Financial Aid: What is It?

Mosadi Porter

Assistant Center Director

Houston Regional Prospective Student Center

Texas A&M University

Types of Aid

• Grants• Loans• Work Study• Scholarships• School-specific Programs

Need Based Programs

• Grant Programs– Federal Pell Grant

• Academic Competitiveness Grant (Freshman & Sophomore)

• SMART Grant (Junior & Senior)

– TEXAS Grant

– Supplemental Opportunity Grant (SEOG)

– Texas Public Education Grant (TPEG)

Loan and Employment Programs

Perkins Loan

Stafford Loan (subsidized)

College Work Study

Non-Need Based Programs

Stafford Loan (unsubsidized)

Parent PLUS Loan

College Access Loan (CAL)

Alternative Private Loans

ScholarshipsMay be awarded on the basis of:

Academic Merit

Financial Need

Talent

Member of a particular group or organization

Leadership and participation

All or any combination of the above

School-specific Programs• Texas A&M University • Aggie Assurance

• University of Texas • UT Grant

• Texas Tech • Red Raider Guarantee

What is the FAFSA?

The key element for

receiving most federal

and state programs.

When is the FAFSA available?

January 1 (must complete every year)

Based on previous year’s taxes

How to Apply

• Get Student and Parent PIN: www.pin.ed.gov

• Complete FAFSA: www.fafsa.ed.gov

NOTE: The FAFSA is not a scholarship application; however some scholarships require FAFSA information to

determine financial need

The U.S. Department of Education uses the FAFSA to determine the estimated family contribution (EFC).

Parent and Student income and assets

Number of household members

Number in college (do NOT include parents in number in college on the FAFSA)

What kinds of questions will it ask?

Let’s take a look…

How do I fill out the questions about my income?

2 options

IRS Data Retrieval Toolallows applicants who have already filed their federal income tax returns to prefill the answers to some questions by transferring data from their federal income tax returns. This can save the family some time in completing the FAFSA. It may also reduce the likelihood that your FAFSA will be selected for verification.

Tax Return

How is my info used?

You can list up to 10 schools.

They will receive a Student Aid Report (SAR).

Schools use the information

on the SAR to

prepare a financial aid package

to help meet your financial need.

Need Calculation

Cost of Attendance

- Expected Family Contribution_____________________________________________________________________________________________________________________________________________

= Financial Need

EXAMPLETuition & Fees $7,844Loan Fees 55Room & Board 8,000Books & Supplies 1,200Travel 664Miscellaneous 2,187___________________________________________________________________________________________

Cost of Attendance $19,950

- Expected Family Contribution 5,000_________________________________________

Need $14,950

What if I don’t have the EFC?

Due to:

• Loss or reduction of income

• Death or illness in family

• Medical or dental expenses not covered by insurance

• Any other circumstance that results in a change in the family’s financial status

What if I am not a U.S. Citizen or permanent resident?

TASFA

An application used by financial aid administrators at most

Texas colleges and universities to determine an

undocumented student’s eligibility for state financial aid

Eligibility requirements• Graduated or will graduate from a Texas high school or

received GED certificate in Texas

• Lived in Texas for three years leading up to graduation from high school or receiving GED

• Lived or will have lived in Texas for the 12 months prior to starting college

• Signed affidavit stating student has filed or will file an• application to become a permanent resident at the earliest

opportunity

What aid can I get?TEXAS Grant

• Texas Educational Opportunity Grant (TEOG)

• Texas Public Education Grant (TPEG)

• Texas Equalization Grant (TEG)

• Top 10% Scholarship Program

• State exemption programs (e.g., class valedictorian)

• College Access Loan– Must have cosigner that is a U.S. citizen or permanent resident

Let’s look at the application

TASFA

Common mistakes• Make sure the college accepts the TASFA

• File taxes and order a copy of the TAX TRANSCRIPT

• Sign EVERYTHING!

• Be thorough!

Useful Websites• www.CollegeforTexans.com

– Information on Exemptions and Waivers

• www.AdventuresinEducation.org– College and Career Planning– Student Loan Inquiry

• www.FinAid.org– “SmartStudent” Guide to Financial Aid– Calculate your Expected Family Contribution

(EFC)