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Parts of this presentation come from the National Association of Student Financial Aid Administrators (NASFAA)

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Title: Parts of this presentation come from the National Association of Student Financial Aid Administrators (NASFAA)


1
Financial Aid Resource Guide for
Counselors2012-2013 FAFSA
  • Parts of this presentation come from the National
    Association of Student Financial Aid
    Administrators (NASFAA)

2
Financial Aid Basics and New Regulations
3
General Eligibility Requirements
  • Must be enrolled or accepted for enrollment in an
    eligible program of study, pursuing a degree,
    certificate or other recognized credential.
  • Must be a U.S. citizen or eligible non-citizen.
  • Must be registered with Selective Service if
    male and required,males can register on-line at
    www.sss.gov.
  • Must not have had eligibility suspended or
    terminated due to a drug-related conviction while
    receiving financial aid.
  • Must have a valid social security number .
  • May not be in default of a student loan or owe
    repayment of a federal grant.
  • Must meet Satisfactory Academic Progress as
    defined by college (Quantitatively-GPA
    Qualitatively-credit hours taken and completed.)

4
Types and Sources of Financial Aid
  • TYPES
  • Grants and Scholarships
  • Loans and Work Self Help
  • SOURCES
  • Federal Government
  • State Government
  • College
  • Private Donors
  • Lenders

5
Federal Title IV Programs
  • Grants/Scholarships
  • Supplemental Educational Opportunity Grant
    (FSEOG) (Campus-Based)
  • Pell Grant
  • T.E.A.C.H Grant
  • Self Help
  • Work Study (FWS) (Campus-Based)
  • Perkins Loan (Campus-Based)
  • Direct Loan
  • Parent Loan for Undergraduate Students (PLUS
    Loans)

6
Federal Pell Grant
  • Awarded to eligible undergraduates pursuing first
    bachelors or professional degree and certain
    students enrolled in post-baccalaureate teacher
    certification or licensing programs. Considered
    an entitlement program.
  • Actual award amount based on Cost of Attendance,
    Expected Family Contribution (EFC), and
    Enrollment Status. Unlike other financial aid,
    other aid that the student qualifies for will not
    affect the amount of the Pell Grant.
  • 5,550 Maximum 2011-2012.

7
T.E.A.C.H Grant
  • Prepares students to teach in high-need field.
  • Must teach 4 years at Title I School.
  • Reverts to loan if requirements of grant are not
    met.
  • School determines additional eligibility
    requirements.
  • Not all schools participate.

8
Campus-based Programs
  • Supplemental Educational Opportunity Grant, Work
    Study, Perkins Loan
  • Federal government provides a defined amount of
    money to the college, the college determines the
    recipients and award amount.
  • Some colleges choose not to participate in the
    campus-based aid programs, so when comparing
    award letters among institutions this point
    should be noted.

9
Federal Supplemental Education Opportunity Grant
(FSEOG)
  • Students pursuing first bachelors or
    professional degree.
  • Awarded first to students with exceptional
    need.
  • Can be awarded to students attending less than
    full time.
  • Annual award Maximums 4,000.
  • Federal Work-Study
  • Allows student to earn a set amount of dollars
    for their education.
  • Eligible employers may be on/off campus (federal,
    state, or local public agency.)
  • Student usually awarded funding to work 15-20
    hours per week. Studies indicate workload does
    not negatively impact students grades.
  • Schools must use a portion of funding offered for
    community service .

10
Federal Perkins Loan
  • Priority to students who show exceptional need.
  • Maximum annual loan
  • 5,500 undergraduate students/27,500 maximum
  • Revolving loan fund amount college has to lend
    depends upon repayments received very little
    capital contribution from the feds each year.
  • Interest rate 5
  • Nine-month grace period.
  • Repayment period may be up to 10 years.
  • Deferment and cancellation provisions available.

11
Federal Loan Programs
12
Federal Stafford Loans
  • William D. Ford Federal Direct Loan Program
    (Direct Loan Program) with funds provided
    directly by the federal government.
  • College determines loan eligibility and delivers
    loan proceeds to the student.

13
Federal Stafford Loans (Subsidized and
Unsubsidized)
  • Subsidized Stafford Must demonstrate need
  • Cost of Attendance EFC other aid
  • Unsubsidized Stafford Need is not a
    consideration.
  • Base annual loan limits (combined subsidized and
    unsubsidized.)
  • 3,500 for 1st year undergrad
  • 4,500 for 2nd year undergrad
  • 5,500 for each remaining undergraduate year
  • Students have the option to apply for an
    additional unsub loan of 2,000
  • Undergraduate Aggregate Loan Limits
  • 31,000 dependent student (23,000 is
    subsidized)
  • 57,500 independent student (23,000 is
    subsidized)

14
Additional Unsubsidized Stafford Loan
  • Additional unsubsidized loan eligibility for
    independent undergraduates, graduate students,
    and dependent students whose parents are unable
    to borrow under the PLUS Loan Program
  • 4,000 per year for first and second years of
    undergraduate study
  • 5,000 per year for remaining years of
    undergraduate study

15
Federal Stafford Loan Interest Rates2012 - 2013
  • Subsidized Loan 6.8 fixed rate
  • Unsubsidized Loan 6.8 fixed rate

16
Repayment of Federal Stafford Loans
  • Six-month grace period.
  • Maximum repayment period between 10 and 20 years
    depending on repayment plan chosen.

17
Federal PLUS Loans
  • Borrowers are parents of dependent undergraduate
    students or independent graduate students.
  • Annual loan limit cost of attendance minus other
    aid
  • Interest rate for a Direct PLUS loan is 7.9
    fixed rate

18
Federal PLUS Loans
  • Repayment begins 60 days after loan is fully
    disbursed if a Parent PLUS loan- i.e. after
    second semester disbursement
  • Deferment provisions only principal is deferred,
    but interest may be capitalized
  • Credit check required if not passed,
    undergraduate student may be able to borrow
    additional unsubsidized Stafford loan funds, if
    Parent PLUS loan.

19
Other Government Resources
  • Veterans benefits
  • ROTC scholarships and/or stipends
  • Bureau of Indian Affairs (BIA) grants
  • Health and Human Services loan and scholarship
    programs
  • State Divisions of Vocational Rehabilitation
  • State grants, scholarships, loans, and work
    programs (i.e. SSACI)

20
Other Misc. Sources of Funds
  • College need-based and non-need based programs
  • Academic, athletic, merit, other talent-based
    scholarships, and need-based grants.
  • Private/Civic business grants and scholarships.
  • Scholarships/awards which are not federal, state,
    or college funded must be reported to the
    Financial Aid Office at the college so that they
    may be included in the students financial aid
    package.
  • Alternative education loans
  • IRS federal tax income credits (tax credits
    offer dollar-for-dollar reduction in tax
    liability for education expenses (Hope Tax Credit
    first and second year up to 1500 per stu and
    Lifetime Learning Tax Credit tax benefit to 20
    of tuition expenses up to 10,000.) Students
    should check with their accountant for all
    possible tax benefits available to them.

21
Free Application For Federal Student Aid
  • FAFSA
  • 2012 - 2013

22
FAFSA Application Requirements
  • Submit the Free Application for Federal Student
    Aid (FAFSA) prior to the college or state
    deadline, whichever is first (SSACI receipt date
    deadline to the federal processor on or before
    3/10/2012.)
  • To ensure maximum consideration for federal,
    state, and college aid, check with each school to
    determine
  • Required application materials
  • Application deadlines

23
Free Application for Federal Student Aid (FAFSA)
  • Provides a snapshot of the familys personal and
    financial information (number in household,
    number in college, income and assets to determine
    financial strength.)
  • Federal Methodology is applied to calculate
    Expected Family Contribution (EFC).
  • EFC Parent Contribution (PC) Student
    Contribution (SC)
  • May file the FAFSA by
  • FAFSA on the Web (FOTW) at www.fafsa.gov Parents
    and students must get a PIN at www.pin.ed.gov
    prior to completing FAFSA on the Web. Helps to
    complete pre-application worksheet as well.

24
To File FAFSA On The Web www.fafsa.gov (NOT
fafsa.com)
  • FIRST REGISTER FOR A PIN at www.pin.ed.gov The
    PIN number is available immediately. You may
    self select a number. You use the PIN number for
    all federal resources.
  • If the student is dependent for financial aid
    purposes BOTH student and parent must each
    apply for their own pin number .

25
  • Financial Aid Packaging

26
Packaging Objectives
  • Finding the best combination of aid to meet a
    students financial need given limited resources
    and constraints.
  • Distribute resources fairly and equitably.
  • Set realistic self-help expectations.
  • Offer relevant work experience.
  • Recruit students

Although some colleges may use a generous
Financial Aid Package to attract/recruit
students, many colleges do not package students
who have not completed the admission process.
Some colleges will provide prospective students
an estimate of aid if asked.
27
Considerations in Packaging
  • Type and amount of funds available
  • Institutional priorities
  • Length of academic year
  • Cost of attendance
  • Community service
  • Programs requirements
  • Students year in school
  • Academic major
  • Availability of other resources
  • Debt level of students
  • Family financial strength
  • Enrollment for multiple start dates

28
Construction of the Financial Aid Package
  • Generally speaking, a college will construct a
    financial aid package in this order
  • 1st gift aid from the federal and state programs
    for which a student is eligible
  • 2nd college and/or private donor gift aid (can
    include non-need based aid) and
  • 3rd self-help programs (loan and work) are added
    last.
  • But, each college will have its own packaging
    philosophy, subject to aid program regulations
    and availability of funds

29
No Matter How Good The Financial Aid Package..
  • If a full-ride package is presented to a
    student for a college which is not a good
    personal fit or does not offer the academic
    programs in which the student is interested, the
    economics at play may lead the student to
    accept that package and enroll at the college
    anyway.
  • An unhappy student is not likely to complete the
    term and that is time and money that can not be
    recovered.

30
We Need YOU!
  • College Goal Sunday will be on Sunday, February
    12, 2012!
  • Volunteer Call Out CGS is an event held
    throughout the U.S. to help college-bound
    students in the financial aid process. Your
    valued expertise is needed!
  • If you would like to volunteer An announcement
    is forthcoming in the form of an email through
    CounselorTalk that will indicate where the 40
    event sites will be located throughout the state,
    and how to register to volunteer or you may go
    directly to the Indiana website at
    http//www.collegegoalsunday.org

31
Resources

32
Common Websites/Phone Numbers or Reference
Materials Available
  • 2012-2013 FAFSA on the Web Worksheet (Available
    in Spanish and in Braille) Order www.FSAPubs.org
    or call 1-800-394-7084. Shipping will begin in
    October
  • 2012-2013 Free Application for Federal Student
    Aid (FAFSA) (Available in Spanish or Braille).
    Order www.FSAPubs.org or call 1-800-394-7084
  • Counselors and Mentors Handbook on Federal
    Student Aid A Guide for those advising students
    about Financial Aid for Postsecondary Education
    Available to order NOW! Order www.FSAPubs.org
    or call 1-800-394-7084
  • College Goal Sunday (February 12, 2012)
    http//www.collegegoalsunday.org
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