What You Need to Know About Financial Aid

1. What You Need to Know About Financial Aid

2. Discussion Topics • What is financial aid • Cost of attendance (COA) • Expected Family Contribution (EFC) • What is financial need • Categories, types, and sources of financial aid • Free Application for Federal Student Aid (FAFSA) • Special circumstances

3. What is Financial Aid? Financial aid is made up of federal, state, institutional and private funding. These funds are used to help provide students and families a way to pay for college educational expenses

4. What is the Cost of Attendance (COA) • Direct costs – Tuition, fees and books • Indirect costs – Room, board, transportation and personal expenses • Direct and Indirect costs combined into cost of attendance (COA) • Varies widely from college to college

5. What is the Expected Family Contribution (EFC) • The amount a student/parent(s) is expected to pay toward the student’s COA (the EFC is calculated by using federal methodology from the Department of Education). • Stays the same regardless of college • Two components • Parent contribution • Student contribution

6. What is Financial Need? Cost of Attendance (COA) –Expected Family Contribution (EFC) = Financial Need

7. Categories of Financial Aid • Need-based • Non need-based

8. Types of Financial Aid • Scholarships • Grants • Loans • Employment

9. Scholarships • Money that does not have to be paid back • Awarded on the basis of merit, skill, or a unique characteristic

10. Grants • Money thatdoes not have to be paid back • Usually awarded on the basis of financial need

11. Loans • Money thatdoes have to be paid back • Money student and/or parent borrows to help pay college expenses • Repayment usually begins after education is finished • Only borrow what is really needed • Look at loans as an investment in the future

12. Employment • Money that students earn that can be used to help pay college educational costs. • A paycheck • Non-monetary compensation, such as room and board

13. Sources of Financial Aid • Federal government • State government • Private sources • Civic organizations and churches • Employers

14. Federal Government • Largest source of financial aid • Aid awarded primarily on the basis of financial need • Must apply every year using the Free Application for Federal Student Aid (FAFSA)

15. State Government • Residency requirements • Award aid on the basis of both merit and need • Uses information from the FAFSA application • Deadlines vary by state; Check Application Deadline Dates on the FAFSA’s Web site

16. Federal Pell Grant Academic Competitiveness Grant (ACG Grant) National Science and Mathematics Access to Retain Talent Grant (SMART Grant) Teacher Education Assistance for College and Higher Education Grant (TEACH Grant) Federal Supplemental Educational Opportunity Grant (SEOG) Federal Work-Study Federal Perkins Loan Federal Direct/Stafford Student Loans Federal Direct/Stafford Parent Loan for Undergraduate Students (PLUS) Loan Federal Aid Programs

17. Minnesota Achieve Scholarship Program – check with HS counselor Minnesota State Grant Minnesota Post-Secondary Child Care Grant Minnesota Public Safety Officer’s Survivor Grant Student Educational Loan Fund (SELF) Loan Minnesota State Government Aid Programs

18. Institutional/Outside Financial Aid • Institutional Grant • Tuition Waiver • Special Programs • Scholar Awards • Other – Veterans, research and internships, non-resident tuition, etc. • Loans

19. Private Sources • Foundations, businesses, charitable organizations • Deadlines and application procedures vary widely • Begin researching private aid sources early Check with HS counselor and colleges

20. Civic Organizations and Churches • Research what is available in community • To what organizations, clubs and churches does student and family belong? • Application process usually spring of senior year • Small scholarships add up! Check with HS counselor and colleges

21. Employers • Companies may have scholarships available to the children of employees • Companies may have educational benefits for their employees

22. Free Application for Federal Student Aid (FAFSA) • A standard form that collects demographic and financial information about the student and family • May be filed electronically or using paper form – *New* - by phone for 2009-2010 • Available in English and Spanish

23. FAFSA • Information used to calculate the Expected Family Contribution (EFC) • Colleges use EFC to award financial aid

24. FAFSA Web site: www.fafsa.ed.gov • May be filed at any time during an academic year, but no earlier than the January 1st • Colleges may set FAFSA filing deadlines • Check with the specific colleges for additional deadlines or financial aid forms that must be completed

25. FAFSA on the Web Good reasons to file electronically: • Built-in edits to prevent costly errors • Skip-logic allows student/parent to skip unnecessary questions • More timely submission of original application and any necessary corrections • More detailed instructions and “help” for common questions • Ability to check application status on-line • Simplified application process in the future

26. Student Financial Aid Personal Identification Number (SFA PIN) • Web site: www.pin.ed.gov • Sign FAFSA electronically • Can request PIN before January 1, 2015 • Not required, but speeds processing • May be used by students and parents throughout aid process, including subsequent school years

27. Now What? • Take the FAFSA on the Web worksheet to the FAFSA Web site. • To sign the FAFSA electronically have the student/parent (one parent for dependent students) PIN numbers ready • Complete and submit the 2009-2010 FAFSA application

28. FAFSA Processing Results • Central Processing System (CPS) notifies student of FAFSA processing results by: • E-mail notification containing a direct link to student’s on-line Student Aid Report (SAR) if student’s e-mail was provided – parent will also receive notification if e-mail was provided.

29. Student Aid Report (SAR) • Student with PIN may view SAR on-line at www.fafsa.ed.gov • Review data for accuracy • Update estimated tax information when actual figures are available

30. FAFSA Processing Results • FAFSA information is sent to the colleges listed on FAFSA approximately 10 to 14 days after FAFSA submitted • College reviews the FAFSA information • May request additional documentation, such as copies of federal tax returns

31. Making Corrections to a processed FAFSA If necessary, corrections to FAFSA information may be made by: • Using FAFSA on the Web (www.fafsa.ed.gov) using your student/parent PIN; • Submitting documentation to college’s financial aid office

32. Special Circumstances • Cannot be reported on FAFSA • Call financial aid office at each college to explain your circumstance(s) • College will review and may request additional documentation

33. Special Circumstances • Change in employment status • Medical expenses not covered by insurance • Change in parent marital status • Death of a parent • Student cannot obtain parent information

34. Difficulties in completing the FAFSA? • Call the financial aid office at the college the student plans to attend • Call the Federal Student Aid toll-free number at 1-800-433-3243 • Call your tax preparer or financial advisor