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Financial Aid
- 1. Priya Pullur
- 2. What is Financial Aid? Money to help you pay for college, provided through the federal government, state, school, or a private business or organization.
- 3. How financial aid is awarded Need based Awarded based on a familys financial need Merit based Awarded for a talent: academic, athletic, etc.
- 5. Cost of Attendance (COA) Cost of Attendance includes direct costs (those on your tuition bill) and indirect costs (such books and living expenses) as Tuition and fees Room and board Books and supplies Transportation Personal expenses Miscellaneous
- 6. Expected Family Contribution (EFC) The government determines your EFC when you submit a FAFSA. Many factors affect your EFC, each having a different weight. Parents prior year income Students prior year income Value of parents assets Value of students assets Number in household Number in college Age of oldest parent
- 7. Unmet need Schools are not always able to offer as much financial aid as you may be eligible for When need is not fully met, there is said to be a gap Most schools do not cover 100% of the gap or remaining financial need GAP
- 8. Type of Aid Whats available
- 9. Types of Aid There are 4 types of financial aid, broken into two categories Gift Aid is money that doesnt need to be repaid. Grants Scholarships Self-help Aid adopts a self-investment philosophy. Loans Work-study
- 10. Federal Aid Grants, loans & work-study
- 11. Cal Grants Cal Grant A For students with a Grade Point Average (GPA) of at least 3.0, family income and assets below the state ceilings, and who demonstrate financial need Cal Grant B For students from disadvantaged or low income families with a GPA of at least 2.0, family income and assets below the state ceilings, and who demonstrate financial need Cal Grant C For students from low income families pursuing occupational, technical, and vocational programs of study
- 12. College Grants Community College Board of Governors Fee Waiver (BOG) Waives enrollment fees, FAFSA may be required CSU State University Grant (SUG) Amounts vary, FAFSA is required UC Grant Use federal formula to award grants Independent College Grants Amounts and application process vary
- 13. Federal Pell Grants Grants for financially needy undergraduates awarded through the college financial aid office. 2013-2014 max award: $5,645
- 14. Federal Supplemental Educational Opportunity Grant (FSEOG) For undergraduates pursuing first baccalaureate or professional degrees Awarded first to students with exceptional financial Priority is given to PELL Grant recipients need Annual Award Amounts Minimum Maximum $100 $4,000
- 15. Federal Work Study Provides part-time employment Pay must be at least federal minimum wage basis Work-study jobs may be on or off campus and paid on an hourly Employer may be the college, a non-profit community agency, or a profit organization
- 16. Federal Perkins Loan Long term loan: must be repaid with interest 5% fixed interest rate 10-year maximum repayment period Awarded based on financial need to undergrad graduate students & Each school has limited funds to award each year Your school is your lender Grace period is 9 months Annual maximum: $5,500 for undergraduates $8,000 for graduates
- 17. Federal Direct Stafford Loan Subsidized Federal government pays interest while student is in school and in their grace period Awarded to students whose families can prove financial need Unsubsidized Student is responsible for all interest charges accrued while in school Awarded to students whose families cannot prove financial need
- 18. Federal Stafford Annual Loan Limits 2013-2014 Loan & Unsubsidized Limit Student Type Subsidized Limit Subsidized Dependent Undergrad $23,000 $31,000 Independent Undergrad $23,000 $57,500 Graduate Student $65,500 $138,500
- 19. Federal Stafford Loan Unsub 6.8% 6.8% 6.8% 6.8% 6.8% Interest Rates 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 Sub 6.0% 5.6% 4.5% 3.4% 3.4% 3.86% 3.86% 5.41% for for undergrad graduate 2013-2014 loans have a 1.05% fee
- 20. Must arrange to pay interest during deferment loan principal Federal Direct PLUS Loan You may borrow up to the Cost of Attendance minus financial aid Interest rate for 2013/14: 6.41% 4.204% fee Repayment: 10 years, extended options may be available dependent upon your balance. Can defer principal payment until 6 months after graduation. or it to be added on to
- 21. Private Aid Scholarships & loans
- 22. Scholarships Local scholarships are often easier to get than national scholarships. Scholarships arent just for straight-Astudents. Many are based on need or are awarded to students with certain traits or interests. You should never pay a service to find you scholarships. They are typically scams! Dont narrow your search to just the internet.Ask your guidance counselor, read the local newspapers and check postings at your local library. Persist! Your scholarship search cant be completed in a single day. If you live in California, start your search at www.Scholarships.com.
- 23. Private Loans Generally in the students name with a credit-worthy co-signer Rates, fees, and terms are dependant on the lender and program so make sure to investigate each program thoroughly May be deferred or immediate repayment Usually a variable interest rate, but some programs offer fixed rates
- 24. Institutional Aid Scholarships, grants & loans.
- 25. Institutional Grants Schools award institutional grants based on financial need. May use the federal methodology or institutional methodology for determining your financial need Amount of grants can vary widely depending upon how much money the school has available Some prestigious colleges offer such generous grants so that the financially neediest students can still afford to attend
- 26. Merit Based Aid Based on academic Varies by school SAT score tends to be a factor Check admissions for their policies What do you have to do to keep it? What happens if you do not maintain GPA?
- 27. College-based Loans Some schools have an institutional loan program. Terms will vary from school to school. Your financial aid office will let you know if a program is available. Make sure you understand rates and terms. You dont have to accept a loan just because it is listed on your financial aid award letter.
- 28. How to apply How to financial aid for college
- 29. Applying for financial aid Apply for a PIN at www.pin.ed.gov Complete the FAFSA REQUIRED by every school to qualify for federal financial aid Apply online at www.fafsa.ed.gov ASAP after January 1 Complete the CSS PROFILE, if required by your schools of choice Pay attention to financial aid deadlines at your school STEP 1
- 30. Applying for financial aid File any supplemental your school financial aid forms required by Let the financial aid office know of any special circumstances that may affect your familys ability your education to fund Send in any documents the financial aid office at your school(s) requires to complete your application STEP 2
- 31. Applying for financial aid Look over your Student Aid Report (SAR) Receive 2-3 weeks after completing the FAFSA Review all information for accuracy Information can be corrected if necessary Before correcting, contact the financial aid office Review CSS PROFILE acknowledgement if applicable report, STEP 3
- 32. Applying for financial aid Review Financial Aid Package/Award Letter school(s) from Includes details of award: grants, scholarships, loans, and work-study Accept, deny or appeal any portion of the package Acceptance will safeguard the award STEP 4
- 33. Completing the FAFSA Read the instructions as you complete the FAFSA Fill in all the blanks (n/a or 0 when applicable) Ask questions when you dont understand the instructions Make it a family event Estimating income is okay you can make corrections after completing your federal tax return If you have a loss of income, contact the financial aid office
- 34. Financial aid packages Example Cost of Attendance $35,000 Example EFC $10,000 Financial Need $25,000 Example packages: Type of Aid College 1 College 2 College 3 Grants/Sch. $12,000 $18,000 $21,000 Work-Study $1,000 $1,500 $2,000 Student Loans $5,500 $5,500 $5,500 Total $16,500 $23,000 $25,000 Unmet Need/Gap $8,500 $2,000 $0
- 35. Deadlines FAFSA MARCH 2nd (Date Received) Recommend using the Electronic PIN Signature For additional community college awards - September 2, 2014 - date postmarked School Deadline Verify with Colleges Financial Aid Office Deposit Date May 1st Commitment to a School (Non refundable)