DEFINITIONSGRANTS• Financial aid you do not have to pay backWORK-STUDY• Lets you work and earn money to help pay for schoolLOANS• Borrowed money that you must repay with interest
STUDENT ELIGIBILITY• Must be enrolled as a regular student in an eligible program• Must be a U.S. citizen or eligible non-citizen• Must make Satisfactory Academic Progress (SAP)• Must be registered with Selective Service, if required
FINANCIAL NEED• Financial need is determined by a formula: Cost of Attendance - Estimated Family Contribution (EFC) Financial Need• If your family’s financial circumstances warrant, the Financial Aid Administrator can adjust the formula’s data elements or your cost of education. Examples: o A parent lost his/her job o Unusual medical/dental bills not covered by insurance
COST OF EDUCATION• Tuition and fees• Room and board• Books and supplies• Transportation• Misc/personal expenses
US DEPARTMENT OFEDUCATION (US DOE) FINANCIAL AID PROGRAMS
US DOE FINANCIAL AID PROGRAMS• Federal Pell Grant• Federal Supplemental Educational Opportunity Grant• Federal Work-Study Program• Federal Perkins Loan• Federal Direct Stafford Loan• Federal Direct PLUS Loan
FEDERAL PELL GRANT• Award to help undergraduate students pay for education• Provides funds to every eligible student• Does not have to be paid back• Based on the EFC• Up to $5,550
CAMPUS-BASED PROGRAMS• Federal Supplemental Educational Opportunity Grant (FSEOG)• Federal Work-Study Program• Federal Perkins Loan
CAMPUS-BASED PROGRAMS• Participating schools receive certain amount of funds for each program.• When funds are depleted for the year, no more awards for that program are given.• Most schools set deadlines early each calendar year.• You should apply early, or you may miss out on “campus-based” programs.
FSEOG• Awarded to undergraduate students with exceptional financial need• Determined by the school• Priority given to Federal Pell Grant recipients• Does not have to be paid back• Maximum amount = $4,000 per year (dependent on school’s funding)• $959 Million to an estimated 1.3 million recipients in 2012-2013
FEDERAL WORK-STUDY PROGRAM• Provides jobs for undergraduate and graduate students who have financial need• Gives students opportunity to earn money for educational expenses Example: Traveling• Encourages community service work• Includes on-campus and off-campus jobs• 1.2 Billion given to an estimated 768,000 students in 2012-2013
FEDERAL PERKINS LOAN• Awarded to undergraduate and graduate students with exceptional financial need• Determined by the school• For undergraduate students, priority given to Federal Pell Grant recipients• School is the lender• Interest rate = 5%• Grace period = nine months after you graduate, leave school, or drop below half-time
FEDERAL PERKINS LOANLOAN LIMITS• Undergraduate study o $3,000 per year o $15,000 total debt• Graduate/professional study o $5,000 per year o $30,000 total debt (includes any Perkins loan borrowed as an undergraduate)• Dependent on school’s funding
FEDERAL DIRECT LOANS
FEDERAL STAFFORD LOAN• Low interest loan made to students attending school at least half-time• Federal government• Eligible to students regardless of need or family’s income• It is possible for a student to have a Stafford loan partly based on financial need and partly not on need.
FEDERAL STAFFORD LOANSubsidized Stafford Loan• Need-based• Government pays the interest on the loan while the student is in school and during the grace periodUnsubsidized Stafford Loan• Not need-based• Student is responsible for interest during in-school and grace periods
DIRECT LOAN LIMITSFederal Direct Loan MaximumsUp to $5,500 for first year students of which no more than $3,500 may be a subsidized Direct Loan. Student loan amounts are determined by the institution.Dependent Total AdditionalUndergraduates Subsidized UnsubsidizedFirst Year $3,500 $2,000Second Year $4,500 $2,000Third Year and Beyond $5,500 $2,000Independent Total AdditionalUndergraduates Subsidized Unsubsidized*First Year $3,500 $6,000Second Year $4,500 $6,000Third Year and Beyond $5,500 $7,000*Includes dependents whose parents are unable to borrow under the PLUS Program.
FEDERAL STAFFORD LOAN• Subsidized loan = interest rate is fixed at 3.4% after July 1, 2012• Unsubsidized loan = interest rate is fixed at 6.8%• Origination fee = .5%• Default fee = 1%
FEDERAL PLUS LOAN• Are for parents who want to borrow money to help pay for their child’s education• May borrow up to the cost of education minus any financial aid
FEDERAL PLUS LOAN• Interest rate is fixed at 7.9%.• Loan repayment begins 60 days after money is disbursed.• Check is made out to parent and school.• Student must be enrolled at least half-time.
STATE AID PROGRAMS Program Name AwardTuition Aid Grant $978- $11,550Part-Time TAG for County College Students $208-$739Educational Opportunity Fund Up to $2,500 Up to 18 credits (tuitionNJ Student Tuition Assistance Reward Scholarship only)NJ Student Tuition Assistance Reward Scholarship II Up to $7,000NJ World Trade Center Scholarship Up to $5,000Law Enforcement Officer’s Memorial Scholarship COA minus other aidNJ College Loan to Assist State Students COA minus other aidNJ BEST Scholarship Up to $1,500 25
NJCLASSState supplemental loan program that provides eligible students with an additional affordablesource of funds for meeting college expensesFor all New Jersey students attending in-state or out-of-state schools.For all out-of-state students attending a New Jersey schools.One of the lowest fixed supplemental loan interest rates in the country beginning with: 10 Year Repayment Loan of 5.9% 20 Year Repayment Loan (s): Option 1- 20 Year Loan 7.59% Option 2- 20 Year Loan 7.59% Option 3- 20 Year Loan 7.89%* Funds are disbursed on a first-come, first-serve basis
FINANCIAL AID PACKAGEING The relationship between state, federal, and institutional aid programs. The FAFSA is used to determine eligibility for federal, state and some institutional need-based aid. In 2010-2011 New Jersey collected four additional data elements to determine state grant eligibility. Estimated Family Contribution (EFC) determines eligibility for federal programs (Pell, FSEOG, FWS, etc.) New Jersey Eligibility Index (NJEI) determines eligibility for a Tuition Aid Grant In 2010-2011, New Jersey is collecting four additional data elements to determine state grant eligibility. Visit www.hesaa.org for EFC and NJEI Estimator
OTHER WAYS TO FINANCE YOUR EDUCATION• Tuition Payment Plan• Private loan• Home equity loan• Line of credit
Net Price Calculator• All institutions must have a net price calculator posted on their websites.• Students will be able to estimate the individual net price per institution.• Based on full-time degree/certificate seeking undergraduate students.
The Cycle of Financial Aid• Jan-March – Students/Parents complete the FAFSA• March-May – Schools send award letters• June-July – School sends Fall Semester bill• August – Payment for Fall bill is due
Where Do I Go From Here?• Obtain and review admission, financial aid materials and deadlines from each school to which you are applying• Meet all application deadlines – FAFSA – State Aid – CSS Profile if applicable – Admission
Private Scholarship Search• Institution/College web sites• Local library resources• Local businesses, civic organizations and churches• Parent’s employer(s)• www.petersons.com• www.hesaa.org• www.fastweb.com• www.collegeboard.com
SUMMARY• Apply early.• Make copies of all documents.• Ask questions.• Do not panic.