You Can Afford College!

Howard Community CollegeFinancial Aid Services

RCF 222

1

Topics Covered

Financial Aid TermsEligibility Requirements

How To ApplySources of Financial Aid

Other Ways To Pay for CollegeFinancial Aid Resources

2

Goal of Financial Aid

Primary goal is to assist students in paying for college by:

◦Evaluating a family’s ability to pay for educational costs.

◦Distributing limited resources in an equitable manner.

◦Providing a balance of gift aid and self-help aid.

3

What is Financial Aid?

Gift Aid

Grants

Scholarships

Self-Help Aid

Work Study

Loans

4

Calculating Financial Need

COA EFC Fin. Need

5

Cost of Attendance (COA)

COARoom & Board

Books & Supplies

Tuition & Fees

Transportation

Misc. Expenses

6

Expected Family Contribution (EFC)

What is the EFC? Assigns a “number” based on financial situation that

the family can “expect” to contribute to the student’s COA.

It is calculated according to a formula established by federal law and does NOT change based on the institution attending.

How is it calculated? Information the family reports on the student’s Free

Application for Federal Student Aid (FAFSA). Looks at family's taxed and untaxed income, assets,

benefits , family size and number in college.

7

Determining Financial Need, Need Analysis revisited

$14,564 3364 $11,200

8

$37,610 3364 $34,246

School

AFinancial

NeedCOA EFC

School

B

Basic eligibility requirements for Federal Financial Aid

Student must:

be a U.S. Citizen or Eligible Non-Citizen

have a valid Social Security Number

demonstrate you are qualified to enroll in postsecondary education (e.g.

have a high school diploma or GED)

be enrolled in an eligible degree program

not be in default on any Federal Student Loan

register with Selective Service if you are a male between the ages of 18

and 25

certify that you will use federal student aid for educational purposes

maintain Satisfactory Academic Progress

9

Note: Other conditions may apply

Applying for Financial Aid

Complete the FAFSA (and CSS Profile if needed)◦Free FAFSA help at Howard Community College

Financial Aid Fridays in February

Promptly respond to all requests for information from the school

Meet all deadlines Complete any additional applications for:

◦Scholarships◦Loans

10

Completing the Free Application for Federal Student Aid (FAFSA)

What you will need:

1. Your social security number

2. Your federal student aid pin

3. Your financial records

4. An email address

5. About an hour of your time

11

12

www.pin.ed.gov

13

www.fafsa.gov

After filing the FAFSA…

Student will receive a Student Aid Report (SAR) It will contain student’s Expected Family Contribution (EFC)

The schools selected receive the information

electronically

Financial Aid Offices processes student’s application Requests for missing information are sent by mail.

Student receives notification of your financial aid

eligibility

14

College Board’s CSS Profile

Additional form required by some private institutions

Used to determine eligibility for institutional funding

Apply at: www.collegeboard.org Cost:$25.00 initial application, additional $16.00

per every institution added Example of colleges using CSS Profile:

Johns Hopkins, Goucher, St. John’s (Annapolis), Loyola (Maryland), George Washington Univ, Georgetown Univ, Univ of Penn, Gettysburg

15

Sources of Financial Aid

Federal

State

Institutional

Private

• Grants (FAFSA)• Work Study (FAFSA)• Loans (FAFSA & Application)

• Grants (FAFSA & Application)• Scholarships (Application)

• Grants (FAFSA)• Work Study (FAFSA)• Scholarships (Application)

• Scholarships (Application)• Tuition reimbursement

16

Sources of Financial Aid

Private

Institution

State

Federal

17

Federal Financial Aid

Grants PELL Grant Supplemental Education Opportunity

Grant (SEOG)

Work StudyNeed based award provides funds earned

through part-time employment on and off campus

18

Federal Financial Aid, cont.

Federal Loan ProgramsDirect Stafford Student Loan

◦ Subsidized Stafford Loans (Need Based) Government pays the interest while in college and during the 6

month grace period after graduation, leave school or enroll less than half time.

◦ Unsubsidized Stafford Loans Student is responsible for paying all of the interest on the loan

(even though payments not required until 6 months after graduation, leave school or enroll less than .)

Parent PLUS◦ Ability to choose to defer payment while dependent child

is in school.◦ Up to Cost of Attendance (COA) less other aid received

19

Money from the Federal Government

Award Amount How to Apply Eligibility is based on:

Other info:

Pell Grant From $976-$5,350 FAFSA •COA and EFC•Enrollment status

•Must not already have a bachelor’s degree

SEOG From $200 - $1,000

FAFSA •Receiving a Pell Grant•Enrollment status

•Funds are limited•Must be at least half time

ACG (sunset 6/30/11)

Up to $750 for 1st year, $1,300 for 2nd year

FAFSA •Receiving a Pell Grant•Rigorous high school program •Year in school

•H.S. grad date of ‘05 or later•2nd year ACG GPA requirement

Work Study Earn up to $3,500 FAFSA •Early application of FAFSA •Response to work study award letter

•Must respond to Award Letter

Stafford Loans

See next slide FAFSA first then Loan Application

•Annual Limit•Cost of Attendance

Fall or Spring semesters only

PLUS loans Up to COA FAFSA first then Loan Application

•Parents of Dependent Students

Fall or Spring semesters only

20

Fund Your Future 10-11, Page 4

The number 1 question asked:How much can I borrow?

It depends on:

Cost of attendanceExpected family contributionYear in school (equivalent #of credits earned)Dependency statusHow much other financial aid received

21Fund Your Future 10-11, Page 13-14

22

Federal Stafford Loan Limits

Year Dependent Independent

First Year (0-29 credits) $5,500 $9,500

No more than $3,500 may be in subsidized

Second Year (30 or more)

$6,500 $10,500

No more than $4,500 may be in subsidized

Lifetime Borrowing limits:

$31,000 $57,500

No more than $23,000 may be in subsidized

Maryland Higher Education Commission

Grants and ScholarshipsMaryland Higher Education Commission

(MHEC) administers over 20 programs for the State of MD

Parent and student must be a Maryland State Resident

Some programs require an additional application available on MHEC’s website (www.mhec.state.md.us)

23

Examples of State Aid

Need-based (file the FAFSA by March 1st each year):Educational Assistance Grant: $400-$3,000 Guaranteed Access Grant: $400-$14,300Part-Time Grant: $200-$2,000Legislative:Senatorial: $200-$9,000Delegate : $200-$9,000

24

www.mhec.state.md.us25

Institutional Aid

Grantso Grants from the institution based on need

Work Studyo Institutional Work Study

Scholarshipso Awarded by the institution based on various criteria

Financial Need Academic Merit Learning Program Special Skills or Talents Volunteer Experience

26

Private Sources

Financial aid funding that comes from private organizations

Civic Organizations

Professional Associations

Private Businesses

Funds may or may not be awarded through Financial Aid Services

Use reliable scholarship search services

http://www.fastweb.com

http://www.collegeboard.com/student/pay

http://www.finaid.org

27

Other Ways to Pay for College

Cash, Check or Money Order

Tuition Payment Plans

529 Savings & Prepaid Tuition Programs

Employer Tuition Reimbursement Plan

Military Tuition Assistance

Veterans Benefits and Veterans Deferred Payment Plan

Tuition Waivers

Alternative Loans

28

Things to Remember

The process can take from 6 to 8 weeks.

Complete the application process early which includes submitting any missing information to Financial Aid Services.

You may be asked to submit documentation to the financial office for verification.

Keep track of DEADLINES!!!Keep a copy of everything you

submit. Start your financial aid file.Renew the FAFSA every year!

29

Reliable Sources of Financial AidHoward Community College’s Financial Aid

Services Department – community resource RCF – 222 HCC’s Financial Aid website

Publications The Guide to Federal Student Aid Maryland Higher Education Commission

Other websites that end in: gov ed edu ed.gov

30

31

Avoid Getting Information from….com websites

- Sites that require a fee for service- Random information received in the mail from

unfamiliar companiesCold calls - Stating you can’t get the information anywhere else- You’ve been selected to receive a scholarship for

which you did not applyFriends and neighbors

- Each students situation is unique – don’t assume that you are or are not eligible for financial aid until you complete the application process

- Ask Financial Aid Services if you have questions

Tip

If you’re applying to HCC remember to put your SS# on the admissions application

32

Financial Aid Services

Located in RCF- 222Phone: 443-518-4912Fax: 443-518-4576E-Mail: finaid@howardcc.eduWebpage:

◦Go to www.howardcc.edu◦Select “Admissions & Enrollment” tab◦Click on “Pay for College”◦Select “Financial Aid Services” on the left column

33