Title: Parts of this presentation come from the National Association of Student Financial Aid Administrators (NASFAA)
1Financial Aid Resource Guide for
Counselors2012-2013 FAFSA
- Parts of this presentation come from the National
Association of Student Financial Aid
Administrators (NASFAA)
2Financial Aid Basics and New Regulations
3General 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.)
4Types and Sources of Financial Aid
- TYPES
- Grants and Scholarships
- Loans and Work Self Help
- SOURCES
- Federal Government
- State Government
- College
- Private Donors
- Lenders
5Federal 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)
6Federal 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.
-
7T.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.
8Campus-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.
9Federal 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 .
10Federal 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.
11Federal Loan Programs
12Federal 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.
13Federal 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)
14Additional 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
15Federal Stafford Loan Interest Rates2012 - 2013
- Subsidized Loan 6.8 fixed rate
- Unsubsidized Loan 6.8 fixed rate
16Repayment of Federal Stafford Loans
- Six-month grace period.
- Maximum repayment period between 10 and 20 years
depending on repayment plan chosen.
17Federal 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
18Federal 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.
19Other 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)
20Other 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.
21Free Application For Federal Student Aid
22FAFSA 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
-
23Free 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.
24To 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 26Packaging 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.
27Considerations 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
28Construction 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
29No 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.
30We 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
31Resources
32Common 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