Zion Benton Financial Aid

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This describes a type of financial aid.

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Zion Benton Financial Aid

  1. 1. What You Need to Know About Financial Aid<br />Ruth Pusich<br />Elmhurst College<br />
  2. 2. Topics We Will Discuss Tonight<br />What is Financial Aid<br />How to Apply for Financial Aid<br />What is FAFSA, EFC, COA, Need<br />Categories, Types and Sources of Financial Aid<br />Special Circumstances<br />Student/Family Responsibilities<br />
  3. 3. What is Financial Aid?<br />Financial aid is funds provided to students and families to help pay for postsecondary educational expenses<br />
  4. 4. How to Apply<br />Apply for admission to a college<br />Complete the FAFSA (Free Application for Federal Student Aid)<br />Complete any other forms required by the institution<br />Internal Financial Aid/Scholarship Application<br />CSS Profile<br />
  5. 5. FAFSA - www.fafsa.gov<br />A web-based standard form that collects demographic and financial information about the student and family<br />Available in English and Spanish<br />May be filed at any time during the school year, beginning January 1st<br />Apply for a PIN number at www.pin.ed.gov – real time!<br />Student and one parent must sign<br />Colleges may set FAFSA filing deadlines<br />Colleges use the calculation results to award financial aid<br />
  6. 6. CSS/Financial Aid PROFILE<br />www.collegeboard.com<br />Colleges/universities and scholarship programs use to determine eligibility for non-federal student aid funds<br />$25.00 initial application fee for one college or program plus additional <br />$16 per additional college or program <br />Review priority filing dates for all schools<br />More questions regarding home equity and person assets<br />Data is analyzed and sent to the colleges or scholarship programs<br />Institutional Methodology (IM) is used to determine eligibility<br />
  7. 7. FAFSA- Step 1<br />Complete the FAFSA<br />Print off FOTW worksheet<br />Complete taxes for easier filing<br />Actual form may ask for additional information<br />FOTW uses skip-logic<br />Items needed:<br />SSN# and birthdate of student and one parent<br />Completed tax returns (parent & student)<br />W-2s (parent & student)<br />Assets (parent & student)<br />
  8. 8. FAFSA<br />Frequently Asked Questions<br />Who is a dependent student?<br />Who is a parent?<br />Who lives in the house?<br />Who counts as a college student?<br />What if my taxes are not completed?<br />What is additional financial data?<br />What is untaxed income?<br />What assets must be included?<br />
  9. 9. FAFSA – Step 2<br />Watch for your Student Aid Report (SAR)<br />Review for errors<br />Social Security Numbers<br />Divorced/remarried parental information<br />Income earned by parents/stepparents<br />Untaxed income<br />U.S. income taxes paid <br />Household size<br />Number of household members in college<br />Real estate and investment net worth<br />Business and farm net worth<br />Make corrections and/or update estimated information<br />Do nothing if correct<br />
  10. 10. FAFSA – Step 3<br />Institutions receive FAFSA results<br />Can be sent to up to 10 different colleges<br />College reviews data<br />Verification (35% random selection)<br />May request additional documentation<br />
  11. 11. FAFSA – Step 4<br />Wait to hear from your colleges<br />Once accepted to the college and the FAFSA has been received, the financial aid department gets busy<br />Schools determine a student’s eligibility for all types of financial aid – including loans<br />FAFASA and/or PROFILE are data analysis tools only<br />Schools have different processing methods<br />Watch for your financial aid package<br />Sent either through mail to the home or via the student’s email<br />
  12. 12. Expected Family Contribution (EFC)<br />Amount family can reasonably be expected to contribute towards education for one year<br />Calculated using FAFSA data and a federal formula<br />Stays the same regardless of college<br />Two components<br />Parent contribution<br />Student contribution<br />
  13. 13. What is Cost of Attendance (COA)<br />Direct and indirect costs combined into cost of attendance<br />Direct costs – tuition, fees, room & board<br />Indirect costs – books, travel expenses, etc<br />Varies widely from college to college<br />COA – EFC = Need<br />
  14. 14. Financial Need<br />
  15. 15. Categories of Financial Aid<br />Need-based<br />Grants – usually awarded on the basis of financial need<br />Federal Work Study<br />Loans – (Perkins, Subsidized)<br />Non Need-based<br />Scholarships – awarded on the basis of merit, skill, or unique characteristics<br />Student employment<br />Loans - (Unsubsidized, PLUS, Private Alternative)<br />
  16. 16. Types of Financial Aid<br />Gift<br />Money that generally is not paid back<br />Scholarships<br />Grants<br />Student Employment – Self-Help<br />Allows student to earn money to help pay educational costs<br />A paycheck, direct deposit or student account deduction<br />Non-monetary compensation, such as room and board<br />
  17. 17. Types of Financial Aid<br />Loans – Self-Help<br />Money students and parents borrow to help pay college expenses <br />Look at loans as an investment in the future<br />Repayment usually begins after education is finished<br />Only borrow what is really needed<br />
  18. 18. Loans - Types<br />Student<br />Perkins (5% fixed)<br />Stafford<br />Subsidized (4.5% fixed)<br />Unsubsidized (6.8%)<br />Parent – PLUS (7.9%)<br />Student/Parent – private alternative<br />
  19. 19. Sources of Financial Aid<br />Federal government<br />States<br />Institutions<br />Private sources<br />
  20. 20. Federal Government<br />Largest source of financial aid<br />Aid awarded primarily on the basis of financial need<br />Must apply every year using the FAFSA<br />
  21. 21. Common Federal Aid Programs<br />Federal Pell Grant<br />FSEOG - Federal Supplemental Educational Opportunity Grant<br />ACG - Academic Competitiveness Grant<br />SMART - National Science and Mathematics Access to Retain Talent Grant<br />TEACH- Teacher Education Assistance for College and Higher Education Grant<br />Federal Work-Study<br />Federal Perkins Loan<br />Stafford Loans<br />PLUS Loans<br />
  22. 22. States<br />Residency requirements<br />Award aid on the basis of both merit and need<br />Use information from the FAFSA<br />Deadlines vary by state - check FAFSA<br />Illinois recommends early filing<br />
  23. 23. Institutions<br />Colleges and Universities<br />Athletic scholarships <br />Academic scholarships<br />Private Institutions<br />Need-based grants<br />Endowed scholarships<br />
  24. 24. Private Sources<br />Foundations, businesses, charitable organizations, employers<br />Deadlines and application procedures vary widely<br />Begin researching private aid sources early - usually spring of senior year<br />
  25. 25. Suggested Websites<br />www.collegezone.com<br />State of Illinois Student Financial Assistance<br />www.finaid.org<br />FinAid on the web<br />www.collegeboard.com<br />Collegeboard<br />www.gocollege.com<br />The Collegiate Websource<br />Small scholarships do add up!<br />
  26. 26. Special Circumstances<br />Cannot report on FAFSA<br />Send explanation to financial aid office at each college<br />Change in employment status<br />Medical expenses not covered by insurance<br />Change in parent marital status<br />Unusual dependent care expenses<br />Private school expenses<br />Student cannot obtain parent information<br />
  27. 27. Financial Aid Scams<br />Be skeptical if:<br />A fee is charged<br />You are told to attend an information session<br />You are promised or guaranteed an amount of money…<br />www.fastweb.com<br />
  28. 28. Annual Renewal<br />Each school will have guidelines for renewing institutional aid<br />FAFSA must be filed each year of enrollment for need-based aid and loan consideration<br />Student loan eligibility is determined by FAFSA results and student’s year in school<br />
  29. 29. Take Charge<br />Follow deadline recommendations<br />Apply early to maximize eligibility<br />Compare award packages<br />Ask questions when in doubt<br />
  30. 30. Conclusion<br />Keep up good grades<br />Research and visit schools of interest<br />Check out local scholarship opportunities<br />READ EVERYTHING – ASK QUESTIONS<br />

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