING FOR FINANCIAL AID

Applying for Financial AidStep 1:

Complete the Free Application for Federal Student Aid (FAFSA)

• Application available online at: www.fafsa.ed.gov

• Apply for a Personal Identification Number (PIN) online at www.pin.ed.gov

• Submit your application before the priority deadline for the school for which you are applying.

• Submitting your application by the priority deadline increases your chances of being awarded funds that are limited.

Steps for Applying for Aid

After you complete the FAFSA application and you have been formally admitted to the school of your choice:

• Stay in contact with your school

• Alert them if you have any financial special circumstances that they should be aware of:• Marriage/Divorce• Job loss• New family member• Another sibling in college or

private school• Bankruptcy• Etc.

• Don’t be afraid to ask questions about your award letter, we are always happy to help!

Submit the FAFSA

Award Letter Received

Additional documentation

needed?

Complete MPN & Entrance Loan

Counseling

Accepted into University

What is a Master Promissory Note & Why do I have to do Entrance Counseling?

In order to accept your student loans, you will need to complete both an MPN and Entrance Loan Counseling.

Master Promissory Note

• The MPN is a non-loan specific contract that you are signing saying you agree to pay back your loan. Also includes:

• Borrower Rights/Responsibilities

• Reference information for you the borrower

• Need 3 references to complete

• If you borrow a loan within the year of completing your MPN, your MPN is good for 10 years.

• You will need your PIN number to sign it

Entrance Loan Counseling

• Tool to inform borrowers of their rights and responsibilities

• Provides Terms and Conditions of the loan:

• Interest Rates

• Repayment Options

• Etc

TYPES OF FINANCIAL AID

Types of Financial Aid• Institutional Scholarships/Awards

• Federal and State Grants

• Work-Study

• Stafford Loans (Student’s Loan) Subsidized Stafford Loans

• No interest accrues while student is enrolled

• 3.86% Interest Unsubsidized Stafford Loans

• Interest accrues when the loan money is given to the student

• 3.86% Interest

• Federal Perkins Loan (Student’s Loan)• No interest accrues while student is

enrolled• 5% interest rate

• Plus Loans /Private Loans (Parent’s Loan)

• Plus Loans (6.41%• Interest accrues when the loan is

disbursed• First payment is due 90 days after

the first disbursement• Alternative Loans

• Variable Interest Rates

Financial Aid

Loans-Federal-Private

Scholarships

Grants

Institutional Scholarships

Self-Help Gift Aid

Outside Scholarships

Federal Grants

State Grants

Institutional Scholarships

Work-Study

Perkins Loans

Federal Loans-Stafford/Plus

Self-Help vs. Gift Aid

*Gift Aid = Money that does not have to be re-paid*

UNDERSTANDING COLLEGE COSTS

Total Cost of Attendance

Your financial aid eligibility is determined by using information from the FAFSA application and the Total Cost of Attendance (TCA) from your school.

•The TCA is all the costs that you could encounter while enrolled for the school year.

•The TCA will vary based on:• Individual Institution• Student’s Enrollment• Special Circumstances

•Your financial aid can not be more than your total cost of attendance (loans included).

Tuition

Mandatory Fees

Room and board

Books & Supplies

Transportation

Miscellaneous

Loan Fees

How much Gift Aid am I eligible for?

Net Price Calculator

•All Universities/Colleges are required to have a Net Price Calculator (NPC). •The NPC is an estimation of what your expected costs will be for attending that particular school. •Where to find the NPC?

• On the schools website

• www.nces.ed.gov/collegenavigator/

BRINGING IT ALL TOGETHER

Next Steps:

1. Complete your Admissions Application

2. Submit your FAFSA by the priority deadline for your school (can vary with schools)

3. Apply for Scholarships

4. Contact your School’s Financial Aid Office if you have any questions

Additional Resources

•Scholarship Search Engines:

FastWeb Scholarship Search

www.fastweb.com

College Board Scholarship Search

www.collegeboard.com/paying

CollegeNetwww.collegenet.com Lunch Money.com

www.lunchmoney.com

Federal Student Aid Information: Studentloans.gov Studentaid.ed.gov

QUESTIONS??