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What You Need to Know What is financial aid General Eligibility Requirements Understanding EFC & COA Categories, types, and sources of financial aid Free Application for Federal Student Aid (FAFSA) Special circumstances

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What is Financial Aid? Financial aid typically refers to funds provided by the federal government, state or private sources to students and families to supplement a family's ability to pay for college costs and may include : - tuition/fees, - room and board, - books and supplies, - transportation - other educational costs

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General Eligibility Requirements Must be enrolled and pursuing an eligible degree or certificate at your college (check with FA Advisor) Must be a U.S. citizen or eligible noncitizen Must be registered with Selective Service (if male and required to be) May not have a recent drug-related conviction

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General Eligibility Requirements, cont. Must have a valid Social Security Number* May not be in default on a federal student loan or owe repayment of a federal grant Must have a HS Diploma or GED Must be making satisfactory academic progress as defined by the school * Some funds available for SB 1528 students

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Dependent Student A student who is under 24 years of age Unmarried Not an orphan or ward of the state Has no legal dependent (s) Not a veteran of the U.S. Armed forces Is not working on a graduate degree

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Independent Student 24 years of age or older Married A veteran An orphan or a ward of the court Has a legal dependent other than a spouse Is working on a graduate degree or higher

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What is the Expected Family Contribution (EFC) Amount family can reasonably be expected to contribute Stays the same regardless of college Two components Parent contribution Student contribution Calculated using data from the federal application form and a federal formula

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EFC for Dependent Student Parent contribution calculated from income and assets +Student contribution calculated from available income and assets = EFC (Expected Family Contribution)

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What is Cost of Attendance (COA) Often referred to as the budget. Is an estimate of the total expenses a student would incur for attending a particular college : Typically includes the following: - Direct costs (such as tuition and fees), and - Indirect costs (such as transportation, room and board, books and supplies, etc.) Standard COE includes costs for 9 months Your total financial aid package, including grants, loans and outside scholarships cannot exceed your budget Budgets vary widely from college to college

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What is Financial Need Cost of Attendance Expected Family Contribution = Financial Need Generally speaking, the higher the financial need, the more likely youll be eligible for grants.

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Categories of Financial Aid Need-based Non need-based

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Types of Financial Aid Grants Usually gift aid that does not need to be paid back Loans DO need to be paid back Employment Only paid for hours worked. Scholarships Private and Institutional. Some are gift aid; others require obligations be fulfilled in order to be eligible for the money (e.g. athletic scholarships).

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Financial Aid: Grants Pell Grant Need based. Given to those students determined to have the highest need (i.e., lowest EFCs) Supplemental Grants Federal grants (FSEOG) State grants (i.e., TPEG/TXG/TEOG) Typically need based Often linked to priority deadlines

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Financial Aid: Loans Subsidized Stafford loans Must demonstrate financial need Government pays interest while in school Unsubsidized Stafford loans Need is not a consideration Interest capitalizes and accrues while the student is in school Parent PLUS loan For dependent students only

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Employment: Federal Work Study Allows student to earn money to help pay educational costs On campus, need-based employment Some schools may provide non-monetary compensation, such as room and board Students limited to 20 hrs/week

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Scholarships A scholarship is money given by individuals, companies or organizations based either on need, merit, or both. It is the students responsibility to research and apply for scholarships. At Collin, Financial Aid Advisors do not award private scholarships. Scholarships are awarded through the Foundation Office. Some limited information available at the Financial Aid office and more in-depth info on the Collin website. www.collin.edu/foundation

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Sources of Financial Aid Federal government States Private sources

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Federal Government Largest source of student aid in America - Their programs provide more than $100 billion a year in grants, loans and work study assistance Aid awarded primarily on the basis of financial need Must apply every year using the Free Application for Federal Student Aid (FAFSA)

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State Aid Residency requirements Most aid awarded on the basis of both merit and need Uses information from the FAFSA Deadlines vary by state; check paper FAFSA or FAFSA on the Web site

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Private Sources Foundations, businesses (inc. employers), charitable organizations Civic Organizations and churches Deadlines and application procedures vary widely Begin researching private aid sources early (NLT spring senior year) Do not overlook low $ scholarships. They add up!!!

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How do I apply? Electronic FAFSA application on the web - website is www.fafsa.ed.gov Both student and one parent apply for PIN - PIN used to sign the FAFSA Include (up to 6) school code(s) (Collin=016792) Submit Follow up with school!!!

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When can I fill out a FAFSA? May be filed at any time during an academic year, but no earlier than the January 1st prior to the academic year for which the student requests aid For the 2013-14 academic year, the FAFSA may be filed beginning January 1, 2013 Colleges may (and usually do!) set FAFSA filing deadlines

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Personal Identification Number (PIN) Web site: www.pin.ed.gov Sign FAFSA electronically Can request PIN before January 1, 2013 Not required, but speeds processing May be used by students and parents throughout aid process, including subsequent school years

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FAFSA on the Web Worksheet Web site: www.fafsa.ed.gov - click on Student Aid on the Web on the top menu bar - click on Tools and Resources on left menu - scroll down and click on FAFSA on the Web Worksheet FAFSA on the Web Worksheet: - Used as pre-application worksheet -Questions follow order of FAFSA on the Web. -Can help reduce stress and confusion for first-timers 2012-2013 2013 2014

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FAFSA4caster Provides you with an early estimate of your eligibility for federal student aid Gives you an experience similar to FAFSA on the Web Allows you to transfer the data to FAFSA Increases your knowledge of the financial aid process and provides information about other sources of aid. Another feature of FAFSA4caster is the "FAFSA4caster Tip". These tips appear throughout the site and provide you with information that will help make preparing for college and the financial aid process easier.

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Frequent FAFSA Errors 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

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FAFSA Processing Results Central Processing System (CPS) notifies student of FAFSA results via a Student Aid Report (SAR) by: E-mail notification in 3 5 days containing a direct link to students on-line SAR if e-mail was provided Paper Student Aid Report (SAR) mailed in 7 10 days if FAFSA was filed and no e-mail address was provided Student with PIN may view SAR on-line at www.fafsa.ed.gov The SAR summarizes all the information you provided on your FAFSA. Will usually show your EFC if enough info was provided.

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FAFSA Processing Results cont. Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approx. 7 to 14 days after FAFSA submitted College reviews ISIR May request additional documentation, such as copies of federal tax returns Most additional docs flagged by FAFSA. May also be for institutional aid

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Making Corrections If necessary, corrections to FAFSA data may be made by: Using FAFSA on the Web (www.fafsa.ed.gov) if student has a PIN; Updating paper SAR, or Submitting documentation to colleges financial aid office If school has already received the ISIR, submit correction information to the school; do not update on SAR or on the web.

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Special Circumstances Cannot report on FAFSA Send explanation to financial aid office at each college College will review special circumstances May request additional documentation Decisions are final and cannot be appealed to U.S. Department of Education

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Special Circumstances (cont) Special Circumstances may include: Change in employment status Medical expenses not covered by insurance (and above the income protection allowance) Change in parent marital status Unusual dependent care expenses Other catastrophic events

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CAUTION!!! Avoid being charged a fee to complete the FAFSA! Completing and processing the FAFSA application is FREE. (FAFSA means Free Application for Federal Student Aid) FAFSA is located at www.fafsa.ed.gov Contact the financial aid office if you have questions

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If It Sounds Too Good To Be True. If you are considering hiring a scholarship or financial aid consultant, do your research first! The Department of Educations finaid.org website has a lot of great information on scholarship scams and questionable consultant tactics. Before you hire anyone, go to: www.finaid.org/scholarships/scams.phtml

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Free Resources Nerdwallet.comcollegeboard.com Fastweb.comfinaid.org Scholarships.comcollegetoolkit.com Wiredscholar.comcollegenet.com Studentaid.orgfreschinfo.com Be cautious about entering scholarship contests that require a fee. * DONT MISS DEADLINES!! www.collin.edu/gettingstarted/financialaid/scholarships.html www.finaid.org/otheraid/

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Maximizing Your Aid Eligibility Finaid.org web site has an entire section on maximizing your need-based financial aid The information is based on loopholes in the need analysis methodology and are COMPLETELY LEGAL (at this time) This is often the information that consultants provide for a fee Many of these strategies are just good, sound financial planning Be very careful about following any unethical advice www.finaid.org/fafsa/maximize.phtml

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After the FAFSA: Follow up with School FAFSA information takes 7 to 14 days to electronically arrive at the school. Each school may have their own in-house paperwork you have to complete. Processing takes 4 to 6 weeks under normal circumstances (longer during peak times). You do not have financial aid until you receive an award letter from the school and accept it online.

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Review Complete your tax return early and gather other necessary information Complete the FAFSA online sign electronically with PIN Follow up with your school and complete any required paperwork. Be sure to check priority deadlines! Once awarded, review and accept awards online Research and contact other sources of financial aid (i.e., scholarships, private sources, etc.)

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Good Luck!