TakeALook Applying for Financial Aid at James Madison University

1
Take-A-LookApplying for Financial Aidat James
Madison University

• November 14, 2009
• (This presentation is available to download at
  www.jmu.edu/finaid/prospect.shtml)

2
Objectives

• We hope you have a better understanding of the
  following after viewing these slides
• Highlight the good and bad of interest
• Two primary methods for completing the FAFSA
• Importance of the FAFSA priority filing date at
  JMU
• Review the scholarship application process at JMU

3
Interest (bad)

• Scenario
• 3,000 charged on a credit card
• Interest rate of 19.8
• You pay 50 per month
• It will take 24 years to pay off the card
• At the end of at time you would have paid back
  14,070 (11,070 in interest)

(source www.visa.com)
4
Interest (good)

• Average earnings of a ROTH IRA if you invest
  2,000 annually from age 22 to age 72 with an
  average rate of return at 10.
• AGE Number of Years Accounts Value
• 22 0 2,000
• 32 10 45,787
• 42 20 153,270
• 52 30 432,052
• 62 40 1,155,142
• 72 50 3,030,652
• Note This is an average, not a guarantee. You
  should consult a financial planning or investment
  professional before investing. The market has
  averaged more than 10 over its history.

(Source Richmond Times-Dispatch)
5
Interest (the point)

• If you do the following you could put yourself
  in a good financial position
• Control your spending
• Develop a good budget
• Apply for federal, state, institutional, and
  private financial aid in a timely fashion
• Limit your debt while you are in college as much
  as possible
• Live within your means
• Be proactive in securing financial aid and avoid
  waiting until the last minute!

6
Applying for Financial Aid

• The FAFSA is the only application students at
  JMU need to complete to apply for all of the
  federal and state financial aid offered through
  the Office of Financial Aid Scholarships
• Thats it! One form to Apply!

7
Financial Aid Terms

• FAFSA Free Application for Federal Student Aid
  (English and Spanish versions available)
• EFC Expected Family Contribution
• COA - Cost of Attendance
• Example in 2009-10
• 19,302 COA for full-time, in-state undergraduate
• 14,750 for full-time, in-state undergraduate
  tuition/fees, room/board, and internet fee
• Difference (4,552) is other estimated expenses

8
Types of Financial Aid From FAFSA

• Federal Grants (Pell, SEOG, ACG, SMART)
• State Grants (VGAP CA)
• University Grants
• Federal Loans (Direct, Perkins, PLUS)
• Federal Work-Study
• Note There are also two types of non-financial
  aid related employment options for students
  (Institutional Employment and Off Campus
  positions)

9
Applying for Scholarships

• Find scholarships at
• www.jmu.edu/finaid/scholarships
• Prospective Students
• Freshman Scholarship Program (Admissions)
• Sarah Lanier Tabb Oliver Scholarship (Financial
  Aid)
• Foundation Scholarships (University Departments)
• Departmental Scholarships (University
  Departments)
• Private Scholarships (Non-JMU Sources)

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Scholarships and Financial Aid

• Important Note!
• Receipt of scholarship funds from any source may
  reduce your eligibility for need based federal
  and state financial aid
• Please inform the Office of Financial Aid
  Scholarships as soon as you are aware you will
  receive a scholarship

11
20010-11 FAFSA Priority Filing Date

• March 1st, 2010
• This means your FAFSA should be logged in at the
  federal processor by March 1st
• If you are using a paper FAFSA, you should mail
  it by early to mid-February
• If you are using FAFSA on the Web, you should
  submit it few days before March 1st

12
Importance of Priority Filing Date

• In some cases, meeting the priority filing date
  can increase your eligibility for specific types
  of financial aid
• Allows appropriate amount of time for processing
  before the 2010-11 school year begins

13
Priority Filing Date Guarantees

• Meeting the March 1st priority filing date does
  not guarantee a higher aid package than if your
  FAFSA reaches the federal processor after this
• Depending on how many students meet the March 1st
  date, it is possible there will not be enough
  money in some of the accounts to pay an award to
  all on-time eligible filers

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Two Types of FAFSAs

• Paper
• Electronic
• (web-based)

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FAFSA on the Web
must be signed

• www.fafsa.ed.gov
• This is the fastest and most accurate method of
  completing the FAFSA
• Signatures are submitted to the federal processor
  by either
• Printing, signing, and mailing signature page or
• Signing it electronically with a PIN

16
Paper FAFSA

• A paper FAFSA can be filed instead of using
  FAFSA on the Web however, you should be aware of
  two factors if you choose the paper FAFSA
• More errors occur on the paper FAFSA than FAFSA
  on the Web
• A paper FAFSA takes weeks longer to process than
  a FAFSA submitted via FAFSA on the Web

17
When is the Earliest I Can File the FAFSA?

• Paper FAFSA
• The 2010-11 FAFSA should not be postmarked before
  January 1, 2010 (FAFSA will not be processed by
  the federal processor if it is postmarked earlier)

• FAFSA on the Web
• The 2010-11 FAFSA will be available on the FAFSA
  On The Web site January 1, 2010

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Getting Ready for FAFSA on the Web

• It might be beneficial to complete the FAFSA on
  the Web Worksheet to help you work through FAFSA
  on the Web

19
Submit

• Once you have completed the FAFSA, submit it (if
  using FAFSA on the Web) or mail it (if using a
  paper FAFSA) to the federal processor
• Make sure it gets there by March 1st

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Response from JMU

• Once JMU receives the students FAFSA data from
  the federal processor, we will review it and send
  the student notification of his/her status
• The majority of communications (e.g. letters,
  e-mails, etc.) sent from our office are sent
  directly to students, not parents

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Aid Estimator

• Beginning in the spring (date to be determined),
  you will be able to go www.jmu.edu/finaid and
  find an on-line aid estimator
• Input your EFC and a few other basic details to
  receive a sample award package
• This is only an estimate, but it will give you an
  indication of your possible financial aid
  eligibility

22
QUESTIONS

• Office of Financial Aid Scholarships Contact
  Information
• 3rd floor counter in Warren Hall
• Phone [phone]
• E-mail fin_aid_at_jmu.edu
• Web www.jmu.edu/finaid