What Is Financial Aid?


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A brief description of financial aid and how to get it.

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What Is Financial Aid?

  1. 1. What is Financial Aid? Mark Tracy
  2. 2. Financial Aid <ul><li>Refers to funding intended to help students pay for tuition, and other costs (room and board), affiliated with going to college. </li></ul><ul><li>Intended to make up the difference between what you and your family can afford and the college costs. </li></ul>
  3. 3. Is financial aid the same things as a scholarship? <ul><li>No, financial aid comes in 2 forms, it is: </li></ul><ul><li>Needs-based </li></ul><ul><li>Merit-based </li></ul>
  4. 4. Needs Based <ul><li>Grants </li></ul><ul><li>Loans </li></ul><ul><li>Work study </li></ul>
  5. 5. Merit Based <ul><li>1. Scholarships </li></ul><ul><li>A.) Academic Achievement </li></ul><ul><li>B.) Sports </li></ul><ul><li>C.) Community Service </li></ul><ul><li>D.) Group Membership </li></ul>
  6. 6. What are Grants? <ul><li>Money you don’t have to pay back. </li></ul><ul><ul><li>Pell Grant </li></ul></ul><ul><ul><li>Minnesota grant </li></ul></ul><ul><ul><li>Federal Supplemental Educational Opportunity Grant </li></ul></ul>
  7. 7. And Loans? <ul><li>Money you do have to pay back, but at a low interest rate and after you are done with college. </li></ul>
  8. 8. What is Work Study? <ul><li>Money provided to employ students in part-time, semi-professional work. </li></ul>
  9. 9. How do I get Needs-based Aid? <ul><li>Every year all employees receive what is called a W-2 from their workplace. </li></ul><ul><li>These forms tell the employee how much they made, and how much they paid in taxes. </li></ul>
  10. 10. How do I get Needs-based Aid? <ul><li>Fill out the Fafsa (Free Application for Federal Student Aid) www.fafsa.ed.gov </li></ul><ul><li>In order to fill out the Fafsa you will need the information on your W-2’s (if you worked), and your parents W-2’s </li></ul><ul><li>This tells the government how much you and your parents made in a given year </li></ul>
  11. 11. How do I get Needs-based Aid? <ul><li>Based on how much you and your parents made, the government calculates how much you can afford for college. </li></ul><ul><li>This is called the EFC or Estimated Family Contribution </li></ul><ul><li>The EFC, minus the the cost of your college, determines how much you are eligible to receive. </li></ul>
  12. 12. Example <ul><li>Lets say in 2007, your parent(s) made $100 and you made $10. For a total of $110. </li></ul><ul><li>Based on this the government calculates that you can afford $20 to pay for college (this, of course is hypothetical, you can calculate your real EFC, at http:// www.finaid.org /calculators ) </li></ul>
  13. 13. Example <ul><li>Lets say that you want have applied, or are interested, in 2 colleges: </li></ul><ul><li>College A costs: $100 </li></ul><ul><li>College B costs: $200 </li></ul>
  14. 14. Example: What will my financial look like? <ul><li>Financial Aid offered for College A ($100) </li></ul><ul><li>Grants: $50 </li></ul><ul><li>Loans: $40 </li></ul><ul><li>Work-study: $10 </li></ul><ul><li>Financial Aid offered for College B ($200) </li></ul><ul><li>Grants: $60 </li></ul><ul><li>Loans: $130 </li></ul><ul><li>Work-study: $10 </li></ul>
  15. 15. How do I get Merit-based Aid? <ul><li>Do well in school </li></ul><ul><li>Participate in lots of activities </li></ul><ul><li>Excel in Athletics </li></ul><ul><li>Learn how to write a good essay </li></ul><ul><li>Make good connections with people who can write letters of recommendations (teachers, counselors, coaches) </li></ul><ul><li>Research scholarship opportunities </li></ul>
  16. 16. What should I do first? <ul><li>Go to www.fafsa.ed.gov </li></ul><ul><li>Get a pin number </li></ul><ul><li>You need this pin to fill out your fafsa </li></ul><ul><li>Don’t forget if. If you do, you will have to apply for it again and that can take time. Time that you may not want to waste. </li></ul>
  17. 17. And then what? <ul><li>Show your parents this slideshow. </li></ul><ul><li>Inform them of what financial aid is, and that you will need to use their W-2’s </li></ul><ul><li>Ask for help </li></ul><ul><li>Collect the W-2’s and fill out the form (on paper, or online) </li></ul>
  18. 18. Anything else I can do? <ul><li>Do well in school </li></ul><ul><li>Take hard classes, including math and science </li></ul><ul><li>Look for scholarships </li></ul><ul><li>Don’t be shy, ask questions. No one your age knows anything about anything, so don’t feel stupid about your ignorance. </li></ul><ul><li>Take control of your life! </li></ul><ul><li>Prepare for and take the ACT </li></ul><ul><li>Keep an open-mind about careers </li></ul><ul><li>Remember, YOU ARE NOT IN A HURRY, trust me! </li></ul><ul><li>Take your time and do things right </li></ul>