This document summarizes a presentation about understanding financial aid options and the impact of COVID-19. It defines important financial aid terms and explains the types of aid available, including scholarships, grants, work-study, loans, and how COVID-19 has impacted repayment of federal student loans. Contact information is provided for the presenters and the George Mason University Financial Well-Being Team for any additional questions.

1. G E O R G E M A S O N U N I V E R S I T Y
MoneyTalks Series episode 3: UnderstandingFinancial Aid
Options & The Impact of COVID-19
Presented by:
Shannon Osborne, MA
Assistant Director for Financial Well-Being
Clarisa Meza-Negrete
Graduate Assistant for Financial Well-Being
Student Support and Advocacy Center (SSAC)
fwb@gmu.edu

2. G E O R G E M A S O N U N I V E R S I T Y
IMPORTANT TERMS TO KNOW:
BORROWER:A person who takes out a loan in their
name to pay for expenses.
CostofAttendance:The overall cost of education including
both school related expenses as well as living expenses.
CO-SIGNER: An individual who signs a loan or a credit
account of another person as support for the credit of
the primary signer. The co-signer becomes responsible
for the debt, if the primary signer doesn’t pay.
DIRECTCOSTS: Expenses that are directly related to
your education (tuition and fees).
IN-DIRECTCOSTS:Expenses that are indirectly related
to your education but are expenses you have in
general from being a student (books, room and
board, personal and
transportation).
LENDER:It is an organization or person who lends
money to a borrower.
OUT-OF-POCKET:Expenses that you might have to
cover whether it be check, cash or card.
LOAN:It is money that needs to be repaid by the
borrower, it usually has interests.
Servicer:Often a middle organization that a borrower
might repay the lender through the servicer.
FIXED-RATEINTEREST:The interest rate does not
change during a fixed period.
VARIABLE-RATEINTEREST:It is interest that might
increase or decrease over time.
Expectedfamilycontribution(EFC):The number created
from income and assets reported on the FAFSA to
determine aid eligibility .
FINANCIALWELL-BEING: Creating a sense of security and
feeling centered around having a financial balance in
your own life. It is the feeling of having the financial
freedom to plan for today, tomorrow and
the future.

3. G E O R G E M A S O N U N I V E R S I T Y
Federal
Work Study
Student
Loans
Grants
Scholarships Award
Letters

4. G E O R G E M A S O N U N I V E R S I T Y
WHICH FAFSA?

5. G E O R G E M A S O N U N I V E R S I T Y
• The Office of Student
Financial Aid will
communicate if
verification docs are
needed.
• Forms can be found
here:
https://www2.gmu.edu
/admissions-
aid/financial-aid/forms
• Submit Online through
Mason Student Services
Center (MSSC).
VERIFICATION

6. G E O R G E M A S O N U N I V E R S I T Y
FAFSA (Free Application for
Federal Student Aid)
www.fafsa.gov. Currently the
2020-2021 FAFSA is open
and the 2021-2022 FAFSA
opened October 1, 2020.
Important to file the
FAFSA early!
Scholarships: Grants: Work– Study: Loans:
Do not need to be
repaid
Do not need to be
repaid
Do not need to be
repaid
Need to be repaid
Based on
Academic,
Financial Need,
and Talent:
o Admission
Scholarships
o Departmental
Scholarships
o Outside
Scholarships
(www.fastweb.c
om)
Based on
Financial Need
ONLY
Based on
student’s financial
need.
• It is an on-
campus job
that you can
earn a
paycheck,
subject to tax.
Flexible work
hours!
Some loans are
based on student’s
financial need and
others are based
on if the student
qualifies for the
loan(s)
Cost of Attendance
(COA)
Expected Family
Contribution (EFC)
from the FAFSA
Financial Need=
Types of Financial Aid:

7. G E O R G E M A S O N U N I V E R S I T Y
• Apply for Mason scholarships:
• https://www2.gmu.edu/admissions-aid/financial-aid/types-aid/scholarships
• Apply for Outside scholarships:
• https://gmu.academicworks.com/opportunities/external
• Additional Outside scholarships:
• www.fastweb.com
SCHOLARSHIPS

8. G E O R G E M A S O N U N I V E R S I T Y
Types of loans:

9. G E O R G E M A S O N U N I V E R S I T Y
o Direct Unsubsidized Loans:
o Interest rate is 2.75% fixed for Undergrad
o Interest rate is 4.3% fixed for Grad
o Borrower: The Student
o They are available for both undergraduate
and graduate students, there is no
requirement to demonstrate financial need.
o The university or college determines the
amount the student may borrow and may
not exceed the individual’s financial need.
o Interest accrues while in-school but
interest payment are not required until
after the grace period.
o If the student decides not to pay the interest
of the loan during the time, they attend
school, during the grace period, and
deferment periods then the interest will be
accumulated and added to the principal
amount of the loan.
oDirect Graduate or Parent Plus Loans:
o Interest rate is 5.30% fixed
o Borrower: The Parent(s) or the Graduate Student
o Interest does accrue while in school
o This is credit based
o Separate application through www.studentaid.gov
GMU requires at half-time status to be
considered for Federal Loans.
o Direct Subsidized Loans:
o Interest rate is 2.75% fixed
o Borrower: The Student
o They are available for undergraduate
students who have financial need.
o The university or college determines the
amount the student may borrow and may
not exceed the individual’s financial need.
o The Federal Government pays the interest
during the individual is :
oA half-time student
oGrace Period: Repayment begins 6
months after you graduate or fall below less
than half-time status

10. G E O R G E M A S O N U N I V E R S I T Y
Federal Financial Aid Loans- Origination Fees
Example: $5,500 Direct Unsubsidized Loan (gross borrowed) – 1.059 %
Origination fee = $5,441 (net received)
First Disbursement Date: Loan Fee:
On or after 10/01/2020 &
before 10/01/2021
1.057%
On or after 10/01/2019 &
before 10/01/2020
1.059%
First Disbursement Date: Loan Fee:
On or after 10/01/2020 &
before 10/01/2021
4.228%
On or after 10/01/2019 &
before 10/01/2020
4.236%

11. G E O R G E M A S O N U N I V E R S I T Y
Federal Financial Aid Loans Yearly Amount:
Year in
School:
Maximum
Annual
Total:
Maximum
Subsidized:
Dependent
Students:
1st Year $5,500 $3,500
2nd Year $6,500 $4,500
3rd & 4th
Years
$7,500 $5,500
Independent
Students:
1st Year $9,500 $3,500
2nd Year $10,500 $4,500
3rd & 4th
Year
$12,500 $5,500
Graduate
Students:
Grad $20,500 N/A
Lifetime
Limits
Dep.
$31,000
all
$23,000
subsidized
Ind. $57,000
all $23,000
subsidized
Grad $138,500
all $65,500
subsidized
Independent Student
Dependent
Student
o At least 24 years old
o Married
o A Parent
o A graduate Student
o A Veteran
o A Member of the Armed
Forces
o An Orphan, Ward of the
Court, or Homeless
You are considered a
Dependent Student if
none of the previously
listed descriptions (on
the left) apply

12. G E O R G E M A S O N U N I V E R S I T Y
• Typically have a higher interest rate but
can receive up to Cost of Attendance.
• Usually needs a co-signer and is based
on credit.
• Interest accrues while in school and
some plans require an in-school interest
only repayment.
• Does still have a 6 months Grace
Period but you choose your repayment
plan when you choose your interest rate
option.
• GMU preferred private loan lender list:
https://www.elmselect.com/v4/school
/421/program-select
• International, DACA and
undocumented students should look
at Prodigy Finance as US co-signer is
not required. However, much higher
interest rates because of lack of co-
signer https://prodigyfinance.com/.
Private Loans
Lenders may include:
o Sallie Mae
o Wells Fargo
o Discover
o Credit Union Student
Choice
o Apple Credit Union
o MEFA
o CHESLA

13. G E O R G E M A S O N U N I V E R S I T Y
• On March 20, 2020, the Secretary of
Education directed the office of Federal
Student Aid to provide the following relief on
ED-held federal student loans:
1. suspend loan payments
2. stop collections on defaulted loans
3. set interest rates to 0% for a period of 60
days
• On March 27, 2020, Congress passed, and the
president signed into law, the Coronavirus
Aid, Relief, and Economic Security Act (CARES
Act), which provides for the above relief
measures through Sept. 30, 2020.
• On Aug. 8, 2020, President Trump directed
the Secretary to continue to suspend loan
payments, stop collections, and waive interest
on ED-held student loans until Dec. 31, 2020.
Resources:
https://studentaid.gov/announcements-
events/coronavirus
https://studentaid.gov/articles/5-repayment-
flexibilities/
https://studentaid.gov/articles/6-things-to-know-
during-coronavirus/
If you are financially impacted by COVID-19
consider an income appeal with the Office of
Student Financial Aid at finaid@gmu.edu
COVID-19 IMPACT

14. G E O R G E M A S O N U N I V E R S I T Y
For more information on Financial
Well-Being here at GMU visit our
website:
https://ssac.gmu.edu/financial-
wellbeing/
Financial Well-Being Team
fwb@gmu.edu
(703) 993-3686
Presenters: Shannon Osborne, MA
Assistant Director for Financial Well-Being
Clarisa Meza-Negrete
Graduate Assistant For Financial Well-Being
Student Support and Advocacy Center
(SSAC)
Questions?:
All Money Talks Series episodes are recorded
and will soon be on our website:
https://ssac.gmu.edu/money-talk-series-
presentations/