financing your education what we plan to discuss tonight: how do scholarships and financial aid...
TRANSCRIPT
Financing Your Education
What we plan to discuss tonight: How do scholarships and financial aid differ
When should we apply for financial aid
How do we apply for financial aid
What financial aid options are available
Who determines our aid
Deadlines and timeframes
Scholarships vs. Financial Aid
Scholarships are monies universities have to award at their discretion. The universities determine criteria for awarding merit based scholarships, and values of scholarships
Scholarships can be general academic, departmental, alumni, special talent, and/or community based
Financial aid is government funded aid awarded on the basis of “Demonstrated Financial Need”. A federally derived formula determines your financial need
When should we apply for aid?
It is important to remember to apply early!!! Priority application deadline is April 1st
The Free Application for Federal Student Aid (FAFSA) is available online after January 1st at www.fafsa.ed.gov .Paper application is typically available mid-January
You must be admitted to the university prior to applying for financial aid
Important to remember to apply every year your child is in enrolled in college
What the FAFSA determines
The FAFSA determines your Expected Family Contribution
Your Expected Family Contribution does not change based upon the cost of attendance at a university
Cost of Attendance-EFC (Expected Family Contribution)=Demonstrated Financial Need
What is my EFC
Your EFC (Estimated Family Contribution) is the value of your income earned from the previous tax year, your taxes paid, and the value of your assets.
Your EFC does not include the value of your home.
Cost of attendance includes both direct and indirect cost!!
Do’s and Don'ts
Do not estimate! Use your completed Federal Income Tax returns to complete the FAFSA. If you estimate, you may be required to correct your information, which could cause delays.
If the questions says “leave blank”, then leave blank. If the questions says “Insert Zero” then insert a zero.
Keep photocopies for your personal records.
Make sure your social security # is correct.
Types of Aid
Grants Grants are “free money” that you actually qualify for
because of demonstrated financial need
Pell Grants are grants that do not have to be repaid . Typically hard to qualify for; few do, so don’t panic.
Maximum Pell Grant award $4310
Loans
Federal Perkins Student Loan (5%) Stafford Student Loan (6%)
Subsidized is need-based and government pays the interest while student is enrolled at least ½ time
Unsubsidized is not need-based and interest will accumulate from date of origination and be capitalized
PLUS Loans (8.5%)
Be prudent and only take what you need. Loans make college a viable option and should be viewed as an investment!
Loans (continued)
Loan amounts undergraduate dependents can borrow through the Stafford Student Loan $3500 – freshmen year maximum
$4500 – sophomore year maximum
$5500 – junior & senior year maximum
Loan eligibility amounts increase as you demonstrate your ability to progress successfully through college
Work Study
Federal Work Study Program provides jobs for students with financial need. It is considered financial aid because the government pays 75% of the student’s salary and the college pays the remaining 25%
Encourages community service and work related to course of study
At least minimum wage Paid by the hour in regular pay period Jobs are both on and off campus
Studies show college students who work 10-14 hours per week have higher GPA’s and more likely to graduate
FAFSA on the Web
Good reasons to file electronically: Built-in edits to prevent errors Skip-logic allows for skipping of unnecessary questions Provides 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 renewal application process
You will need your PIN which can be obtained at www.fafsa.ed.gov
Search the Web
FastWeb Scholarship Search www.fastweb.com
Peterson's/NASFAA www.collegequest.com
FinAid www.finaid.org
Super College www.supercollege.com
Contact Information
Greg Embry
Associate Director of Undergraduate Admissions
University of Montevallo
205.665.6030