1 financial aid for college rossford guidance dept
TRANSCRIPT
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Financing Your Education Who is eligible?
What is financial aid?
When do I apply?
Where does it come from?
Why apply?
How do I apply?
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FAFSA on the Web
Web site: www.fafsa.ed.gov 2009-10 FAFSA available on or after
January 1, 2009 FAFSA On the Web Worksheet & built-in
edits to help prevent costly errors Paper FAFSA only available as a download
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PIN Registration
Web site: www.pin.ed.gov
Can get PIN before January 1, 2009Both student and one parent will
need a pin
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CAUTION! Avoid being charged a fee to file the Free Application for
Federal Student Aid Processes of completing & processing FAFSA are
FREE If filing via FAFSA on the Web, be sure to go directly to
www.fafsa.ed.gov Contact financial aid office for help completing FAFSA Do not go to www.fafsa.com New www.FAFSA4caster.ed.gov
Estimate of cost, comparison between public/private, up-loads to your FAFSA form
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College Goal Sunday
2nd Sunday in February annually Owens Community College – Toledo
and Findlay BGSU Firelands Terra Community College
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To extent they are able, parents have primary responsibility to pay for dependent child’s education
Students also have responsibility to contribute to educational costs
Families should be evaluated in their present financial condition
Family’s estimated ability to pay for educational costs must be evaluated in equitable & consistent manner, recognizing that special circumstances may affect family’s ability to pay
Principles of Need Analysis
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Types of Need-Based Aid
Gift aid: Grants & scholarships (need-based or merit-based)
Self-help aid: Loans & employment (need- or non-need-based)
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Definition of Need
Cost of attendance (COA)
– Expected family contribution (EFC)
= Financial Aid need
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Cost of Attendance
Tuition & fees Room & board Books, supplies, transportation, &
miscellaneous personal expenses, including documented costs for personal computer
Loan fees Study abroad costs Dependent care expenses Disability-related expenses Cooperative education program costs
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EFC – Expected FamilyContribution
Federally determined formula The EFC does not measure
willingness to pay! The EFC is a measure of your family’s
financial strength The EFC is not the amount of money
that your family must provide. Rather, you should think of the EFC as an index that colleges use to determine how much financial aid you would receive if you were to attend their school FAFSA4Caster
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Need Varies Based on Cost
X
Y
Z
Cost of Expected Family NeedAttendance Contribution (Variable) (Variable) (Constant)
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EFC EFC
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Grants
Federal Pell Grant
Academic Competitiveness Grant
National Science and Math Access to Retain Talent Grant
TEACH Grants
Federal Supplemental Educational Opportunity Grant
Ohio College Opportunity Grant
Ohio Choice Grant (subject to cancellation annually)
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Federal Pell Grant
Awarded to eligible undergraduates pursuing first bachelor’s or professional degree & certain students enrolled in post-baccalaureate teacher certification or licensing programs
Portable
Maximum award for 2008-09 = $4,800?
Still being determined by Congress
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Academic Competitiveness Grant (ACG) First and second year undergraduate
students Federal Pell Grant recipient U.S. citizen Full time Completed rigorous secondary school
program Award amounts:
$750 first year students $1300 second year students
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National Science and Mathematics Access to Retain Talent (SMART) Grant
Third and fourth year undergraduate students
Federal Pell Grant recipient U.S. citizen Full time Eligible major 3.0 GPA Award amount:
$4,000 for third and fourth year of study
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Federal Supplemental Educational Opportunity Grant (FSEOG)
Eligible students Undergraduates pursuing first
baccalaureate or professional degree Awarded first to students with exceptional
financial need (Federal Pell Grant recipients)
Each school own priority deadline Annual award amounts
$100 minimum $4,000 maximum
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Ohio College Opportunity Grant Ohio resident Based max EFC of $2,190 with a
total family income of $75,000. Application deadline October 1,
2009 Students qualify for OCOG by
completing FAFSA Max. award Public - $2,496, Private -
$4,992 and Proprietary - $3,996
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Ohio Choice Grant Ohio resident Attend private Ohio college Eligibility not based on need or
academic merit Contact Financial Aid Office Currently around $700, but this may
be eliminated by State legislature Not approved for 2009-10 so far
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Loans
Student is the borrower Federal Perkins Loan Federal Stafford Loan
Parent is the borrower Federal PLUS Loan
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Federal Perkins Loan
Eligible students Undergraduate and graduate students Priority to students who show “exceptional
need,” as defined by school Loan amount varies (max. $5500/yr)
Depends on need, other aid, available funds Each school has their own priority
deadline 5% fixed interest rate 9 month grace period after graduation
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Stafford Loans
Available under: Federal Family Education Loan (FFEL)
Program with funds provided by lenders(e.g., banks or credit unions)
Federal Direct Student Loan (Direct Loan) Program with funds provided directly by federal government via participating schools
Fixed 6.8% rate (Subsidized may be less) 6 month grace period after graduation Between 10 to 25 years to repay
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Stafford Loans
Subsidized: For students with financial need
EFC < COA Interest free when in school and grace
period
Unsubsidized: Eligible regardless of need EFC > COA Student pays interest while in school or
allows it to accrue
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Stafford Loans Base annual loan limits (combined
subsidized & unsubsidized): $5,500 for 1st year undergraduates $6,500 for 2nd year undergraduates $7,500 for each remaining undergraduate year
Loan Fees Perkins – No Stafford – Yes, up to 3%, taken at disbursement
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PLUS
Parent loan program for parents of dependent undergraduate students
Repayment begins 60 days after loan is fully disbursed for parent borrowers
Fixed interest rate FFEL or Direct: 8.5%
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Alternative LoansSignature Student Loans, Private Student
Loans Credit check required Interest rates vary Repayment different “Branded”
Universities may have agreements with loan providers to offer private loans to students
These may look like university-approved loans or even like federal loans
Read the fine print – rates may be variable and there may be no limit to how much you borrow!
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Federal Work-Study (FWS)
Employment may be on or off campus Receive paycheck, does not reduce bill
owed to college Not counted as income on FAFSA following
year Each school own priority deadline
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Scholarships
Federal and State Ohio Academic Scholarship Robert C. Byrd
Personal Affiliations Churches, Fraternal Organizations
Scholarship Searches Public Library www.fastweb.com Guidance Counselors
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College Specific Scholarships
Websites Almost every college has a webpage
dedicated to scholarships Go to Financial Aid page Only some will apply to you Scholarships go to students who
apply! Deadlines
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Avoid Being Scammed
Do not pay to complete FAFSA Spend the time, not money If it sounds too good to be true, it
probably is! Never invest more than a postage
stamp No guarantees
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Keep in Contact
The college Financial Aid Office may be your greatest resource!
Complete school financial aid application if required
Respond to any requests for information from a financial aid office
Return award letter if required
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Cost Comparison
Don’t ASSUME you can’t afford it!
Compare Financial Aid Packages.
Apples are NOT oranges!!