This presentation is for LBHS Jan 2nd, Parent Information Night 2016

1. Financial Aid 101
Steve Booker, Director of Financial Aid

2. What is Financial Aid?
 Paying for college is primarily the responsibility of
the family
 Financial aid consists of funds provided to students
and families to help pay for postsecondary
educational expenses
 Most aid is need-based but some is based on
academic talent or achievement (merit
scholarships)

3. Types of Financial Aid
 Scholarships
 Grants
 Loans
 Employment
Gift Aid
Self-Help Aid

4. Sources of Financial Aid
 Federal government
 States
 Institutions
 Private sources

5. Scholarships
 Money that does not have to be paid back
 Awarded on the basis of merit, skill, or
unique characteristic
 Considered ‘Non-Need’

6. Scholarship Sources
 State
 Florida Bright Futures Awards
 Florida Academic Scholars Fund - $103 per credit
 Florida Medallion Scholars Award - $77 per credit
 Florida Vocational Gold Seal Award - $77 per credit, 2 yr
 Institutional
 Merit-based awards
 Talent-based awards
 Athletic aid
 Performance scholarships
 Music, Art, Theatre, etc.
 Private Sources
 www.fastweb.com
 www.scholarships.com

7. Grants
 Money that does not have to be paid back
 Usually awarded on the basis of financial need
 In general, FAFSA is required

8. Grant Sources
 State- 2015-2016 Academic Year
 Florida Resident Access Grant - $3,000
 Florida Student Assistance Grant - $2,610 max
 Federal- 2015-2016 Academic Year
 Pell Grant - $5,775 max
 Supplemental Ed Opportunity Grant (SEOG) - $4,000
max
 Institutional
 Florida Pre-Paid Plan

9. Loans
 Borrow to help pay college expenses
 Repayment usually begins after education (federal
loans have a six or nine month grace period
depending on loan type)
 Only borrow what is really needed
 Look at loans as an investment in the future

10. Loan Sources
 Federal:
 Federal Stafford Loan
 Subsidized versus Unsubsidized
 Subsidized Maximums $3,500, $4,500, $5,500
 Perkins Loan- no longer available, program expired
October 2015
 Federal Parent Loan for Undergraduate Students
(PLUS loan)
 Private:
 Always consider federal loans first!

11. Employment
Allows student to earn money to help pay educational
costs
 A paycheck; or
 Non-monetary compensation, such as room and
board

12. Employment Sources
 Federal College Work Study
 Need-based
 Experiential
 Income is excluded from future FAFSA
 Institutional work programs
 State work programs (Florida Work Experience
Program)

13. Applying for Financial Aid: the
Free Application for Federal
Student Aid (FAFSA)
 A standard form that collects
demographic and financial
information about the student and
family.
 Filed electronically or using paper
form.
 Information used to calculate the
Expected Family Contribution or
EFC.
 Colleges use EFC to award financial
aid.

14. FAFSA
January 1st

15. What is the Expected Family
Contribution (EFC)
 Factor
 Stays the same regardless of college
 Two components
 Parent contribution
 Student contribution
 Calculated using data from a federal application
form (Free Application for Federal Student Aid) and
a federal formula (EFC Formula)

16. College Costs
 Direct Costs
 Tuition
 Required Fees
 Room and Board
 Indirect Costs
 Books and Supplies
 Personal
 Misc

17. How is financial need
calculated?
Cost of Attendance (direct and indirect costs)
– Expected Family Contribution (from FAFSA)
Gross Financial Need

18. Cost Comparison
 Private University
60,000 (COA)
- 10,000 (EFC)
50,000 (Need)
 Public University
20,000 (COA)
- 10,000 (EFC)
10,000 (Need)

19. Timeline
January/February
 Complete all admission requirements
 Complete federal tax returns
 Complete the FAFSA
February/March
 Complete verification of information (if necessary)
 Respond to any questions from the Financial Aid Office
March/April
 Receive financial aid award letter
 Reply to offers of aid
May 1
 Confirm admission decision
 Complete all steps necessary to secure offered aid you
intend to accept
 Notify Financial Aid Office of outside scholarships

20. Benefits of Filing Electronically
 Avoid unnecessary questions
 Built-in edits to prevent costly errors
 Timely submission
 Detailed instructions and “help”
 Ability to check application status on-line
 Simplified application process in the future
 Use Internal Revenue Service (IRS) data retrieval

21. IRS Data Retrieval
 Submit real-time request to IRS for tax data
 IRS will authenticate taxpayer’s identity
 IRS sends real-time results to applicant
 Choose whether or not to transfer data

22. IRS Data Retrieval
 Available early February 2016 for 2016–17
processing cycle
 Participation is voluntary
 Reduces documents requested

23. Frequent FAFSA Errors
 Social Security Numbers
 Divorced/remarried parental
information
 Income earned by
parents/stepparents
 Untaxed income
 U.S. income taxes paid
 Household size
 Number of household members
in college
 Real estate and investment net
worth

24. Special Circumstances
 Cannot report on FAFSA
 Send written explanation to financial aid office at
each college
 Examples:
 Change in employment status
 Medical expenses not covered by insurance
 Change in parent marital status
 Other

25. Net Price Calculator (NPC)
 Every college must provide an NPC
 More detailed, but it’s only an estimate

26. IMPORTANT: On the Horizon…
Changes to the FAFSA for 2017-18
 Students will be able to submit a 2017-18 FAFSA as early as
October 1, 2016, rather than beginning on January 1, 2017
 Students and parents will report income information from an earlier
tax year (2015 instead of 2016)
26
*Slide obtained from the U.S. Department of Education

27. Helpful Websites
 www.fafsa.gov File the FAFSA online.
 www.studentaid.ed.gov Information and links.
 www.fastweb.com Private scholarship database.
 www.scholarships.com Outside scholarships.
 www.nasfaa.org/AnnualPubs/CashforCollege.PDF
 www.FloridaStudentFinancialAid.org
 http://www.fasfaa.org/cgs
**Portion of slides provided by NASFAA.