financial aid 101 money for college!

FINANCIAL AID 101

MONEY FOR COLLEGE!

QUESTIONS TO QUESTIONS TO

BE ANSWERED:BE ANSWERED:

•WHAT is Financial Aid?

•WHY should I apply for financial aid?

•WHERE do I apply for financial aid?

•HOW is financial aid determined?

•WHEN should I apply for financial aid?

•WHO helps me with financial aid?

WHAT IS FINANCIAL WHAT IS FINANCIAL AID?AID?

Any form of assistance used to help offset the costs associated with college

expenses

Key Point: TO ASSISTTO ASSIST –

Financial Aid is not designed to pay for your college.

TYPES OF TYPES OF

FINANCIAL AIDFINANCIAL AID•GRANTSGRANTS – USUALLY BASED ON FINANCIAL NEED

•SCHOLARSHIPSSCHOLARSHIPS – USUALLY BASED ON MERIT (GRADES, TALENT, ETC.)

•WORK-STUDYWORK-STUDY – PART-TIME JOBS PROVIDED BY COLLEGE/UNIVERSITY – USUALLY MUST QUALIFY BASED ON NEED

•LOANSLOANS – BORROWED FUNDS THAT MUST BE PAID BACK , USUALLY WITH INTEREST

WHY SHOULD I APPLY FOR WHY SHOULD I APPLY FOR FINANCIAL AID?FINANCIAL AID?

• College is expensive!

• Anything helps……

• You may qualify for more than you think.

Where do I apply for financial Where do I apply for financial aid?aid?

FAFSA – Free Application for Federal

Student Aid

www.fafsa.ed.gov

The FAFSA is the only form you need to fill out to apply for most financial aid,

except scholarships.

Filling outFilling out the FAFSAthe FAFSA

Fill it out online at www.fafsa.ed.gov

1. Complete the FAFSA as soon as possible after January 1. The earlier your form is received, the better your chances of receiving funds. You will need your 2012 income tax information, so you will have to have already filed income taxes for 2012.

2. You and your parent will need a PIN number to electronically sign.

3. You can get your pin number at www.pin.ed.gov

MARCH 1MARCH 1

PRIORITY DATE FOR FAFSA: MARCH 1

EFC:EFC:

Estimated Family Estimated Family

ContributionContribution

When you complete the FAFSA, you will get an EFC or Estimated FamilyContribution. This is the amount yourparents are expected to pay for your college.The EFC is derived from information provided on the FAFSA and is only released to the

institutions named on the form.

COST OF COST OF ATTENDANCEATTENDANCE

Cost of Attendance includes:

• Direct costs – tuition, fees, books

• Indirect costs – room & board, transportation

The cost of attendance varies widely from college to college, and even from student to student depending on lifestyle.

How is financial aid How is financial aid determined?determined?

CALCULATION OF NEED FORMULA

Cost of Attendance -Minus-

Expected Family Contribution(Equals)

NEED

REQUIREMENTS FOR REQUIREMENTS FOR FEDERAL AIDFEDERAL AID

• Must be a US citizen or eligible non-citizen

• Not in default on Federal Student Loan

• Not convicted of drug use/possession while receiving federal aid

• Eligible males must register with Selective Service

What if I am not elgible to file What if I am not elgible to file the fafsa?the fafsa?

In 2001, legislation was passed by the State of Texas toIn 2001, legislation was passed by the State of Texas to

allow certain categories of foreign students to meet stateallow certain categories of foreign students to meet state

requirements for residency. This classification enablesrequirements for residency. This classification enables

these students to pay resident tuition and fee rates whilethese students to pay resident tuition and fee rates while

attending public institutions of higher education in Texas inattending public institutions of higher education in Texas in

addition to meeting residency requirements for some stateaddition to meeting residency requirements for some state

financial aid programs.financial aid programs.

To receive this classification, you must be able To receive this classification, you must be able to meet one of the three criteria below.to meet one of the three criteria below.

•You must hold a visa that enables you to domicile in the You must hold a visa that enables you to domicile in the United States*. You (or your parent, if you are a United States*. You (or your parent, if you are a dependent) must be gainfully employed in Texas for at dependent) must be gainfully employed in Texas for at least 12 months. least 12 months.

•You (regardless of INS status) have petitioned for You (regardless of INS status) have petitioned for permanent residency status (have filed an I-130 or I-140). permanent residency status (have filed an I-130 or I-140).

•You have resided in Texas for 3 years leading up to You have resided in Texas for 3 years leading up to graduation from high school or the receipt of a GED graduation from high school or the receipt of a GED certificate, living at least part of that time with a parent or certificate, living at least part of that time with a parent or court-appointed legal guardian. You have not established court-appointed legal guardian. You have not established a residence in another state or location and have not a residence in another state or location and have not taken ANY college hours prior to fall 2001 that required taken ANY college hours prior to fall 2001 that required admission to an institution of higher education. (This admission to an institution of higher education. (This includes hours taken through dual enrollment while includes hours taken through dual enrollment while attending high school).attending high school).

If you qualify for resident status based on one of the If you qualify for resident status based on one of the three criteria listed, you are eligible to apply for state three criteria listed, you are eligible to apply for state aid.aid.

TAFSA Texas Application for

Student Financial Assistance

(For students ineligible to complete the Free Application for Federal Student Aid)

See your College Financial Aid Advisor

When should I apply

for financial aid?

• EACH YEAR in the spring preceding the fall you are attending college

• FAFSA opens each January 2

• The best time is right after taxes are complete

• Don’t wait too late! Check with the financial aid office for deadlines!

applying for aid: applying for aid: the studentthe student

1.Completes the FAFSA or TASFA

2.Has results made available to college/university

3.Completes paperwork prior to Priority Deadline – March 1

applying for aid: applying for aid: the collegethe college

1.Calculates need

2.Receives allocations

3.Compares students to program requirements

4.Identifies available programs and amounts

5.Sends award letter to student

applying for aid: applying for aid: the studentthe student

1.Receives the award letter.

2.Accepts or rejects the offered aid.

3.Notifies college of acceptance or rejection of offer.

applying for aid: applying for aid: the collegethe college

1.Holds the funds for the student

2.Acquires loan guarantee (if applicable)

applying for aid: applying for aid: the studentthe student

Receives funds or the funds are applied to his/her account at the college

Who will help me Who will help me

with financial aid?with financial aid?

• College Admissions Advisor

•Financial Aid Advisor – your new BFF!

• High school counselor

things to rememberthings to remember

• The FAFSA is the only application you need to complete for most financial aid. If you’re not a US Citizen, fill out the paper TAFSA and take it to the college you plan to attend. You can’t get federal aid, but you could receive state financial aid.

• Colleges and universities usually count scholarships you bring with you to the school when calculating the amount of aid you will receive.

• Most financial aid is based on need. Your Expected Family Contribution (EFC) is the same whatever school you go to, but your financial need will be higher or lower depending on the cost of the institution where you attend.

• Remember you need to reapply for financial aid each year.

• Each college and university sets its own deadlines for applying for financial aid. Contact all institutions you’d like to attend to learn about their deadlines.

Financial aid andFinancial aid and

Scholarship scamsScholarship scams

If you have to pay money to If you have to pay money to get money, it is probably a get money, it is probably a

scam!scam!

No one can “guarantee” you No one can “guarantee” you will get a scholarship.will get a scholarship.

Do not pay for Do not pay for free money!free money!

APPLY, APPLY, APPLY!

YOU WON’T GET ANY

MONEY IF YOU DON’T APPLY!