This document provides information about financing a student's education. It discusses the different types of financial aid available, including grants, scholarships, loans, and employment. It explains how financial need is determined using the cost of attendance and expected family contribution. The document emphasizes the importance of completing the Free Application for Federal Student Aid (FAFSA) annually and by priority deadlines. It provides tips for budgeting loan funds and understanding loan repayment responsibilities. Overall, the document is a guide for students to understand their financial aid options and successfully manage the costs of their education.

1. FINANCING
YOUR
EDUCATION

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Go
www.studentaid.ed.gov

3. The PRIVACY ACT limits what Business and
Financial Aid Office representatives are allowed to
discuss with parents.
You may sign a
release form
allowing your
school to
discuss your
information
with a third
party (i.e.
parent).

4. Financial Aid is an INVESTMENT in your
future made by sources other than your
family…or by you.
GIFT AID
Grants (Federal/State)
Scholarships (Western/Private)
SELF-HELP AID
Federal Loans (Low Interest)
Employment
(FWS/Institutional)

5. Need Based
Aid
Merit Based

6. How is
need
 Cost of Attendance
determine
d?
Tuition/Fees, Room/Board,
Books/Supplies, Transportation, Living
Expenses, Etc. Will vary from school to
school.
 Expected Family
Contribution is determined by a
formula created by Congress (FAFSA
results). Will NOT vary.
 Estimated Financial
Assistance total of all sources of
assistance (grants, scholarships, loans,
FWS).

7. How do I apply for

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9. FREE Application for Federal
Student Aid
 Provides the necessary
information to perform
need calculation determines your EFC.
 Determines your eligibility
for Federal, State,
institutional and private
aid.
 Should be submitted as
soon as possible after
January 1st EVERY
year.

10. What do I need to complete the
FAFSA?
 Parent/Student PIN
www.pin.ed.gov




2013 W2 Forms
2013 Tax Forms
Other Financial Info
School Codes
Helpful Hints:
 Read the form carefully.
 Double check your answers.
 If you have questions, ask your
Financial Aid Professional.

11. To electronically sign the FAFSA,
you and your parent, must request
a PIN from the Department of
Education.
www.pin.ed.gov

13. 








Were you born before 1-1-91?
Are you a grad or professional student?
As of today, are you married?
Do you have dependents who receive more than 50% of their support from you?
Are you currently serving in the Armed Forces?
Are you a veteran of the U.S. Armed Forces?
Are you an orphan or ward of the court or in foster care or in legal guardianship?
Are you a legally emancipated minor?
Are you an unaccompanied, homeless youth?
IF YOU CAN’T ANSWER YES to one, or more, of these
questions, you are a dependent student and must include
parent’s financial information.

15. Transfer
IRS tax
information
to your
FAFSA.
1. Enter your PIN* and click Link To IRS.
2. On the IRS Web site, enter the requested information.
3. Once the IRS has validated your identification, your IRS tax
information will display. You can either transfer your information
from the IRS, or choose to return to FAFSA on the Web from the
IRS Web site.
4. If you transfer your IRS tax information, questions that are
populated with tax information will be marked with “Transferred
from the IRS.”

16. Provide an email
address…get a
link to your SAR
the next day.
Don’t provide an
email address…
get your SAR via
snail mail.

17. Using FAFSA
Corrections on
the Web;
 By the Financial
Aid Staff; or
 On the paper
SAR.


18.  Loss
or reduction of family
income.
 Unusual
medical or dental
expenses not covered by
insurance.
 Death
 Other
or illness.
unusual
circumstances.

19. The Department of Education randomly
selects around 30-35% of FAFSA filers to
participate in a mandatory quality-control
process called “Verification.”

20. Watch your deadlines!
Deadlines for Federal
Aid.
 Priority Deadlines for
Campus Based
Federal Programs
(SEOG, FWS, Perkins
Loans).
 Deadlines for State Aid
Programs (April 1st).
 Scholarship
Application Deadlines.


21. Show me
the money!
Federal Aid Programs
 State Aid Programs
 Institutional Programs
 Outside Sources


22. 
FAFSA results determine
eligibility.

Award is based on your
Expected Family Contribution
(EFC).

Maximum award for 20132014 is $5,645 per year.

Up to 6 years of potential
eligibility.
Does not need
to be repaid!!

23.  Awarded
to students with
an EFC less than
$12,000.
 Awards
lete
mp y
t co SA b
us
M
FAF st .
the ril 1
Ap
range from
$1,000 to $2,150 per
year depending upon state
funding.
 Must
be enrolled full-time
(12 hrs).
 Must
maintain a 2.50 GPA
and make Satisfactory
Academic Progress for
renewal.

24.  Must
complete the
FAFSA by the Priority
Deadline.
 Compensation is at
least the current
minimum wage.

25. 1098T – IRS Publication 970
A tax credit reduces the amount of income tax you may have to pay.
Unlike a deduction, which reduces the amount of income subject to
tax, a credit directly reduces the tax itself.
• American Opportunity Credit - $2,500 per student for up to
four years

27. There is an assumption that you have to
be brilliant, or athletically talented, or
gifted musically, to earn scholarships for
college.

28. Where do I look?
Local Churches
Local Businesses
Military Sources
College Websites
Parent’s Employer
Civic Organizations
High School Counselor
Local Library Resources
Professional Organizations

29. Searching Online

30. Beware of financial aid scams!

31. Ever wonder what the people who award
the scholarships want to see?
Remember,
your application
represents YOU!

33. Let’s talk about student loans…
and the
REALITY
of
student
loan
debt. loan debt topped $1 trillion dollars making it the
Last year, student
second largest category of consumer debt (home mortgages is #1).

34. Who is the
borrower of a
Federal
student loan?
Who is NOT the
borrower?
Who is
responsible
for repaying

35. The Federal government sets limits on the
amount of money students may borrow to
help fund their education.
Freshmen may
borrow up to
$5,500
($9,500 with PLUS denial).

36. What’s the interest rate?
Subsidized
Stafford Loans
3.86%
Unsubsidized
Stafford Loans
3.86%
Rates are
established each
year on July 1st.

37. Understand the difference between
Subsidized and Unsubsidized loans.
Subsidized
Student Loans
Are based on financial
need; government pays
the interest while you
are in school.
Unsubsidized
Student Loans
Are not based on
financial need; you
should make interest
payments while in
school.

38. Are you accruing interest
now?
If you borrow $5,500 in unsubsidized
funds during your first year in college,
your interest payment will be $31.17
per month.
Over 4 years that amount will become
$1,496.16
making your first year loan debt
$6,996.16 plus the interest that will
accrue during your repayment period.

39. Loan debt can add up fast!
Year in School
Amt Borrowed Per Year
Total Borrowed
Freshman Year
$5,500
$5,500
Sophomore Year
$6,500
$12,000
Junior Year
$7,500
$19,500
Senior Year
$7,500
$27,000

40. The reality of loan
payments!
If you borrow $27,000 in a 6.8
percent interest rate Stafford
Loan,
you'll have to pay $311 every
month for 120 months - 10
years.
By the time you pay back the
$27,000 plus interest, you will
have paid $37,286!
If you borrow $35,000 you will pay $403 per month.
If you borrow $50,000 you will pay $575 per month.

41. Future salary required to
manage that payment?
$27,000
Borrowed
$50,000
Borrowed

42. When does repayment
begin?

43. Student loans…an investment?

44. It could be the best investment
you ever make…
or the
WORST!

45. Go to Class!
After all…you paid for it.
Only Pay for a Class One Time!
Do your work and be prepared for tests.
If you are struggling, GET HELP!
Stick to Your Academic Plan!
Take only courses that are REQUIRED for
completion of your degree program.
Borrow Only What You Need!
Learn the difference between
NEED and WANT.
Use Loan Funds for Educational
Expenses ONLY!!

46. What if I don’t pay my loans
back?
CODE OF FEDERAL REGULATIONS (CFR)
PART 685—WILLIAM D. FORD FEDERAL
DIRECT LOAN PROGRAM
Subpart B—Borrower Provisions
Sec. 685.211 Miscellaneous repayment
provisions.
(d) Default.
(1) Acceleration. If a borrower defaults on a
Direct Loan, the entire unpaid balance and accrued
interest are immediately due and payable .
(2) Collection charges. If a borrower defaults
on a Direct Loan, the Secretary assesses collection
charges in accordance with Sec. 685.202(e).
(3) Collection of a defaulted loan. (i) The
Secretary may take any action authorized by law to
collect a defaulted Direct Loan including, but not limited
to,
•filing a lawsuit against the borrower,
•reporting the default to national credit bureaus,
•requesting the Internal Revenue Service to offset the
borrower's Federal income tax refund, and
•garnishing the borrower's wages.

47. No problem…I’ll just declare
bankruptcy.
Can’t do
it!
Federal
student loans
are rarely

48. In other words…
Borrow
responsibly
NOW…
So you can
live rich LATER.

49. Federal PLUS Loans for Parents
Borrowers are credit worthy
parents of dependent undergraduate students.

50. TOP
Reaso
ns to
GO TO
CLASS!

51. You earn your financial assistance as you
go to class.

52. You can lose your eligibility to receive Federal
financial assistance (Pell, Stafford Loans, etc.).

53. Would you borrow that
much money to buy a
car and then…
Leave the lot
without it?

55. Money Tip #1
You should always have a plan for spending your
money.
Know
where your money goes.
Avoid overspending.
Stay out of debt.
Be ready for the unexpected.
Allow for saving and investing.
Be prepared for a life of financial success!!

56. Money Tip #2
Understand that small purchases add
up to big money.
When you look at your spending, you may
see that you buy a latte every day.
True, a latte only costs about $3, but if you
buy one every day, that's $21 a week.
Over the course of the school year, that
adds up to $1,092.
In four years, that's more than $4,368
you'll spend on coffee and steamed milk!

57. Money Tip #3
Your credit score is expressed on a scale between 300 and 850. (Fair
Isaac Corporation - FICO score).
• Do you pay your bills on time?
• What types of credit do you use?
• How much do you owe?
• How much credit do you have
available?
• Do you have responsible borrowing
experience?
• Have you applied for several credit
cards over a short period of time?
• Do you have court judgments or
bankruptcies?
• Do you have unpaid bills in collection?
Length
of Credit
History

58. The information
in your credit
report is used to
evaluate your
applications for
credit, insurance,
employment, and
renting a home.

59. Money Tip #4
Understand the miracle of compounding interest?
Sally begins investing $1,000 a year in a tax-deferred IRA at age 22 and stops
putting money in the IRA after 10 years, at age 32. She leaves her money so it
will grow through compounding until she reaches age 65.
Joe begins investing $1,000 a year in a tax-deferred IRA at age 30 and
continues to do so for 35 years until he reaches age 65.
Sally’s IRA
Interest Rate
Number of years
of contributions
Total amount
contributed
Value at age 65
Joe’s IRA
9 percent
9 percent
10
34
$1,000 per year for
10 years ($10,000)
$1,000 per year for
34 years ($34,000)
$310,148
$215,711

60. Money Tip #5
Watch out for credit card debt.