Financial Aid 101 A Guide to Financial Aid and Scholarships

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Financial Aid 101A Guide to Financial Aid and
Scholarships

• Presented by Bonnie McCarty
• Assistant Director of Scholarships, MTSU

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Sources Of Financial Aid

• Federal Aid (such as loans, Work-Study, and
  need-based grants)
• State Aid (such as scholarships and need-based
  grants)
• Institutional Aid (such as academic scholarships
  and departmental scholarships)
• Private Aid (such as employer tuition assistance
  and private scholarships)

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Grants and Other Non-Loan Aid

• Students may qualify for grants which do not have
  to be repaid, such as the Pell Grant, TSAC Grant,
  and SEOG Grant
• Must have financial need according to the FAFSA
• Must file early, as funds for some programs are
  limited
• Academic Competitiveness Grant is available to
  Pell-eligible students who meet academic
  requirements
• Students may be offered other financial aid, such
  as a work-study position

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Types of LoansStafford Loan

• Federal student loan which must be repaid
• Award Amount
• Ranges from 5500 per year for a dependent
  freshman to 12,500 for an independent junior or
  senior
• Graduate students may borrow up to 20,500 per
  year
• Full amount can be received for part-time
  enrollment
• Repayment
• Must be repaid beginning 6 months after your last
  date of enrollment
• Generally, repayment occurs within 10 years

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Types of LoansStafford Loan

• Why should I consider a Stafford Loan instead of
  a private loan?
• Payments are deferred as long as you are enrolled
  at least half-time
• May be interest-free while you are enrolled (if
  you qualify for a subsidized loan based on FAFSA
  results)
• May have a lower interest rate and more benefits
  than a private loan
• Does not require a credit check or a cosigner
• Some or all of loan may be forgiven through
  teaching or nursing loan forgiveness programs

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Types of LoansTeach Grant (Loan Forgiveness
Grant)

• Available to education majors planning to teach
  in certain subjects
• Student must teach at least 4 years in specific
  subjects and at specific types of schools, or
  must repay entire Teach Grant plus backdated
  interest!
• We recommend that freshmen and sophomores
  carefully consider other options before accepting
  the Teach Grant, because of the potential
  repayment penalties.

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Types of LoansPLUS Loan
If parents apply for a PLUS Loan but are denied,
the student may be eligible to borrow additional
Stafford Loan funds of 4000 or 5000 for the
year.

• Federal parent loan which must be repaid
• Award Amount
• Up to difference between students other aid and
  students Cost of Attendance budget
• A credit check is required and the lender may
  choose to offer less than the maximum amount
• Repayment
• Must be repaid by parents beginning 60 days after
  the disbursement date
• Some lenders offer a deferment on payments
• Generally, repayment occurs within 10 years

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Tennessee Education Lottery Scholarship Program

• Must be a Tennessee resident by September 1 of
  senior year
• Must be a US citizen or permanent resident
• Must graduate from an eligible Tennessee high
  school
• Home school, private school, and GED graduates
  can qualify with slightly different requirements
• Must submit a FAFSA by September 1 of each year
• Renewal requirements include GPA and enrollment
  requirements

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Tennessee Education Lottery Scholarship Program

• HOPE
• 4000 per year for 2008-2009
• 21 ACT or 3.0 GPA
• General Assembly Merit
• 1,000 supplement (5000 per year)
• 29 ACT and 3.75 GPA
• Aspire Supplement
• 1,500 supplement (5500 per year)
• 21 ACT or 3.0 GPA, AGI less than 36,000
• HOPE Access Grant
• 2,750 one year only
• 18 ACT and 2.75 GPA, AGI less than 36,000
• Qualify for Hope with 24 hrs/2.75 GPA

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FAFSA The Key To It All!

• Free Application for
• Federal Student Aid
• The application for
• federal and state aid
• such as grants, loans, and work-study
• Collects information about income, assets, and
  household size to determine the types and amounts
  of aid a student can receive

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How to File Your FAFSA
Filing online is faster and easier than paper!

• Apply online at www.fafsa.ed.gov (allow 2 weeks
  for processing)
• Request a PIN to use as your signature at
  www.pin.ed.gov, and have your parent request one
  also.
• You can print a helpful worksheet at the above
  website, to help you prepare!
• Pick up a paper form in the Financial Aid Office
  (allow 2 months for processing)
• You must reapply each year!

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When to File Your FAFSA

• FAFSAs may be filed beginning in January.
• If you expect to qualify for need-based aid such
  as grants, you should file your FAFSA by
  mid-February. Some types of aid have limited
  funds and disappear quickly!
• Even if you will not qualify for need-based aid,
  you should file your FAFSA by May 1, to allow
  enough time for your aid to be processed.
• Remember to file a new FAFSA every year!

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FAFSA Tips

• File your FAFSA early, every year. You can use
  estimated income information even before you file
  your tax return!
• If you are a dependent (and most students are),
  your parents must sign the FAFSA each time you
  submit it. The quickest way to sign is with an
  electronic PIN.
• Use a FAFSA on the Web worksheet to help you
  gather the necessary information.
• Review your information carefully, to make sure
  you answered every question correctly. Mistakes
  can be costly in both time and money!

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Student Aid Report

• A recap of the information on your FAFSA
• Sent by mail or email approximately one week
  after you file your FAFSA online
• IMPORTANT Contains a Comments section with
  important information about any errors or
  problems which must be fixed as quickly as
  possible!

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Student Aid Report

• Includes your EFC
• Expected Family Contribution
• Ranges from 0 to 99,999
• Lower numbers equal higher financial need
• Schools use your EFC to determine the types and
  amounts of aid you can receive

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Verification
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Verification
Theres a 1 in 3 chance you will be selected for
verification. Be sure to watch for information
from your school, just in case!

• Federal regulations require each school to verify
  30 (roughly 1 in 3) of the FAFSAs each year.
• If you are selected, your school will request
  several documents, generally by sending a letter
  or an email.
• You must submit the required paperwork to be
  eligible for any state or federal aid.
• Allow 3-4 weeks for your paperwork to be
  processed. For best results, submit it as quickly
  as possible, no later than July 1!

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College Goal Sunday
Free Help with Filing Your FAFSA!

• February 22, 2009
• Various sites statewide, including MTSU
• Assistance with filing your FAFSA
• Opportunities to attend a presentation on
  financial aid or talk to a financial aid
  professional
• Best of all, its FREE!
• Register at www.tn.gov/CollegeGoalSunday

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Sources Of Scholarships

• Institution
• Academic
• Endowed
• Departmental
• State
• Private Companies and Organizations

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Institutional Scholarships

• Academic Scholarships
• Based on GPA and ACT/SAT at most schools.
• Some schools consider all incoming freshmen,
  while some schools require a separate scholarship
  application.
• Most schools require students to apply for
  admission or submit scholarship application by
  November or December.

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Institutional Scholarships

• Foundation/Endowed Scholarships
• Most schools will have endowed scholarships, with
  funding provided by private donors such as
  alumni.
• Based on major, residency, occupation of parents,
  or other factors.
• Awarded by various academic and administrative
  departments at some schools awarded by Financial
  Aid Office at others.
• Application deadline is generally between
  December and February.

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Institutional Scholarships

• Departmental Scholarships
• Most schools will have departmental scholarships,
  funded from a departments budget.
• Generally available only to students in
  particular major or minor, or who participate in
  a certain organization.
• May be available in exchange for service to the
  institution, even if student isnt majoring in
  that area. (For example, a music scholarship may
  be available to a chemistry major who plays in
  the orchestra.)
• Contact departments of interest for more
  information.

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State Scholarships

• Three examples
• Tennessee Education Lottery Scholarship
• Robert C. Byrd Honors Scholarship
• Ned McWherter Scholarship
• See website for others!
• Most require online application
• Deadlines vary
• Website
• http//www.tn.gov/CollegePays/

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Robert C. Byrd Honors Scholarship

• 1,500 scholarship to attend any eligible
  postsecondary school (even outside Tennessee!)
• 3.5 GPA, or 3.0 GPA and 24 ACT (1090 SAT)
• Must enroll within one year of graduation
• Random selectionEvery eligible student has an
  equal chance at being selected!
• Renewable for a total of 4 years (dependent on
  federal funding)
• Application deadline March 1
• Application available at www.tn.gov/CollegePays/

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Ned McWherter Scholars Program

• 6,000 scholarship (3000 from state and 3000
  matched by school)
• Must attend an eligible Tennessee school
• 3.5 GPA and 29 ACT (1280 SAT)
• Must be a US citizen and TN resident
• Renewable for a total of 4 undergraduate years
• Application deadline February 15
• Application available at www.tn.gov/CollegePays/

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Private Scholarships

• Look for free search websites
• Apply, Apply, Apply!
• Emphasize your leadership, special skills and
  qualities, and contributions to your community.
• Visit scholarships.web.mtsu.edu/ private.htm for
  more information.

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Scholarship Notes

• Some employers offer scholarships or tuition
  assistance to employees or their dependents.
• Dependents of state employees and public school
  teachers may qualify for tuition discounts at
  public colleges.
• Beware of scams!! Dont pay money to make money!

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For More Information

• TSAC website
• (for lottery and other state scholarships)
• www.collegepaystn.com
• Links to TN college websites
• www.ecola.com/college.php
• FinAid!
• (Great info about financial aid and how it
  works)
• www.finaid.com
• MTSU Financial Aid Office
• http//www.mtsu.edu/financialaid