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08 the financialaidprocess_english


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08 the financialaidprocess_english

  1. 1. The trusted source for college information.TheFinancial AidProcessPaying for College2007-08
  2. 2. About ISACThe Illinois Student Assistance Commission is a non-profit state agency, committed to promoting equal accessto quality postsecondary education. In addition toadministering over $400 million in scholarships andgrants, we have created a one-stop trusted source forcollege information, College Zone.
  3. 3. Financing College “Can I afford it?” “How much will it cost?” “What is financial aid?” “FAFSA, when to apply?” “Where can I get it?” “Who can help?”
  4. 4. The Power of Education Min. wage in IL: $ 6.50 hr = $243.75 week = $975 month = $11,700 yearSource: Bureau of the Census; Bureau of Labor Statistics (2006).
  5. 5. Ways to Pay for College• Financial Aid Programs• 529 Savings & Prepaid Tuition Programs• Employer Tuition Reimbursement Plan• Tuition Benefits• Tuition Payment Plans Start early…
  6. 6. Type of Financial AidThere are two basic types of financial aid. Grants gift aid Scholarships self-help Work-Study aid LoansThese funds may be merit-based, need-based,or non need-based.
  7. 7. Sources of Financial AidFinancial aid comes from a variety of sources. 1. Federal Government 2. State Government 3. College (Institutional Aid) 4. Outside/Private Sources
  8. 8. Sources of Financial AidThe ‘Must-Get-To-Know’ Financial Aid Sources Illinois Student Assistance Commission (ISAC) - The state agency that administers state and federal grants and scholarships, college savings and prepaid tuition programs, and educational loans U.S. Department of Education (ED) - The federal agency that provides college funding in the form of grants, scholarships, and educational loans
  9. 9. The Big ThreeFinancial Aid ProgramsA complete FAFSA is required. Federal Pell Grant – $4,310 * Federal Supplemental Educational Opportunity Grant (FSEOG) – $4,000 * State of Illinois Monetary Award Program (MAP) Grant – $4,968 * Total = $13,278 * Maximum award for 2007-08
  10. 10. Illinois Student Assistance CommissionState of Illinois Financial Aid Programs Monetary Award Program (MAP)* – $4,968 Silas Purnell IL Incentive for Access (IIA) Grant* – $500 Illinois Veteran Grant (IVG)**– 4 yrs Illinois National Guard Grant (ING)** – 4 yrs Grants for Dependents of Police, Fire, and Correctional Officers** – 4 yrs Bonus Incentive Grant (BIG) Program** – $440 * FAFSA Required ** Program Application Required
  11. 11. Illinois Student Assistance CommissionState of Illinois Financial Aid Programs Merit Recognition Scholarship (MRS) – $1,000 • Not funded in 2007-08 Robert C. Byrd Honors Scholarship – $1,500 Illinois Future Teacher Corps (IFTC) Program** – $5,000/$10,000 Minority Teachers of Illinois (MTI) Scholarship Program** – $5,000 Illinois Special Education Teacher Tuition Waiver Program (SETTW)** – up to 4 yrs * FAFSA Required ** Program Application Required
  12. 12. U. S. Department of EducationFederal Financial Aid Programs Federal Pell Grant* – $4,310 Federal Supplemental Education Opportunity Grant (FSEOG)* – $4,000 Federal Academic Competitiveness Grant (ACG)* – $750 1st yr, $1300 2nd yr Federal Science & Mathematics Access to Retain Talent (SMART) Grant* – $4,000 * FAFSA Required ** Program Application Required
  13. 13. U. S. Department of EducationFederal Academic Competitiveness Grant (ACG)• Must be a U.S. Citizen New!• Be a Federal Pell Grant recipient• Be enrolled full-time in a 2 or 4-year degree program• Grant may be used for any educational expense, such as tuition and fees, room and board, and living expenses * FAFSA Required
  14. 14. U. S. Department of EducationFederal Academic Competitiveness Grant (ACG)• Maximum award amount: New! Up to $750 first-year students Up to $1300 second-year students• Have completed a rigorous (as defined by a state or local educational agency) program of study of at least: 4 years of English 3 years of Math 3 years of Science 3 years of Social Studies 1 year of a Foreign Language * FAFSA Required
  15. 15. Federal Science and MathematicsAccess to Retain Talent (SMART) Grant Must be a U.S. Citizen New! Be a Federal Pell Grant recipient Maximum award amount of $4,000 per academic year. Be enrolled full-time at the third and fourth year academic level pursuing a major in mathematics, science (including physical, life and computer sciences) technology, engineering or critical foreign language Must maintain a 3.0 GPA for coursework required for the major The college certifies eligibility for the SMART grant * FAFSA Required
  16. 16. Federal Work-Study Need-based employment program for undergraduate and graduate students Provides jobs on- and off-campus Students earn at least current minimum wage Students are permitted to work a flexible schedule * FAFSA Required ** Program Application Required
  17. 17. Federal Loan ProgramsTypes Federal Perkins Loan - 5% fixed ,9 month grace period Federal Stafford Loans - 6.8% fixed, 6 month grace period Federal PLUS Loan - 8.5% fixed, within 60 days after disbursementConsider Subsidized vs. Unsubsidized Interest rate Grace periodKnow Borrowers Rights & Responsibilities Loan Repayment Deferment & Forbearance * FAFSA Required Entrance & Exit Counseling ** Program Application Required
  18. 18. Saving for College The earlier you start, the easier it will be to accomplish your educational goal. Do your research to make an informed decision Project your costs Determine what you can afford Get startedNOTE: Use the interactive calculators on
  19. 19. 529 Plans• 529 Prepaid tuition plans, such as College Illinois!, allow you to prepay tuition at a locked-in price, protecting you from future tuition inflation and the uncertainty of the stock market.• 529 College savings plans, such as Bright Start®, allow you to save money for college. You earn money over time through interest. Your savings, along with the savings of others, are invested collectively on your behalf. Earnings may fluctuate with the performance of the market.• Both types of 529 plans have federal and state tax benefits that other types of investments do not have.
  20. 20. Institutional Aid & Private Sources• College Financial Aid Office Web Site Academic Department• Private Local, state and national agencies, associations and organizations Employers• Trusted sources of information ISAC – Mapping Your Future – U.S. Department of Education – FAFSA on the Web –
  21. 21. How to Apply for Financial Aid Don‟t underestimate your options. Never assume you‟re too poor to attend college or too rich to receive some type of financial aid. Don‟t become overwhelmed by the price of attending college, it may not be what it seems.
  22. 22. How to Apply for Financial AidSubmit All Forms Required by the College FAFSA Institutional Forms OtherNote: Communicate with each college to inquire about steps to a „complete application‟.
  23. 23. How to Apply for Financial AidThe Free Application for Federal Student Aid Free Application for Federal Student Aid The FAFSA information is used to calculate the Expected Family Contribution (EFC) and determine the student‟s eligibility for most federal and state assistance.
  24. 24. How to Apply for Financial AidOther Things to Know About the Process Apply early. Information reported on the FAFSA is confidential and is used ONLY to determine financial aid eligibility. You may be asked to submit documentation to the financial aid office for verification purposes. Supplemental applications or forms may be required. Keep track of DEADLINES!!! Keep a copy of everything you submit.
  25. 25. Meet the deadlines! Check college deadlines January 1, 2008 First date to submit FAFSA No Later than August 15, 2008* MAP Grant - Continuing Student Applicants No Later than September 30, 2008* MAP Grant - First Time Student Applicants June 30, 2009 Federal Pell Grant* Note: This date is subject to change and is based on funding by the Illinois General Assembly. Deadlines are earlier if funds are depleted.
  26. 26. Dependency StatusINDEPENDENT students fit into at least one of the categories listed below: Born before January 1, 1985 (during the 2007-08 academic year) Married Graduate or professional student Have legal dependents other than a spouse, for whom you provide more that 50% of their support Orphan or ward of the court (or were until age 18) Veteran or currently serving on active duty for other than training purposesNote: If the student is DEPENDENT, report student and parent income and assets on the FAFSA. Not living with parents does not make the student independent.
  27. 27. Determining Financial NeedA need analysis formula determines the student‟s Expected Family Contribution (EFC). The U.S. Department of Education calculates financial need using a formula established by Congress called Federal Methodology. A comparative measure of how much a family can be expected to contribute toward the cost of a student‟s education for a year. Used to determine a student‟s eligibility for most federal and state assistance. After completing the FAFSA, the EFC is shown on the Student Aid Report (SAR) and Institutional Student Information Record (ISIR).
  28. 28. What are the costs? Tuition & Fees Room & Board Transportation Books & Supplies Miscellaneous Living Expenses+ Cost of Attendance (COA)
  29. 29. To Determine Financial Need
  30. 30. To Determine Financial NeedExamples Financial COA EFC NeedOption AOption B
  31. 31. Financial Aid AwardsThe financial aid administrators at the colleges that you are considering will „package‟ all available financial aid options and send them to you for consideration. What is the total cost of attendance? What is the Expected Family Contribution? What is your financial aid eligibility? How is your financial need being met? Was your financial need met? What is the out-of-pocket cost?
  32. 32. Financial Aid AwardYou too should have ‘Selection Criteria’A few points to take into account before you commit to a school: Type of Institution Available Financial Aid Cost of Education vs. Earning Potential Academic Program Ranking Residential vs. Commuter
  33. 33. Other Financing Options Payment Plan Pre-Payment Discounts PLUS Loan Alternative Loans Military Service
  34. 34. Steps for Students to Remember 1. Start planning for the future 2. Complete the application process 3. Receive, revise and edit the Student Aid Report 4. Consider award letters 5. Respond to college offers 6. Advise school(s) of outside scholarships 7. Renew the FAFSA every year!
  35. 35. Free tools on www.collegezone.comInteractive Calculators Map of IL Colleges IllinoisMentor
  36. 36. Avoid Scholarship Scams While most scholarship services are legitimate, others may be fraudulent and charge a lot of money for little information. Please view with caution any service that requires you to pay more than a nominal fee. Visit to access reputable scholarship search services.
  37. 37. Report Scholarship Scams Better Business Bureau High School Counselor Financial Aid Office Friends
  38. 38. Remember… Plan ahead Apply early Read CAREFULLY Meet deadlines Keep copies
  39. 39. Questions? Illinois Student Assistance Commission (800) 899-ISAC (4722) U.S. Department of Education (800) 4 FED AID We’re here to help...