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The Financial Aid Process

The Financial Aid Process

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The Financial Aid Process

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  1. The Financial Aid Process Presented by Emily Goldrick & Mike McGinn of University of Chicago

  2. What is financial aid? • Financial Aid is the term used to describe assistance in funding higher education. • Federal Government (Pell Grant, SEOG, Stafford/Perkins) • Individual States (Illinois MAP Grant) • Individual School Funds (Need-Based Grant Assistance) • Private Scholarships (Merit or Need Aid)

  3. Applying at all schools • Every school will have different deadlines for admission and financial aid materials • Prepare a calendar of admission and aid deadlines • Determine which forms are required and the deadlines • Visit College & University websites for exact steps and necessary materials • The best resource will be the website and the financial aid office

  4. Applying at all schools • Applications May Require: • FAFSA (Free Application for Federal Student Aid) • CSS Profile (www.collegeboard.org) • Institutional Aid Application • Tax Information Needed: • Parents’ and student’s Federal Income Tax Return • Parent and student W-2 forms

  5. Applying at all schools • Continued: • Other Information: • Bank/Investment Account Statements, upon request • Non-Custodial Parent Information, if applicable • Statements of Special Circumstances

  6. Types of aid • Need-Based Aid vs. Merit-Based Aid • What is the difference?

  7. Merit aid & outside scholarships • Merit Aid or Merit Scholarships are based on the student’s academics & achievements rather than their demonstrated need • Sources of Merit Aid include: • Private Sources • Private Scholarship Search • Civic Organizations & Churches • Employers

  8. Private sources • Foundations, businesses, charitable organizations, Colleges/Universities • Deadlines & application procedures are varied • Begin researching private merit aid sources early • Utilize free scholarship searches

  9. Private scholarship search • FREE internet scholarship search engines: • FinAid on the web: www.finaid.org • College Board: • http://apps.collegeboard.com/cbsearch_ss/welcome.jsp • FastWeb: www.fastweb.com • Illinois Student Assistance Commission (ISAC) • www.collegezone.com • BEWARE OF SCHOLARSHIP SCAMS!

  10. CIVIC ORGANIZATIONS & CHURCHES • To what church/organizations does the student or family belong? • Research availability in your community • Application process typically occurs during the spring of senior year • Remember: small scholarships add up!!

  11. employers • Parents’ companies may offer scholarship to children of employees • Companies also may have educational benefits for their employees

  12. Need-based aid • Schools must determine your financial need in order to award you funds: • WHAT IS NEED? • Cost of Attendance – Family Contribution = Financial Need

  13. Cost of attendance • Tuition & Fees • Room & Board • Books, supplies, transportation, & miscellaneous personal expenses • Loan fees • Study Abroad Costs

  14. Principles of need analysis • Parents have primary responsibility to fund the dependent child’s undergraduate education • Students also have responsibility to contribute to educational costs • Families will be evaluated in their present financial condition

  15. Calculating FAMILY CONTRIBUTION • Parental contribution is based on a combination of: • Previous year’s income • Parental assets • Student contribution is made of: • 20% to 25% of student assets • A portion of student’s prior year income

  16. Forms & Documents • FAFSA- Free Application for Federal Student Aid • CSS Profile Form • Institutional Aid Application • Federal Income Tax Return • Non-Custodial CSS Profile (NCP)

  17. FAFSA • WWW.FAFSA.ED.GOV • 2014-2015 FAFSA available on January 1, 2014 • File online or submit a paper copy • Reasons to file online: • Direct transfer of taxes, using DRT to IRS.gov • Built-in edits to prevent errors • Offers detailed instructions and “help” for common questions • Simplifies renewal process

  18. PIN REGISTRATION • WWW.PIN.ED.GOV • A PIN number is a 4-digit code used to electronically sign the FAFSA • Student and parent must have separate PIN numbers • Your PIN may be used subsequent years

  19. Fafsa processing results • CPS notifies student of FAFSA results by: • E-mail notification containing link to online SAR (student aid report) • Student may view SAR online though www.fafsa.ed.gov

  20. CSS PRofile • WWW.COLLEGEBOARD.COM • The CSS Profile is required of some, but not all colleges and universities • Application is customized to tailor methodology of individual schools • Fee may be waived depending on financial information provided on Profile form • Non-Custodial Profile (NCP) available when applicable

  21. Federal aid • Pell Grant • FSEOG-Federal Supplemental Educational Opportunity Grant • MAP Grant- Illinois Monetary Award Program Grant • Federal Work-Study • Federal Stafford Loans • Federal Direct Stafford Loans • Federal Direct Parent Plus Loans

  22. Federal pell grant • Awarded to eligible undergraduates pursing first baccalaureate degree • Award amount based on COA, EFC, & enrollment • Annual maximum for 2014-2015 is $5,645 • Portable

  23. FSEOG • Federal Supplemental Educational Opportunity Grant • Undergraduates pursuing first baccalaureate degree • Awarded to students with “exceptional financial need” (as demonstrated by lowest EFC) • Priority given to recipients of Federal Pell Grant • Annual award amounts: • $100 minimum & $4000 maximum

  24. Map grant • Illinois Monetary Award Program • Need-base grant available to Illinois residents who enroll in Illinois post-secondary institutions • Available to U.S Citizens & U.S. Permanent Residents • Eligibility determined from date on FAFSA • Current maximum award amount is $4,720

  25. Federal work-study • Eligible students include: undergraduate, graduate, & professional students • Schools must use portion of FWS for community service employment activities • Employment may be on or off-campus • Eligible employers: • Schools • Federal, state, or local public agencies • Select private non-profit & for-profit organizations

  26. Federal perkins loan • Eligible students include undergraduate, graduate, & professional students • Priority to students who show “exceptional need,” as determined by the school • Loan amount varies • Maximum annual loan amounts: • $5,500 – undergraduate • $8,000 – graduate & professional

  27. Federal direct Stafford loan • Subsidized & Unsubsidized eligibility • Base annual loan limits depending on level in College • $5,500 for 1st year undergraduates; maximum subsidized $3,500 • $6,500 for 2nd year undergraduates; maximum subsidized $4,500 • $7,500 for each remaining undergraduate year; maximum subsidized $5,500

  28. Subsidized federal direct Stafford loan • Interest rate: 3.86% for loans made from July 1, 2013 to June 30, 2014 • Interest does not accrue on subsidized loan while enrolled in school at-least half-time • Loan fee based on principal amount of each loan of 1.0%

  29. Unsubsidized federal direct Stafford loan • Fixed interest rate of 3.86% • Interest accrues at first disbursement • Loan fee based on principal amount of each loan 1.0%

  30. Federal direct stafford loans (subsidized & unsubsidized) • Repayment begins 6 months after student drops below 1/2 time enrollment • 5 repayment plans, from 10-25 years • Deferment, forbearance, & forgiveness provisions available

  31. Direct parent plus loan • Loan program for parents of dependent undergraduate students • Annual loan limit: no annual or aggregate amounts, except parent or grad/professional student may not borrow more than the difference between the COA and other financial assistance the student receives • Fixed interest rate: 6.4% • Interest accrues at first disbursement

  32. Questions?

  33. Understanding Your Financial Aid Award

  34. Important terminology • Total Cost of Attendance-Total estimate cost to attend for the academic school year • Includes: tuition, room & board, personal expenses, travel, books and more. • Expected Family Contribution- The amount the school expects the family to provide Sometimes broken into student/parent contributions COA-EFC=DEMONSTRATED NEED

  35. TERMINOLOGY, CONTINUED • Gift Aid- Funds awarded that do not need to be repaid • Includes: grants, scholarships, stipends, etc. • Loans- Funds that must be repaid • Includes: Stafford, Perkins, & Plus Loans • Note! Subsidized Stafford & Perkins Loans are awarded to students with demonstrated financial need • Work Expectation- An amount the school expects the student to earn throughout the school year

  36. Why may awards differ by school? • Merit Awards- You may be offered Merit Scholarships in addition to Need-Based Aid • Expected Family Contribution-Some schools utilize different formulas from the FAFSA, ex. CSS Profile • Amount of Need Covered by Aid-Some schools cover 100% of need, others less • Different Information? Did you provide some information to one office but not others?

  37. Net-price calculator • A customized calculator families may use to determine eligibility for institutional aid at select school • Facilitated through College Board and specific to individual school • Questions include: income, assets, household size, etc.

  38. Final tips! • All schools have their own requirements & deadlines • Prepare a calendar of admission & financial aid deadlines • Determine which forms are required & the deadlines by which they must be submitted. It is imperative you meet these deadlines. • Reply promptly to all requests for information or clarification of information submitted • Don’t be afraid to ask questions!!

  39. Questions?