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What is this Financial Aid Thing Anyway

Learn about financial aid, college costs, expected family contribution, types of aid, application process, and funding sources. Discover grants, loans, employment, and scholarships. Essential information for college planning.

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What is this Financial Aid Thing Anyway

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  1. What is this Financial Aid Thing Anyway Capital High School October 24, 2012 Tracy Dahl and Sabrina Knoll Centralia College Financial Aid Office

  2. Topics We Will Discuss • What is financial aid • Understanding college costs • The expected family contribution, or EFC • What is financial need • Types of financial aid • Sources of financial aid

  3. Topics We Will Discuss • How to apply for financial aid • The federal financial aid programs • Estimating eligibility for federal financial aid using FAFSA4caster • Researching financial aid options • What you should be doing now

  4. Know How to Go • http://www.youtube.com/user/KnowHow2Go

  5. What is Financial Aid? Any money from outside of the family that pays postsecondary (college) expenses.

  6. Understanding College Costs • College is expensive, but worth the cost • A sound investment in your child’s future • More than just tuition • Also includes room and board, books, transportation, personal expenses, etc.

  7. Understanding College Costs • Vary by type of college • Community colleges are less expensive than four-year schools • Private colleges are more expensive than public colleges • http://www.wsac.wa.gov/PayingForCollege/CostFactors

  8. Expected Family Contribution (EFC) • Calculated using a federal form (FAFSA) and formula • Two components • Parent contribution • Student contribution

  9. Expected Family Contribution (EFC) • Amount family can reasonably be expected to contribute, but not what family will pay to the college • EFC the same regardless of college the student attends

  10. What is Financial Need • Financial need is the difference between the cost of attendance (COA) and expected family contribution (EFC). • COA is tuition, fees, room and board, transportation, etc. • EFC is determined from what you report on the FAFSA (Free Application for Federal Student Aid) • COA – EFC = Financial Need

  11. What is Financial Need • For example, if COA is 10,000, and EFC is 2,000, then a student’s need is 8,000 • Amount of financial need determines the amount of aid a student will receive

  12. Sources of Financial Aid • Federal government • States • Colleges • Private sources

  13. Federal Government • Largest source of financial aid • Awarded mainly on the basis of financial need • Apply every year using standard form called Free Application for Federal Student Aid – (FAFSA)

  14. States • Offer both merit-based and need-based aid • Usually have residency requirements • May have service requirements

  15. Colleges • Varies widely from college to college • Offer both merit-based and need-based aid • May be offered as part of the admissions process

  16. Private Sources • Churches, civic organizations, employers • Varying award amounts and application procedures • Small awards add up

  17. Types of Financial Aid • Grants • Loans • Employment • Scholarship

  18. Grants • Awarded on the basis of financial need • Do not have to be paid back

  19. Federal Grant Programs • Federal Pell Grant • Teacher Education Assistance for College and Higher Education (TEACH) Grant • Federal Supplemental Educational Opportunity Grant (FSEOG) • http://www.studentaid.ed.gov/

  20. Maximum amounts for federal grants • Federal Pell Grant: $5,550 • Federal TEACH Grant: $4,000 • FSEOG: $4,000

  21. Washington State Need Programs • Washington State Need Grant • College Bound Scholarship • Passport Program • Our state aid: www.wsac.wa.gov

  22. Maximum amounts for state grants • Washington State Need Grant • UW/WSU $10,868 • Other 4 year public $ 7,580 • Private 4 year $ 8,517 • Community College $ 3,696

  23. Loans • Must be paid back, usually after the student finishes school • Many different types • Student loans are a reasonable form of aid • A good investment in the student’s future

  24. Federal Loan Programs • Federal Perkins Loan • Federal Direct Loans • Borrowed by students • PLUS Loans • Borrowed by parents and graduate students

  25. Maximum loan amounts and interest rates for first year student • Federal Direct Loan: $5500 (no more than $3500 subsidized) • Interest rate fixed 3.4% subsidized, 6.8% unsubsidized • Federal Perkins Loan: $4000 • Interest rate fixed 5% • Interest rates set by Congress

  26. Federal Parent Loan • COA minus other aid received • Interest rate fixed 7.9%

  27. Employment • Earnings used to cover college expenses • Advantages – Gain work experience and earn money • Income is reported on tax return but is excluded when calculating financial aid eligibility ,

  28. Employment Programs Federal Work-Study (FWS) State Work-Study (SWS)

  29. Scholarships • Awarded on the basis of merit or unique characteristics • Do not have to be paid back

  30. How to Apply for Financial Aid • Complete a standard federal form every year • Free Application for Federal Student Aid, or FAFSA at www.fafsa.gov • Collects demographic and financial information • Data used to calculate the EFC

  31. Be Aware of Deadlines • Check with the colleges/universities to determine their priority deadline so that you are sure to have your FAFSA and any other additional forms/requirements submitted by that deadline. • Financial aid is usually awarded on a first-come, first-served basis. Don’t lose out on funding by missing the deadline. • The FAFSA form is available January 1, 2013 – submit it as soon after that date as possible.

  32. Estimating Eligibility Using FAFSA4caster On-line tool developed by U.S. Department of Education to help families prepare financially for college • Asks for data you will need to provide on the FAFSA • Estimates eligibility for the Federal Pell Grant • Available at www.FAFSA4caster.ed.gov

  33. Researching Financial Aid • Begin early • Find scholarships that match your student’s academic interests, hobbies, and unique characteristics (www.washboard.org) • Don’t pay for scholarship searches or to fill out the FAFSA • Report fraud

  34. What You Should Be Doing Now • Begin researching financial aid options • Start or continue saving • Take college prep classes • Participate in extracurricular activities • Develop strong study skills

  35. Conclusion • It is never too early to start the college planning process • The more information you have, the easier the process will be for you and your student

  36. Questions? Centralia College Financial Aid Office 360-736-9391, ext. 234 or financialaid@centralia.edu

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