Financial aid 101 Webinar

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An overview of the U.S. Department of Education financial aid process which awards $150 billion dollars a year in grants, work-study funds, and low-interest loans to more than 14 million students.

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Financial aid 101 Webinar

  1. 1. The U.S. Department of Education, Office of Federal Student Aid Presents Amber Johnson, FSA Awareness and Outreach Specialist Kevin Roberts, FSA Awareness and Outreach Specialist
  2. 2. Today’s  Topics • • • • • • Considering College? Financial Aid Myths Federal Financial Aid Programs The FAFSA: When and How to Apply What to Expect After Applying Scholarships/State Aid/Institutional Aid • Questions
  3. 3. Question When should you consider college? NOW  TODAY THIS MINUTE ALL OF THE ABOVE 
  4. 4. What Can College Do for Me? More Money • More Job Opportunities • More Freedom • $$$$ • • Fact: On average, a person who goes to college earns more money than a person who doesn’t Over a lifetime a college graduate can earn over $1,000,000 more than a high school graduate 4
  5. 5. College Costs Cost of Attendance • Tuition & Fees • Room & Board • Books & Supplies • Equipment & Transportation • Miscellaneous Personal Expenses • Child Care
  6. 6. What does FAFSA Stand For? Free Application for Federal Student Aid
  7. 7. Myths About Financial Aid • “...it  costs  money  to  apply  for  federal   student  aid.”   • Reality: Applying is FREE. It costs nothing to apply for federal student aid and you should avoid companies charging a fee 7 7
  8. 8. Myths About Financial Aid • “...the  form  is  too  hard  to  fill  out.”   • Reality: The FAFSA is easier than ever, especially if you fill it out online at www.fafsa.gov 8
  9. 9. Myths About Financial Aid • “…my  parents  make  too  much  money,  so  I   won’t  qualify  for  aid.”   • Reality: There is no income cutoff to qualify for federal student aid. 9 9
  10. 10. Federal Financial Aid Programs
  11. 11. Federal Financial Aid Programs 1. Federal Grants 2. Federal Work-Study 3. Federal Student Loans There is more than $150 billion available in Federal aid to help students pay for college 11 15
  12. 12. Federal Grants  Federal Pell Grant- $5,645 (2013-2014) maximum a year  Federal Supplemental Education Opportunity Grant (FSEOG)-$100-$4000 a year  Teacher Education Assistance for College and Higher Education (TEACH)- up to $4,000 a year  Iraq/Afghanistan Service Grant-$5,080.50 maximum a year 15
  13. 13. Federal Work Study Provides part-time jobs for undergraduate and graduate Loans students with financial need, allowing them to earn money to help pay education expenses  Federal Perkins Loan • Eligible employers (On-campus or off-campus employment)  Schools  Subsidized Direct public agency  Federal, state or local Loan  Private nonprofit organization  Community service activities  Unsubsidized Direct Loan • Students are paid at least federal minimum wage  PLUS Direct Loans (Parents) • Not all colleges participate in the Federal Work-study program and funding depends on availability at the college 13 15
  14. 14. Federal Student Loans  Federal Perkins Loan  Subsidized Direct Loan  Unsubsidized Direct Loan  PLUS Direct Loans (Parents/Graduate & Professional) 14 15
  15. 15. Stafford Direct Loans Subsidized Loans  Government PAYS the borrowers accrued interest while you are attending college and other eligible periods Unsubsidized Loans  The borrowers is responsible for the interest for the life of the loan  NOT Based on Financial Need  Based on Financial Need  Fixed Rate (Rates tied to 10 year TBill plus -)  Fixed Rate (Rates tied to 10 year T-Bill plus -)  Undergraduate and graduate students qualify  Undergraduate students  Amount: $5,500-$20,500  Amount: $3,500-$8,000
  16. 16. Interest Rates for Federal Loans Interest Rate (First Disbursed between July 1, 2013 and June 30, 2014) Repayment Additional Info 5% Fixed 9 months after school Federal Perkins Loan Subsidized 3.86% Fixed Unsubsidized 3.86% Fixed Federal Stafford/ Direct Loan Undergraduate Subsidized: no interest charged while in school Unsubsidized: interest accrues while in school Unsubsidized 5.41% Fixed 6 months after school Unsubsidized interest accrues while in school May be deferred until 6 months student drop ½ time or 60 days after loan is fully disbursed Interest accrues while student is in school 6 months after school Federal Stafford/ Direct Loan Graduate Federal Direct PLUS Loan (Parents, Graduate & Professional) 6.41% Fixed Direct Lending Schools 16
  17. 17. The FAFSA: When and How to Apply
  18. 18. Applying for Federal Student Aid? • Free Application for Federal Student Aid (FAFSA) • Your eligibility is determined by information you provide on the FAFSA • Individuals must complete the FAFSA to receive federal financial aid • Students are encouraged to file their FAFSA as soon as possible after January 1st of their senior year in high school 18 15
  19. 19. www.FAFSA.gov
  20. 20. What You Need to Know • Must file every year in college • Can file Jan. 1st of your senior year • PIN (Parent/Student) • The earlier the BETTER!!
  21. 21. Basic Eligibility Requirements Students must have: • Have a high school diploma or a General Education Development (GED) certificate,  or  have  completed  homeschooling.  If  you  don’t,  you  may  still  be   eligible for federal student aid if you were enrolled in college or career school prior to July 1, 2012. Go to http://studentaid.ed.gov/eligibility/basic-criteria for additional information • A Social Security Number (with limited exceptions) • U.S. citizenship or be an eligible noncitizen • Registered with the Selective Service (Males) Students also need to: • Be enrolled or accepted for enrollment in an eligible program • Be pursuing a degree, certificate or credential • Maintain  ‘Satisfactory  Academic  Progress’ 21 15
  22. 22. Items  to  Keep  Handy… • Social Security Number (Student & Parent) • Your  driver’s  license  number  (not  mandatory) • Your Alien Registration Number if you are not a U.S. citizen. • Federal tax information including IRS Tax Return Transcripts, W-2 information, for yourself, (for your spouse if married, and for your parents if you are providing parent information) o IRS Data Retrieval Tool is Available • Records of veterans benefits, for yourself (and for your parents if you are providing parent information); • Information on savings, investments, and business and farm assets for yourself (and for your parents if you are providing parent information)
  23. 23. Dependency Status If any of the following criteria applies, the student is considered independent:  24 years or older    Master’s  or  Doctorate  Program Children and you provide ½ support  In foster care since turning 13    Married Emancipated minor Currently or was in legal guardianship Homeless or self supporting and at risk of being homeless  Veteran or serving active duty in U.S. Armed Force
  24. 24. Special Circumstances • Parents are Incarcerated • Left Home due to an Abusive Family Environment • Unsure of parents whereabouts • Circumstances Must be Well Documented • Financial  Aid  Director  Has  Final  Say…
  25. 25. What to Expect After Applying
  26. 26. What To Expect After Applying High Level Overview *Helpful Hint* Student/ parent(s) completes the FAFSA and signs with FSA PIN(s). FAFSA is processed by FSA; Student receives a SAR; College receives information if listed on the FAFSA. College reviews info and assembles award package for the student. Student reviews award package; compares to other award letters; student determines which college to attend. Some applications are selected for verification. Attach IRS Tax Return Transcript, W2 statements and other supporting documentation if requested.
  27. 27. Sample Award Letter Financial Need = $13,000 Scholarships $2,000 Institutional Grant $2,000 Federal Grants $5,000 State Grants $2,000 Loans $2,000 - Unmet need TOTAL = $13,000
  28. 28. FSA Resources
  29. 29. StudentAid.gov Homepage
  30. 30. Connect With Us! FACEBOOK TWITTER YOUTUBE Federal Student Aid @FAFSA Federal Student Aid www.facebook.com/FederalStudentAid www.twitter.com/FAFSA www.youtube.com/FederalStudentAid
  31. 31. FSAIC The Federal Student Aid Information Center (FSAIC) operates a toll-free hotline to provide comprehensive assistance in English, as well as Spanish on: o General information about federal student aid (Title IV programs); o The FAFSA application (paper and online); o FAFSA corrections; o Student loan history 1-800-4-FED-AID (1-800-433-3243) www.StudentAid.gov www.fafsa.ed.gov www.fsa4counselors.ed.gov Hours: Monday through Friday 8:00a.m. – 10:00p.m. ET *Extended hours may be available*
  32. 32. College Scorecard College Scorecard An online tool that will make it easier for students and families to compare colleges by comparing information such as: net price; graduation rates; default rates; student loan debt; and earnings potential http://collegecost.ed.gov /scorecard/index.aspx
  33. 33. Comparison Shopping – College Navigator http://nces.ed.gov/collegenavigator/
  34. 34. Financial Aid Shopping Sheet Available online at: http://collegecost.ed.gov/ shopping_sheet.pdf
  35. 35. Budgeting and Borrowing – Net Price Calculator http://collegecost.ed.gov/netpricecenter.aspx
  36. 36. Budgeting and Borrowing – Fact Tool StudentAid.gov
  37. 37. Scholarships / State Aid / Institutional Aid
  38. 38. Sources of Money for College       Federal government State government Colleges and universities Private foundations Employers and Private Companies Professional and Service Organizations
  39. 39. Scholarships • Google (search everyday!) • • Corporations U.S. Dept. of Ed (search engine) **Never Pay for Scholarships**
  40. 40. State and Institutional Aid • Additional financial aid may be available from your home state and from the institution that you are planning to attend • Grants and merit based scholarships may be available • Research, Research, Research! • Be aware of varying deadlines!
  41. 41. Help Us Improve! • Evaluate this webinar by participating in a short survey • Survey will be e-mailed to you in a few days Survey will help FSA Outreach improve our services!
  42. 42. Financial Aid 101 Questions?

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